MKTG 490 Fall 07 Exam Pool

MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***
Marketing Management, 14
Chapter 3: Collecting Information and Forecasting Demand
ISBN: 978013 10 9 ! "#thor: $hilip %otler& %e'in (ane %ellercop)right * 01 $earson +d#cation
Collecting Information and Forecasting Demand
The severe economic recession that began in 2008 led many firms to cut their prices and use sales to try to retain customers. Andy Kropa/Redux ictures
In This Chapter, We Will Address the Following Questions ! "hat are the components of a modern mar#eting information system$ 2 "hat are useful internal records for such a system$ % "hat ma#es up a mar#eting intelligence system$
& "hat are some influential macroenvironment developments$ ' (o) can companies accurately measure and forecast demand$ Making marketing decisions in a fast-changing world is both an art and a science. To provide context* insight* and inspiration for mar#eting decision ma#ing* companies must possess comprehensive* up+to+ date information about macro trends* as )ell as about micro effects particular to their business. (olistic mar#eters recogni,e that the mar#eting environment is constantly presenting ne) opportunities and threats* and they understand the importance of continuously monitoring* forecasting* and adapting to that environment.
The severe credit crunch and economic slowdown of 20082009 brought profound changes in consumer behavior as shoppers cut and reallocated spending. Sales of discretionary purchases like toys apparel !ewelry and home furnishings dropped. Sales of lu"ury brands like #ercedes$driven for years by free%spending baby boomers$declined by a staggering one%third. #eanwhile brands that offered simple affordable solutions prospered. &eneral #ills's revenues from such favorites as (heerios )heaties *rogresso soup and +amburger +elper rose. (onsumers also changed how and where they shopped and sales of low%priced private label brands soared. ,irtually all marketers were asking themselves whether a new age of prudence and frugality
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had emerged and if so what would be the appropriate response.
sidenote Firms are adjusting the wa they do business for more reasons than -ust the economy. .irtually every industry has been touched by dramatic shifts in the technological* demographic* social+cultural* natural* and political+legal environments. /n this chapter* )e consider ho) firms can develop processes to identify and trac# important macroenvironment trends. "e also outline ho) mar#eters can develop good sales forecasts. 0hapter & )ill revie) ho) they conduct more customi,ed research on specific mar#eting problems.
Components of a Modern Marketing Information System

The ma-or responsibility for identifying significant mar#etplace changes falls to the company1s mar#eters. 2ar#eters have t)o advantages for the tas#3 disciplined methods for collecting information* and time spent interacting )ith customers and observing competitors and other outside groups. 4ome firms have mar#eting information systems that provide rich detail about buyer )ants* preferences* and behavior. !u"ont
5u ont commissioned mar#eting studies to uncover personal pillo) behavior for its 5acron olyester unit* )hich supplies filling to pillo) ma#ers and sells its o)n 0omforel brand. 6ne challenge is that people don1t give up their old pillo)s3 %7 percent of one sample described their relationship )ith their pillo) as being li#e that of 8an old married couple*9 and an additional !% percent said their pillo) )as li#e a 8childhood friend.9 Respondents fell into distinct groups in terms of pillo) behavior3 stac#ers :2% percent;* plumpers :20 percent;* rollers or folders :!< percent;* cuddlers :!< percent;* and smashers* )ho pound their pillo)s into a more comfy shape :!0 percent;. "omen )ere more li#ely to plump* men to fold. The prevalence of stac#ers led the company to sell more pillo)s pac#aged as pairs* as )ell as to mar#et different levels of softness or firmness. ! 2ar#eters also have extensive information about ho) consumption patterns vary across and )ithin countries. 6n a per capita basis* for example* the 4)iss consume the most chocolate* the 0,echs the most beer* the ortuguese the most )ine* and the =ree#s the most cigarettes. Table %.! summari,es these and other comparisons across countries. 0onsider regional differences )ithin the >nited 4tates3 4eattle1s residents buy more toothbrushes per person than in any other >.4. city* people in 4alt ?a#e 0ity eat more candy bars* @e) 6rleans residents use more #etchup* and people in 2iami drin# more prune -uice.2 Table #$% A &lobal "rofile of '(tremes (ighest fertility rate (ighest education expenditure as @iger Kiribati
<.88 c
percent of =5 (ighest number of mobile phone subscribers ?argest number of airports (ighest military expenditure as percent of =5 ?argest refugee population (ighest divorce rate (ighest color T. o)nership per !00 households 2obile telephone subscribers per capita (ighest cinema attendance Diggest beer drin#ers per capita Diggest )ine drin#ers per capita (ighest number of smo#ers per capita (ighest =5 per person ?argest aid donors as B of =5 2ost economically dependent on agriculture 0hina >nited 4tates 6man a#istan Aruba >nited Arab Cmirates ?ithuania /ndia 0,ech Republic ortugal =reece ?uxembourg 4)eden ?iberia !%8.!
2!
&.& d
!*&7%*&
8!.
%%.
8.2 ci
(ighest population in )or#force (ighest percent of )omen in )or#force 2ost cro)ded road net)or#s 2ost deaths in road accidents 2ost tourist arrivals (ighest life expectancy (ighest diabetes rate
0ayman /slands Delarus Eatar 4outh Africa France Andorra >nited Arab Cmirates
28%.<
%! #
!A.'B
)ource*(-. )orld /act 0ook* https3//))).cia.gov/library/publications/the+)orld+ factboo#/geos/xx.html* accessed Guly 2&* 200AH The 1conomist's *ocket )orld in /igures* 200A edition* ))).economist.com.
A )ell+researched and )ell+executed mar#eting campaign for the state of 2ichigan increased tourism and state tax revenue. 0ourtesy of The 2ichigan Cconomic 5evelopment 0orporation
0ompanies )ith superior information can choose their mar#ets better* develop better offerings* and execute better mar#eting planning. The 2ichigan Cconomic 5evelopment 0orporation :2C50; studied the demographic information of its visitors and those of competing 2id)estern cities to create a ne) mar#eting message and tourism campaign. The information helped 2C50 attract %.8 million ne) trips to 2ichigan* I80' million in ne) visitor spending* and I'< million in incremental state tax revenue over the period 200&J
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2008.% Cvery firm must organi,e and distribute a continuous flo) of information to its mar#eting managers. A marketing information s stem +MI), consists of people* eKuipment* and procedures to gather* sort* analy,e* evaluate* and distribute needed* timely* and accurate information to mar#eting decision ma#ers. /t relies on internal company records* mar#eting intelligence activities* and mar#eting research. "e1ll discuss the first t)o components here* and the third one in the next chapter. The company1s mar#eting information system should be a mixture of )hat managers thin# they need* )hat they really need* and )hat is economically feasible. An internal 2/4 committee can intervie) a cross+section of mar#eting managers to discover their information needs. Table %.2 displays some useful Kuestions to as# them. Table #$- Information .eeds "robes ! "hat decisions do you regularly ma#e$ . 2 "hat information do you need to ma#e these decisions$ . % "hat information do you regularly get$ . & "hat special studies do you periodically reKuest$ . ' "hat information )ould you )ant that you are not getting no)$ .
< "hat information )ould you )ant daily$ "ee#ly$ 2onthly$ Learly$ .
7 "hat online or offline ne)sletters* briefings* blogs* reports* or ma . to see on a regular basis$ 8 "hat topics )ould you li#e to be #ept informed of$ . A "hat data analysis and reporting programs )ould you )ant$ .
! "hat are the four most helpful improvements that could be made 0 mar#eting information system$ .
Internal Records
To spot important opportunities and potential problems* mar#eting managers rely on internal reports of orders* sales* prices* costs* inventory levels* receivables* and payables.
The Order to !ayment Cycle

The heart of the internal records system is the order+to+ payment cycle. 4ales representatives* dealers* and customers send orders to the firm. The sales department prepares invoices* transmits copies to various departments* and bac#+orders out+of+stoc# items. 4hipped items generate shipping and billing documents that go to various departments. Decause customers favor firms that can promise timely delivery* companies need to perform these steps Kuic#ly and accurately. 2any use the /nternet and extranets to improve the speed* accuracy* and efficiency of the order+to+payment cycle.
Fossil &roup
Fossil =roup Australia designs and distributes accessories and apparel globally. /ts account executives lac#ed the latest information about pricing and inventory )hile ta#ing )holesale orders. (igh demand items )ere often out of stoc#* creating problem for retailers. After the firm deployed a mobile sales solution that connected account executives )ith current inventory data* the number of sales tied up in bac# orders fell 80 percent. The company can no) provide retailers )ith actual inventory levels and ship orders in hours instead of days.&
Sales Information Systems

2ar#eting managers need timely and accurate reports on current sales. "almart operates a sales and inventory data )arehouse that captures data on every item for every customer* every store* every day and refreshes it every hour. 0onsider the experience of anasonic. "anasonic anasonic ma#es digital cameras* plasma televisions* and other consumer electronics. After missing revenue goals* the company decided to adopt a vendor+managed inventory solution. /nventory distribution then came in line )ith consumption* and availability of products to customers -umped from 70 percent to A' percent. The average )ee#s that product supply sat in anasonic1s
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channels )ent from 2' )ee#s to -ust ' )ee#s )ithin a year* and unit sales of the targeted plasma television rose from 20*000 to approximately !00*000. Dest Duy* the initial retailer covered by the vendor+managed inventory model* has since elevated anasonic from a Tier % 4upplier to a Tier ! 8=o+To9 Drand for plasma televisions.'
anasonic1s ne) vendor+managed inventory system met )ith mar#etplace success* including from retailers. Dloomberg/=etty /mages* /nc.
0ompanies that ma#e good use of 8coo#ies*9 records of "eb site usage stored on personal bro)sers* are smart users of targeted mar#eting. 2any consumers are happy to cooperate3 A recent survey sho)ed that &A percent of individuals agreed coo#ies are important to them )hen using the /nternet. @ot only do they not delete coo#ies* but they also expect customi,ed mar#eting appeals and deals once they accept them. 0ompanies must carefully interpret the sales data* ho)ever* so as not to dra) the )rong conclusions. 2ichael 5ell gave this illustration3 8/f you have three yello) 2ustangs sitting on a dealer1s lot and a customer )ants a red one* the salesman may be really good at figuring out ho) to sell the yello) 2ustang. 4o the yello) 2ustang gets sold* and a signal gets sent bac# to the factory that* hey* people )ant yello) 2ustangs.9 <
Data"ases, Data #areho$sing, and Data Mining

0ompanies organi,e their information into customer* product* and salesperson databasesMand then combine their data. The customer database )ill contain every
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customer1s name* address* past transactions* and sometimes even demographics and psychographics :activities* interests* and opinions;. /nstead of sending a mass 8carpet bombing9 mailing of a ne) offer to every customer in its database* a company )ill ran# its customers according to factors such as purchase recency* freKuency* and monetary value :RF2; and send the offer to only the highest+scoring customers. Desides saving on mailing expenses* such manipulation of data can often achieve a double+digit response rate. 0ompanies ma#e these data easily accessible to their decision ma#ers. Analysts can 8mine9 the data and garner fresh insights into neglected customer segments* recent customer trends* and other useful information. 2anagers can cross+tabulate customer information )ith product and salesperson information to yield still+deeper insights. >sing in+house technology* "ells Fargo can trac# and analy,e every ban# transaction made by its !0 million retail customersM)hether at AT2s* at ban# branches* or online. "hen it combines transaction data )ith personal information provided by customers* "ells Fargo can come up )ith targeted offerings to coincide )ith a customer1s life+changing event. As a result* compared )ith the industry average of 2.2 products per customer* "ells Fargo sells & products.7 Dest Duy is also ta#ing advantage of these ne) rich databases. /est /u Dest Duy has assembled a !'+plus terabyte database )ith seven years of data on 7' million households. /t captures information about every interactionMfrom phone calls and mouse clic#s to delivery and rebate+ chec# addressesMand then deploys sophisticated algorithms to classify over three+Kuarters of its
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customers* or more than !00 million individuals* into profiled categories such as 8Du,,9 :the young technology buff;* 8Gill9 :the suburban soccer mom;* 8Darry9 :the )ealthy professional guy;* and 8Ray9 :the family man;. The firm also applies a customer lifetime value model that measures transaction+level profitability and factors in customer behaviors that increase or decrease the value of the relationship. Kno)ing so much about consumers allo)s Dest Duy to employ precision mar#eting and customer+triggered incentive programs )ith positive response rates.8
Dest Duy uses a massive database to develop profiles )ith )hich to classify its customers. Dloomberg/=etty /mages* /nc.
Marketing Intelligence
The Marketing Intelligence System
A marketing intelligence s stem is a set of procedures and sources that managers use to obtain everyday information about developments in the mar#eting environment. The internal records system supplies results data* but the mar#eting intelligence system supplies happenings data. 2ar#eting managers collect mar#eting intelligence in a variety of different )ays* such as by reading boo#s* ne)spapers* and trade publicationsH tal#ing to customers* suppliers* and distributorsH monitoring social media on the /nternetH and meeting )ith other company managers. Defore the /nternet* sometimes you -ust had to go out in the field* literally* and )atch the competition. This is )hat oil and gas entrepreneur T. Doone ic#ens did. 5escribing ho) he learned about a rival1s drilling
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activity* ic#ens recalls* 8"e )ould have someone )ho )ould )atch Nthe rival1sO drilling floor from a half mile a)ay )ith field glasses. 6ur competitor didn1t li#e it but there )asn1t anything they could do about it. 6ur spotters )ould )atch the -oints and drill pipe. They )ould count themH each NdrillO -oint )as %0 feet long. Dy adding up all the -oints* you )ould be able to tally the depth of the )ell.9 ic#ens #ne) that the deeper the )ell* the more costly it )ould be for his rival to get the oil or gas up to the surface* and this information provided him )ith an immediate competitive advantage.A 2ar#eting intelligence gathering must be legal and ethical. /n 200<* the private intelligence firm 5iligence paid auditor K 2= I!.7 million for having illegally infiltrated it to acKuire an audit of a Dermuda+based investment firm for a Russian conglomerate. 5iligence1s cofounder posed as a Dritish intelligence officer and convinced a member of the audit team to share confidential documents.!0 A company can ta#e eight possible actions to improve the Kuantity and Kuality of its mar#eting intelligence. After describing the first seven* )e devote special attention to the eighth* collecting mar#eting intelligence on the /nternet.
Train and motivate the sales force to spot and report new developments.The company must 8sell9 its sales force on their importance as intelligence gatherers. =race erformance 0hemicals* a division of ". R. =race* supplies materials and chemicals to the construction and pac#aging industries. /ts sales reps )ere instructed to observe the innovative )ays customers used its
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products in order to suggest possible ne) products. 4ome )ere using =race )aterproofing materials to soundproof their cars and patch boots and tents. 4even ne)+product ideas emerged* )orth millions in sales.!! Motivate distributors, retailers, and other intermediaries to pass along important intelligence.2ar#eting intermediaries are often closer to the customer and competition and can offer helpful insights. 0onAgra has initiated a study )ith some of its retailers such as 4afe)ay* Kroger* and "almart to study ho) and )hy people buy its foods. Finding that shoppers )ho bought their 6rville Redenbacher and Act // brands of popcorn tended to also buy 0o#e* 0onAgra )or#ed )ith the retailers to develop in+store displays for both products. 0ombining retailers1 data )ith its o)n Kualitative insights* 0onAgra learned that many mothers s)itched to time+saving meals and snac#s )hen school started. /t launched its 84easons of 2om9 campaign to help grocers ad-ust to seasonal shifts in household needs.!2 Hire external experts to collect intelligence. 2any companies hire specialists to gather mar#eting intelligence.!% 4ervice providers and retailers send mystery shoppers to their stores to assess cleanliness of facilities* product Kuality* and the )ay employees treat customers. (ealth care facilities1 use of mystery patients has led to improved estimates of )ait times* better explanations of medical procedures* and less+stressful programming on the )aiting room T..!& Network internally and externally.The firm can purchase competitors1 products* attend open houses and trade sho)s* read competitors1
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published reports* attend stoc#holders1 meetings* tal# to employees* collect competitors1 ads* consult )ith suppliers* and loo# up ne)s stories about competitors. et up a customer advisory panel.2embers of advisory panels might include the company1s largest* most outspo#en* most sophisticated* or most representative customers. For example* =laxo4mithKline sponsors an online community devoted to )eight loss and says it is learning far more than it could have gleamed from focus groups on topics from pac#aging its )eight+loss pill to )here to place in+store mar#eting.!' Take advantage of government!related data resources.The >.4. 0ensus Dureau provides an in+ depth loo# at the population s)ings* demographic groups* regional migrations* and changing family structure of the estimated %0&*0'A*72& people in the >nited 4tates :as of Guly !* 2008;. 0ensus mar#eter @ielsen 0laritas cross+references census figures )ith consumer surveys and its o)n grassroots research for clients such as The "eather 0hannel* D2"* and 4overeign Dan#. artnering )ith 8list houses9 that provide customer phone and address information* @ielsen 0laritas can help firms select and purchase mailing lists )ith specific clusters.!< "urchase information from outside research firms and vendors."ell+#no)n data suppliers include firms such as the A.0. @ielsen 0ompany and /nformation Resources /nc. They collect information about product sales in a variety of categories and consumer exposure to various media. They also gather consumer+panel data much more cheaply than mar#eters manage on their o)n. Di,%<0 and
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its online content partners* for example* provide real+time coverage and analysis of ne)s media and consumer opinion information from over 70*000 traditional and social media sources :print* broadcast* "eb sites* blogs* and message boards;.!7
Collecting Marketing Intelligence on the Internet

Than#s to the explosion of outlets available on the /nternet* online customer revie) boards* discussion forums* chat rooms* and blogs can distribute one customer1s experiences or evaluation to other potential buyers and* of course* to mar#eters see#ing information about the consumers and the competition. There are five main )ays mar#eters can research competitors1 product strengths and )ea#nesses online.!8 #ndependent customer goods and service review forums./ndependent forums include "eb sites such as Cpinions.com* Rate/tAll.com* 0onsumerRevie).com* and Di,rate.com. Di,rate.com collects millions of consumer revie)s of stores and products each year from t)o sources3 its !.% million volunteer members* and feedbac# from stores that allo) Di,rate.com to collect it directly from their customers as they ma#e purchases. $istributor or sales agent feedback sites.Feedbac# sites offer positive and negative product or service revie)s* but the stores or distributors have built the sites themselves. Ama,on.com offers an interactive feedbac# opportunity through )hich buyers* readers* editors* and others can revie) all products on the site* especially boo#s. Clance.com is an online professional services provider that allo)s contractors to describe their experience and level of satisfaction )ith subcontractors.
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%ombo sites offering customer reviews and expert opinions.0ombination sites are concentrated in financial services and high+tech products that reKuire professional #no)ledge. P5@et.com* an online advisor on technology products* offers customer comments and evaluations based on ease of use* features* and stability* along )ith expert revie)s. The advantage is that a product supplier can compare experts1 opinions )ith those of consumers. %ustomer complaint sites.0ustomer complaint forums are designed mainly for dissatisfied customers. lanetFeedbac#.com allo)s customers to voice unfavorable experiences )ith specific companies. Another site* 0omplaints.com* lets customers vent their frustrations )ith particular firms or offerings. "ublic blogs.Tens of millions of blogs and social net)or#s exist online* offering personal opinions* revie)s* ratings* and recommendations on virtually any topicMand their numbers continue to gro). Firms such as @ielsen1s Du,,2etrics and 4cout ?abs analy,e blogs and social net)or#s to provide insights into consumer sentiment.
Comm$nicating and %cting on Marketing Intelligence

/n some companies* the staff scans the /nternet and ma-or publications* abstracts relevant ne)s* and disseminates a ne)s bulletin to mar#eting managers. The competitive intelligence function )or#s best )hen it is closely coordinated )ith the decision+ma#ing process.!A
Tic#et bro#er 4tub(ub monitors online activity so that )hen confusion
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arose over a rainout at a @e) Lor# Lan#ees game* for instance* it )as able to respond Kuic#ly. =etty /mages* /nc.
=iven the speed of the /nternet* it is important to act Kuic#ly on information gleaned online. (ere are t)o companies that benefited from a proactive approach to online information320 "hen tic#et bro#er 4tub(ub detected a sudden surge of negative sentiment about its brand after confusion arose about refunds for a rain+delayed Lan#eesJRed 4ox game* it -umped in to offer appropriate discounts and credits. The director of customer service observed* 8This NepisodeO is a canary in a coal mine for us.9 "hen 0o#e1s monitoring soft)are spotted a T)itter post that )ent to !0*000 follo)ers from an upset consumer )ho couldn1t redeem a pri,e from a 2y0o#e re)ards program* 0o#e Kuic#ly posted an apology on his T)itter profile and offered to help resolve the situation. After the consumer got the pri,e* he changed his T)itter avatar to a photo of himself holding a 0o#e bottle.
%naly&ing the Macroen'ironment

4uccessful companies recogni,e and respond profitably to unmet needs and trends.
(eeds and Trends

Cnterprising individuals and companies manage to create ne) solutions to unmet needs. 5oc#ers )as created to meet the needs of baby boomers )ho could no longer fit into their -eans and )anted a physically and psychologically comfortable pair of pants. ?et1s distinguish among fads* trends* and megatrends.
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A fad is 8unpredictable* short+lived* and )ithout social* economic* and political significance.9 A company can cash in on a fad such as 0rocs clogs* Clmo T2Q dolls* and o#Rmon gifts and toys* but getting it right reKuires luc# and good timing.2! A direction or seKuence of events )ith momentum and durability* a trend is more predictable and durable than a fadH trends reveal the shape of the future and can provide strategic direction. A trend to)ard health and nutrition a)areness has brought increased government regulation and negative publicity for firms seen as peddling unhealthy food. 2acaroni =rill revamped its menu to include more lo)+calorie and lo)+fat offerings after a )ave of bad press3 The Today Show called its chic#en and articho#e sand)ich 8the calorie eKuivalent of !< Fudgesicles*9 and in its annual list of unhealthy restaurant dishes* #en's +ealth declared its !*<%0 calorie dessert ravioli the 8)orst dessert in America.922 A megatrend is a 8large social* economic* political* and technological change NthatO is slo) to form* and once in place* influences us for some timeM bet)een seven and ten years* or longer.92% To help mar#eters spot cultural shifts that might bring ne) opportunities or threats* several firms offer social+cultural forecasts. The Lan#elovich 2onitor intervie)s 2*'00 people nationally each year and has trac#ed %' social value and lifestyle trends since !A7!* such as 8anti+bigness*9 8mysticism*9 8living for today*9 8a)ay from possessions*9 and 8sensuousness.9 A ne) mar#et opportunity doesn1t guarantee success* of course* even if the ne) product is technically feasible. 2ar#et research is necessary to determine an opportunity1s profit
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potential.
Identifying the Ma)or Forces

The end of the first decade of the ne) century brought a series of ne) challenges3 the steep decline of the stoc# mar#et* )hich affected savings* investment* and retirement fundsH increasing unemploymentH corporate scandalsH stronger indications of global )arming and other signs of deterioration in the national environmentH and of course* the rise of terrorism. These dramatic events )ere accompanied by the continuation of many existing trends that have already profoundly influenced the global landscape.2& Firms must monitor six ma-or forces in the broad environment3 demographic* economic* social+cultural* natural* technological* and political+legal. "e1ll describe them separately* but remember that their interactions )ill lead to ne) opportunities and threats. For example* explosive population gro)th :demographic; leads to more resource depletion and pollution :natural;* )hich leads consumers to call for more la)s :political+legal;* )hich stimulate ne) technological solutions and products :technological; that* if they are affordable :economic;* may actually change attitudes and behavior :social+cultural;.
The Demographic *n'ironment

5emographic developments often move at a fairly predictable pace. The main one mar#eters monitor is population* including the si,e and gro)th rate of population in cities* regions* and nationsH age distribution and ethnic mixH educational levelsH household patternsH and regional characteristics and movements.
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#orld+ide !op$lation ,ro+th "orld population gro)th is explosive3 Carth1s population totaled <.8 billion in 20!0 and )ill exceed A billion by 20&0.2' Table %.% offers an interesting perspective.2< Table #$# The World as a 0illage /f the )orld )ere a village of !00 people3
S <! villagers )ould be Asian :of that* 20 )ould be 0hinese and !7 ) )ould be African* !! )ould be Curopean* 8 )ould be ?atin or 4outh @orth American* and only one of the villagers )ould be from Austra Antarctica.
S At least !8 villagers )ould be unable to read or )rite but %% )ould h !< )ould be online on the /nternet.
S !8 villagers )ould be under !0 years of age and !! )ould be over < be an eKual number of males and females. S There )ould be !8 cars in the village. S <% villagers )ould have inadeKuate sanitation.
S %2 villagers )ould be 0hristians* 20 )ould be 2uslims* !& )ould be Duddhists* !< )ould be non+religious* and the remaining !2 )ould b religions.
S %0 villagers )ould be unemployed or underemployed* )hile of those )ould )or# in agriculture :primary sector;* !& )ould )or# in indust and the remaining 28 )ould )or# in the service sector :tertiary sect
S '% villagers )ould live on less than t)o >.4. dollars a day. 6ne villa villagers )ould smo#e* and !& villagers )ould be obese.
S Dy the end of a year* one villager )ould die and t)o ne) villagers )
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population )ould climb to !0!. )ource* 5avid G. 4mith and 4helagh Armstrong* -f the )orld )ere a ,illage2 . 0ook .bout the )orld's *eople * 2nd ed. :Tona)anda* @L3 Kids 0an ress* 2002;. opulation gro)th is highest in countries and communities that can least afford it. 5eveloping regions of the )orld currently account for 8& percent of the )orld population and are gro)ing at ! percent to 2 percent per yearH the population in developed countries is gro)ing at only 0.% percent.27 /n developing countries* modern medicine is lo)ering the death rate* but the birthrate remains fairly stable. A gro)ing population does not mean gro)ing mar#ets unless there is sufficient purchasing po)er. 0are and education of children can raise the standard of living but are nearly impossible to accomplish in most developing countries. @onetheless* companies that carefully analy,e these mar#ets can find ma-or opportunities. 4ometimes the lessons from developing mar#ets are helping businesses in developed mar#ets. 4ee 82ar#eting /nsight3 Finding =old at the Dottom of the yramid.9 !op$lation %ge Mi2exico has a very young population and rapid population gro)th. At the other extreme is /taly* )ith one of the )orld1s oldest populations. 2il#* diapers* school supplies* and toys )ill be more important products in 2exico than in /taly. There is a global trend to)ard an aging population. /n !A'0* there )ere only !%! million people <' and olderH in !AA'* their number had almost tripled to %7! million. Dy 20'0* one of ten people )orld)ide )ill be <' or
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older. /n the >nited 4tates* boomersMthose born bet)een !A&< and !A<&Mrepresent a mar#et of some %< million* about !2 percent of the population. Dy 20!!* the <'+and+over population )ill be gro)ing faster than the population as a )hole in each of the '0 states. 28 2ar#eters generally divide the population into six age groups3 preschool children* school+age children* teens* young adults age 20 to &0* middle+aged adults &0 to <'* and older adults <' and older. 4ome mar#eters focus on cohorts* groups of individuals born during the same time period )ho travel through life together. The defining moments they experience as they come of age and become adults :roughly ages !7 through 2&; can stay )ith them for a lifetime and influence their values* preferences* and buying behaviors. Marketing Insight* Finding &old at the /ottom of the " ramid Dusiness )riter 0.K. rahalad believes much innovation can come from developments in emerging mar#ets such as 0hina and /ndia. (e estimates there are ' billion unserved and underserved people at the so+called 8bottom of the pyramid.9 6ne study sho)ed that & billion people live on I2 or less a day. Firms operating in those mar#ets have had to learn ho) to do more )ith less. /n Dangalore* /ndia* @arayana (rudayalaya (ospital charges a flat fee of I!*'00 for heart bypass surgery that costs '0 times as much in the >nited 4tates. The hospital has lo) labor and operating expenses and an assembly+line vie) of care that has specialists focus on their o)n area. The approach )or#sMthe hospital1s
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mortality rates are half those of >.4. hospitals. @arayana also operates on hundreds of infants for free and profitably insures 2.' million poor /ndians against serious illness for !! cents a month. 6verseas firms are also finding creative solutions in developing countries. /n Dra,il* /ndia* Castern Curope* and other mar#ets* 2icrosoft launched its pay+as+you+go Flex=o program* )hich allo)s users to prepay to use a fully loaded 0 only for as long as )anted or needed )ithout having to pay the full price the 0 )ould normally command. "hen the payment runs out* the 0 stops operating and the user prepays again to restart it. 6ther firms find 8reverse innovation9 advantages by developing products in countries li#e 0hina and /ndia and then distributing them globally. After =C successfully introduced a I!*000 handheld electrocardiogram device for rural /ndia and a portable* 0+based ultrasound machine for rural 0hina* it began to sell them in the >nited 4tates. @estlR repositioned its lo)+fat 2aggi brand dried noodlesMa popular* lo)+ priced meal for rural a#istan and /ndiaMas a budget+ friendly health food in Australia and @e) Pealand.
hotographer3 2orad Doucha#our. 0ourtesy of =eneral Clectric 0ompany
)ources* 0.K. rahalad* The /ortune at the 0ottom of the *yramid :>pper 4addle River* @G3 "harton 4chool ublishing* 20!0;H Dill Dreen* 80.K. rahalad3 yramid 4chemer*9 /ast (ompany* 2arch 2007* p. 7AH ete Cngardio* 8Dusiness rophet3 (o) 0.K. rahalad /s 0hanging the "ay 0C6s Thin#*9 0usiness)eek* Ganuary 2%* 200<* pp. <8J7%H Reena Gane* 8/nspiration from
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Cmerging Cconomies*9 0usiness)eek* 2arch 2% and %0* 200A* pp. %8J&!H Geffrey R. /mmelt* .i-ay =ovindara-an* and 0hris Trimble* 8(o) =C /s 5isrupting /tself*9 +arvard 0usiness 3eview* 6ctober 200A* pp. '<J<'H eter G. "illiamson and 2ing Peng* 8.alue+for+2oney 4trategies for Recessionary Times*9 +arvard 0usiness 3eview* 2arch 200A* pp. <<J7&. *thnic and Other Markets Cthnic and racial diversity varies across countries. At one extreme is Gapan* )here almost everyone is GapaneseH at the other is the >nited 4tates* )here nearly 2' million peopleMmore than A percent of the populationM)ere born in another country. As of the 2000 census* the >.4. population )as 72 percent "hite* !% percent African American* and !! percent (ispanic. The (ispanic population has been gro)ing fast and is expected to ma#e up !8.A percent of the population by 2020H its largest subgroups are of 2exican :'.& percent;* uerto Rican :!.! percent;* and 0uban :0.& percent; descent. Asian Americans constituted %.8 percent of the >.4. populationH 0hinese are the largest group* follo)ed by Filipinos* Gapanese* Asian /ndians* and Koreans* in that order. The gro)th of the (ispanic population represents a ma-or shift in the nation1s center of gravity. (ispanics made up half of all ne) )or#ers in the past decade and )ill account for 2' percent of )or#ers in t)o generations. 5espite lagging family incomes* their disposable income has gro)n t)ice as fast as the rest of the population and could reach I!.2 trillion by 20!2. From the food >.4. consumers eat* to the clothing* music* and cars they buy* (ispanics are having a huge impact.
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0ompanies are scrambling to refine their products and mar#eting to reach this fastest+gro)ing and most influential consumer group32A Research by (ispanic media giant >nivision suggests 70 percent of 4panish+ language vie)ers are more li#ely to buy a product )hen it1s advertised in 4panish. Fisher+ rice* recogni,ing that many (ispanic mothers did not gro) up )ith its brand* shifted a)ay from appeals to their heritage. /nstead* its ads emphasi,e the -oy of mother and child playing together )ith Fisher+ rice toys.%0 4everal food* clothing* and furniture companies have directed products and promotions to one or more ethnic groups.%! Let mar#eters must not overgenerali,e. "ithin each ethnic group are consumers Kuite different from each other.%2 For instance* a 200' Lan#elovich 2onitor 2ulticultural 2ar#eting study separated the African American mar#et into six sociobehavioral segments3 Cmulators* 4ee#ers* Reachers* Attainers* Clites* and 0onservers. The largest and perhaps most influential are the Reachers :2& percent; and Attainers :27 percent;* )ith very different needs. Reachers* around &0* are slo)ly )or#ing to)ard the American dream. 6ften single parents caring for elderly relatives* they have a median income of I28*000 and see# the greatest value for their money. Attainers have a more defined sense of self and solid plans for the future. Their median income is I''*000* and they )ant ideas and information to improve their Kuality of life.%% 5iversity goes beyond ethnic and racial mar#ets. 2ore than '! million >.4. consumers have disabilities* and they constitute a mar#et for home delivery companies* such as eapod* and for various drugstore chains. *d$cational ,ro$ps
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The population in any society falls into five educational groups3 illiterates* high school dropouts* high school diplomas* college degrees* and professional degrees. 6ver t)o+thirds of the )orld1s 78' million illiterate adults are found in only eight countries :/ndia* 0hina* Dangladesh* a#istan* @igeria* Cthiopia* /ndonesia* and Cgypt;H of all illiterate adults in the )orld* t)o+thirds are )omen.%& The >nited 4tates has one of the )orld1s highest percentages of college+educated citi,ens3 '& percent of those 2' years or older have had 8some college or more*9 28 percent have bachelor1s degrees* and !0 percent have advanced degrees. The large number of educated people in the >nited 4tates drives strong demand for high+Kuality boo#s* maga,ines* and travel* and creates a high supply of s#ills. .o$sehold !atterns The traditional household consists of a husband* )ife* and children :and sometimes grandparents;. Let by 20!0* only one in five >.4. households )ill consist of a married couple )ith children under !8. 6ther households are single live+alones :27 percent;* single+parent families :8 percent;* childless married couples and empty nesters :%2 percent;* living )ith nonrelatives only :' percent;* and other family structures :8 percent;. %' 2ore people are divorcing or separating* choosing not to marry* marrying later* or marrying )ithout intending to have children. Cach group has distinctive needs and buying habits. The single* separated* )ido)ed* and divorced may need smaller apartmentsH inexpensive and smaller appliances* furniture* and furnishingsH and smaller+si,e food pac#ages.%< @ontraditional households are gro)ing more rapidly than traditional households. Academics and mar#eting
28
experts estimate that the gay and lesbian population ranges bet)een & percent and 8 percent of the total >.4. population* higher in urban areas.%7 Cven so+called traditional households have experienced change. Doomer dads marry later than their fathers or grandfathers did* shop more* and are much more active in raising their #ids. To appeal to them* the ma#er of the high+concept Dugaboo stroller designed a model )ith a slee# loo# and dirt bi#eJstyle tires. 5yson* the high+end vacuum company* is appealing to dads1 inner gee# by focusing on the machine1s revolutionary technology. Defore 5yson entered the >.4. mar#et* men )eren1t even on the radar for vacuum cleaner sales. @o) they ma#e up &0 percent of 5yson1s customers. %8
The *conomic *n'ironment

The available purchasing po)er in an economy depends on current income* prices* savings* debt* and credit availability. As the recent economic do)nturn vividly demonstrated* trends affecting purchasing po)er can have a strong impact on business* especially for companies )hose products are geared to high+income and price+sensitive consumers. Cons$mer !sychology 5id ne) consumer spending patterns during the 2008J 200A recession reflect short+term* temporary ad-ustments or long+term* permanent changes$ %A 4ome experts believed the recession had fundamentally sha#en consumers1 faith in the economy and their personal financial situations. 82indless9 spending )ould be outH )illingness to comparison shop* haggle* and use discounts )ould become the norm. 6thers maintained tighter spending reflected a mere economic constraint and not a fundamental behavioral change. Thus*
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consumers1 aspirations )ould stay the same* and spending )ould resume )hen the economy improves. /dentifying the more li#ely long+term scenarioM especially )ith the coveted !8+ to %&+year+old age group M)ould help to direct ho) mar#eters spend their money. After six months of research and development in the baby boomer mar#et* 4tar)ood launched a 8style at a steal9 initiative to offer affordable but stylish hotel alternatives to its high+end "* 4heraton* and "estin chains. Targeting an audience see#ing both thrift and luxury* it introduced t)o ne) lo)+cost chains3 Aloft* designed to reflect the urban cool of loft apartments* and Clement* suites )ith every 8element9 of modern daily lives* including healthy food choices and spa+li#e bathrooms.&0
4tar)ood1s Aloft hotel chain blends urban chic )ith affordable prices. 4tar)ood (otels T Resorts
Income Distri"$tion There are four types of industrial structures3 subsistence economies li#e apua @e) =uinea* )ith fe) opportunities for mar#etersH raw%material%e"porting economies li#e 5emocratic Republic of 0ongo :copper; and 4audi Arabia :oil;* )ith good mar#ets for eKuipment* tools* supplies* and luxury goods for the richH industriali4ing economies li#e /ndia* Cgypt* and the hilippines* )here a ne) rich class and a gro)ing middle class demand ne) types of goodsH and industrial economies li#e "estern Curope* )ith rich mar#ets for all sorts of goods. 2ar#eters often distinguish countries using five
30
income+distribution patterns3 :!; very lo) incomesH :2; mostly lo) incomesH :%; very lo)* very high incomesH :&; lo)* medium* high incomesH and :'; mostly medium incomes. 0onsider the mar#et for the ?amborghini* an automobile costing more than I!'0*000. The mar#et )ould be very small in countries )ith type ! or 2 income patterns. 6ne of the largest single mar#ets for ?amborghinis is ortugal :income pattern %;Mone of the poorer countries in "estern Curope* but )ith enough )ealthy families to afford expensive cars. Income, Sa'ings, De"t, and Credit 0onsumer expenditures are affected by income levels* savings rates* debt practices* and credit availability. >.4. consumers have a high debt+to+income ratio* )hich slo)s expenditures on housing and large+tic#et items. "hen credit became scarcer in the recession* especially to lo)er+income borro)ers* consumer borro)ing dropped for the first time in t)o decades. The financial meltdo)n that led to this contraction )as due to overly liberal credit policies that allo)ed consumers to buy homes and other items they could really not afford. 2ar#eters )anted every possible sale* ban#s )anted to earn interest on loans* and near financial ruin resulted. An economic issue of increasing importance is the migration of manufacturers and service -obs offshore. From /ndia* /nfosys provides outsourcing services for 0isco* @ordstrom* 2icrosoft* and others. The 2'*000 employees the fast+gro)ing I& billion company hires every year receive technical* team* and communication training in /nfosys1s I!20 million facility outside Dangalore.&!
The Socioc$lt$ral *n'ironment

From our sociocultural environment )e absorb* almost
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unconsciously* a )orld vie) that defines our relationships to ourselves* others* organi,ations* society* nature* and the universe. &iews of ourselves./n the >nited 4tates during the !A<0s and !A70s* 8pleasure see#ers9 sought fun* change* and escape. 6thers sought 8self+ reali,ation.9 Today* some are adopting more conservative behaviors and ambitions :see Table %.& for favorite consumer leisure+time activities and ho) they have changed* or not* in recent years;. Table #$1 Fa2orite 3eisure-Time Acti2ities !AA 200 ' 8 B 28 2' !2 8 !0 2 A ' 8 B %0 2& 20 8 7 7 ' ' <
Reading T. )atching 4pending time )ith family/#ids =oing to movies Fishing 0omputer activities =ardening Renting movies "al#ing
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Cxercise :aerobics* )eights;
)ource* (arris /nteractive* 84pontaneous* >naided Responses to3 U"hat Are Lour T)o or Three 2ost Favorite ?eisure+Time Activities$19 http3//))).harrisinteractive.com/harrisVpoll/index. asp$ /5WA80. Dase3 All Adults. &iews of others. eople are concerned about the homeless* crime and victims* and other social problems. At the same time* they see# those li#e themselves for long+lasting relationships* suggesting a gro)ing mar#et for social+support products and services such as health clubs* cruises* and religious activity as )ell as 8social surrogates9 li#e television* video games* and social net)or#ing sites.
&iews of organi'ations.After a )ave of layoffs and corporate scandals* organi,ational loyalty has declined.&2 0ompanies need ne) )ays to )in bac# consumer and employee confidence. They need to ensure they are good corporate citi,ens and that their consumer messages are honest.&% &iews of society.4ome people defend society :preservers;* some run it :ma#ers;* some ta#e )hat they can from it :ta#ers;* some )ant to change it :changers;* some are loo#ing for something deeper :see#ers;* and still others )ant to leave it :escapers;.&& 0onsumption patterns often reflect these social attitudes. 2a#ers are high achievers )ho eat* dress* and live )ell. 0hangers usually live more frugally* drive smaller cars* and )ear simpler clothes. Cscapers and see#ers are a
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ma-or mar#et for movies* music* surfing* and camping. &iews of nature.Dusiness has responded to increased a)areness of nature1s fragility and finiteness by producing )ider varieties of camping* hi#ing* boating* and fishing gear such as boots* tents* bac#pac#s* and accessories. &iews of the universe.2ost >.4. citi,ens are monotheistic* although religious conviction and practice have )aned through the years or been redirected into an interest in evangelical movements or Castern religions* mysticism* the occult* and the human potential movement. 6ther cultural characteristics of interest to mar#eters are the high persistence of core cultural values and the existence of subcultures. ?et1s loo# at both. .igh !ersistence of Core C$lt$ral /al$es 2ost people in the >nited 4tates still believe in )or#ing* getting married* giving to charity* and being honest. (ore beliefs and values are passed from parents to children and reinforced by social institutionsMschools* churches* businesses* and governments. Secondary beliefs and values are more open to change. Delieving in the institution of marriage is a core beliefH believing people should marry early is a secondary belief. 2ar#eters have some chance of changing secondary values* but little chance of changing core values. The nonprofit organi,ation 2others Against 5run# 5rivers :2A55; does not try to stop the sale of alcohol but promotes lo)er legal blood+alcohol levels for driving and limited operating hours for businesses that sell alcohol.
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Although core values are fairly persistent* cultural s)ings do ta#e place. /n the !A<0s* hippies* the Deatles* Clvis resley* and other cultural phenomena had a ma-or impact on hairstyles* clothing* sexual norms* and life goals. Today1s young people are influenced by ne) heroes and activities3 the alternative roc# band =reen 5ay* the @DA1s ?eDron Games* and sno)boarder and s#ateboarder 4haun "hite.
Den Da#er/Redux ictures
Loung people may be influenced by a diverse range of heroes* from bas#etball player ?eDron Games to pun#+roc# band =reen 5ay. eter 5a4ilva/The @e) Lor# Times/Redux ictures
*-istence of S$"c$lt$res Cach society contains subcultures* groups )ith shared values* beliefs* preferences* and behaviors emerging from their special life experiences or circumstances. 2ar#eters have al)ays loved teenagers because they are trendsetters in fashion* music* entertainment* ideas* and attitudes. Attract someone as a teen* and you )ill li#ely #eep the person as a customer later in life. Frito+ ?ay* )hich dra)s !' percent of its sales from teens* noted a rise in chip snac#ing by gro)nups. 8"e thin# it1s because )e brought them in as teenagers*9 said Frito+ ?ay1s mar#eting director.&'
The (at$ral *n'ironment

/n "estern Curope* 8green9 parties have pressed for public action to reduce industrial pollution. /n the >nited 4tates* experts have documented ecological
35
deterioration* and )atchdog groups such as the 4ierra 0lub and Friends of the Carth carry these concerns into political and social action. Cnvironmental regulations hit certain industries hard. 4teel companies and public utilities have invested billions of dollars in pollution+control eKuipment and environmentally friendly fuels* ma#ing hybrid cars* lo)+ flo) toilets and sho)ers* organic foods* and green office buildings everyday realities. 6pportunities a)ait those )ho can reconcile prosperity )ith environmental protection. 0onsider these solutions to concerns about air Kuality3&< @early a Kuarter of the carbon dioxide that ma#es up about 80 percent of all greenhouse gases comes from electrical po)er plants. 5ublin+based Airtricity operates )ind farms in the >nited 4tates and the >nited Kingdom that offer cheaper and greener electricity. Transportation is second only to electricity generation as a contributor to global )arming* accounting for roughly a fifth of carbon emissions. .ancouver+ based "estport /nnovations developed a conversion technologyMhigh+pressure direct in-ectionMthat allo)s diesel engines to run on cleaner+burning liKuid natural gas* reducing greenhouse emissions by a fourth.Actor and environmental activist Cd Degley Gr. examines a
solar oven.Reed 4axon/A "ide "orld hotos
5ue to millions of rural coo#ing fires* parts of 4outhern Asia suffer extremely poor air Kuality. A person coo#ing over an open )ood or #erosene fire inhales the eKuivalent of t)o pac#s of cigarettes a day. /llinois+based 4un 6vens /nternational ma#es family+si,ed and institutional solar ovens that use mirrors to redirect the sun1s rays into an insulated
36
box. >sed in !%0 countries* the oven both saves money and reduces greenhouse gas emissions. (orporate environmentalism recogni,es the need to integrate environmental issues into the firm1s strategic plans. Trends in the natural environment for mar#eters to be a)are of include the shortage of ra) materials* especially )aterH the increased cost of energyH increased pollution levelsH and the changing role of governments. :4ee also 82ar#eting /nsight3 The =reen 2ar#eting Revolution.9;&7 The earth1s ra) materials consist of the infinite* the finite rene)able* and the finite nonrene)able. Firms )hose products reKuire finite nonrenewable resourcesMoil* coal* platinum* ,inc* silverMface substantial cost increases as depletion approaches. Firms that can develop substitute materials have an excellent opportunity. 6ne finite nonrene)able resource* oil* has created serious problems for the )orld economy. As oil prices soar* companies search for practical means to harness solar* nuclear* )ind* and other alternative energies. 4ome industrial activity )ill inevitably damage the natural environment* creating a large mar#et for pollution+control solutions such as scrubbers* recycling centers* and landfill systems as )ell as for alternative )ays to produce and pac#age goods. 2any poor nations are doing little about pollution* lac#ing the funds or the political )ill. /t is in the richer nations1 interest to help them control their pollution* but even richer nations today lac# the necessary funds.
The Technological *n'ironment

/t is the essence of mar#et capitalism to be dynamic and
37
tolerate the creative destructiveness of technology as the price of progress. Transistors hurt the vacuum+tube industry* and autos hurt the railroads. Television hurt the ne)spapers* and the /nternet hurt them both. "hen old industries fight or ignore ne) technologies* their businesses decline. To)er Records had ample )arning that its music retail business )ould be hurt by /nternet do)nloads of music :as )ell as the gro)ing number of discount music retailers;. /ts failure to respond led to the liKuidation of all its domestic physical stores in 200<. Marketing Insight* The &reen Marketing 4e2olution 0onsumers1 environmental concerns are real. =allup polls reveal the percentage of >.4. adults )ho believe global )arming )ill pose a serious threat during their lifetime has increased from 2' percent in !AA8 to &0 percent in 2008. A 2ediamar# Research T /ntelligence study in 2008 found that almost t)o+thirds of >.4. men and )omen stated that 8preserving the environment as a guiding principle in your life9 )as 8very important.9 A )ashington *ost5.0( @e)s/4tanford >niversity poll in 2007 found that A& percent of respondents )ere 8)illing9 to 8personally change some of the things you do in order to improve the environment*9 )ith '0 percent saying they )ere 8very )illing.9 0onverting this concern into concerted consumer action on the environment* ho)ever* )ill be a longer+term process. A 2008 T@4 survey found that only 2< percent of Americans said they )ere 8actively see#ing environmentally friendly products.9 A 2008 =allup poll
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found that only 28 percent of respondents claimed to have made 8ma-or changes9 in their o)n shopping and living habits over the past five years to protect the environment. 6ther research reported that consumers )ere more concerned )ith closer to home environmental issues such as )ater pollution in rivers and la#es than broader issues such as global )arming. As is often the case* behavioral change is follo)ing attitudinal change for consumers. @evertheless* as research by =fK Roper 0onsulting sho)s* consumer expectations as to corporate behavior )ith the environment have significantly changed* and in many cases these expectations are higher than the demands they place on themselves. 0onsumers vary* ho)ever* in their environmental sensitivity and can be categori,ed into five groups based on their degree of commitment :see Figure %.!;. /nterestingly* although some mar#eters assume that younger people are more concerned about the environment than older consumers* some research suggests that older consumers actually ta#e their eco+responsibilities more seriously. Figure #$% Consumer 'n2ironmental )egments
(enuine (reens )*+,-.This segment is the most li#ely to thin# a 4ome may be true environmental activists* but most probably fa the category of strong advocates. This group sees fe) barriers to green and may be open to partnering )ith mar#eters on environ initiatives. Not Me (reens )*/,-.This segment expresses very pro+green at behaviors are only moderate* perhaps because these people per barriers to living green. There may be a sense among this group is too big for them to handle* and they may need encouragemen action.
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(o!with!the!0low (reens )*1,-.This group engages in some gr Mmostly the 8easy9 ones such as recycling. Dut being green is n for them* and they seem to ta#e the path of least resistance. Th only ta#e action )hen it1s convenient for them. $ream (reens )*2,-.This segment cares a great deal about the but doesn1t seem to have the #no)ledge or resources to ta#e ac group may offer the greatest opportunity to act green if given th 3usiness 0irst (reens )42,-.This segment1s perspective is that environment is not a huge concern and that business and indust part to help. This may explain )hy they don1t feel the need to ta themselvesMeven as they cite lots of barriers to doing so. Mean (reens )*2,-.This group claims to be #no)ledgeable abou environmental issues* but does not express pro+green attitudes /ndeed* it is practically hostile to)ard pro+environmental ideas. T has chosen to re-ect prevailing notions about environmental prot may even be vie)ed as a potential threat to green initiatives. )ource* =fK Roper =reen =auge 2007* =fK Roper 0onsulting* @e) Lor#* @L.
X
/n the past* the 8green mar#eting9 programs launched by companies around specific products )ere not al)ays entirely successful for several possible reasons. 0onsumers might have thought that the product )as inferior because it )as green* or that it )as not even really green to begin )ith. Those green products that )ere successful* ho)ever* persuaded consumers that they )ere acting in their o)n and society1s long+run interest at the same time. 4ome examples )ere organic foods that )ere seen as healthier* tastier* and safer* and energy+efficient appliances that )ere seen as costing less to run. There are some expert recommendations as to ho) to avoid 8green mar#eting myopia9 by focusing on
40
consumer value positioning* calibration of consumer #no)ledge* and the credibility of product claims. 6ne challenge )ith green mar#eting is the difficulty consumers have in understanding the environmental benefits of products* leading to many accusations of 8green)ashing9 )here products are not nearly as green and environmentally beneficial as their mar#eting might suggest. Although there have been green products emphasi,ing their natural benefits for yearsMTom1s of 2aine* Durt1s Dees* 4tonyfield Farm* and 4eventh =eneration to name -ust a fe)Mproducts offering environmental benefits are becoming more mainstream. art of the success of 0lorox =reen "or#s cleaning products and household cleaning products* launched in Ganuary 2008* )as that it found the s)eet spot of a target mar#et )anting to ta#e smaller steps to)ard a greener lifestyle and matched that )ith a green product )ith a very modest price premium and sold through a grassroots mar#eting program. Cnvironmental concerns are affecting ho) virtually every ma-or company does their business3 "alt 5isney 0orp. has pledged to reduce its solid )aste by 20!%* conserve millions of gallons of )ater* invest in rene)able energy* and become completely carbon neutral :reaching '0 percent of that goal by 20!2;H Dest Duy has expanded its recycling program for electronicsH 0aterpillar announced plans to reduce the =(= emissions of its entire product line by 20 percent by 2020H and "hole Foods* a leader among national supermar#et chains in selling certified 8organic food9 already* cofounded a partnership to reduce emissions from grocery refrigerators and offsets !00 percent of its electricity use )ith rene)able energy via )ind+energy credits.
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Toyota* ( * /KCA* rocter T =amble* and "almart have all been lin#ed to high+profile environmental and sustainability programs. 4ome other mar#eters* fearing harsh scrutiny or unrealistic expectations* #eep a lo)er profile. Cven though @i#e uses recycled snea#ers in its soles of ne) shoes* they chose not to publici,e that fact so that they can #eep their focus on performance and )inning. The rules of the game in green mar#eting are changing rapidly as both consumers and companies respond to problems and proposed solutions to the significant environmental problems that exist.
0lorox1s =reen "or#s has been a huge mar#et hit by combining environmental benefits )ith affordability. 2ichelle emberton//ndianapolis 4tar/Rapport ress/@e)scom
)ources* Gerry Adler* 8=oing =reen*9 6ewsweek* Guly !7* 200<* pp. &%J'2H GacKuelyn A. 6ttman* Cd)in R. 4tafford* and 0athy ?. (artman* 8Avoiding =reen 2ar#eting 2yopia*9 1nvironment :Gune 200<;3 22J%<H Gill 2eredith =insberg and aul @. Dloom* 80hoosing the Right =reen 2ar#eting 4trategy*9 #-T Sloan #anagement 3eview :Fall 200&;3 7AJ8&H GacKuelyn 6ttman* &reen #arketing2 7pportunity for -nnovation* 2nd ed. :@e) Lor#3 Doo#4urge ublishing* 200&;H 2ar# 5olliver* 85eflating a 2yth*9 0randweek* 2ay !2* 2008* pp. %0J%!H 8"inner3 0orporate 4ustainability* "alt 5isney "orld)ide*9 Travel and 8eisure* @ovember 200A* p. !0<H 8The =reenest Dig 0ompanies in America* 6ewsweek* 4eptember 28* 200A* pp. %&J'%H 4arah 2ahoney* 8Dest Duy 0onnects =reen )ith Thrift*9 #edia *ost 6ews2 #arketing 9aily* Ganuary 28* 200AH Reena Gana* 8@i#e Euietly =oes =reen*9 0usiness)eek* Gune
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!!* 200A. 2a-or ne) technologies stimulate the economy1s gro)th rate. >nfortunately* bet)een innovations* an economy can stagnate. 2inor innovations fill the gapM ne) supermar#et products such as fro,en )affles* body )ashes* and energy bars might pop upMbut )hile lo)er ris#* they can also divert research effort a)ay from ma-or brea#throughs. /nnovation1s long+run conseKuences are not al)ays foreseeable. The contraceptive pill reduced family si,e and thus increased discretionary incomes* also raising spending on vacation travel* durable goods* and luxury items. 0ell phones* video games* and the /nternet are reducing attention to traditional media* as )ell as face+ to+face social interaction as people listen to music or )atch a movie on their cell phones. 2ar#eters should monitor the follo)ing technology trends3 the accelerating pace of change* unlimited opportunities for innovation* varying RT5 budgets* and increased regulation of technological change. %ccelerating !ace of Change 2ore ideas than ever are in the )or#s* and the time bet)een idea and implementation is shrin#ing. 4o is the time bet)een introduction and pea# production. Apple ramped up in seven years to sell a staggering 220 million i ods )orld)ide by 4eptember 200A. 0nlimited Opport$nities for Inno'ation 4ome of the most exciting )or# today is ta#ing place in biotechnology* computers* microelectronics* telecommunications* robotics* and designer materials. Researchers are )or#ing on A/54 vaccines* safer contraceptives* and nonfattening foods. They are
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developing ne) classes of antibiotics to fight ultra+ resistant infections* superheating furnaces to reduce trash to ra) materials* and building miniature )ater+ treatment plants for remote locations.&8 /arying R1D 2$dgets A gro)ing portion of >.4. RT5 expenditures goes to the development as opposed to the research side* raising concerns about )hether the >nited 4tates can maintain its lead in basic science. 2any companies put their money into copying competitors1 products and ma#ing minor feature and style improvements. Cven basic research companies such as 5o) 0hemical* Dell ?aboratories* and fi,er are proceeding cautiously* and more consortiums than single companies are directing research efforts to)ard ma-or brea#throughs. Increased Reg$lation of Technological Change =overnment has expanded its agencies1 po)ers to investigate and ban potentially unsafe products. /n the >nited 4tates* the Food and 5rug Administration :F5A; must approve all drugs before they can be sold. 4afety and health regulations have increased for food* automobiles* clothing* electrical appliances* and construction.
The !olitical 3egal *n'ironment

The political and legal environment consists of la)s* government agencies* and pressure groups that influence various organi,ations and individuals. 4ometimes these la)s create ne) business opportunities. 2andatory recycling la)s have boosted the recycling industry and launched do,ens of ne) companies ma#ing ne) products from recycled materials. T)o ma-or trends are the increase in business legislation and the gro)th of special+interest groups.
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Text messaging is profoundly changing ho) consumers choose to communicate. Dlend /mages/Alamy /mages
Increase in 2$siness 3egislation Dusiness legislation is intended to protect companies from unfair competition* protect consumers from unfair business practices* protect society from unbridled business behavior* and charge businesses )ith the social costs of their products or production processes. Cach ne) la) may also have the unintended effect of sapping initiative and slo)ing gro)th. The Curopean 0ommission has established ne) la)s covering competitive behavior* product standards* product liability* and commercial transactions for the 27 member nations of the Curopean >nion. The >nited 4tates has many consumer protection la)s covering competition* product safety and liability* fair trade and credit practices* and pac#aging and labeling* but many countries1 la)s are stronger.&A @or)ay bans several forms of sales promotionMtrading stamps* contests* and premiumsMas inappropriate or unfair. Thailand reKuires food processors selling national brands to mar#et lo)+ price brands also* so lo)+income consumers can find economy brands. /n /ndia* food companies need special approval to launch duplicate brands* such as another cola drin# or brand of rice. As more transactions ta#e place in cyberspace* mar#eters must establish ne) )ays to do business ethically. ,ro+th of Special Interest ,ro$ps olitical action committees : A0s; lobby government officials and pressure business executives to respect the
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rights of consumers* )omen* senior citi,ens* minorities* and gays and lesbians. /nsurance companies directly or indirectly affect the design of smo#e detectorsH scientific groups affect the design of spray products. 2any companies have established public affairs departments to deal )ith these groups and issues. The consumerist mo2ement organi,ed citi,ens and government to strengthen the rights and po)ers of buyers in relationship to sellers. 0onsumerists have )on the right to #no) the real cost of a loan* the true cost per standard unit of competing brands :unit pricing;* the basic ingredients and true benefits of a product* and the nutritional Kuality and freshness of food. rivacy issues and identity theft )ill remain public policy hot buttons as long as consumers are )illing to s)ap personal information for customi,ed productsM from mar#eters they trust.'0 0onsumers )orry they )ill be robbed or cheatedH that private information )ill be used against themH that they )ill be bombarded by solicitationsH and that children )ill be targeted. '! "ise companies establish consumer affairs departments to formulate policies and resolve complaints.
Forecasting and Demand Meas$rement

>nderstanding the mar#eting environment and conducting mar#eting research :described in 0hapter &; can help to identify mar#eting opportunities. The company must then measure and forecast the si,e* gro)th* and profit potential of each ne) opportunity. 4ales forecasts prepared by mar#eting are used by finance to raise cash for investment and operationsH by manufacturing to establish capacity and outputH by purchasing to acKuire the right amount of suppliesH and by human resources to hire the needed )or#ers. /f the
46
forecast is off the mar#* the company )ill face excess or inadeKuate inventory. 4ince it1s based on estimates of demand* managers need to define )hat they mean by mar#et demand. Although 5u ont1s erformance 2aterials group #no)s 5u ont Tyve# has 70 percent of the I!00 million mar#et for air+barrier membranes* they see greater opportunity )ith more products and services to tap into the entire I7 billion >.4. home construction mar#et.'2
The Meas$res of Market Demand

0ompanies can prepare as many as A0 different types of demand estimates for six different product levels* five space levels* and three time periods :see Figure %.2;. Cach demand measure serves a specific purpose. A company might forecast short+run demand to order ra) materials* plan production* and borro) cash. /t might forecast regional demand to decide )hether to set up regional distribution. Figure #$- .inet T pes of !emand Measurement +5 6 7 6 #,
There are many productive )ays to brea# do)n the mar#et3
The potential market is the set of consumers )ith a sufficient level of interest in a mar#et offer. (o)ever* their interest is not enough to define a mar#et unless they also have sufficient income and access to the product. The a2ailable market is the set of consumers )ho have interest* income* and access to a particular offer. The company or government may restrict
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sales to certain groupsH a particular state might ban motorcycle sales to anyone under 2! years of age. Cligible adults constitute the :ualified available marketMthe set of consumers )ho have interest* income* access* and Kualifications for the mar#et offer. The target market is the part of the Kualified available mar#et the company decides to pursue. The company might concentrate its mar#eting and distribution effort on the Cast 0oast. The penetrated market is the set of consumers )ho are buying the company1s product. These definitions are a useful tool for mar#et planning. /f the company isn1t satisfied )ith its current sales* it can try to attract a larger percentage of buyers from its target mar#et. /t can lo)er the Kualifications for potential buyers. /t can expand its available mar#et by opening distribution else)here or lo)ering its price* or it can reposition itself in the minds of its customers.
% /oca"$lary for Demand Meas$rement

The ma-or concepts in demand measurement are mar#et demand and company demand. "ithin each* )e distinguish among a demand function* a sales forecast* and a potential. Market Demand The mar#eter1s first step in evaluating mar#eting opportunities is to estimate total mar#et demand. Market demand for a product is the total volume that )ould be bought by a defined customer group in a defined geographical area in a defined time period in a defined mar#eting environment under a defined mar#eting program. 2ar#et demand is not a fixed number* but rather a
48
function of the stated conditions. For this reason* )e call it the market demand function. /ts dependence on underlying conditions is illustrated in Figure %.%:a;. The hori,ontal axis sho)s different possible levels of industry mar#eting expenditure in a given time period. The vertical axis sho)s the resulting demand level. The curve represents the estimated mar#et demand associated )ith varying levels of mar#eting expenditure. Figure #$# Market !emand Functions
4ome base salesMcalled the market minimum and labeled ; in the figureM)ould ta#e place )ithout any demand+stimulating expenditures. (igher mar#eting expenditures )ould yield higher levels of demand* first at an increasing rate* then at a decreasing rate. Ta#e fruit -uices. =iven the indirect competition they face from other types of beverages* )e )ould expect increased mar#eting expenditures to help fruit -uice products stand out and increase demand and sales. 2ar#eting expenditures beyond a certain level )ould not stimulate much further demand* suggesting an upper limit called the market potential and labeled ; in the figure.
! 2
The distance bet)een the mar#et minimum and the mar#et potential sho)s the overall marketing sensitivity of demand. "e can thin# of t)o extreme types of mar#ets* the expansible and the nonexpansible. An e"pansible market* such as the mar#et for racKuetball playing* is very much affected in si,e by the level of industry mar#eting expenditures. /n terms of Figure %.%:a;* the distance bet)een ; and ; is relatively large. A none"pansible marketMfor example* the mar#et
! 2
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for )ee#ly trash or garbage removalMis not much affected by the level of mar#eting expendituresH the distance bet)een ; and ; is relatively small. 6rgani,ations selling in a nonexpansible mar#et must accept the mar#et1s si,eMthe level of primary demand for the product classMand direct their efforts to)ard )inning a larger market share for their product* that is* a higher level of selective demand for their product.
! 2
/t pays to compare the current and potential levels of mar#et demand. The result is the market-penetration inde(. A lo) index indicates substantial gro)th potential for all the firms. A high index suggests it )ill be expensive to attract the fe) remaining prospects. =enerally* price competition increases and margins fall )hen the mar#et+penetration index is already high. 0omparing current and potential mar#et shares yields a firm1s share-penetration inde(. /f this index is lo)* the company can greatly expand its share. (olding it bac# could be lo) brand a)areness* lo) availability* benefit deficiencies* or high price. A firm should calculate the share+penetration increases from removing each factor* to see )hich investments produce the greatest improvement.'% Remember the mar#et demand function is not a picture of mar#et demand over time. Rather* it sho)s alternative current forecasts of mar#et demand associated )ith possible levels of industry mar#eting effort. Market Forecast 6nly one level of industry mar#eting expenditure )ill actually occur. The mar#et demand corresponding to this level is called the market forecast.
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Market !otential The mar#et forecast sho)s e"pected mar#et demand* not maximum mar#et demand. For the latter* )e need to visuali,e the level of mar#et demand resulting from a very high level of industry mar#eting expenditure* )here further increases in mar#eting effort )ould have little effect. Market potential is the limit approached by mar#et demand as industry mar#eting expenditures approach infinity for a given mar#eting environment. The phrase 8for a given mar#et environment9 is crucial. 0onsider the mar#et potential for automobiles. /t1s higher during prosperity than during a recession. The dependence of mar#et potential on the environment is illustrated in Figure %.%:b;. 2ar#et analysts distinguish bet)een the position of the mar#et demand function and movement along it. 0ompanies cannot do anything about the position of the mar#et demand function* )hich is determined by the mar#eting environment. (o)ever* they influence their particular location on the function )hen they decide ho) much to spend on mar#eting. 0ompanies interested in mar#et potential have a special interest in the product-penetration percentage* the percentage of o)nership or use of a product or service in a population. 0ompanies assume that the lo)er the product+penetration percentage* the higher the mar#et potential* although this also assumes everyone )ill eventually be in the mar#et for every product. Company Demand Compan demand is the company1s estimated share of mar#et demand at alternative levels of company mar#eting effort in a given time period. /t depends on
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ho) the company1s products* services* prices* and communications are perceived relative to the competitors1. 6ther things eKual* the company1s mar#et share depends on the relative scale and effectiveness of its mar#et expenditures. 2ar#eting model builders have developed sales response functions to measure ho) a company1s sales are affected by its mar#eting expenditure level* mar#eting mix* and mar#eting effectiveness.'& Company Sales Forecast 6nce mar#eters have estimated company demand* their next tas# is to choose a level of mar#eting effort. The compan sales forecast is the expected level of company sales based on a chosen mar#eting plan and an assumed mar#eting environment. "e represent the company sales forecast graphically )ith sales on the vertical axis and mar#eting effort on the hori,ontal axis* as in Figure %.%. "e often hear that the company should develop its mar#eting plan on the basis of its sales forecast. This forecast+to+plan seKuence is valid if forecast means an estimate of national economic activity* or if company demand is nonexpansible. The seKuence is not valid* ho)ever* )here mar#et demand is expansible or )here forecast means an estimate of company sales. The company sales forecast does not establish a basis for deciding )hat to spend on mar#eting. 6n the contrary* the sales forecast is the result of an assumed mar#eting expenditure plan. T)o other concepts are important here. A sales 8uota is the sales goal set for a product line* company division* or sales representative. /t is primarily a managerial device for defining and stimulating sales effort* often set
52
slightly higher than estimated sales to stretch the sales force1s effort. A sales budget is a conservative estimate of the expected volume of sales* primarily for ma#ing current purchasing* production* and cash flo) decisions. /t1s based on the need to avoid excessive ris# and is generally set slightly lo)er than the sales forecast. Company Sales !otential Compan sales potential is the sales limit approached by company demand as company mar#eting effort increases relative to that of competitors. The absolute limit of company demand is* of course* the mar#et potential. The t)o )ould be eKual if the company got !00 percent of the mar#et. /n most cases* company sales potential is less than the mar#et potential* even )hen company mar#eting expenditures increase considerably. Cach competitor has a hard core of loyal buyers unresponsive to other companies1 efforts to )oo them.
*stimating C$rrent Demand

"e are no) ready to examine practical methods for estimating current mar#et demand. 2ar#eting executives )ant to estimate total mar#et potential* area mar#et potential* and total industry sales and mar#et shares. Total Market !otential Total market potential is the maximum sales available to all firms in an industry during a given period* under a given level of industry mar#eting effort and environmental conditions. A common )ay to estimate total mar#et potential is to multiply the potential number of buyers by the average Kuantity each purchases* times
53
the price. /f !00 million people buy boo#s each year* and the average boo# buyer buys three boo#s a year at an average price of I20 each* then the total mar#et potential for boo#s is I< billion :!00 million Y % Y I20;. The most difficult component to estimate is the number of buyers. "e can al)ays start )ith the total population in the nation* say* 2<! million people. @ext )e eliminate groups that obviously )ould not buy the product. Assume illiterate people and children under !2 don1t buy boo#s and constitute 20 percent of the population. This means 80 percent of the population* or 20A million people* are in the potentials pool. Further research might tell us that people of lo) income and lo) education don1t buy boo#s* and they constitute over %0 percent of the potentials pool. Climinating them* )e arrive at a prospect pool of approximately !&<.% million boo# buyers. "e use this number to calculate total mar#et potential. A variation on this method is the chain%ratio method* )hich multiplies a base number by several ad-usting percentages. 4uppose a bre)ery is interested in estimating the mar#et potential for a ne) light beer especially designed to accompany food. /t can ma#e an estimate )ith the follo)ing calculation3
5ema Y opulati Y Average Y Average Y Average Y Average nd for on percentage percenta percenta percenta the of personal ge of ge of ge of ne) discretiona amount amount amount light ry income spent on spent on spent on beer per capita food that beverage alcoholi spent on is spent s that is beverag
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food
on beverage s
spent on alcoholic beverage s
s that is spent on beer
%rea Market !otential Decause companies must allocate their mar#eting budget optimally among their best territories* they need to estimate the mar#et potential of different cities* states* and nations. T)o ma-or methods are the mar#et+ buildup method* used primarily by business mar#eters* and the multiple+factor index method* used primarily by consumer mar#eters. Market 2$ild$p Method The market-buildup method calls for identifying all the potential buyers in each mar#et and estimating their potential purchases. /t produces accurate results if )e have a list of all potential buyers and a good estimate of )hat each )ill buy. >nfortunately* this information is not al)ays easy to gather. 0onsider a machine+tool company that )ants to estimate the area mar#et potential for its )ood lathe in the Doston area. /ts first step is to identify all potential buyers of )ood lathes in the area* primarily manufacturing establishments that shape or ream )ood as part of their operations. The company could compile a list from a directory of all manufacturing establishments in the area. Then it could estimate the number of lathes each industry might purchase* based on the number of lathes per thousand employees or per I! million of sales in that industry. An efficient method of estimating area mar#et potentials ma#es use of the 6orth .merican -ndustry
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(lassification System <6.-(S=* developed by the >.4. Dureau of the 0ensus in con-unction )ith the 0anadian and 2exican governments.'' The @A/04 classifies all manufacturing into 20 ma-or industry sectors and further brea#s each sector into a six+digit* hierarchical structure as follo)s. '! '!% '!%% '!%% 2 '!%% 2! /ndustry sector :information; /ndustry subsector :broadcasting and telecommunications; /ndustry group :telecommunications; /ndustry :)ireless telecommunications carriers* except satellite; @ational industry :>.4. paging;
For each six+digit @A/04 number* a company can purchase 05+R62s of business directories that provide complete company profiles of millions of establishments* subclassified by location* number of employees* annual sales* and net )orth. To use the @A/04* the lathe manufacturer must first determine the six+digit @A/04 codes that represent products )hose manufacturers are li#ely to reKuire lathe machines. To get a full picture of all six+digit @A/04 industries that might use lathes* the company can :!; determine past customers1 @A/04 codesH :2; go through the @A/04 manual and chec# off all the six+digit industries that might have an interest in lathesH :%; mail Kuestionnaires to a )ide range of companies inKuiring about their interest in )ood lathes. The company1s next tas# is to determine an
56
appropriate base for estimating the number of lathes each industry )ill use. 4uppose customer industry sales are the most appropriate base. 6nce the company estimates the rate of lathe o)nership relative to the customer industry1s sales* it can compute the mar#et potential. M$ltiple Factor Inde- Method ?i#e business mar#eters* consumer companies also need to estimate area mar#et potentials* but since their customers are too numerous to list they commonly use a straightfor)ard index. A drug manufacturer might assume the mar#et potential for drugs is directly related to population si,e. /f the state of .irginia has 2.'' percent of the >.4. population* .irginia might be a mar#et for 2.'' percent of total drugs sold. A single factor is rarely a complete indicator of sales opportunity. Regional drug sales are also influenced by per capita income and the number of physicians per !0*000 people. Thus* it ma#es sense to develop a multiple+factor index and assign each factor a specific )eight. 4uppose .irginia has 2.00 percent of >.4. disposable personal income* !.A< percent of >.4. retail sales* and 2.28 percent of >.4. population* and the respective )eights are 0.'* 0.%* and 0.2. The buying+ po)er index for .irginia is then 2.0& N0.':2.00; Z 0.%:!.A<; Z 0.2:2.28;O. Thus 2.0& percent of the nation1s drug sales :not 2.28 percent; might be expected to ta#e place in .irginia. The )eights in the buying+po)er index are some)hat arbitrary* and companies can assign others if appropriate. A manufacturer might ad-ust the mar#et potential for additional factors* such as competitors1 presence* local promotional costs* seasonal factors* and
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mar#et idiosyncrasies. 2any companies compute area indexes to allocate mar#eting resources. 4uppose the drug company is revie)ing the six cities listed in Table %.'. The first t)o columns sho) its percentage of >.4. brand and category sales in these six cities. 0olumn % sho)s the brand de2elopment inde( +/!I,* the index of brand sales to category sales. 4eattle has a D5/ of !!& because the brand is relatively more developed than the category in 4eattle. ortland1s D5/ is <'* )hich means the brand is relatively underdeveloped there. Table #$7 Calculating the /rand !e2elopment Inde( +/!I, :a; ercent of >.4. Drand Territor y 4eattle ortlan d Doston Toledo 0hicag o Daltimo re 4ales %.0A <.7& %.&A .A7 !.!% %.!2 :b; ercent of >.4. 0ategory 4ales 2.7! !0.&! %.8' .8! .8! %.00
D5
:a [ b !0
!!
<'
A!
!2
!&
!0
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@ormally* the lo)er the D5/* the higher the mar#et opportunity* in that there is room to gro) the brand. 6ther mar#eters )ould argue instead that mar#eting funds should go into the brand1s strongest mar#ets* )here it might be important to reinforce loyalty or more easily capture additional brand share. /nvestment decisions should be based on the potential to gro) brand sales. Feeling it )as underperforming in a high+ potential mar#et* Anheuser+Dusch targeted the gro)ing (ispanic population in Texas )ith a number of special mar#eting activities. 0ross+promotions )ith Dud)eiser and 0lamato tomato clam coc#tail :to mix the popular 2ichiladas drin#;* sponsorship of the Csta @oche Toca concert series* and support of ?atin music acts )ith three+on+three soccer tournaments helped drive higher sales.'< After the company decides on the city+by+city allocation of its budget* it can refine each city allocation do)n to census tracts or ,ipZ& code centers. (ensus tracts are small* locally defined statistical areas in metropolitan areas and some other counties. They generally have stable boundaries and a population of about &*000. PipZ& code centers :designed by the >.4. ost 6ffice; are a little larger than neighborhoods. 5ata on population si,e* median family income* and other characteristics are available for these geographical units. >sing other sources such as loyalty card data* 2ediabrands1s =eomentum targets 8hyper+local9 sectors of ,ip codes* city bloc#s* or even individual households )ith ad messages delivered via interactive T.* ,oned editions of ne)spapers* Lello) ages* outdoor media* and local /nternet searches.'7 Ind$stry Sales and Market Shares
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Desides estimating total potential and area potential* a company needs to #no) the actual industry sales ta#ing place in its mar#et. This means identifying competitors and estimating their sales. The industry trade association )ill often collect and publish total industry sales* although it usually does not list individual company sales separately. "ith this information* ho)ever* each company can evaluate its o)n performance against the industry1s. /f a company1s sales are increasing by ' percent a year and industry sales are increasing by !0 percent* the company is losing its relative standing in the industry. Another )ay to estimate sales is to buy reports from a mar#eting research firm that audits total sales and brand sales. @ielsen 2edia Research audits retail sales in various supermar#et and drugstore product categories. A company can purchase this information and compare its performance to the total industry or any competitor to see )hether it is gaining or losing share* overall or brand by brand. Decause distributors typically )ill not supply information about ho) much of competitors1 products they are selling* business+to+business mar#eters operate )ith less #no)ledge of their mar#et share results.
*stimating F$t$re Demand

The fe) products or services that lend themselves to easy forecasting generally en-oy an absolute level or a fairly constant trend* and competition that is either nonexistent :public utilities; or stable :pure oligopolies;. /n most mar#ets* in contrast* good forecasting is a #ey factor in success. 0ompanies commonly prepare a macroeconomic
60
forecast first* follo)ed by an industry forecast* follo)ed by a company sales forecast. The macroeconomic forecast pro-ects inflation* unemployment* interest rates* consumer spending* business investment* government expenditures* net exports* and other variables. The end result is a forecast of gross domestic product :=5 ;* )hich the firm uses* along )ith other environmental indicators* to forecast industry sales. The company derives its sales forecast by assuming it )ill )in a certain mar#et share. (o) do firms develop their forecasts$ They may create their o)n or buy forecasts from outside sources such as mar#eting research firms* )hich intervie) customers* distributors* and other #no)ledgeable parties. 4peciali,ed forecasting firms produce long+range forecasts of particular macroenvironmental components* such as population* natural resources* and technology. Cxamples are /(4 =lobal /nsight :a merger of 5ata Resources and "harton Cconometric Forecasting Associates;* Forrester Research* and the =artner =roup. Futurist research firms produce speculative scenariosH three such firms are the /nstitute for the Future* (udson /nstitute* and the Futures =roup. All forecasts are built on one of three information bases3 )hat people say* )hat people do* or )hat people have done. >sing )hat people say reKuires surveying buyers1 intentions* composites of sales force opinions* and expert opinion. Duilding a forecast on )hat people do means putting the product into a test mar#et to measure buyer response. To use the final basisM)hat people have doneMfirms analy,e records of past buying behavior or use time+series analysis or statistical demand analysis.
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S$r'ey of 2$yers4 Intentions Forecasting is the art of anticipating )hat buyers are li#ely to do under a given set of conditions. For ma-or consumer durables such as appliances* research organi,ations conduct periodic surveys of consumer buying intentions* as# Kuestions li#e 9o you intend to buy an automobile within the ne"t si" months> and put the ans)ers on a purchase probabilit scale3 0.00 @o chance 0.20 4light possibility 0.&0 Fair possibility 0.<0 =ood possibility 0.80 (igh possibility
4urveys also inKuire into consumers1 present and future personal finances and expectations about the economy. They combine bits of information into a consumer confidence measure :0onference Doard; or a consumer sentiment measure :4urvey Research 0enter of the >niversity of 2ichigan;. For business buying* research firms can carry out buyer+intention surveys for plant* eKuipment* and materials* usually falling )ithin a !0 percent margin of error. These surveys are useful in estimating demand for industrial products* consumer durables* product purchases )here advanced planning is reKuired* and ne) products. Their value increases to the extent that buyers are fe)* the cost of reaching them is lo)* and they have clear intentions they )illingly disclose and implement. Composite of Sales Force Opinions "hen buyer intervie)ing is impractical* the company may as# its sales representatives to estimate their future sales. Fe) companies use these estimates
62
)ithout ma#ing some ad-ustments* ho)ever. 4ales representatives might be pessimistic or optimistic* they might not #no) ho) their company1s mar#eting plans )ill influence future sales in their territory* and they might deliberately underestimate demand so the company )ill set a lo) sales Kuota. To encourage better estimating* the company could offer incentives or assistance* such as information about mar#eting plans or past forecasts compared to actual sales. 4ales force forecasts yield a number of benefits. 4ales reps might have better insight into developing trends than any other group* and forecasting might give them greater confidence in their sales Kuotas and more incentive to achieve them. A 8grassroots9 forecasting procedure provides detailed estimates bro#en do)n by product* territory* customer* and sales rep. *-pert Opinion 0ompanies can also obtain forecasts from experts* including dealers* distributors* suppliers* mar#eting consultants* and trade associations. 5ealer estimates are sub-ect to the same strengths and )ea#nesses as sales force estimates. 2any companies buy economic and industry forecasts from )ell+#no)n economic+ forecasting firms that have more data available and more forecasting expertise. 6ccasionally* companies )ill invite a group of experts to prepare a forecast. The experts exchange vie)s and produce an estimate as a group :group%discussion method; or individually* in )hich case another analyst might combine them into a single estimate :pooling of individual estimates;. Further rounds of estimating and refining follo) :the 5elphi method;. '8
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!ast Sales %nalysis Firms can develop sales forecasts on the basis of past sales. Time%series analysis brea#s past time series into four components :trend* cycle* seasonal* and erratic; and pro-ects them into the future. 1"ponential smoothing pro-ects the next period1s sales by combining an average of past sales and the most recent sales* giving more )eight to the latter. Statistical demand analysis measures the impact of a set of causal factors :such as income* mar#eting expenditures* and price; on the sales level. Finally* econometric analysis builds sets of eKuations that describe a system and statistically derives the different parameters that ma#e up the eKuations statistically. Market Test Method "hen buyers don1t plan their purchases carefully* or experts are unavailable or unreliable* a direct+mar#et test can help forecast ne)+product sales or established product sales in a ne) distribution channel or territory. :"e discuss mar#et testing in detail in 0hapter 20.;
S$mmary
!. To carry out their analysis* planning* implementation* and control responsibilities* mar#eting managers need a mar#eting information system :2/4;. The role of the 2/4 is to assess the managers1 information needs* develop the needed information* and distribute that information in a timely manner. An 2/4 has three components3 :a; an internal records system* )hich includes information on the order+to+payment cycle and sales information systemsH :b; a mar#eting intelligence system* a set of procedures and sources used by managers to
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2.
%.
&.
'.
<. 7.
8.
obtain everyday information about pertinent developments in the mar#eting environmentH and :c; a mar#eting research system that allo)s for the systematic design* collection* analysis* and reporting of data and findings relevant to a specific mar#eting situation. 2ar#eters find many opportunities by identifying trends :directions or seKuences of events that have some momentum and durability; and megatrends :ma-or social* economic* political* and technological changes that have long+lasting influence;. "ithin the rapidly changing global picture* mar#eters must monitor six ma-or environmental forces3 demographic* economic* social+cultural* natural* technological* and political+legal. /n the demographic environment* mar#eters must be a)are of )orld)ide population gro)thH changing mixes of age* ethnic composition* and educational levelsH the rise of nontraditional familiesH and large geographic shifts in population. /n the economic arena* mar#eters need to focus on income distribution and levels of savings* debt* and credit availability. /n the social+cultural arena* mar#eters must understand people1s vie)s of themselves* others* organi,ations* society* nature* and the universe. They must mar#et products that correspond to society1s core and secondary values and address the needs of different subcultures )ithin a society. /n the natural environment* mar#eters need to be a)are of the public1s increased concern about the health of the environment. 2any mar#eters are no) embracing sustainability and green mar#eting programs that provide better environmental solutions as a result.
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A.
/n the technological arena* mar#eters should ta#e account of the accelerating pace of technological change* opportunities for innovation* varying RT5 budgets* and the increased governmental regulation brought about by technological change. !0. /n the political+legal environment* mar#eters must )or# )ithin the many la)s regulating business practices and )ith various special+interest groups. !!. There are t)o types of demand3 mar#et demand and company demand. To estimate current demand* companies attempt to determine total mar#et potential* area mar#et potential* industry sales* and mar#et share. To estimate future demand* companies survey buyers1 intentions* solicit their sales force1s input* gather expert opinions* analy,e past sales* or engage in mar#et testing. 2athematical models* advanced statistical techniKues* and computeri,ed data collection procedures are essential to all types of demand and sales forecasting.
%pplications
Marketing De"ate
Is Cons$mer 2eha'ior More a F$nction of a !erson4s %ge or ,eneration5 6ne of the )idely debated issues in developing mar#eting programs that target certain age groups is ho) much consumers change over time. 4ome mar#eters maintain that age differences are critical and that the needs and )ants of a 2'+year+old in 20!0 are not that different from those of a 2'+year+old in !A80. 6thers argue that cohort and generation effects are critical* and that mar#eting programs must therefore suit the times.
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Take a position* Age differences are fundamentall more important than cohort effectsversusCohort effects can dominate age differences.
Marketing Disc$ssion
%ge Targeting "hat brands and products do you feel successfully 8spea# to you9 and effectively target your age group$ "hy$ "hich ones do not$ "hat could they do better$ Marketing '(cellence* 99Microsoft
Games 2. helps* Gr./4hutterstoc#
2icrosoft is the )orld1s most successful soft)are company. The company )as founded by Dill =ates and aul Allen in !A7' )ith the original mission of having 8a computer on every des# and in every home* running 2icrosoft soft)are.9 4ince then* 2icrosoft has gro)n to become the third most valuable brand in the )orld through strategic mar#eting and aggressive gro)th tactics. 2icrosoft1s first significant success occurred in the early !A80s )ith the creation of the 564 operating system for /D2 computers. The company used this initial success )ith /D2 to sell soft)are to other manufacturers* Kuic#ly ma#ing 2icrosoft a ma-or player in the industry. /nitial advertising efforts focused on communicating the company1s range of products from 564 to the launch of Cxcel and "indo)sMall under a unified 82icrosoft9 loo#. 2icrosoft )ent public in !A8< and gre) tremendously over the next decade as the "indo)s operating system and 2icrosoft 6ffice too# off. /n !AA0* 2icrosoft
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launched a completely revamped version of its operating system and named it "indo)s %.0. "indo)s %.0 offered an improved set of "indo)s icons and applications li#e File 2anager and rogram 2anager that are still used today. /t )as an instant successH 2icrosoft sold more than !0 million copies of the soft)are )ithin t)o yearsM a phenomenon in those days. /n addition* "indo)s %.0 became the first operating system to be preinstalled on certain 0s* mar#ing a ma-or milestone in the industry and for 2icrosoft. Throughout the !AA0s* 2icrosoft1s communication efforts convinced businesses that its soft)are )as not only the best choice for business but also that it needed to be upgraded freKuently. 2icrosoft spent millions of dollars in maga,ine advertising and received endorsements from the top computer maga,ines in the industry* ma#ing 2icrosoft "indo)s and 6ffice the must+have soft)are of its time. 2icrosoft successfully launched "indo)s A' in !AA' and "indo)s A8 in !AA8* using the slogan* 8"here 5o Lou "ant to =o Today$9 The slogan didn1t push individual products but rather the company itself* )hich could help empo)er companies and consumers ali#e. 5uring the late !AA0s* 2icrosoft entered the notorious 8bro)ser )ars9 as companies struggled to find their place during the /nternet boom. /n !AA'* @etscape launched its @avigator bro)ser over the /nternet. Reali,ing )hat a good product @etscape had* 2icrosoft launched the first version of its o)n bro)ser* /nternet Cxplorer* later that same year. Dy !AA7* @etscape held a 72 percent share and Cxplorer an !8 percent share. Five years later* ho)ever* @etscape1s share had fallen to & percent.
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5uring those five years* 2icrosoft too# three ma-or steps to overta#e the competition. First* it bundled /nternet Cxplorer )ith its 6ffice product* )hich included Cxcel* "ord* and o)er oint. Automatically* consumers )ho )anted 24 6ffice became Cxplorer users as )ell. 4econd* 2icrosoft partnered )ith A6?* )hich opened the doors to ' million ne) consumers almost overnight. And* finally* 2icrosoft used its deep poc#ets to ensure that /nternet Cxplorer )as available free* essentially 8cutting off @etscape1s air supply.9 These efforts* ho)ever* )ere not )ithout controversy. 2icrosoft faced antitrust charges in !AA8 and numerous la)suits based on its mar#eting tactics* and some perceived that it )as monopoli,ing the industry. 0harges aside* the company1s stoc# too# off* pea#ing in !AAA at I<0 per share. 2icrosoft released "indo)s 2000 in 2000 and "indo)s Q in 200!. /t also launched Qbox in 200!* mar#ing the company1s entrance into the multibillion+dollar gaming industry. 6ver the next several years* 2icrosoft1s stoc# price dipped by over I&0 a share as consumers )aited for the next operating system and Apple made a significant comebac# )ith several ne) 2ac computers* the i od* the i hone* and iTunes. 2icrosoft launched the .ista operating system in 2007 to great expectationsH ho)ever* it )as plagued )ith bugs and problems. As the recession )orsened in 2008* the company found itself in a bind. /ts brand image )as tarnished from years of Apple1s successful 8=et a 2ac9 campaign* a series of commercials that featured a smart* creative* easygoing 2ac character alongside a gee#y* virus+prone* uptight 0 character. /n addition* consumers and analysts continued to slam .ista for its poor
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performance. /n response* 2icrosoft created a campaign entitled 8"indo)s. ?ife "ithout "alls9 to help turn its image around. The company focused on ho) cost effective computers )ith its soft)are )ere* a message that resonated )ell in the recession. /t launched a series of commercials boasting 8/1m a 09 that began )ith a 2icrosoft employee :loo#ing very similar to the 0 character from the Apple ads; stating* 8(ello* /1m a 0 and /1ve been made into a stereotype.9 The commercials* )hich highlighted a )ide variety of individuals )ho prided themselves on being 0 o)ners* helped improve employee morale and customer loyalty. 2icrosoft opened a handful of retail storesMsimilar to Apple storesMin 200A. 8The purpose of opening these stores is to create deeper engagement )ith consumers and continue to learn firsthand about )hat they )ant and ho) they buy*9 2icrosoft said in a statement. Today* the company offers a )ide range of soft)are and home entertainment products. /n the ongoing bro)ser )ars* /nternet Cxplorer holds a << percent mar#et share compared to Firefox1s 22 percent and 4afari1s 8 percent. /n 200A* 2icrosoft launched a ne) search engine called Ding* )hich challenges =oogle1s dominant position in the mar#etplace and claims to give better search results. 2icrosoft1s most profitable products continue to be 2icrosoft "indo)s and 2icrosoft 6ffice* )hich bring in approximately A0 percent of the company1s I<0 billion in revenue.
6$estions
! Cvaluate 2icrosoft1s strategy in good and poor economic times.
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2 5iscuss the pros and cons of 2icrosoft1s most recent 8/1m a 09 cam /s 2icrosoft doing a good thing by ac#no)ledging Apple1s campaign o)n mar#eting message$ "hy or )hy not$ )ources* Durt (elm* 8Dest =lobal Drands*9 0usiness)eek* 4eptember !8* 2008H 4tuart Clliot* 82icrosoft Ta#es a >ser+Friendly Approach to 4elling /ts /mage in a @e) =lobal 0ampaign*9 6ew ?ork Times* @ovember !!* !AA&H 8Todd Dishop* 8The Rest of the 2otto*9 Seattle *ost -ntelligencer* 4eptember 2%* 200&H 5evin ?eonard* 8(ey 0* "ho Taught Lou to Fight Dac#$9 6ew ?ork Times* August %0* 200AH 4u,anne .ranica and Robert A. =uth* 82icrosoft Cnlists Gerry 4einfeld in /ts Ad Dattle Against Apple*9 )all Street @ournal* August 2!* 2008* p. A!H 4tuart Clliott* 8Cchoing the 0ampaign of a Rival* 2icrosoft Aims to Redefine U/1m a 0*19 6ew ?ork Times* 4eptember !8* 2008* p. 0&H Gohn Furguson* 8From 0ola "ars to 0omputer "arsM 2icrosoft 2isses Again*9 06 0randing* April &* 200A. Marketing '(cellence* 99Walmart
0hris (o)es/"ild laces hotography/Alamy /mages
"almart* the giant chain of discount stores* is the second largest company in the )orld* )ith over I&00 billion in revenue and 2.! million associates :or employees;. The phenomenal success story began in !A<2 )hen 4am "alton opened up his first discount store in Rogers* Ar#ansas. (e sold the same products as his competitors but #ept prices lo)er by reducing his profit margin. (is customers Kuic#ly caught on and the
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company too# off almost immediately. "alton1s C5? :Cvery 5ay ?o) rice; strategy remains the foundation of "almart1s success today. Through the company1s economies of scale* "almart is able to offer customers top brand+name products for the lo)est price. "almart expanded throughout the >nited 4tates in the !A70s and !A80s by acKuiring some of its competitors and opening ne) stores. The first "almart 4upercenter Ma discount store )ith food outlets* an optical center* photo lab* hair salon* among other amenitiesMopened in !A88. Dy !AA0* "almart had become the nation1s number one retailer* )ith I%2 billion in revenue and stores in %% states. The company1s international expansion began )ith a store outside 2exico 0ity in !AA! and has gro)n to over %*800 international locations* some under a different brand name. "almart thrives on three basic beliefs and values3 8Respect for the /ndividual*9 84ervice to 6ur 0ustomers*9 and 84triving for Cxcellence.9 4am "alton1s original !0+foot ruleM8/ promise that )henever / come )ithin !0 feet of a customer* / )ill loo# him in the eye* greet him* and as# if / can help him.9Mstill governs today* embodied by the 8greeters9 at the front door. /n addition* "almart embraces the communities in )hich it enters in order to develop strong local relationships and build its brand image in the area. The company donates significant amounts of money to local charities through its 8=ood "or#s9 program* hires local individuals* and purchases food from local farmers. "almart1s mar#eting strategy has evolved over the years. Carly mar#eting efforts )ere based on )ord of mouth* positive R* and aggressive store expansion. /n !AA2* "almart introduced its )ell+#no)n tagline*
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8Al)ays ?o) rices. Al)ays*9 )hich effectively communicated the company1s core brand promise and resonated )ith millions. /n !AA<* "almart launched its price rollbac# campaign featuring the familiar yello) smiley face as the star of the campaign. The smiley face happily slashed prices in "almart1s television commercials and appeared on store signage as )ell as employees1 aprons and buttons. The campaign helped "almart1s stoc# soar !!7% percent in the !AA0s. "almart hit a fe) bumps in the road as it entered the 2!st century* and critics protested its entry into small communities. /n one study at /o)a 4tate >niversity* researchers found that )ithin !0 years of a ne) "almart store opening* up to one+half of the small stores in that to)n can disappear. "almart also faced multiple la)suits from employees )ho complained about poor )or# conditions* exposure to health ha,ards* and pay belo) minimum )age* )hich left employees )ith families belo) the poverty line. /n some cases* employees said "almart failed to pay for overtime and prevented them from ta#ing rest or lunch brea#s. Another la)suit claimed the company discriminated against )omen in a)arding pay and promotions. These problems led to a very high turnover rate in the 2000s. According to one "almart survey* 70 percent of employees left the company )ithin the first year of employment due to lac# of recognition and inadeKuate pay. From 2000 to 200'* "almart1s stoc# price fell 27 percent and remained lo) from 200' to 2007. @egative bac#lash* combined )ith Target1s reemergence on the retail scene* contributed to the decline. Target revamped its stores* merchandise* and mar#eting strategy to appeal to a more aspirational discount buyer and stole
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some of "almart1s top+tier customers. Target stores )ere nicely lit* offering )ider aisles and better+displayed merchandise. Target1s television commercials featured attractive models and trendy clothes from high+end designers such as /saac 2i,rahi and ?i, ?ange. 6ne analyst stated* 8Target tends to have more upscale customers )ho don1t feel the effects of gasoline prices and other economic factors as much as "almart1s core customers might.9 From 200% to 2007* Target outperformed "almart in same+store sales gro)th by !.7 percent and profit gro)th by '.7 percent. 5uring this time* "almart also lost the exclusive rights to use the smiley face in its mar#eting campaign. For all theseMand otherMreasons* "almart decided it )as time for a ne) direction and launched a series of ne) initiatives to help improve sales and its image. First* it introduced a highly successful I& generic drug campaign* a program eventually copied by Target. "almart also launched several environmentally friendly initiatives such as constructing ne) buildings from recycled materials* cutting transportation costs and energy usage* and encouraging customers to buy more green products. /n 2007* "almart introduced a ne) mar#eting campaign and tagline* 84ave 2oney. ?ive Detter.9 Television commercials highlighted the company1s positive impact on decreased energy costs* increased &0!:#; :retirement; savings* good employee health care coverage* and increased family savings. 6ne commercial stated* 8/n today1s economy* nobody1s more committed to helping family budgets go further than "almart. "almart saves the average family about I%*!00 a year* no matter )here they shop.9
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"almart also used the ne) campaign and aggressive price cuts to attract ne) consumers affected by the recession. /t slashed prices on popular toys and electronics during the holidays and implemented a massive store remodeling effort called ro-ect /mpact. As a result* stores became cleaner* aisles less cluttered* and merchandise easier to reachMall to help improve the overall shopping experience and steal customers from Target. "almart1s tactics )or#ed3 4ame+store sales rose and its stoc# price improved during the recession. Analysts explained that "almart1s product mixM&' percent consumables :food* beauty* health items;Mis a better strategy in a poor economy than Target1s product mixM 20 percent consumables and &0 percent home and apparel products. 6ne analyst said* 8"almart sells )hat you need to have as opposed to )hat you )ant to have.9 4tephen Euinn* "almart1s 026* stated* 8"e are fortunate that this recession came along. /t played to our positioning really )ell. Dut our o)n insecurity is that all the credit )ould go to the external environment and none of the )or# )e all did. The #inds of things )e )ere )or#ing on any)ay )hen this environment came along are the same things )e need to do to #eep these so+ called ne) customers and / thin# continued to build loyalty )ith our existing base.9 Today* "almart has stores in !< international mar#ets and serves more than 200 million customers a )ee# through its variety of discount stores. These include "almart 4upercenters* 5iscount 4tores* @eighborhood 2ar#ets* and 4am1s 0lub )arehouses.
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6$estions
! Cvaluate "almart1s ne) mar#eting campaign and tagline. 5id the c ma#e the right decision to drop 8Al)ays ?o) rices. Al)ays.9 as a t "hy or )hy not$
2 "almart does very )ell )hen the economy turns sour. (o) can it p itself )hen the economy is on the rise$ Cxplain. )ources* 5ave =oldiner* 8Cxxon Tops "al+2art on 200A Fortune '00 ?ist*9 6ew ?ork 9aily 6ews* April 20* 200AH 8"al+2art 4ee#s 4miley Face Fights*9 00( 6ews* August '* 200<H 5avid @g* 8"al+2art vs. Target*9 /orbes* 5ecember !%* 200&H 2ichael Darbaro* 8A @e) "eapon for "al+2art3 A "ar Room*9 6ew ?ork Times* @ovember !* 200'H Kenneth C. 4tone* 8/mpact of the "al+2art henomenon on Rural 0ommunities*9 -ncreasing Anderstanding of *ublic *roblems and *olicies :0hicago3 Farm Foundation* !AA7;* pp. !8AJ 200H 4u,anne Kapner* 8"al+mart Cnters the Ad Age*9 (66#oney.com* August !7* 2008H Gac# @eff* 8"hy "almart /s =etting 4erious About 2ar#eting*9 .dvertising .ge* Gune 8* 200AH 4ean =regory* 8"almart1s ro-ect /mpact3 A 2ove to 0rush 0ompetition*9 Time* 4eptember A* 200AH 84tore "ars3 "hen "al+2art 0omes to To)n*9 *0S* February 2&* 2007H 4ean =regory* 8"al+2art vs. Target3 @o 0ontest in the Recession*9 Time* 2arch !&* 200A.
Question 1
2 out of 2 points
Disintermediation via the Internet has resulted in "ns#er
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** $ele%ted "ns#er& 'reater %onsumer (u)in' po#er
Question 2
2 out of 2 points
*ana'ers of (usinesses %on%entrate on a%hievin' hi'h manufa%turin' effi%ien%)+ lo# %osts+ and mass distri(ution! "ns#er $ele%ted "ns#er& produ%tion,oriented
Question 3
2 out of 2 points
-he pro%ess %onsists of anal).in' mar/etin' opportunities+ sele%tin' tar'et mar/ets+ desi'nin' mar/etin' strate'ies+ developin' mar/etin' pro'rams+ and mana'in' the mar/etin' effort! "ns#er $ele%ted "ns#er& mar/etin' plannin'
Question 4
2 out of 2 points
0hi%h of the follo#in' statements a(out mar/etin' is true1 "ns#er $ele%ted "ns#er& It %an help %reate 2o(s in the e%onom) () in%reasin' demand for 'oods and servi%es!
Question 5
2 out of 2 points
77
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** a%tivities in%lude those the %ompan) underta/es to ma/e the produ%t a%%essi(le and availa(le to tar'et %ustomers! "ns#er $ele%ted "ns#er& 3hannel
Question
2 out of 2 points
"4n5 "ns#er
need is a need that the %onsumer e6pli%itl) ver(ali.es!
$ele%ted "ns#er& stated
Question !
2 out of 2 points
0hi%h of the follo#in' holds that %onsumers prefer produ%ts that are #idel) availa(le and ine6pensive1 "ns#er $ele%ted "ns#er& the produ%tion %on%ept
Question "
2 out of 2 points
7isin' promotion %osts and shrin/in' profit mar'ins are the result of "ns#er $ele%ted "ns#er& hei'htened %ompetition
Question #
2 out of 2 points
78
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** -he ultimate out%ome of relationship mar/etin' is a uni8ue %ompan) asset %alled the + %onsistin' of the %ompan) and its supportin' sta/eholders! "ns#er $ele%ted "ns#er& mar/etin' net#or/
Question $%
2 out of 2 points
If a mar/eter uses #arehouses+ transportation %ompanies+ (an/s+ and insuran%e %ompanies to fa%ilitate transa%tions #ith potential (u)ers+ the mar/eter is usin' a ! "ns#er $ele%ted "ns#er& servi%e %hannel
Question $$
0 out of 2 points
If )ou #ere the 39: of a %ompan) that #as loo/in' to implement strate'ies to fill a per%eived strate'i%,plannin' 'ap+ )ou #ould most li/el) e6plore strate') first (e%ause it is easier to improve an e6istin' (usiness than to (uild a ne# one! "ns#er $ele%ted "ns#er& mar/et,development
Question $2
2 out of 2 points
-o /eep their strate'i% allian%es thrivin'+ %orporations have (e'un to develop or'ani.ational stru%tures to support them and have %ome to vie# the a(ilit) to form and mana'e strate'i% allian%es as %ore s/ills! -his is %alled ! "ns#er $ele%ted "ns#er& partner relationship mana'ement
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Question $3
2 out of 2 points
-he is the num(er of %hannel levels+ from ra# materials to final produ%t and distri(ution+ in #hi%h a %ompan) #ill parti%ipate! "ns#er $ele%ted "ns#er& verti%al sphere
Question $4
2 out of 2 points
" %hara%teristi% of a is that it %an (e a sin'le (usiness or %olle%tion of related (usinesses that %an (e planned separatel) from the rest of the %ompan)! "ns#er $ele%ted "ns#er& strate'i% (usiness unit
Question $5
2 out of 2 points
0hi%h of the follo#in' %an (e %onsidered a primar) a%tivit) in the value %hain pro%ess1 "ns#er $ele%ted "ns#er& in(ound lo'isti%s
Question $
2 out of 2 points
0ith respe%t to the %ore (usiness pro%esses+ the in%ludes all the a%tivities involved in developin'+ and laun%hin' hi'h,8ualit) produ%ts 8ui%/l) and #ithin (ud'et! "ns#er
80
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** $ele%ted "ns#er& ne#,offerin' reali.ation pro%ess
Question $!
2 out of 2 points
3ore %ompeten%ies tend to refer to areas of spe%ial te%hni%al and produ%tion e6pertise+ #hereas tend to des%ri(e e6%ellen%e in (roader (usiness pro%esses! "ns#er $ele%ted "ns#er& distin%tive %apa(ilities
Question $"
2 out of 2 points
-he first step in the (usiness unit strate'i%,plannin' pro%ess deals #ith #hi%h of the follo#in'1 "ns#er $ele%ted "ns#er& define (usiness mission
Question $#
2 out of 2 points
;uan <ar%ia plans the dail) promotional releases a(out his %ompan)=s produ%ts and servi%es! >e %an (e des%ri(ed as a4n5 planner! "ns#er $ele%ted "ns#er& ta%ti%al
Question 2%
2 out of 2 points
*i%hael ?orter=s value %hain #ould identif) #hi%h of the follo#in' as a support
81
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** a%tivit)1 "ns#er $ele%ted "ns#er& pro%urement
Question 2$
0 out of 2 points
"%%ordin' to the 2000 3ensus+ #hi%h of the follo#in' is the lar'est 'roup in the @nited $tates1 "ns#er $ele%ted "ns#er& 3hinese "meri%ans
Question 22
2 out of 2 points
" is a dire%tion or se8uen%e of events that has some momentum and dura(ilit)A it reveals the shape of the future and %an provide strate'i% dire%tion! "ns#er $ele%ted "ns#er& trend
Question 23
2 out of 2 points
0hi%h of the follo#in' is li/el) to o%%ur durin' e%onomi% do#nturns1 "ns#er $ele%ted "ns#er& -he pur%hasin' po#er of the people de%lines
Question 24
2 out of 2 points
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** " is Bunpredi%ta(le+ short,lived+ and #ithout so%ial+ e%onomi%+ and politi%al si'nifi%an%e!B "ns#er $ele%ted "ns#er& fad
Question 25
2 out of 2 points
" is a set of pro%edures and sour%es mana'ers use to o(tain ever)da) information a(out developments in the mar/etin' environment! "ns#er $ele%ted "ns#er& mar/etin' intelli'en%e s)stem
Question 2
2 out of 2 points
-he %ompan)=s mar/etin' information s)stem should (e a mi6 of #hat mana'ers thin/ the) need+ #hat mana'ers reall) need+ and ! "ns#er $ele%ted "ns#er& #hat is e%onomi%all) feasi(le
Question 2!
2 out of 2 points
measures the impa%t of a set of %ausal fa%tors 4su%h as in%ome+ mar/etin' e6penditures+ and pri%e5 on the sales level! "ns#er $ele%ted "ns#er& $tatisti%al demand anal)sis
Question 2"
2 out of 2 points
83
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 0hi%h of the follo#in' is the se%ond lar'est %ontri(utor to 'lo(al #armin'+ a%%ountin' for rou'hl) a fifth of %ar(on emissions1 "ns#er $ele%ted "ns#er& transportation
Question 2#
2 out of 2 points
"n unintended effe%t of (usiness le'islation is "ns#er $ele%ted "ns#er& slo#in' e%onomi% 'ro#th
Question 3%
2 out of 2 points
"s the mana'er of an or'ani.ation that is attemptin' to (uild a *ar/etin' Information $)stem 4*I$5+ )ou have (een informed that a *I$ is (uilt upon three fundamental information sour%es! -he sour%es are + mar/etin' intelli'en%e a%tivities+ and mar/etin' resear%h! "ns#er $ele%ted "ns#er& internal %ompan) re%ords
Question 3$
2 out of 2 points
" %ompan) #ould li/e to stud) the impa%t of advertisin' e6penditure on sales and sales revenue! -his is an e6ample of resear%h! "ns#er $ele%ted "ns#er& %ausal
Question 32
84
2 out of 2 points
0hi%h of the follo#in' is true of 8ualitative resear%h1 "ns#er $ele%ted "ns#er& It is indire%t in nature+ so %onsumers ma) (e less 'uarded!
Question 33
2 out of 2 points
allo# respondents to ans#er in their o#n #ords and often reveal more a(out ho# people thin/! "ns#er $ele%ted "ns#er& :pen,end 8uestions
Question 34
2 out of 2 points
-he mar/etin' resear%h pro%ess (e'ins () "ns#er $ele%ted "ns#er&
definin' the pro(lem+ the de%ision alternatives+ and resear%h o(2e%tives
Question 35
2 out of 2 points
approa%h uses %on%epts and tools from anthropolo') and other so%ial s%ien%e dis%iplines to provide deep %ultural understandin' of ho# people live and #or/! "ns#er $ele%ted "ns#er& 9thno'raphi% resear%h
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Question 3
2 out of 2 points
If a mar/etin' resear%her #ishes to rea%h those people #ho #ould not 'ive personal intervie#s or #hose responses mi'ht (e (iased or distorted () intervie#ers+ he or she should use ! "ns#er $ele%ted "ns#er& mail 8uestionnaires
Question 3!
2 out of 2 points
0h) do firms emplo) more than one persona to 'ather information a(out the tar'et %onsumers1 "ns#er $ele%ted "ns#er& "n) tar'et mar/et ma) have a ran'e of %onsumers #ho var) alon' a num(er of /e) dimensions!
Question 3"
2 out of 2 points
-he 'oal of ethno'raphi% resear%h is to "ns#er $ele%ted "ns#er&
immerse the resear%her into %onsumers= lives to un%over unarti%ulated desires that mi'ht not surfa%e in an) other form of resear%h
Question 3#
0 out of 2 points
0hen the mar/eters of a mo(ile phone manufa%turin' %ompan) #ant to determine the impa%t of individual media su%h as television and online displa) ads on sales as #ell as that of trade a%tivities li/e ever) da) lo# pri%e+ off,shelf displa) and so on+ the)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** usuall) use ! "ns#er $ele%ted "ns#er& mar/etin' metri%s
Question 4%
2 out of 2 points
is desi'ned to %apture %ause,and,effe%t relationships () eliminatin' %ompetin' e6planations of the o(served findin's! "ns#er $ele%ted "ns#er& 96perimental resear%h
Question 4$
2 out of 2 points
" profita(le %ustomer "ns#er $ele%ted "ns#er&
)ields a revenue stream that e6%eeds the %ompan)=s %ost stream
Question 42
0 out of 2 points
3lu( mem(ership pro'rams that are open to ever)one #ho pur%hases a produ%t or servi%e ! "ns#er $ele%ted "ns#er& are more po#erful lon',term lo)alt) (uilders than limited, mem(ership %lu(s!
Question 43
2 out of 2 points
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 0hen t#o (rands of the same (asi% produ%t deliver their respe%tive promised 8ualit)+ the) are deliverin' ! "ns#er $ele%ted "ns#er& %onforman%e 8ualit)
Question 44
2 out of 2 points
Cield <ro%er) #ants to learn the stren'ths and #ea/nesses in %ustomer servi%e at all the Cield <ro%er) stores! 0hi%h of the follo#in' methods %an it use for this1 "ns#er $ele%ted "ns#er& m)ster) shoppers
Question 45
2 out of 2 points
-he pro%ess of (uildin'+ maintainin'+ and usin' %ustomer data(ases and other data(ases for the purpose of %onta%tin'+ transa%tin'+ and (uildin' %ustomer relationships is %alled ! "ns#er $ele%ted "ns#er& data(ase mar/etin'
Question 4
2 out of 2 points
$ome %ustomers inevita(l) (e%ome ina%tive or drop out! -he %hallen'e for mar/eters is to rea%tivate them throu'h strate'ies! "ns#er $ele%ted "ns#er& #in, (a%/
88
Question 4!
2 out of 2 points
" %ustomer tou%h point for "(a%us "irlines #ould (e an item su%h as "ns#er $ele%ted "ns#er& the reservations des/
Question 4"
2 out of 2 points
In the modern %ustomer,oriented or'ani.ational %hart+ #hi%h of the follo#in' is %onsidered to (e at the top of the or'ani.ational p)ramid1 "ns#er $ele%ted "ns#er& %ustomers
Question 4#
2 out of 2 points
3ustomer relationship mana'ement ena(les %ompanies to provide e6%ellent real,time %ustomer servi%e throu'h the effe%tive use of ! "ns#er $ele%ted "ns#er& individual a%%ount information
Question 5%
2 out of 2 points
________ is (ased on the premise that mar/eters %an no lon'er use Binterruption mar/etin'B via mass media %ampai'ns! "ns#er $ele%ted "ns#er& ?ermission mar/etin'
89
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Marketing Management, 1 e &Kot'e()Ke''e(* +,-.te( $ De/inin0 M-(1etin0 /o( t,e 2$st +entu(2 15 0hi%h of the follo#in' statements a(out mar/etin' is true1 "5 It is of little importan%e #hen produ%ts are standardi.ed! D5 It %an help %reate 2o(s in the e%onom) () in%reasin' demand for 'oods and servi%es! 35 It helps to (uild a lo)al %ustomer (ase (ut has no impa%t on a firm=s intan'i(le assets! D5 It is more important for (i''er or'ani.ations than smaller ones! 95 It is seldom used () nonprofit or'ani.ations! "ns#er& D ?a'e 7ef& 4 :(2e%tive& 1 Diffi%ult)& 9as) 25 is the art and s%ien%e of %hoosin' tar'et mar/ets and 'ettin'+ /eepin'+ and 'ro#in' %ustomers throu'h %reatin'+ deliverin'+ and %ommuni%atin' superior %ustomer value! "5 *ar/etin' mana'ement D5 Eno#led'e mana'ement 35 :perations mana'ement D5 $trate'i% mana'ement 95 Distri(ution mana'ement "ns#er& " ?a'e 7ef& 5 :(2e%tive& 2 Diffi%ult)& 9as) 35 Identif) the %orre%t statement a(out mar/etin' mana'ement! "5 It is primaril) %on%erned #ith the s)stemati% 'atherin'+ re%ordin'+ and anal)sis of data a(out issues related to mar/etin' produ%ts and servi%es! D5 It fo%uses mostl) on monitorin' the profita(ilit) of a %ompan)=s produ%ts and servi%es! 35 It fo%uses solel) on attainin' an or'ani.ation=s sales 'oals in an effi%ient manner! D5 It is defined as the field that deals #ith plannin' and mana'in' a (usiness at the hi'hest level of %orporate hierar%h)! 95 It o%%urs #hen at least one part) to a potential e6%han'e thin/s a(out the means of a%hievin' desired responses from other parties! "ns#er& 9 ?a'e 7ef& 5 :(2e%tive& 2 Diffi%ult)& *oderate
90
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 45 " so%ial definition of mar/etin' sa)s ! "5 effe%tive mar/etin' re8uires %ompanies to remove intermediaries to a%hieve a %loser %onne%tion #ith dire%t %onsumers D5 a %ompan) should fo%us e6%lusivel) on a%hievin' hi'h produ%tion effi%ien%)+ lo# %osts+ and mass distri(ution to fa%ilitate the (roadest possi(le a%%ess to the %ompan)=s produ%ts 35 mar/etin' is the pro%ess () #hi%h individuals and 'roups o(tain #hat the) need and #ant throu'h %reatin'+ offerin'+ and freel) e6%han'in' produ%ts and servi%es of value #ith others D5 mar/etin' is the pro%ess of e6tra%tin' the ma6imum value from %onsumers to fa%ilitate %orporate 'ro#th 95 mar/etin' is the pro%ess of a''ressive sellin' and promotion to en%oura'e the pur%hase of produ%ts that mi'ht other#ise (e unsou'ht () the %onsumer "ns#er& 3 ?a'e 7ef& 5 :(2e%tive& 2 Diffi%ult)& 9as) 55 'oods %onstitute the (ul/ of most %ountries= produ%tion and mar/etin' efforts! "5 Dura(le D5 Impulse 35 ?h)si%al D5 Fu6ur) 95 Intan'i(le "ns#er& 3 ?a'e 7ef& 5 :(2e%tive& 2 Diffi%ult)& 9as) 65 "s e%onomies advan%e+ a 'ro#in' proportion of their a%tivities fo%uses on the produ%tion of ! "5 produ%ts D5 events 35 e6perien%es D5 lu6ur) 'oods 95 servi%es "ns#er& 9 ?a'e 7ef& 5 :(2e%tive& 2 Diffi%ult)& *oderate
91
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 75 3ar rental firms+ hair dressers+ and mana'ement %onsultants provide ! "5 'oods D5 e6perien%es 35 events D5 servi%es 95 information "ns#er& D ?a'e 7ef& 5 :(2e%tive& 2 ""3$D& "nal)ti% s/ills Diffi%ult)& 9as) 85 -he $o%%er 0orld 3up is promoted a''ressivel) to (oth %ompanies and fans! -his is an e6ample of mar/etin' a4n5 ! "5 idea D5 pla%e 35 lu6ur) item D5 event 95 servi%e "ns#er& D ?a'e 7ef& 5 :(2e%tive& 2 Diffi%ult)& *oderate 95 -he B*ala)sia+ -rul) "siaB ad %ampai'n that sho#%ased *ala)sia=s (eautiful lands%ape and its multi%ultural so%iet) in order to attra%t tourists is an e6ample of mar/etin'! "5 event D5 propert) 35 servi%e D5 pla%e 95 idea "ns#er& D ?a'e 7ef& 6 :(2e%tive& 2 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate
92
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 105 In 0alt Disne)=s *a'i% Ein'dom+ %ustomers %an visit a fair) /in'dom+ a pirate ship+ or even a haunted house! Disne) is mar/etin' a4n5 ! "5 e6perien%e D5 servi%e 35 event D5 or'ani.ation 95 'ood "ns#er& " ?a'e 7ef& 6 :(2e%tive& 2 ""3$D& "nal)ti% s/ills Diffi%ult)& 9as) 115 ;anet is ver) upset that she %an=t 'et ti%/ets to the 7ollin' $tones %on%ert (e%ause the) are sold out! 0hi%h of the follo#in' demand states applies to ;anet=s situation1 "5 none6istent demand D5 latent demand 35 full demand D5 un#holesome demand 95 overfull demand "ns#er& 9 ?a'e 7ef& 8 :(2e%tive& 2 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 125 $ales of #oollen %lothin' usuall) in%rease durin' the #inter season and de%line thereafter! -his is an e6ample of demand! "5 irre'ular D5 de%linin' 35 impulse D5 latent 95 ne'ative "ns#er& " ?a'e 7ef& 8 :(2e%tive& 2 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate
93
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 135 ;ulia is #orried a(out the risin' pollution levels in her %it)! $he doesn=t mind pa)in' e6tra for 'oods and servi%es that use sustaina(le pro%esses to help %ontrol pollution! -his is an e6ample of for pollution! "5 de%linin' demand D5 none6istent demand 35 latent demand D5 ne'ative demand 95 un#holesome demand "ns#er& D ?a'e 7ef& 8 :(2e%tive& 2 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 145 ?eople in emer'in' %ountries toda) are (e%omin' in%reasin'l) health %ons%ious and are see/in' health) food %hoi%es! "s a result+ demand for health foods is risin' steadil)+ %reatin' an opportunit) for mar/eters to e6ploit this mar/et! "5 demo'raphi% D5 (usiness 35 need D5 'eo'raphi% 95 servi%e "ns#er& 3 ?a'e 7ef& 8 :(2e%tive& 2 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 155 0hen %onsumers share a stron' need that %annot (e satisfied () an e6istin' produ%t+ it is %alled ! "5 ne'ative demand D5 latent demand 35 de%linin' demand D5 irre'ular demand 95 none6istent demand "ns#er& D ?a'e 7ef& 8 :(2e%tive& 2 Diffi%ult)& *oderate
94
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 165 0hen demand is + it implies that more %ustomers #ould li/e to (u) the produ%t than %an (e satisfied! "5 latent D5 irre'ular 35 overfull D5 full 95 ne'ative "ns#er& 3 ?a'e 7ef& 8 :(2e%tive& 2 Diffi%ult)& 9as) 175 In the %ase of avoid it! "5 none6istent demand D5 overfull demand 35 irre'ular demand D5 ne'ative demand 95 de%linin' demand "ns#er& D ?a'e 7ef& 8 :(2e%tive& 2 Diffi%ult)& 9as) + %onsumers disli/e the produ%t and ma) even pa) a pri%e to
185 :r'ani.ations %aterin' to the need to pri%e their offerin's %arefull) (e%ause these mar/ets usuall) have limited pur%hasin' po#er! "5 (usiness mar/et D5 'lo(al mar/et 35 nonprofit mar/et D5 %onsumer mar/et 95 e6%lusive mar/et "ns#er& 3 ?a'e 7ef& 9 :(2e%tive& 2 Diffi%ult)& 9as) 195 0hi%h of the follo#in' is true of (usiness mar/ets1 "5 Du)ers are usuall) not s/illed at %omparin' %ompetitive produ%t offerin's! D5 Du)ers have limited pur%hasin' po#er! 35 ?ropert) ri'hts+ lan'ua'e+ %ulture+ and lo%al la#s are the most important %on%erns! D5 ?rodu%ts sold in su%h mar/ets are usuall) hi'hl) standardi.ed! 95 Dusiness (u)ers (u) 'oods to ma/e or resell a produ%t to others at a profit! "ns#er& 9 ?a'e 7ef& 9 :(2e%tive& 2 Diffi%ult)& *oderate
95
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 205 " is a %luster of %omplementar) produ%ts and servi%es that are %losel) related in the minds of %onsumers (ut are spread a%ross a diverse set of industries! "5 metamar/et D5 verti%all) inte'rated mar/et 35 hori.ontall) inte'rated mar/et D5 mar/etspa%e 95 s)n%hroni.ed mar/et "ns#er& " ?a'e 7ef& 9 :(2e%tive& 2 Diffi%ult)& *oderate 215 3onsider the real estate industr)! -he for this industr) in%ludes %onstru%tion %ompanies+ finan%in' institutions+ paint manufa%turers+ interior de%orators+ furniture manufa%turers+ and plum(in' industries! "5 mar/etspa%e D5 latent mar/et 35 need mar/et D5 metamar/et 95 'eo'raphi% mar/et "ns#er& D ?a'e 7ef& 9 :(2e%tive& 2 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 225 "utomo(ile manufa%turers+ ne# %ar and used %ar dealers+ finan%in' %ompanies+ and insuran%e %ompanies are all part of the automo(ile ! "5 mar/etpla%e D5 mar/etspa%e 35 metamediar) D5 mar/etportal 95 metamar/et "ns#er& 9 ?a'e 7ef& 9 :(2e%tive& 2 Diffi%ult)& *oderate
96
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 235 are (asi% human re8uirements+ #hile are the #a)s in #hi%h those re8uirements are satisfied! "5 0antsA needs D5 DemandsA #ants 35 GeedsA #ants D5 GeedsA demands 95 DemandsA needs "ns#er& 3 ?a'e 7ef& 9,10 :(2e%tive& 3 Diffi%ult)& 9as) 245 0hen Cran/ (u)s his o#n house+ he #ould li/e to have a home theater s)stem and a 2a%u..i! >e plans to save enou'h mone) in the ne6t three )ears so that he %an fulfill his #ish! Cran/=s desire for the home theater and the 2a%u..i is an e6ample of a4n5 ! "5 need D5 #ant 35 demand D5 unstated need 95 latent demand "ns#er& D ?a'e 7ef& 9,10 :(2e%tive& 3 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 255 0hen %ompanies measure the num(er of people #ho are #illin' and a(le to (u) their produ%ts+ the) are measurin' ! "5 demand D5 pri%e elasti%it) 35 real needs D5 standard of livin' 95 disposa(le in%ome "ns#er& " ?a'e 7ef& 10 :(2e%tive& 3 Diffi%ult)& *oderate
97
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 265 "4n5 need is one that the %onsumer is relu%tant or un#illin' to e6pli%itl) ver(ali.e! "5 se%ondar) D5 unstated 35 deli'ht D5 se%ret 95 stated "ns#er& D ?a'e 7ef& 10 :(2e%tive& 3 Diffi%ult)& *oderate 275 "4n5 need is a need that the %onsumer e6pli%itl) ver(ali.es! "5 stated D5 affirmative 35 unsou'ht D5 deli'ht 95 se%ret "ns#er& " ?a'e 7ef& 10 :(2e%tive& 3 Diffi%ult)& *oderate 285 -he identifi%ation and profilin' of distin%t 'roups of (u)ers #ho mi'ht prefer or re8uire var)in' produ%t and servi%e mi6es is /no#n as ! "5 se'mentation D5 inte'ration 35 disintermediation D5 %ross,sellin' 95 %ustomi.ation "ns#er& " ?a'e 7ef& 10 :(2e%tive& 3 Diffi%ult)& *oderate 295 3ompanies address needs () puttin' forth a offer to %ustomers to satisf) their needs! "5 (rand D5 value proposition 35 deal D5 mar/etin' plan 95 demand "ns#er& D ?a'e 7ef& 10 :(2e%tive& 3 Diffi%ult)& *oderate + a set of (enefits that the)
98
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 305 Durin' mar/et se'mentation anal)sis+ the mar/eter identifies #hi%h se'ments present the 'reatest opportunit)! -hese se'ments are %alled ! "5 tar'et mar/ets D5 %apital mar/ets 35 tertiar) mar/ets D5 demo'raphi% mar/ets 95 developin' mar/ets "ns#er& " ?a'e 7ef& 10 :(2e%tive& 3 Diffi%ult)& *oderate 315 ________ refle%ts a %ustomer=s 2ud'ment of a produ%t=s performan%e in relation to his or her e6pe%tations! "5 Drand e8uit) D5 $atisfa%tion 35 Halue D5 ?er%eption 95 Drand ima'e "ns#er& D ?a'e 7ef& 10 :(2e%tive& 3 Diffi%ult)& 9as) 325 -he value of an offerin' is des%ri(ed as ! "5 the pri%e %onsumers are %har'ed for a produ%t D5 the %ost of manufa%turin' a produ%t 35 the de'ree to #hi%h %onsumer demand for a produ%t is positive D5 the sum of the tan'i(le and intan'i(le (enefits and %osts to %ustomers 95 the intan'i(le (enefits 'ained from a produ%t "ns#er& D ?a'e 7ef& 10 :(2e%tive& 3 Diffi%ult)& *oderate
99
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 335 0hen Holvo runs ads su''estin' that its %ars are the safest that mone) %an (u)+ it is tr)in' to ! "5 se'ment the mar/et D5 provide a servi%e 35 enter ne# a ne# mar/et D5 develop (rand lo)alt) 95 position its produ%t "ns#er& 9 ?a'e 7ef& 10 :(2e%tive& 3 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 345 If a mar/eter uses #arehouses+ transportation %ompanies+ (an/s+ and insuran%e %ompanies to fa%ilitate transa%tions #ith potential (u)ers+ the mar/eter is usin' a ! "5 servi%e %hannel D5 distri(ution %hannel 35 %ommuni%ation %hannel D5 relationship %hannel 95 standardi.ed %hannel "ns#er& " ?a'e 7ef& 11 :(2e%tive& 3 Diffi%ult)& *oderate 355 -he is the %hannel stret%hin' from ra# materials to %omponents to final produ%ts that are %arried to final (u)ers! "5 %ommuni%ation %hannel D5 distri(ution %hannel 35 suppl) %hain D5 servi%e %hain 95 mar/etin' %hain "ns#er& 3 ?a'e 7ef& 11 :(2e%tive& 3 Diffi%ult)& 9as)
100
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 365 -he a%tual and potential rival offerin's and su(stitutes that a (u)er mi'ht %onsider are referred to as the ! "5 suppl) %hain D5 'lo(al mar/et 35 value proposition D5 %ompetition 95 mar/etin' environment "ns#er& D ?a'e 7ef& 11 :(2e%tive& 3 Diffi%ult)& 9as) 375 -he in%ludes the a%tors involved in produ%in'+ distri(utin'+ and promotin' an offerin'! -he main a%tors are the %ompan)+ suppliers+ distri(utors+ dealers+ and the tar'et %ustomers! "5 e%onomi% environment D5 mana'ement environment 35 strate'i% environment D5 tas/ environment 95 ta%ti%al environment "ns#er& D ?a'e 7ef& 11 :(2e%tive& 3 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 385 In an attempt to %reate 'reater %ompetition and 'ro#th opportunities+ %ountries often ! "5 in%rease trade (arriers D5 prote%t industries 35 dere'ulate industries D5 en%oura'e intermediation 95 redu%e privati.ation "ns#er& 3 ?a'e 7ef& 12 :(2e%tive& 4 ""3$D& *ulti%ultural diversit) Diffi%ult)& *oderate
101
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 395 7isin' promotion %osts and shrin/in' profit mar'ins are the result of ! "5 ne# and improved te%hnolo') D5 disintermediation 35 industr) %onver'en%e D5 privati.ation 95 hei'htened %ompetition "ns#er& 9 ?a'e 7ef& 12 :(2e%tive& 4 ""3$D& 7efle%tive thin/in' Diffi%ult)& *oderate 405 Industr) (oundaries are (lurrin' rapidl) as %ompanies identif) ne# opportunities at the interse%tion of t#o or more industries! -his is %alled ! "5 'lo(ali.ation D5 %ustomi.ation 35 industr) %onver'en%e D5 disintermediation 95 privati.ation "ns#er& 3 ?a'e 7ef& 12 :(2e%tive& 4 Diffi%ult)& 9as) 415 -he su%%ess of online pur%hasin' resulted in in the deliver) of produ%ts and servi%es () intervenin' in the traditional flo# of 'oods throu'h distri(ution %hannels! "5 disintermediation D5 diversifi%ation 35 redu%ed %ompetition D5 dere'ulation 95 privati.ation "ns#er& " ?a'e 7ef& 13 :(2e%tive& 4 ""3$D& 7efle%tive thin/in' Diffi%ult)& *oderate
102
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 425 In response to threats from su%h %ompanies as ":F+ "ma.on!%om+ IahooJ+ eDa)+ 9K-7"D9+ and do.ens of others+ esta(lished manufa%turers and retailers (e%ame B(ri%/, and,%li%/B oriented () addin' online servi%es to their e6istin' offerin's! -his pro%ess is /no#n as ! "5 reintermediation D5 disintermediation 35 retail transformation D5 e,%olla(oration 95 ne#,mar/et s)n%hroni.ation "ns#er& " ?a'e 7ef& 13 :(2e%tive& 4 Diffi%ult)& *oderate 435 0hen eDa) and "ma.on!%om %ut out the ma2orit) of middlemen that normall) #ould parti%ipate in the e6%han'e pro%ess+ it is an e6ample of ! "5 dere'ulation D5 reverse au%tionin' 35 reintermediation D5 disintermediation 95 diversifi%ation "ns#er& D ?a'e 7ef& 13 :(2e%tive& 4 ""3$D& @se of IDiffi%ult)& *oderate 445 Disintermediation via the Internet has resulted in "5 hi'her pri%es D5 stron'er (rand lo)alt) 35 'reater emphasis on personal sellin' D5 #ell,esta(lished (rand names 95 'reater %onsumer (u)in' po#er "ns#er& 9 ?a'e 7ef& 13 :(2e%tive& 4 ""3$D& @se of IDiffi%ult)& *oderate !
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 455 9a%h of the follo#in' is true a(out the Internet=s impa%t on the #a) (usiness is %ondu%ted toda)+ 9L39?- one! Identif) the e6%eption! "5 It has fa%ilitated hi'h,speed %ommuni%ation amon' emplo)ees! D5 It has empo#ered %onsumers #ith eas) a%%ess to information! 35 It %an (e used as a po#erful sales %hannel! D5 It has fa%ilitated mass mar/etin' (ut not the sale of %ustomi.ed produ%ts! 95 It ena(les mar/eters to use so%ial media to advertise their produ%ts! "ns#er& D ?a'e 7ef& 14,15 :(2e%tive& 4 ""3$D& @se of IDiffi%ult)& 9as) 465 -he pro%ess %onsists of anal).in' mar/etin' opportunities+ sele%tin' tar'et mar/ets+ desi'nin' mar/etin' strate'ies+ developin' mar/etin' pro'rams+ and mana'in' the mar/etin' effort! "5 mar/etin' plannin' D5 strate'i% plannin' 35 mar/et resear%h D5 opportunit) anal)sis 95 operational mana'ement "ns#er& " ?a'e 7ef& 15 :(2e%tive& 4 Diffi%ult)& *oderate 475 Eotler and 3asoline su''ested ei'ht fa%tors that mar/eters must /eep in mind in order to deal #ith ris/ and un%ertaint)! 0hi%h of the follo#in' statements are the) most li/el) to a'ree #ith #hen the environment is un%ertain1 "5 3ompanies should (e prepared to implement ad ho% strate'ies #henever re8uired! D5 3ompanies should push a''ressivel) for the mar/et share of their %ompetitors! 35 3ompanies should fo%us less on their %ore se'ments+ and more on ne# tar'et mar/ets! D5 3ompanies should not in%rease mar/etin' (ud'ets in times of un%ertaint)! 95 3ompanies should fo%us and improve their mar'inal (rands! "ns#er& D ?a'e 7ef& 16 :(2e%tive& 4 Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 485 0hat are %ustomer tou%h points1 "5 all aspe%ts of the offerin' that dire%tl) affe%t %onsumer preferen%es D5 all needs and #ants of %ustomers 35 all dire%t or indire%t intera%tions (et#een the %ustomer and the %ompan) D5 all intera%tions (et#een %ustomers and %ompetitors 95 all fa%tors that affe%t (u)in' (ehavior "ns#er& 3 ?a'e 7ef& 17 :(2e%tive& 4 Diffi%ult)& *oderate 495 0hi%h of the follo#in' holds that %onsumers prefer produ%ts that are #idel) availa(le and ine6pensive1 "5 the produ%t %on%ept D5 the produ%tion %on%ept 35 the sellin' %on%ept D5 the performan%e %on%ept 95 the mar/etin' %on%ept "ns#er& D ?a'e 7ef& 18 :(2e%tive& 4 Diffi%ult)& *oderate 505 *ana'ers of (usinesses %on%entrate on a%hievin' hi'h manufa%turin' effi%ien%)+ lo# %osts+ and mass distri(ution! "5 sellin',oriented D5 produ%t,oriented 35 produ%tion,oriented D5 mar/etin',oriented 95 %onsumer,oriented "ns#er& 3 ?a'e 7ef& 18 :(2e%tive& 4 ""3$D& 7efle%tive thin/in' Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 515 -he %on%ept holds that %onsumers #ill favor offerin's #ith the (est 8ualit)+ performan%e+ or innovative features! "5 produ%t D5 mar/etin' 35 produ%tion D5 sellin' 95 holisti% mar/etin' "ns#er& " ?a'e 7ef& 18 :(2e%tive& 4 Diffi%ult)& 9as) 525 0hi%h of the follo#in' %ate'ories of 'oods and servi%es is most li/el) to re8uire an a''ressive use of the sellin' %on%ept1 "5 shoppin' 'oods D5 unsou'ht 'oods 35 ne%essar) 'oods D5 lu6ur) 'oods 95 %omplementar) 'oods "ns#er& D ?a'e 7ef& 18 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 535 "s a ma2or steel manufa%turer+ $teel*a/ers In%! fo%uses on havin' the most effi%ient manufa%turin' pro%esses in pla%e! -he %ompan) (elieves that its %ompetitive ed'e lies in its a(ilit) to offer the (est pri%es! -he) also maintain an e6%ellent distri(ution net#or/ that ensures #ide availa(ilit) of their produ%ts! $teel*a/ers has a ! "5 sellin' orientation D5 produ%tion orientation 35 produ%t orientation D5 mar/etin' orientation 95 so%ial orientation "ns#er& D ?a'e 7ef& 18 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 545 0e(ma6 In%! produ%ed and mar/eted %ameras! "fter %onsidera(le resear%h and development+ the) developed a ne# di'ital %amera that had an arra) of ne# features! 0e(ma6 #as so sure a(out the ne# offerin' that the) even redu%ed their mar/etin' (ud'et! 0hat sort of orientation does 0e(ma6 have to#ard the mar/etpla%e1 "5 produ%tion orientation D5 produ%t orientation 35 sellin' orientation D5 mar/etin' orientation 95 holisti% mar/etin' orientation "ns#er& D ?a'e 7ef& 18 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 555 7i%/ ;ohnson trains his %ompan)=s sales for%e to 'o after the %onsumer! >e repeatedl) as/s his team to (ear in mind the essential fa%t that it is the sales team=s responsi(ilit) to rouse the %onsumer=s interest and ma/e him feel that he needs the produ%t! " true salesman is one #ho %an %onvert an indifferent %onsumer #al/in' into the store into a ne# %ustomer! ;ohnson (elieves in the %on%ept! "5 produ%t D5 produ%tion 35 sellin' D5 mar/etin' 95 so%ial responsi(ilit) "ns#er& 3 ?a'e 7ef& 18 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 565 *ar/eters at ;ohnn) In%! (elieve in puttin' their %ustomers ahead of ever)thin' else! -heir produ%ts are %arefull) desi'ned to meet %ustomer re8uirements and the entire fo%us is on a%hievin' %ustomer satisfa%tion! ;ohnn) In%!+ follo#s the %on%ept in doin' (usiness! "5 produ%tion D5 produ%t 35 sellin' D5 mar/etin' 95 so%ial responsi(ilit) "ns#er& D ?a'e 7ef& 18 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 575 -he %on%ept holds that %onsumers and (usinesses+ if left alone+ #ill ordinaril) not (u) enou'h of the or'ani.ation=s produ%ts! "5 produ%tion D5 sellin' 35 mar/etin' D5 produ%t 95 holisti% mar/etin' "ns#er& D ?a'e 7ef& 18 :(2e%tive& 4 Diffi%ult)& 9as) 585 Identif) the %on%ept that emer'ed in the mid,1950s as a %ustomer,%entered+ sense, and,respond philosoph)! "5 the produ%t %on%ept D5 the produ%tion %on%ept 35 the sellin' %on%ept D5 the mar/etin' %on%ept 95 the holisti% mar/etin' %on%ept "ns#er& D ?a'e 7ef& 18 :(2e%tive& 4 Diffi%ult)& *oderate 595 -he mar/etin' %on%ept holds that ! "5 a firm should find the ri'ht produ%ts for its %ustomers+ and not the ri'ht %ustomers for its produ%ts D5 %ustomers #ho are %oa6ed into (u)in' a produ%t #ill most li/el) (u) it a'ain 35 a ne# produ%t #ill not (e su%%essful unless it is pri%ed+ distri(uted+ and sold properl) D5 %onsumers and (usinesses+ if left alone+ #on=t (u) enou'h of the or'ani.ation=s produ%ts 95 a (etter produ%t #ill () itself lead people to (u) it #ithout mu%h effort from the sellers "ns#er& " ?a'e 7ef& 18 :(2e%tive& 4 Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 605 is (ased on the development+ desi'n+ and implementation of mar/etin' pro'rams+ pro%esses+ and a%tivities that re%o'ni.e their (readth and interdependen%ies! "5 Gi%he mar/etin' D5 >olisti% mar/etin' 35 7elationship mar/etin' D5 $uppl) %hain mar/etin' 95 Demand,%entered mar/etin' "ns#er& D ?a'e 7ef& 18 :(2e%tive& 4 ""3$D& 7efle%tive thin/in' Diffi%ult)& *oderate 615 0hi%h of the follo#in' is %onsidered as a BsinB in the mar/etin' dis%ipline1 "5 fo%usin' too mu%h on ne# opportunities D5 tar'etin' a %ompetitor=s mar/et share 35 prioriti.in' %ustomer relationships over ever)thin' else D5 usin' te%hnolo') in an ineffi%ient manner 95 in%reasin' the mar/etin' (ud'et in times of un%ertaint) and ris/ "ns#er& D ?a'e 7ef& 19 :(2e%tive& 4 Diffi%ult)& *oderate 625 0hat are the four (road %omponents of holisti% mar/etin'1 "5 relationship+ internal+ position+ and performan%e mar/etin' D5 inte'rated+ internal+ position+ and performan%e mar/etin' 35 relationship+ inte'rated+ internal+ and performan%e mar/etin' D5 inte'rated+ relationship+ so%ial responsi(ilit)+ and position mar/etin' 95 relationship+ so%ial responsi(ilit)+ internal+ and performan%e mar/etin' "ns#er& 3 ?a'e 7ef& 19 :(2e%tive& 4 Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 635 mar/etin' aims to (uild mutuall) satisf)in' lon',term %olla(oration #ith /e) %onstituents+ su%h as %ustomers+ emplo)ees+ suppliers+ distri(utors+ and other mar/etin' partners+ in order to earn and retain their (usiness! "5 Inte'rated D5 Demand,(ased 35 Dire%t D5 7elationship 95 Internal "ns#er& D ?a'e 7ef& 20 :(2e%tive& 4 Diffi%ult)& 9as) 645 -ra%)=s is a %hain of hair dressin' salons for #omen! -he) use the television+ ma'a.ines+ radio+ and ne#spapers to advertise their servi%es! -he o#ners ensure that all %ommuni%ation %hannels deliver a %ommon messa'e to prospe%tive %ustomers! -ra%)=s (elieves in ! "5 internal mar/etin' D5 inte'rated mar/etin' 35 so%iall) responsi(le mar/etin' D5 'lo(al mar/etin' 95 relationship mar/etin' "ns#er& D ?a'e 7ef& 20 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 655 -he ultimate out%ome of relationship mar/etin' is a uni8ue %ompan) asset %alled the + %onsistin' of the %ompan) and its supportin' sta/eholders! "5 (rand D5 suppl) %hain 35 mar/etin' net#or/ D5 value proposition 95 servi%e %hannel "ns#er& 3 ?a'e 7ef& 20 :(2e%tive& 4 Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 665 0hi%h of the follo#in' is most %onsistent #ith the inte'rated mar/etin' approa%h1 "5 " 'ood produ%t #ill sell itself! D5 If left alone+ %onsumers are in%lined to pur%hase onl) ine6pensive produ%ts! 35 "ll %ommuni%ation to %onsumers must deliver a %onsistent messa'e irrespe%tive of the medium! D5 In order to su%%eed+ the main fo%us should (e on havin' an effi%ient produ%tion pro%ess in pla%e! 95 :nline mar/etin' is less important than traditional mar/etin' efforts! "ns#er& 3 ?a'e 7ef& 20,21 :(2e%tive& 4 Diffi%ult)& *oderate 675 0hi%h aspe%t of holisti% mar/etin' motivates emplo)ees and ensures that ever)one in the or'ani.ation em(ra%es appropriate mar/etin' prin%iples+ espe%iall) senior mana'ement1 "5 relationship mar/etin' D5 inte'rated mar/etin' 35 internal mar/etin' D5 net#or/ mar/etin' 95 performan%e mar/etin' "ns#er& 3 ?a'e 7ef& 21 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 685 Cinan%ial a%%ounta(ilit) and so%ial responsi(ilit) mar/etin' are elements of ! "5 performan%e mar/etin' D5 relationship mar/etin' 35 internal mar/etin' D5 so%ial mar/etin' 95 mass mar/etin' "ns#er& " ?a'e 7ef& 22 :(2e%tive& 4 Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 695 3ompanies are re%o'ni.in' that mu%h of their mar/et value %omes from + parti%ularl) their (rands+ %ustomer (ase+ emplo)ees+ distri(utor and supplier relations+ and intelle%tual %apital! "5 varia(le assets D5 value propositions 35 intan'i(le assets D5 mar/et offerin's 95 industr) %onver'en%e "ns#er& 3 ?a'e 7ef& 22 :(2e%tive& 4 ""3$D& 7efle%tive thin/in' Diffi%ult)& 9as) 705 >olisti% mar/etin' in%orporates + an understandin' of (roader %on%erns in the ethi%al+ environmental+ le'al+ and so%ial %onte6t of mar/etin' a%tivities! "5 internal mar/etin' D5 %ultural mar/etin' 35 so%ial responsi(ilit) mar/etin' D5 relationship mar/etin' 95 inte'rated mar/etin' "ns#er& 3 ?a'e 7ef& 22 :(2e%tive& 4 Diffi%ult)& 9as) 715 -he holds that the or'ani.ation=s tas/ is to determine the needs+ #ants+ and interests of tar'et mar/ets and to deliver the desired satisfa%tions more effe%tivel) and effi%ientl) than %ompetitors in a #a) that preserves or enhan%es the %onsumer=s and the so%iet)=s #ell,(ein'! "5 sellin' %on%ept D5 inte'rated mar/etin' %on%ept 35 so%ial responsi(ilit) mar/etin' %on%ept D5 produ%tion %on%ept 95 relationship mar/etin' %on%ept "ns#er& 3 ?a'e 7ef& 22 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 725 ;oanna o#ns a %hain of fast,food 2oints! "s the %hain (e%ame more and more su%%essful+ she de%ided to %ontri(ute a share of her profits ea%h )ear to support %an%er resear%h! -his is an e6ample of ! "5 %orporate %ommunit) involvement D5 environmental mar/etin' 35 %ause,related mar/etin' D5 (enefit mar/etin' 95 responsi(le mar/etin' "ns#er& 3 ?a'e 7ef& 24 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 735 *%3arth) %lassified mar/etin' a%tivities into the four ?s of the mar/etin' mi6! -hese four ?s stand for ! "5 produ%t+ positionin'+ pla%e+ and pri%e D5 produ%t+ produ%tion+ pri%e+ and pla%e 35 promotion+ pla%e+ positionin'+ and pri%e D5 pla%e+ promotion+ produ%tion+ and positionin' 95 produ%t+ pri%e+ promotion+ and pla%e "ns#er& 9 ?a'e 7ef& 25 :(2e%tive& 4 Diffi%ult)& 9as) 745 In%orporatin' the holisti% vie# of mar/etin'+ the four ?s of the mar/etin' mi6 %an (e updated to ! "5 produ%t+ positionin'+ people+ and pri%e D5 people+ pro%esses+ pla%e+ and promotion 35 produ%t+ pro%esses+ pri%e+ and people D5 people+ pro%esses+ pro'rams+ and performan%e 95 produ%t+ pri%e+ promotion+ and people "ns#er& D ?a'e 7ef& 25 :(2e%tive& 4 ""3$D& *ulti%ultural diversit) Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 755 0hi%h of the follo#in' refle%ts the BpeopleB %omponent of the mar/etin' mi61 "5 the %reativit)+ dis%ipline+ and stru%ture (rou'ht to mar/etin' mana'ement D5 the development of ne# produ%ts () the mar/eters 35 the firm=s %onsumer,dire%ted a%tivities D5 the ri'ht set of pro%esses to 'uide a%tivities and pro'rams #ithin the firm 95 the internal mar/etin' of the firm "ns#er& 9 ?a'e 7ef& 25 :(2e%tive& 4 ""3$D& 7efle%tive thin/in' Diffi%ult)& *oderate 765 0hi%h of the four ne# ?s en%ompasses the old four ?s as #ell as a ran'e of other mar/etin' a%tivities that mi'ht not fit #ell into the old vie# of mar/etin'1 "5 pro'rams D5 pro%esses 35 promotion D5 people 95 performan%e "ns#er& " ?a'e 7ef& 25 :(2e%tive& 4 Diffi%ult)& *oderate 775 "t the heart of an) mar/etin' pro'ram is the firm=s the mar/et! "5 strate') D5 produ%t 35 (rand D5 value 95 people "ns#er& D ?a'e 7ef& 27 :(2e%tive& 5 Diffi%ult)& 9as) + its tan'i(le offerin' to
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 785 a%tivities in%lude those the %ompan) underta/es to ma/e the produ%t a%%essi(le and availa(le to tar'et %ustomers! "5 Fine e6tension D5 $e'mentation 35 *ar/etin' resear%h D5 3hannel 95 Ge#,produ%t development "ns#er& D ?a'e 7ef& 27 :(2e%tive& 5 Diffi%ult)& *oderate 795 " mar/eter=s onl) %on%ern is ho# (est to %reate demand for a ne# produ%t produ%ed () his %ompan)! Improvin' produ%t desi'n is not his responsi(ilit)! "ns#er& C"F$9 ?a'e 7ef& 4 :(2e%tive& 1 Diffi%ult)& 9as) 805 " short definition of mar/etin' is Bmeetin' needs profita(l)!B "ns#er& -7@9 ?a'e 7ef& 5 :(2e%tive& 2 ""3$D& "nal)ti% s/ills Diffi%ult)& 9as) 815 $ervi%es %onstitute the (ul/ of most %ountries= produ%tion and mar/etin' efforts! "ns#er& C"F$9 ?a'e 7ef& 5 :(2e%tive& 2 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 825 -he @!$! e%onom) toda) %onsists of a 70,30 servi%es,to,'oods mi6! "ns#er& -7@9 ?a'e 7ef& 5 :(2e%tive& 2 Diffi%ult)& *oderate 835 ?la%e mar/eters in%lude e%onomi% development spe%ialists+ real estate a'ents+ %ommer%ial (an/s+ lo%al (usiness asso%iations+ and advertisin' and pu(li% relations a'en%ies! "ns#er& -7@9 ?a'e 7ef& 6 :(2e%tive& 2 Diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 845 ?roperties are tan'i(le ri'hts of o#nership to either real propert) 4real estate5 or finan%ial propert) 4sto%/s and (onds5! "ns#er& C"F$9 ?a'e 7ef& 6 :(2e%tive& 2 Diffi%ult)& 9as) 855 BCriends Don=t Fet Criends Drive Drun/+B is an e6ample of mar/etin' information to an interested audien%e! "ns#er& C"F$9 ?a'e 7ef& 7 :(2e%tive& 2 ""3$D& 7efle%tive thin/in' Diffi%ult)& *oderate 865 @n#holesome demand o%%urs #hen %onsumers= pur%hases var) on a seasonal+ monthl)+ #ee/l)+ dail)+ or even hourl) (asis! "ns#er& C"F$9 ?a'e 7ef& 8 :(2e%tive& 2 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 875 0hen %onsumers share a stron' need that %annot (e satisfied () an e6istin' produ%t+ the) are e6hi(itin' latent demand! "ns#er& -7@9 ?a'e 7ef& 8 :(2e%tive& 2 Diffi%ult)& *oderate 885 "dvertisin' is the most important element in (usiness mar/etin'! "ns#er& C"F$9 ?a'e 7ef& 9 :(2e%tive& 2 ""3$D& *ulti%ultural diversit) Diffi%ult)& *oderate 895 3ompanies sellin' their 'oods to nonprofit or'ani.ations often %har'e a premium over their normal pri%es (e%ause these or'ani.ations are lar'el) indifferent to pri%e! "ns#er& C"F$9 ?a'e 7ef& 9 :(2e%tive& 2 ""3$D& 7efle%tive thin/in' Diffi%ult)& 9as) 905 $hops and stores have a ph)si%al e6isten%e and as su%h are e6amples of mar/etspa%e!
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** "ns#er& C"F$9 ?a'e 7ef& 9 :(2e%tive& 2 ""3$D& @se of IDiffi%ult)& 9as) 915 0ants are (asi% human re8uirements+ su%h as food and shelter! "ns#er& C"F$9 ?a'e 7ef& 9,10 :(2e%tive& 3 Diffi%ult)& 9as) 925 Demands are #ants for spe%ifi% produ%ts (a%/ed () an a(ilit) to pa)! "ns#er& -7@9 ?a'e 7ef& 10 :(2e%tive& 3 ""3$D& "nal)ti% s/ills Diffi%ult)& 9as) 935 3ontrar) to popular (elief+ mar/eters do not %reate needs! "ns#er& -7@9 ?a'e 7ef& 10 :(2e%tive& 3 Diffi%ult)& 9as) 945 -he %ustomer value triad %onsists of a %om(ination of 8ualit)+ dura(ilit)+ and pri%e! "ns#er& C"F$9 ?a'e 7ef& 10 :(2e%tive& 3 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 955 " distri(ution %hannel in%ludes distri(utors+ #holesalers+ retailers+ and a'ents that displa)+ sell+ or deliver the ph)si%al produ%t or servi%e4s5 to the (u)er or user! "ns#er& -7@9 ?a'e 7ef& 11 :(2e%tive& 3 Diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 965 -he tas/ environment of a firm %onsists of demo'raphi%+ e%onomi%+ natural+ and te%hnolo'i%al environments+ as #ell as the politi%al,le'al s)stem and the so%ial,%ultural arena! "ns#er& C"F$9 ?a'e 7ef& 11 :(2e%tive& 3 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 975 7e'ulation of industries has %reated 'reater %ompetition and 'ro#th opportunities (e%ause the pla)in' field has (een leveled! "ns#er& C"F$9 ?a'e 7ef& 12 :(2e%tive& 4 ""3$D& 7efle%tive thin/in' Diffi%ult)& 9as) 985 Industr) (oundaries are (lurrin' at an in%redi(le rate as %ompanies are re%o'ni.in' that ne# opportunities lie at the interse%tion of t#o or more industries! "ns#er& -7@9 ?a'e 7ef& 12 :(2e%tive& 4 Diffi%ult)& 9as) 995 -he overa(undan%e of information availa(le on the Internet has made it more diffi%ult for %onsumers to %ompare produ%t features and pri%es! "ns#er& C"F$9 ?a'e 7ef& 13 :(2e%tive& 4 ""3$D& 7efle%tive thin/in' Diffi%ult)& 9as) 1005 3ompanies %an fa%ilitate and speed e6ternal %ommuni%ation amon' %ustomers () %reatin' online and off,line B(u..B throu'h (rand advo%ates and user %ommunities! "ns#er& -7@9 ?a'e 7ef& 14 :(2e%tive& 4 Diffi%ult)& *oderate 1015 -he proliferation of tar'eted media and %ommuni%ation %hannels has allo#ed mar/eters to (e%ome mu%h more a#are of their tar'et %onsumers= preferen%es and to %ustomi.e (oth produ%ts and messa'es for individual %onsumers! "ns#er& -7@9 ?a'e 7ef& 15 :(2e%tive& 4 Diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1025 -he produ%tion %on%ept is one of the ne#est %on%epts in (usiness! "ns#er& C"F$9 ?a'e 7ef& 18 :(2e%tive& 4 Diffi%ult)& 9as) 1035 -he sellin' %on%ept holds that %onsumers #ill favor those produ%ts that offer the most 8ualit)+ performan%e+ or innovative features! "ns#er& C"F$9 ?a'e 7ef& 18 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1045 -he sellin' %on%ept holds that %onsumers #ill prefer produ%ts that are ethi%al+ environmentall) responsi(le+ le'al+ and so%ial in the %onte6t of mar/etin' a%tivities and pro'rams! "ns#er& C"F$9 ?a'e 7ef& 18 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1055 -he mar/etin' %on%ept stresses on findin' the ri'ht %ustomers for the %ompan)=s produ%ts! "ns#er& C"F$9 ?a'e 7ef& 18 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1065 -he sellin' %on%ept is (ased on the development+ desi'n+ and implementation of mar/etin' pro'rams+ pro%esses+ and a%tivities that re%o'ni.e their (readth and interdependen%ies! "ns#er& C"F$9 ?a'e 7ef& 18 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1075 7elationship mar/etin' aims to (uild mutuall) satisf)in' lon',term relationships #ith /e) parties! "ns#er& -7@9 ?a'e 7ef& 20 :(2e%tive& 4 Diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1085 "ttra%tin' a ne# %ustomer %osts far more than retainin' an e6istin' one! "ns#er& -7@9 ?a'e 7ef& 20 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& 9as) 1095 :ne of the /e) themes of inte'rated mar/etin' is that there are ver) fe# mar/etin' a%tivities that %an effe%tivel) %ommuni%ate and deliver value! "ns#er& C"F$9 ?a'e 7ef& 20 :(2e%tive& 4 ""3$D& 7efle%tive thin/in' Diffi%ult)& *oderate 1105 ?roponents of holisti% mar/etin' %onsider internal mar/etin' to (e as important as mar/etin' to %onsumers! "ns#er& -7@9 ?a'e 7ef& 21 :(2e%tive& 4 ""3$D& 7efle%tive thin/in' Diffi%ult)& *oderate 1115 Inte'rated mar/etin' is the tas/ of hirin'+ trainin'+ and motivatin' a(le emplo)ees #ho #ant to serve %ustomers #ell! "ns#er& C"F$9 ?a'e 7ef& 21 :(2e%tive& 4 Diffi%ult)& 9as) 1125 ?erforman%e mar/etin' re8uires understandin' the finan%ial and non,finan%ial returns to (usiness and so%iet) from mar/etin' a%tivities and pro'rams! "ns#er& -7@9 ?a'e 7ef& 22 :(2e%tive& 4 Diffi%ult)& 9as) 1135 ?erforman%e mar/etin' involves revie#in' metri%s assessin' mar/et share+ %ustomer loss rate+ %ustomer satisfa%tion+ and produ%t 8ualit) in the evaluation of the effe%tiveness of mar/etin' a%tivities! "ns#er& -7@9 ?a'e 7ef& 22 :(2e%tive& 4 Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1145 -he so%ial responsi(ilit) mar/etin' %on%ept holds that the or'ani.ation=s tas/ is to determine the needs+ #ants+ and interests of tar'et mar/ets and to deliver the desired satisfa%tions more effe%tivel) and effi%ientl) than %ompetitors in a #a) that preserves or enhan%es the %onsumer=s and the so%iet)=s #ell,(ein'! "ns#er& -7@9 ?a'e 7ef& 22 :(2e%tive& 4 Diffi%ult)& 9as) 1155 "daptin' and %ondu%tin' (usiness pra%ti%es that prote%t the environment and human and animal ri'hts is spe%ifi%all) a part of %orporate so%ial mar/etin'! "ns#er& C"F$9 ?a'e 7ef& 24 :(2e%tive& 4 Diffi%ult)& *oderate 1165 3ause,related mar/etin' involves donatin' a per%enta'e of revenues to a spe%ifi% %ause (ased on the revenue o%%urrin' durin' the announ%ed period of support! "ns#er& -7@9 ?a'e 7ef& 24 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1175 *a/in' 'ifts of mone)+ 'oods+ or time to help nonprofit or'ani.ations+ 'roups+ or individuals is /no#n as %orporate philanthrop)! "ns#er& -7@9 ?a'e 7ef& 24 :(2e%tive& 4 Diffi%ult)& 9as) 1185 -he mar/etin',mi6 %omponent %alled BpeopleB refle%ts all the %reativit)+ dis%ipline+ and stru%ture (rou'ht to mar/etin' mana'ement! "ns#er& C"F$9 ?a'e 7ef& 25 :(2e%tive& 4 Diffi%ult)& 9as) 1195 " firm=s tan'i(le offerin' to the mar/et in%ludes produ%t 8ualit)+ desi'n+ features+ and pa%/a'in'! "ns#er& -7@9 ?a'e 7ef& 27 :(2e%tive& 5 ""3$D& 7efle%tive thin/in' Diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1205 *ar/etin' has (een des%ri(ed as (ein' (oth an BartB and a Bs%ien%e!B Dis%uss the differen%es and similarities (et#een these t#o mar/etin' thrusts! ?rovide )our theoreti%al response and a Breal,lifeB e6ample #here )ou have seen (oth pro%esses #or/ effe%tivel) at %reatin' %ustomer value and lo)alt)! "ns#er& -he student should demonstrate his or her understandin' that the mar/eter must use data to understand %ustomer needs and translate this understandin' into properl) desi'ned produ%ts and servi%es! -his re8uires appli%ation of state,of,the art tools and te%hni8ues! It is also an art as mar/eters tr) to find %reative solutions to %onsumer needs! ?a'e 7ef& 3,4 :(2e%tive& 2 ""3$D& 7efle%tive thin/in' Diffi%ult)& *oderate 1215 *ar/eters are involved in mar/etin' 10 t)pes of entities! Fist and (riefl) %hara%teri.e these entities! "ns#er& -he t)pes of entities that are mar/eted are 415 'oodsMph)si%al 'oods+ 425 servi%esMhotels and %ar rental servi%es+ 435 eventsMtime,(ased events su%h as trade sho#s+ 445 e6perien%esM0alt Disne)=s *a'i% Ein'dom+ 455 personsM%ele(rit) mar/etin'+ 465 pla%esM%ities+ states+ re'ions+ and even #hole nations+ 475 propertiesM intan'i(le ri'hts of o#nership of either real propert) or finan%ial propert)+ 485 or'ani.ationsM%orporate identit)+ 495 informationMinformation produ%ed and mar/eted as a produ%t+ and 4105 ideasMmar/etin' the (asi% idea of a mar/et offerin'! ?a'e 7ef& 5,7 :(2e%tive& 2 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1225 *ar/eters should (e s/illed in stimulatin' demand for a %ompan)=s produ%ts! ;ust as produ%tion and lo'isti%s professionals are responsi(le for suppl) mana'ement+ mar/eters are responsi(le for demand mana'ement! *ar/etin' mana'ers see/ to influen%e the level+ timin'+ and %omposition of demand to meet the or'ani.ation=s o(2e%tives! Fist and (riefl) %hara%teri.e the ei'ht different demand states! "ns#er& -he ei'ht different demand states are 415 ne'ative demandM%onsumers disli/e the produ%t and ma) even pa) a pri%e to avoid it+ 425 none6istent demandM%onsumers ma) (e una#are or uninterested in the produ%t+ 435 latent demandM%onsumers ma) share a stron' need that %annot (e satisfied () an e6istin' produ%t+ 445 de%linin' demandM %onsumers (e'in to (u) the produ%t less fre8uentl) or not at all+ 455 irre'ular demandM %onsumer pur%hases var) on a seasonal+ monthl)+ #ee/l)+ dail)+ or even hourl) (asis+ 465 full demandM%onsumers are ade8uatel) (u)in' all produ%ts in the mar/et+ 475 overfull demandMmore %onsumers #ould li/e to (u) the produ%t than %an (e satisfied+ and 485 un#holesome demandM%onsumers ma) (e attra%ted to produ%ts that have undesira(le so%ial %onse8uen%es! ?a'e 7ef& 8 :(2e%tive& 2 ""3$D& "nal)ti% s/ills Diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1235 3onsumers often have man) needs that are not readil) o(vious! ;ust o(servin' their (ehavior inside a retail store is not enou'h to 'et a true understandin' of their Bneeds!B Fist and (riefl) des%ri(e the five t)pes of needs that most %onsumers have! "ns#er& $uppose a %ustomer #ants to (u) a %ar! -he five t)pes of %ustomer needs #ith respe%t to this e6ample are 415 stated needsMthe %ustomer #ants an ine6pensive %ar+ 425 real needsMthe %ustomer #ants a %ar #hose operatin' %ost+ not its initial pri%e+ is lo#+ 435 unstated needsMthe %ustomer e6pe%ts 'ood servi%e from the dealer+ 445 deli'ht needsM the %ustomer #ould li/e the dealer to in%lude an on(oard navi'ation s)stem+ and 455 se%ret needsMthe %ustomer #ants to (e seen () friends as a savv) %onsumer! ?a'e 7ef& 10 :(2e%tive& 3 ""3$D& "nal)ti% s/ills Diffi%ult)& 9as) 1245 Distin'uish (et#een the %on%epts of value and satisfa%tion! "ns#er& -he offerin' #ill (e su%%essful if it delivers value and satisfa%tion to the tar'et (u)er! -he (u)er %hooses (et#een different offerin's on the (asis of his or her per%eption a(out #hi%h produ%t #ill deliver the most value! Value refle%ts the per%eived tan'i(le and intan'i(le (enefits and %osts to %ustomers! Halue %an (e seen as primaril) a %om(ination of 8ualit)+ servi%e+ and pri%e 4%alled the customer-value triad5! Satisfaction refle%ts a person=s %omparative 2ud'ments resultin' from a produ%t=s per%eived performan%e 4or out%ome5 in relation to his or her e6pe%tations! ?a'e 7ef& 10 :(2e%tive& 3 ""3$D& 7efle%tive thin/in' Diffi%ult)& 9as) 1255 "ssume that )ou have (een 'iven the tas/ of assistin' a %ompan) in desi'nin' its mar/etin' plannin' pro%ess! 0hat %omponents should (e in su%h a pro%ess1 "ns#er& -he mar/etin' plannin' pro%ess %onsists of anal).in' mar/etin' opportunities+ sele%tin' tar'et mar/ets+ desi'nin' strate'ies+ developin' mar/etin' pro'rams+ and mana'in' the mar/etin' effort! ?a'e 7ef& 15,16 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1265 -he %ompetin' %on%epts under #hi%h or'ani.ations have %ondu%ted mar/etin' a%tivities in%lude& the produ%tion %on%ept+ produ%t %on%ept+ sellin' %on%ept+ mar/etin' %on%ept+ and holisti% mar/etin' %on%ept! 9valuate the advanta'es and disadvanta'es of ea%h %on%ept! 0hi%h %on%ept do )ou (elieve is the most effe%tive1 0h)1 "ns#er& "lthou'h students #ill (e e6pe%ted to resear%h ea%h %on%ept+ the) should %on%lude the most effe%tive %on%ept is the holisti% mar/etin' %on%ept+ #here %ompanies need to have a more %omplete+ %ohesive approa%h that 'oes (e)ond traditional appli%ations of the mar/etin' %on%ept! ?a'e 7ef& 17,19 :(2e%tive& 4 ""3$D& 7efle%tive thin/in' Diffi%ult)& *oderate 1275 Define internal mar/etin' and its role in the %ompan)! :utline ho# various departments #ithin the %ompan) %an demonstrate a %ustomer fo%us! "ns#er& Internal mar/etin' is the tas/ of hirin'+ trainin'+ and motivatin' a(le emplo)ees #ho #ant to serve %ustomers #ell! Internal mar/etin' must ta/e pla%e on t#o levels! "t one level+ the various mar/etin' fun%tions must #or/ to'ether! "t the se%ond level+ other departments must em(ra%e mar/etin' and a Bthin/ %ustomerB attitude! ?a'e 7ef& 21,23 :(2e%tive& 4 ""3$D& 7efle%tive thin/in' Diffi%ult)& 9as) 1285 "%%ordin' to $tar(u%/s 3hairman >o#ard $%hult.+ B3onsumers no# %ommonl) en'a'e in a %ultural audit of Nprodu%t and servi%eO providers! ?eople #ant to /no# )our value and ethi%s demonstrated () ho# )ou treat emplo)ees+ the %ommunit) in #hi%h )ou operate!B Dis%uss the %on%ept of so%ial responsi(ilit) mar/etin' and ho# it impa%ts (oth %ompanies and %onsumers! "ns#er& -he so%ial responsi(ilit) mar/etin' %on%ept holds that the or'ani.ation=s tas/ is to determine the needs+ #ants+ and interests of tar'et mar/ets and to deliver the desired satisfa%tion more effe%tivel) and effi%ientl) than %ompetitors in a #a) that preserves or enhan%es the %onsumer=s and so%iet)=s lon',term #ell,(ein'! *an) %ompanies a%tivel) en'a'ed in %orporate so%ial responsi(ilit) %ampai'ns to (oth motivate emplo)ees and attra%t %onsumers! "s 'oods (e%ome more %ommoditi.ed+ and as %onsumers 'ro# more so%iall) %ons%ious+ some %ompanies are addin' so%ial responsi(ilit) as a #a) to differentiate themselves from %ompetitors+ (uild %onsumer preferen%e+ and a%hieve nota(le sales and profit 'ains! -he) (elieve %ustomers #ill in%reasin'l) loo/ for si'ns of 'ood %orporate %iti.enship! ?a'e 7ef& 22+ 24 :(2e%tive& 4 ""3$D& 9thi%al understandin' and reasonin' a(ilities Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1295 Identif) and define the traditional four ?s! "lso identif) the ne# four ?s and the reason for developin' the ne# interpretation! "ns#er& -he traditional four ?s are& ?rodu%t 4produ%t variet)+ 8ualit)+ desi'n+ features+ (rand name+ pa%/a'in'+ si.es+ servi%es+ #arranties+ returns5+ ?ri%e 4list pri%e+ dis%ounts+ allo#an%es+ pa)ment period+ %redit terms5+ ?romotion 4sales promotion+ advertisin'+ sales for%e+ pu(li% relations+ dire%t mar/etin'5+ and ?la%e 4%hannels+ %overa'e+ assortments+ lo%ations+ inventor)+ transportation5! >o#ever+ 'iven the (readth+ %omple6it)+ and ri%hness of mar/etin'+ as e6emplified () holisti% mar/etin'+ these 4 ?s are not the #hole stor) an)more! @pdatin' them to refle%t the holisti% mar/etin' %on%ept+ resear%hers in this field arrived at a more representative set that en%ompasses modern mar/etin' realities& people+ pro%esses+ pro'rams+ and performan%e! ?a'e 7ef& 25,26 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1305 Dis%uss the ei'ht demand states #ith respe%t to (ifo%al lenses for 'lasses! "ns#er& $tudent ans#ers ma) var)+ (ut a possi(le ans#er in%ludes the follo#in'& 415 ne'ative demandMman) people don=t #ant to admit the) need (ifo%als+ 425 none6istent demandM#hen (ifo%al lenses #ere first introdu%ed+ people didn=t /no# the) e6isted+ 435 latent demandM(efore the) #ere introdu%ed+ man) people thou'ht su%h a produ%t #ould (e ni%e+ (ut didn=t thin/ it #ould ever e6ist+ 445 de%linin' demandMthis #ill o%%ur #hen somethin' (etter and more %onvenient is invented+ 455 irre'ular demandMthe %onsumer per%eives a need for e)e %are devi%es onl) periodi%all)+ possi(l) #hen the) (e'in to have trou(le #ith their vision+ 465 full demandMthe manufa%turers of the lenses are ma/in' all the) possi(l) %an+ 475 overfull demandMthe manufa%turers of the lenses %an=t ma/e enou'h and inventories are lo#+ and 485 un#holesome demandMsee/in' alternatives that %an lead to undesira(le %onse8uen%es! ?a'e 7ef& 8 :(2e%tive& 2 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1315 Ge# terms are no# (ein' used to des%ri(e #here mar/etin' is done! @sin' the automo(ile mar/et+ des%ri(e automotive (u)in' (ehavior for a& 415 mar/etpla%e+ 425 mar/etspa%e+ and 435 metamar/et! "ns#er& 7esponses to this 8uestion should in%lude a referen%e to the follo#in'& 415 mar/etpla%eMshoppin' for an automo(ile at a dealer+ 425 mar/etspa%eMshoppin' for an automo(ile via the Internet+ eDa)+ or even desi'nin' )our o#n %ar via a manufa%turer=s 0e( site+ and 435 metamar/etM4a %luster of %omplementar) produ%ts and servi%es that are %losel) related in the %ustomer=s mind (ut are spread a%ross a diverse set of industries5 that mi'ht in%lude insuran%e %ompanies+ the ra%in' industr)+ the travel industr)+ the %ustomi.ation industr)+ et%! ?a'e 7ef& 9 :(2e%tive& 2 ""3$D& "nal)ti% s/ills
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Diffi%ult)& *oderate 1325 Cord /no#s that to rea%h its tar'et mar/ets three /inds of mar/etin' %hannels ma) (e used! 0hat are these three mar/etin' %hannels and ho# mi'ht Cord use ea%h of them1 "ns#er& -he three mar/etin' %hannels are %ommuni%ation+ distri(ution+ and servi%e %hannels! Cord uses advertisin' to position its produ%ts and %onve) a %ertain messa'e to %onsumers 4%ommuni%ation %hannel5! -he deliver) of %ars to end %onsumers #ould re8uire a distri(ution %hannel+ su%h as a %ar dealership+ and the %ompan) %an have tie,ups #ith insuran%e %ompanies to provide %ar insuran%e 4servi%e %hannel5! ?a'e 7ef& 11 :(2e%tive& 3 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1335 -he mar/etpla%e isn=t #hat it used to (e! Fist and (riefl) dis%uss the ne# (ehaviors+ opportunities+ and %hallen'es that a#ait the mar/eter in the 21st %entur)! "ns#er& 7esponses to this 8uestion should in%lude& 415 %han'in' te%hnolo')+ 425 'lo(ali.ation+ 435 dere'ulation+ 445 privati.ation+ 455 %ustomer resistan%e+ 465 hei'htened %ompetition+ 475 industr) %onver'en%e+ 485 retail transformation+ 495 disintermediation+ 4105 net#or/ information te%hnolo')+ 4115 %onsumer (u)in' po#er+ 4125 %onsumer information+ 4135 %onsumer parti%ipation+ and 4145 %onsumer resistan%e! ?a'e 7ef& 12,13 :(2e%tive& 4 ""3$D& 7efle%tive thin/in' Diffi%ult)& *oderate 1345 Dis%uss the %on%ept of disintermediation and provide an e6ample! "ns#er& Disintermediation 're# out of the rush to em(ra%e the dot,%oms and e, %ommer%e! 9ssentiall)+ the dot,%oms removed man) of the traditional intermediaries () en%oura'in' %onsumers to deal dire%tl) #ith the %ompan) via the Internet! BDri%/,and, %li%/B (usinesses eventuall) (rou'ht some of the intermediaries (a%/ throu'h a pro%ess %alled reintermediation. ?a'e 7ef& 13 :(2e%tive& 4 ""3$D& @se of IDiffi%ult)& 9as) 1355 -he di'ital revolution has pla%ed a #hole ne# set of %apa(ilities in the hands of %onsumers and (usinesses! Des%ri(e the advanta'es that )ou as a %onsumer have toda) that )our parents or 'randparents didn=t have! "ns#er& 7esponses to this 8uestion should in%lude& 415 a su(stantial in%rease in (u)in' po#er+ 425 a 'reater variet) of availa(le 'oods and servi%es+ 435 a 'reat amount of information a(out pra%ti%all) an)thin'+ 445 'reater ease in intera%tin' and pla%in' and re%eivin' orders+ and 455 an in%reased a(ilit) to %ompare produ%ts and servi%es! ?a'e 7ef& 14,15 :(2e%tive& 4
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** ""3$D& "nal)ti% s/ills Diffi%ult)& 9as) 1365 -he Internet has 'iven toda)=s %ompanies a ne# set of %apa(ilities! "mon' those %apa(ilities is the a(ilit) to operate a ne# information %hannel! Des%ri(e ho# information %an (e used () the mar/eter in this ne# %hannel! "ns#er& 3ompanies %an operate a po#erful ne# information and sales %hannel+ the Internet+ #ith au'mented 'eo'raphi%al rea%h to inform and promote their (usinesses and produ%ts #orld#ide! D) esta(lishin' one or more 0e( sites+ a %ompan) %an list its produ%ts and servi%es+ its histor)+ its (usiness philosoph)+ its 2o( opportunities+ and other information of interest to visitors! -his provides %onsumers #ith a dire%t a%%ess to the %ompan)! "lmost all 0e( sites in%lude a B%onta%t usB se%tion that ena(les %onsumers to put forth their 8ueries and intera%t #ith the %ompan) dire%tl)! -his in turn allo#s mar/eters to (e a#are of people=s opinions and preferen%es! ?a'e 7ef& 14,15 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& 9as) 1375 Dis%uss ho# %ompanies %an use the Internet to (uild their (rands! <ive an e6ample of a %ompan) that has done so! "ns#er& :nline mar/etin' a%tivities %an (e used to (uild (rands () in%reasin' %onsumer e6posure to the (rand and %reatin' an intera%tive e6perien%e (et#een the %ustomer and the (rand+ 'ivin' %onsumers a%%ess not onl) to %ompan),%reated information (ut also %onsumer,'enerated %ontent! Cor e6ample+ 3arnival 3onne%tions+ an online %ruise, (oo/in' site+ made it eas) for %ruise fans to %ompare notes on %ruise destinations and on(oard entertainment! ?a'e 7ef& 14,15 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1385 "rthur ;ones has de%ided to start a (usiness! >e #ants to manufa%ture la#n mo#ers and (elieves in the produ%tion %on%ept! If this approa%h is ta/en+ #hat #ill (e *r! ;ones= primar) areas of %on%entration as he (uilds his (usiness1 "ns#er& -his orientation holds that %onsumers #ill prefer produ%ts that are #idel) availa(le and ine6pensive! *ana'ers of produ%tion,oriented (usinesses %on%entrate on hi'h produ%tion effi%ien%)+ lo# %osts+ and mass distri(ution! ;ones #ill also #ant an effi%ient produ%tion pro%ess in pla%e! -his approa%h is also used #hen a %ompan) #ants to e6pand the mar/et! $tudents ma) use these fa%ts as the) desi'n their ans#er! ?a'e 7ef& 18 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1395 In%reasin'l)+ a /e) 'oal of mar/etin' is to develop deep+ endurin' relationships #ith all entities that dire%tl) or indire%tl) affe%t the su%%ess of the firm! Dis%uss the merits of relationship mar/etin'! Crom )our e6perien%e as a %onsumer+ des%ri(e the relationship mar/etin' efforts underta/en () a %ompan) of )our %hoi%e! "ns#er& $tudents should understand that the relationship (et#een an) supplier and %ustomer is not 2ust in the me%hani%s of the transa%tion+ (ut more importantl) ho# the %ustomer is treated durin' the transa%tion! -he (etter the relationship+ the more the li/elihood of the %ustomer remainin' lo)al! -he) should pi%/ a %ompan) that has served them #ell and made them feel spe%ial ea%h and ever) time! ?a'e 7ef& 20 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1405 0hat #ould (e the mar/etin' net#or/ elements for a motor%)%le %ompan) su%h as >arle),Davidson1 "ns#er& " mar/etin' net#or/ %onsists of the %ompan) and its supportin' sta/eholders! -hese sta/eholders for >arle),Davidson are its %ustomers+ emplo)ees+ suppliers+ distri(utors+ retailers+ repair servi%es+ ad a'en%ies+ lo(() 'roups+ and motor%)%le support %lu(s! -he operatin' prin%iple is simple& Duild an effe%tive net#or/ of relationships #ith /e) sta/eholders+ and profits #ill follo#! ?a'e 7ef& 20 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1415 Iour firm is in the pro%ess of movin' from fo%usin' on a finan%ial s%ore%ard as the (asis for runnin' and evaluatin' the or'ani.ation to a mar/etin' s%ore%ard approa%h! 0hat is a mar/etin' s%ore%ard approa%h and #hat mi'ht (e some of its %omponents1 "ns#er& -op mana'ement is 'oin' (e)ond sales revenue alone to e6amine the mar/etin' s%ore%ard! -oda)+ the shift to the mar/etin' s%ore%ard attempts to interpret #hat is happenin' to mar/et share+ %ustomer loss rate+ %ustomer satisfa%tion+ produ%t 8ualit)+ and other measures! *ana'ers /no# %han'es in mar/etin' indi%ators predi%t %han'es in finan%ial results! ?a'e 7ef& 22 :(2e%tive& 4 ""3$D& 7efle%tive thin/in' Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1425 0illiam Durns o#ns an e6tremel) profita(le sea,side resort! In order to in%rease his resort=s (rand value+ Durns is %onsiderin' %ause,mar/etin'! <ive a fe# e6amples of ho# he ma) a%hieve this 'oal! "ns#er& 3ause mar/etin' is promotin' so%ial issues throu'h efforts su%h as sponsorships+ li%ensin' a'reements+ and advertisin'! -he hotel %an sponsor events addressin' so%ial issues! "s it is a sea,side resort+ it %an support and spon'er efforts to prote%t marine life+ preserve the natural environment+ and prevent #ater pollution! 4"ns#ers %an var)!5 ?a'e 7ef& 24 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1435 Iou have (een 'iven the assi'nment of 2ustif)in' %ause,related mar/etin' to )our (oard of dire%tors! 0hat #ould (e )our primar) ar'ument in favor of su%h a proposal1 "ns#er& 3ompanies see %ause,related mar/etin' as an opportunit) to enhan%e their %orporate reputation+ raise (rand a#areness+ in%rease %ustomer lo)alt)+ (uild sales+ and in%rease press %overa'e! -he) (elieve %ustomers #ill in%reasin'l) loo/ for si'ns of 'ood %orporate %iti.enship that 'o (e)ond suppl)in' rational and emotional (enefits! -his should (e the main line of ar'ument in support of an) %ause,related mar/etin' effort! ?a'e 7ef& 24 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1445 Finda 9vans has (een 'iven the tas/ of developin' the produ%t element of her %ompan)=s mar/etin' mi6! Fist the %omponents that #ill li/el) (e in%luded in this element of the mar/etin' mi6! "ns#er& ?rodu%t variet)+ 8ualit)+ desi'n+ features+ (rand name+ pa%/a'in'+ si.es+ servi%es+ #arranties+ and returns are the /e) elements of the produ%t portion of the mar/etin' mi6! ?a'e 7ef& 25 :(2e%tive& 4 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate
+,-.te( 23 De4e'o.in0 M-(1etin0 St(-te0ies -n5 P'-ns
GENERAL +ON+EPT QUESTIONS Mu'ti.'e +,oi6e

129
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1! " /e) in'redient of the mar/etin' mana'ement pro%ess is insi'htful+ mar/etin' strate'ies and plans that %an 'uide mar/etin' a%tivities! a! %reative (! measura(le %! ma%ro d! mi%ro e! ni%he "ns#er& a ?a'e& 35 Fevel of diffi%ult)& *edium 2! "%%ordin' to a %hapter stor) a(out >P* %lothin' stores+ >P* is a(le to put produ%ts out 8ui%/l) and ine6pensivel) () all of the follo#in' 9L39?! a! havin' fe# middlemen and o#nin' no fa%tories (! (u)in' lar'e volumes %! havin' e6tensive e6perien%e in the %lothin' industr) d! havin' a 'reat /no#led'e of #hi%h 'oods should (e (ou'ht from #hi%h mar/ets e! havin' total %ontrol of its distri(ution %hannel from the time the 'oods are produ%ed until the time the) are sold "ns#er& e ?a'e& 36 Fevel of diffi%ult)& >ard 3! -he tas/ of an) (usiness is to deliver a! %ustomer needs (! produ%ts %! %ustomer value d! produ%ts and servi%es e! improved 8ualit) "ns#er& % ?a'e& 36 at a profit!
Fevel of diffi%ult)& *edium
4! In a h)per%ompetitive e%onom) su%h as ours+ a %ompan) %an #in onl) () fine,tunin' the value deliver) pro%ess and %hoosin'+ providin'+ and superior value! a! %ommuni%atin' (! sele%tin' tar'et mar/ets #ith %! %omposin' d! developin' e! resear%hin' "ns#er& a ?a'e& 36 Fevel of diffi%ult)& *edium 5! -he traditional vie# of mar/etin' is that the firm ma/es somethin' and then it! a! mar/ets (! sells %! distri(utes d! pri%es e! servi%es "ns#er& ( ?a'e& 36 Fevel of diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 6! -oda)+ the Qmass,mar/etR is a%tuall) splinterin' into numerous its o#n #ants+ per%eptions+ preferen%es+ and (u)in' %riteria! a! mi%romar/ets (! mar/et tar'ets %! ma%romar/ets d! %ustomer %li8ues e! demo'raphi% units "ns#er& a ?a'e& 37 Fevel of diffi%ult)& *edium 7! -he first phase of the value %reation and deliver) se8uen%e is represents the Qhome#or/R mar/etin' must do (efore an) produ%t e6ists! a! %hoosin' the value (! mar/et resear%h %! tar'et mar/etin' d! servi%e %onsideration e! pro2e%tive thin/in' "ns#er& a ?a'e& 37 Fevel of diffi%ult)& *edium + ea%h #ith
that
8! -he last step in the value %reation and deliver) se8uen%e is the value #here the sales for%e+ sales promotion+ advertisin'+ and other %ommuni%ation tools announ%e and promote the produ%t! a! developin' (! distri(utin' %! %ommuni%atin' d! reversin' e! resear%hin' "ns#er& % ?a'e& 37 Fevel of diffi%ult)& *edium 9! -he ;apanese have refined the value deliver) pro%ess to in%lude a %omponent that emphasi.es ! a! .ero servi%in' (! .ero %ustomer feed(a%/ time %! .ero promotion d! .ero dependen%) on intermediaries e! .ero mar/etin' %osts "ns#er& ( ?a'e& 38 Fevel of diffi%ult)& *edium 10! -he is a tool for identif)in' #a)s to %reate more %ustomer value! a! value %hain (! %ustomer surve) %! (rand lo)alt) inde6 d! promotion %hannel e! supplier data(ase "ns#er& a ?a'e& 38 Fevel of diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 11! -he identifies nine strate'i%all) relevant a%tivities that %reate value and %ost in a spe%ifi% (usiness! a! value proposition (! value %hain %! mission statement d! annual report e! mana'erSs lo' "ns#er& ( ?a'e& 38 Fevel of diffi%ult)& *edium 12! -he in the value %hain %over the se8uen%e of (rin'in' materials into the (usiness 4in(ound lo'isti%s5+ %onvertin' them into final produ%ts 4operations5+ shippin' out final produ%ts 4out(ound lo'isti%s5+ mar/etin' them 4mar/etin' and sales5+ and servi%in' them 4servi%e5! a! operations pro%ess (! manufa%turin' pro%ess %! primar) a%tivities d! se%ondar) a%tivities e! tertiar) a%tivities "ns#er& % ?a'e& 38 Fevel of diffi%ult)& *edium 13! ?ro%urement+ te%hnolo') development+ human resour%e mana'ement+ and firm infrastru%ture are handled in %ertain spe%iali.ed departments and are %alled ! a! materials handlin' (! support a%tivities %! inventor) a%tivities d! primar) a%tivities e! (en%hmar/ a%tivities "ns#er& ( ?a'e& 38 Fevel of diffi%ult)& >ard
14! -he firm should estimate its %ompetitorsS %osts and performan%es as %ompare its o#n %osts and performan%e! a'ainst #hi%h to
a! %ompetition (! standards %! %hallen'es d! (en%hmar/s e! movea(le standards "ns#er& d ?a'e& 38 Fevel of diffi%ult)& 9as) 15! -he firmSs su%%ess depends not onl) on ho# #ell ea%h department performs its #or/+ (ut also on ho# #ell the various departmental a%tivities are %oordinated to %ondu%t ________! a! %ore strate'ies (! satellite (usinesses %! %ore values d! %ore (usiness pro%esses
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** e! %ore te%hnolo'ies "ns#er& d ?a'e& 38 Fevel of diffi%ult)& *edium 16! 0ith respe%t to %ore (usiness pro%esses+ all the a%tivities involved in 'atherin' mar/et intelli'en%e+ disseminatin' it #ithin the or'ani.ation+ and a%tin' on the information is referred to as the a! mar/et sensin' pro%ess (! mar/et resear%h pro%ess %! tar'et mar/etin' pro%ess d! mar/et pulse pro%ess e! deplo)ment pro%ess "ns#er& a ?a'e& 38 !
17! 0ith respe%t to the %ore (usiness pro%esses+ all the a%tivities involved in resear%hin'+ developin'+ and laun%hin' ne# hi'h,8ualit) offerin's 8ui%/l) and #ithin (ud'et are referred to as the a! ne# produ%t pro%ess (! ne# offerin' reali.ation pro%ess %! produ%t development pro%ess d! produ%t laun%h pro%ess e! return on investment pro%ess "ns#er& ( ?a'e& 38 !
Fevel of diffi%ult)& >ard
18! 0ith respe%t to the %ore (usiness pro%esses+ the is %onsidered to (e all the a%tivities involved in definin' tar'et mar/ets and prospe%tin' for ne# %ustomers! a! %ustomer a%8uisition pro%ess (! %ustomer relationship mana'ement pro%ess %! fulfillment mana'ement pro%ess d! %ustomer prospe%tin' pro%ess e! %ustomer e8uit) pro%ess "ns#er& a ?a'e& 38 Fevel of diffi%ult)& *edium
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 19! " 'ood #a) to des%ri(e the #ould (e dis%uss all the a%tivities involved in (uildin' deeper understandin'+ relationships+ and offerin's to individual %ustomers! a! %ustomer a%8uisition pro%ess (! %ustomer relationship mana'ement pro%ess %! %ustomer prospe%tin' pro%ess d! %ustomer fulfillment mana'ement pro%ess e! %ustomer e8uit) pro%ess "ns#er& ( ?a'e& 38 Fevel of diffi%ult)& *edium
20! "nother #a) to des%ri(e a value deliver) net#or/ 4partnerin' #ith spe%ifi% suppliers and distri(utors5 is to %all it a !
a! (! %! d! e!
team#or/ 'roup %a(al domesti% po#er %enter lin/ to relationships suppl) %hain "ns#er& e ?a'e& 39
Fevel of diffi%ult)& 9as)

that ma/e up the essen%e of the (usiness!
21! -he /e) to utili.in' or'ani.ational %ore %ompeten%ies is to
a! (! %! d! e!
ma/e the %ompeten%ies pa) for themselves o#n all intermediaries #ho %ome in %onta%t #ith )our 'oods and servi%es o#n and nurture the resour%es and %ompeten%ies emphasi.e 'lo(al promotions se'ment #or/for%es "ns#er& % ?a'e& 39 Fevel of diffi%ult)& >ard
22! 0e %an sa) that a has three %hara%teristi%s& 415 It is a sour%e of %ompetitive advanta'e in that it ma/es a si'nifi%ant %ontri(ution to per%eived %ustomer (enefits+ 425 it has appli%ations in a #ide variet) of mar/ets+ and 435 it is diffi%ult for %ompetitors to imitate!
a! %ore %ompeten%) (! (usiness strate') %! %ore te%hnolo') d! strate'i% (usiness unit e! #innin' strate') "ns#er& a ?a'e& 39
23! 3ore %ompeten%ies tend to refer to areas of spe%ial te%hni%al and produ%tion e6pertise+ #here tend to des%ri(e e6%ellen%e in (roader (usiness pro%esses! a! pro%ess (en%hmar/s (! distin%tive %apa(ilities %! %ore (usiness values d! value statements e! mission statements "ns#er& ( ?a'e& 40 Fevel of diffi%ult)& *edium
134
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 24! <eor'e Da) sees mar/et,driven or'ani.ations as e6%ellin' in three distin%tive %apa(ilities& + %ustomer lin/in'+ and %hannel (ondin'! a! tar'et mar/etin' (! mar/et resear%h %! fulfillin' %ustomer needs d! mar/et sensin' e! %ustomer servi%e relationships "ns#er& d ?a'e& 40 Fevel of diffi%ult)& *edium 25! 3ompetitors find it hard to imitate %ompanies su%h as $outh#est "irlines+ Dell+ or IE9" (e%ause the) are una(le to %op) their ! a! produ%t innovations (! distri(ution strate') %! pri%in' poli%ies d! a%tivit) s)stems e! lo'isti%s s)stem "ns#er& d ?a'e& 40 Fevel of diffi%ult)& >ard 26! :ne %on%eption of holisti% mar/etin' vie#s it as Qinte'ratin' the value e6ploration+ + and value deliver) a%tivities #ith the purpose of (uildin' lon',term+ mutuall) satisf)in' relationships and %o,prosperit) amon' /e) sta/eholders!R a! value %reation (! value proposition %! value mana'ement d! value resear%h e! value %hain "ns#er& a ?a'e& 40 Fevel of diffi%ult)& >ard 27! >olisti% mar/eters a%hieve profita(le 'ro#th () e6pandin' %ustomer share+ + and %apturin' %ustomer lifetime value! a! underminin' %ompetitive %ompeten%ies (! (uildin' %ustomer lo)alt) %! mil/in' the mar/et for produ%t desires d! rene#in' a %ustomer (ase e! inspe%tin' all mar/et share data "ns#er& ( ?a'e& 40 Fevel of diffi%ult)& *edium 28! -he holisti% mar/etin' frame#or/ is desi'ned to address three /e) mana'ement 8uestions! 0hi%h of the follo#in' is one of those 8uestions1 a! Halue %laimsMho# does the %ompan) deal #ith value erosion1 (! Halue propositionMho# %an value propositions (e made profita(le1 %! Halue %hainMare there #ea/ lin/s in the %ompan)Ss value %hain d! Halue net#or/Mho# %an a %ompan) effe%tivel) net#or/1 e! Halue e6plorationMho# %an a %ompan) identif) ne# value opportunities1 "ns#er& e ?a'e& 41 Fevel of diffi%ult)& >ard
135
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 29! -he %ustomerSs refle%ts e6istin' and latent needs and in%ludes dimensions su%h as the need for parti%ipation+ sta(ilit)+ freedom+ and %han'e! a! %ompeten%e spa%e (! resour%e spa%e %! emotional spa%e d! relationship spa%e e! %o'nitive spa%e "ns#er& e ?a'e& 41 Fevel of diffi%ult)& *edium 30! -he %ompan)Ss %an (e des%ri(ed in terms of (readthM(road versus fo%used s%ope of (usinessA and depthMph)si%al versus /no#led'e,(ased %apa(ilities! a! (usiness mission (! %ore strate') %! %o'nitive spa%e d! %ompeten%) spa%e e! resour%e spa%e "ns#er& d ?a'e& 41 Fevel of diffi%ult)& *edium 31! -he %olla(oratorSs involves hori.ontal partnerships+ #here %ompanies %hoose partners (ased on their a(ilit) to e6ploit related mar/et opportunities+ and verti%al partnerships+ #here %ompanies %hoose partners (ased on their a(ilit) to serve their value %reation! a! resour%e spa%e (! %ompeten%) spa%e %! %o'nitive spa%e d! rational spa%e e! servi%e spa%e "ns#er& a ?a'e& 41 Fevel of diffi%ult)& *edium 32! Dusiness reali'nment ma) (e ne%essar) to ma6imi.e %ore %ompeten%ies! 0hi%h of the follo#in' #ould (e one of the steps in this reali'nment pro%ess1 a! 7evie#in' all ma%ro relationships! (! 7evie#in' 'lo(al outrea%h pro2e%tions! %! 7edefinin' the (usiness %on%ept 4the Q(i' ideaR5! d! 7evie#in' su%%esses from e,%ommer%e 4if an)5! e! 7evampin' the ethi%s statement! "ns#er& % ?a'e& 41 Fevel of diffi%ult)& *edium
136
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 33! ________ allo#s the %ompan) to dis%over #ho its %ustomers are+ ho# the) (ehave+ and #hat the) need or #ant! It also ena(les the %ompan) to respond appropriatel)+ %oherentl)+ and 8ui%/l) to different %ustomer opportunities! a! Get#or/ mana'ement (! $trate'i% mana'ement %! *ar/etin' mana'ement d! 3ustomer relationship mana'ement e! -otal 8ualit) mana'ement "ns#er& d ?a'e& 41 Fevel of diffi%ult)& *edium 34! -o respond effe%tivel) and provide value deliver)+ the %ompan) re8uires to inte'rate ma2or (usiness pro%esses 4e!'!+ order pro%essin'+ 'eneral led'er+ pa)roll+ and produ%tion5 #ithin a sin'le famil) of soft#are modules! a! human resour%e mana'ement (! internal auditin' mana'ement %! internal resour%e mana'ement d! strate'i% mana'ement e! mar/etin' mana'ement "ns#er& % ?a'e& 41 Fevel of diffi%ult)& >ard 35! 0ith respe%t to value deliver)+ ________ allo#s the %ompan) to handle %omple6 relationships #ith its tradin' partners to sour%e+ pro%ess+ and deliver produ%ts! a! a value matri6 (! a 'lo(al distri(ution poli%) %! a (usiness development strate') d! (usiness partnership mana'ement e! total 8ualit) mana'ement "ns#er& d ?a'e& 41 Fevel of diffi%ult)& *edium 36! $u%%essful mar/etin' re8uires havin' %apa(ilities su%h as understandin' + %reatin' %ustomer value+ deliverin' %ustomer value+ %apturin' %ustomer value+ and sustainin' %ustomer value7 a! %ustomer lo)alt) (! %ustomer per/s %! %ustomer retention d! %ustomer value e! %ustomer (enefits "ns#er& d ?a'e& 41 Fevel of diffi%ult)& 9as)
137
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 37! "%%ordin' to a *%Einse) resear%h stud)+ #hi%h of the follo#in' is one of the main %hallen'es that mar/etin' must fa%e in the t#ent),first %entur)1 a! -he threat of ethi%s,(ased la#suits! (! Doin' more #ith less! %! >ostile ta/eover attempts! d! In%reasin' %ontrol () (i' 'overnment! e! Dein' independent of the distri(ution pro%ess! "ns#er& ( ?a'e& 42 Fevel of diffi%ult)& *edium 38! $trate'i% plannin' in the t#ent),first %entur) %alls for a%tion in three /e) areas! 0hi%h of these /e) areas deals spe%ifi%all) #ith devisin' a lon',term 'ame plan for a%hievin' lon',run o(2e%tives1 a! 3reatin' a via(le (usiness opportunit)! (! ?rodu%in' a strate'i% fit! %! Developin' an investment portfolio! d! 96pandin' %ore %ompeten%ies! e! 9sta(lishin' a strate')! "ns#er& e ?a'e& 42 Fevel of diffi%ult)& *edium 39! *ost lar'e %ompanies %onsist of four or'ani.ational levels& the division level+ the (usiness unit level+ and the produ%t level! a! (oard of dire%tor level (! ma2or sta/eholder level %! mana'ement team level d! %orporate level e! strate'i% level "ns#er& d ?a'e& 43 Fevel of diffi%ult)& 9as) + the
40! -he 88888888 is the %entral instrument for dire%tin' and %oordinatin' the mar/etin' effort! a! strate'i% plan (! mar/etin' plan %! ta%ti%al plan d! %ustomer value statement e! %orporate mission "ns#er& ( ?a'e& 43 Fevel of diffi%ult)& *edium
41! -he la)s out the tar'et mar/ets and the value proposition that #ill (e offered+ (ased on an anal)sis of the (est mar/et opportunities!
a! or'ani.ational plan (! strate'i% mar/etin' plan %! %orporate ta%ti%al plan d! %orporate mission e! %ustomer value statement "ns#er& ( ?a'e& 43
138
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 42! In #hi%h of the follo#in' plans #ould #e most li/el) find dire%tions for implementin' and addressin' dail) %hallen'es and opportunities in produ%t features+ promotion+ mer%handisin'+ pri%in'+ sales %hannels+ and servi%e areas! a! -he ta%ti%al mar/etin' plan! (! -he tar'et mar/etin' plan! %! -he deplo)ment plan! d! -he produ%t laun%h plan! e! -he produ%t development plan! "ns#er& a ?a'e& 43 Fevel of diffi%ult)& 9as) 43! If )ou #anted to find out more a(out tar'et mar/ets and the or'ani.ationSs value proposition+ #hi%h of the follo#in' t)pes of plans #ould most li/el) %ontain information that mi'ht (e useful to )ou in )our 8uest1 a! -he mar/etin' plan! (! -he or'ani.ational plan! %! -he strate'i% mar/etin' plan! d! -he ta%ti%al mar/etin' plan! e! -he mar/etin' mi6 plan! "ns#er& % ?a'e& 43 Fevel of diffi%ult)& *edium 44! -he pro%ess %onsists of %orporate+ division+ (usiness+ and produ%t plannin'! a! implementin' (! %ontrollin' %! innovation d! plannin' e! %ompetitive "ns#er& d ?a'e& 44 Fevel of diffi%ult)& *edium 45! "ll %orporate head8uarters underta/e four plannin' a%tivities+ the first of #hi%h is ! a! definin' the %orporate mission (! esta(lishin' strate'i% (usiness units and assi'nin' resour%es 4$D@s5 %! assi'nin' resour%es to ea%h $D@ d! assessin' 'ro#th opportunities e! understandin' tar'et mar/ets "ns#er& a ?a'e& 44 Fevel of diffi%ult)& 9as) 46! " %lear+ thou'htful mission statement provides emplo)ees #ith a shared sense of purpose+ dire%tion+ and ! a! profita(ilit) (! tar'et mar/et feasi(ilit) %! opportunit) d! %ontinuous improvement e! 8ualit) produ%ts "ns#er& % ?a'e& 44 Fevel of diffi%ult)& *edium
139
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 47! *ission statements are at their (est #hen the) refle%t a ! a! mar/et (! stren'th %! %ompeten%) d! vision e! value "ns#er& d ?a'e& 44 Fevel of diffi%ult)& *edium
48! 0hi%h of the follo#in' terms mat%hes to the phrase Qit is a sin'le (usiness or %olle%tion of related (usinesses that %an (e planned separatel) from the rest of the %ompan)R1
a! $trate'i% (usiness unit! (! Diverse (usiness unit! %! <ro#th (usiness unit! d! Gi%he mar/et unit! e! $pe%iali.ed (usiness unit! "ns#er& a ?a'e& 47
49! *ar/et,penetration+ produ%t,development+ and mar/et,development strate'ies #ould all (e e6amples of strate'ies! a! %on%entri% (! %on'lomerate %! hori.ontal d! intensive 'ro#th e! inte'rative 'ro#th "ns#er& d ?a'e& 48 Fevel of diffi%ult)& >ard 50! "4n5 is #hen a %ompan) mi'ht see/ ne# (usinesses that have no relationship to its %urrent te%hnolo')+ produ%ts+ or mar/ets! a! %on%entri% strate') (! %on'lomerate strate') %! hori.ontal strate') d! intensive 'ro#th strate') e! inte'rative strate') "ns#er& ( ?a'e& 49 Fevel of diffi%ult)& *edium 51! 0hi%h of the follo#in' terms most %losel) mat%hes to Qthe shared e6perien%es+ stories+ (eliefs+ and norms that %hara%teri.e an or'ani.ationR1 a! :r'ani.ational d)nami%s! (! " (usiness mission! %! "n ethi%alTvalue statement! d! 3ustomer relationships! e! 3orporate %ulture! "ns#er& e ?a'e& 50 Fevel of diffi%ult)& *edium 52. -he first step in the (usiness unit strate'i%,plannin' pro%ess deals #ith #hi%h of the follo#in'1
140
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** a! <oal formulation! (! Dusiness mission! %! $trate') formulation! d! ?ro'ram formulation! e! $0:- anal)sis! "ns#er& ( ?a'e& 51 Fevel of diffi%ult)& *edium 53! 0hen a (usiness 'ets to /no# mar/et se'ments intimatel) and pursues either %ost leadership or differentiation #ithin the tar'et se'ment it is referred to as a ! a! defined strate') (! fo%used strate') %! value,added strate') d! %ompetitive advanta'e strate') e! %ustomer,fo%used strate') "ns#er& ( ?a'e& 56 Fevel of diffi%ult)& >ard 54! If a firm pursues a strate')+ it must (e 'ood at en'ineerin'+ pur%hasin'+ manufa%turin'+ and ph)si%al distri(ution! a! differentiation (! overall %ost leadership %! fo%us d! domesti% %ustomer relationship e! mar/et share "ns#er& ( ?a'e& 56 Fevel of diffi%ult)& *edium 55! -o /eep their strate'i% allian%es thrivin'+ %orporations have (e'un to develop or'ani.ational stru%tures to support them and have %ome to vie# the a(ilit) to form and mana'e partnerships as %ore s/ills! -his is %alled ! a! value mana'ed partnership (! s)ner'isti% partnership %! %entrali.ed partnership d! partner relationship mana'ement e! #in,#in relationship mana'ement "ns#er& d ?a'e& 57 Fevel of diffi%ult)& >ard
56! -raditionall)+ most (usinesses fo%used on sto%/holders! -oda)+ the fo%us is on #hat are %alled !
a! sta/eholders (! partners %! re'ulators d! %onsumer triads e! suppl),%hain relationships "ns#er& a ?a'e& 58 Fevel of diffi%ult)& 9as) 57! " is a #ritten do%ument that summari.es #hat the mar/eter has learned a(out the mar/etpla%e and indi%ates ho# the firm plans to rea%h its mar/etin' o(2e%tives! a! strate'i% plan
141
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** (! mar/etin' plan %! sales plan d! tar'et mar/et plan e! %ompetitive anal)sis plan "ns#er& ( ?a'e& 60 Fevel of diffi%ult)& 9as) 58! 0hi%h of the follo#in' permits senior mana'ement to 'rasp the mar/etin' planSs ma2or thrust1 a! -he situation anal)sis! (! -he mar/etin' strate')! %! -he e6e%utive summar) and ta(le of %ontents! d! Cinan%ial pro2e%tions! e! Implementation and %ontrols! "ns#er& % ?a'e& 60 Fevel of diffi%ult)& *edium
59! *ost mar/etin' plans %over !
a! one )ear (! t#o )ears %! three )ears d! four )ears e! five )ears "ns#er& a
?a'e& 60
60! -he most fre8uentl) %ited short%omin's of %urrent mar/etin' plans+ a%%ordin' to mar/etin' e6e%utives+ are la%/ of realism+ insuffi%ient %ompetitive anal)sis+ and a fo%us! a! lon',term (! profit %! short,run d! produ%t e! pri%e "ns#er& % ?a'e& 60 Fevel of diffi%ult)& 9as)
T(ue)F-'se
61! -he traditional vie# of mar/etin' is that the firm ma/es somethin' and then sells it! "ns#er& -rue ?a'e& 36 Fevel of diffi%ult)& 9as) 62! -he traditional vie# of mar/etin' (e'ins #ith a first step %alled strategic marketing. "ns#er& Calse ?a'e& 36 Fevel of diffi%ult)& >ard 63! -he formula+ se'mentation+ tar'etin'+ and positionin' 4$-?5 is the essen%e of strate'i% mar/etin'! "ns#er& -rue ?a'e& 37 Fevel of diffi%ult)& *edium
142
64! -he ;apanese have e6tended the value deliver) pro%ess () addin' the %on%ept of zero promotions after five years!
"ns#er& Calse
?a'e& 38
65! -he %ustomer relationship mana'ement pro%ess is all the a%tivities involved in re%eivin' and approvin' orders+ shippin' the 'oods on time+ and %olle%tin' pa)ment! "ns#er& Calse ?a'e& 38 Fevel of diffi%ult)& >ard 66! " prin%iple of the value %hain is that ever) firm is a s)nthesis of a%tivities performed to desi'n+ produ%e+ mar/et+ deliver+ and support its produ%t! "ns#er& -rue ?a'e& 38 Fevel of diffi%ult)& 9as) 67! "nother name for a %ompan)Ss value deliver) net#or/ is Qthe intermediar) team!R
Answer: False
Page: 39
Level of difficulty: Medium
68! " %ore %ompeten%) is usuall) %ommon amon' %ompetitors in a 'iven industr)! "ns#er& Calse ?a'e& 39 Fevel of diffi%ult)& *edium 69! >olisti% mar/etin' fo%uses on the inte'ration of value e6ploration+ value %reation+ and value deliver) as a means to (uild lon',term relationships #ith %onsumers! "ns#er& -rue ?a'e& 40 Fevel of diffi%ult)& *edium 70! If a mana'er as/s Q>o# %an m) %ompan) identif) ne# value opportunities1+R he or she is e6aminin' a mana'ement 8uestion identified as (ein' value %reation! "ns#er& Calse ?a'e& 41 Fevel of diffi%ult)& >ard 71! "%%ordin' to *%Einse) resear%h+ a re%ommendation to mana'ers and 39:s #ho are %on%erned a(out mar/etin' performan%e #as that mar/eters must test and develop pro'rams more 8ui%/l) as the) enhan%e plannin' pro%esses and resear%h approa%hes! "ns#er& -rue ?a'e& 42 Fevel of diffi%ult)& *edium
72! -he mar/etin' plan is the %entral instrument for dire%tin' and %oordinatin' the mar/etin' effort!
"ns#er& -rue "ns#er& Calse
?a'e& 43 ?a'e& 44
Fevel of diffi%ult)& 9as) Fevel of diffi%ult)& *edium
73! " mission statement has as its primar) fo%us the produ%t and ho# to ma/e it!
74! :ne of the %hara%teristi%s of a 'ood mission statement is that it has an e6pansive num(er of 'oals for doin' (usiness!
Answer: False
Page: 44
75! " 'ood illustration of a mar/et definition of the (usiness a %ompan) is in #ould (e Q0e sell 'asoline!R
143
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** "ns#er& Calse ?a'e& 46 Fevel of diffi%ult)& *edium
76! If a %ompan) sou'ht to e6pand the num(er of e6istin' produ%ts sold to its %urrent mar/ets+ it #ould use an inte'rative 'ro#th strate') la(eled as Qmar/et,penetration strate')!R
"ns#er& -rue
?a'e& 48
77! If a %ompan) sou'ht to 'ro# via a strate') that re8uired the %ompan) to see/ ne# (usinesses that have no relationship to its %urrent te%hnolo')+ produ%ts+ or mar/ets+ the %ompan) #ould (e usin' a diversifi%ation strate') %alled a conglomerate strategy. "ns#er& -rue ?a'e& 49 Fevel of diffi%ult)& *edium
78! $%enario anal)sis %an (e used to assist %ompanies in appraisin' ho# #ell their %orporate %ulture mi'ht mat%h 4or not mat%h5 potential (usiness partners or a%8uisitions!
"ns#er& -rue
?a'e& 51
79! :n%e an or'ani.ation has esta(lished a (usiness mission in its (usiness unit strate'i%, plannin' pro%ess+ it ma) pro%eed to the se%ond step of the plannin' pro%ess %alled goal formulation. "ns#er& Calse ?a'e& 51 Fevel of diffi%ult)& *edium 80! <ood illustrations of microenvironment actors in the strate'i% plannin' pro%ess #ould (e demo'raphi%s+ te%hnolo')+ and the so%ial,%ultural arena! "ns#er& Calse ?a'e& 52 Fevel of diffi%ult)& >ard
81! -o evaluate opportunities+ %ompanies %an use *ar/et :pportunit) "nal)sis 4*:"5 to determine the attra%tiveness and pro(a(ilit) of su%%ess!
"ns#er& -rue
?a'e& 53
82! "n environmental threat is a %hallen'e posed () an unfavora(le trend or development that #ould lead+ in the a(sen%e of defensive mar/etin' a%tion+ to lo#er sales or profit!
Answer: True
Page: 53
83! :n%e a $0:- anal)sis has (een %ompleted+ the strate'i% planner is read) to pro%eed to the 'oal formulation sta'e of the strate'i% plannin' pro%ess model!
"ns#er& -rue
?a'e& 54
84! In appl)in' *D: 4mana'ement () o(2e%tives5 all o(2e%tives are treated as (ein' e8uall) importantMo(2e%tive dis%rimination is not allo#ed! "ns#er& Calse ?a'e& 54 Fevel of diffi%ult)& *edium
85! Cor an *D: 4mana'ement () o(2e%tives5 s)stem to #or/+ one of the four %riteria that the unitSs o(2e%tives must meet is that o(2e%tives must (e stated 8uantitativel) #henever possi(le!
"ns#er& -rue
?a'e& 55
86! " strate') is a 'ame plan for a%hievin' #hat the (usiness unit #ants to a%hieve! "ns#er& -rue ?a'e& 56 Fevel of diffi%ult)& 9as)
144
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 87! Cirms %hoosin' a 'eneri% strate') %enterin' on focus must (e 'ood at en'ineerin'+ pur%hasin'+ manufa%turin'+ and ph)si%al distri(ution! "ns#er& Calse ?a'e& 56 Fevel of diffi%ult)& >ard
88! :ne of the four ma2or %ate'ories of strate'i% allian%e involves sharin' personnel 4e!'!+ human resour%e allian%e5 to staff allian%e mem(er mar/etin' departments!
"ns#er& Calse
?a'e& 57
89! ?artner 7elationship *ana'ement 4?7*5 %an (e thou'ht of as a %orporationSs development of stru%tures that support strate'i% allian%es and treats the formation and mana'ement of partnerships as a %ore s/ill! "ns#er& -rue ?a'e& 57 Fevel of diffi%ult)& *edium 90! 3ompanies normall) measure their profit performan%e usin' 7:IA ho#ever+ this approa%h suffers (e%ause profits are ar(itraril) measured and su(2e%t to manipulation! "ns#er& -rue ?a'e& 58 Fevel of diffi%ult)& *edium 91! " marketing vision statement is a #ritten do%ument that summari.es #hat the mar/eter has learned a(out the mar/etpla%e and indi%ates ho# the firm plans to rea%h its mar/etin' o(2e%tives! "ns#er& Calse ?a'e& 60 Fevel of diffi%ult)& >ard
92! *ar/etin' plans are (e%omin' more produ%tion,oriented (e%ause of the hi'h %osts of doin' (usiness in toda)Ss e%onom)!
"ns#er& Calse
?a'e& 60
93! -he mar/etin' plan should open #ith a situation anal)sis!
Answer: False
Page: 6
Level of difficulty: !asy
94! 0hen a mana'er rea%hes the mar/etin' strate') se%tion of a mar/etin' plan+ he or she #ill define the mission and mar/etin' and finan%ial o(2e%tives!
Answer: True
Page: 6
95! :ne of the /e) 8uestions to as/ in evaluatin' a mar/etin' plan is #hether the plan is simple or not!
Answer: True
Page: 6"
96! $u%h areas as sales fore%asts+ e6pense fore%asts+ and (rea/even anal)sis are usuall) found in the finan%ial pro2e%tions se%tion of the mar/etin' plan!
Answer: True
Page: 6"
Level of difficulty: !asy
145
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 97! 7eturn on investment 47:I5 sho#s ho# man) units must (e sold monthl) to offset the monthl) fi6ed %osts and avera'e per,unit varia(le %osts! "ns#er& Calse ?a'e& 61 Fevel of diffi%ult)& *edium
98! *ost mar/etin' plans %on%lude #ith a se%tion that indi%ates ho# the plan #ill (e implemented!
"ns#er& -rue
?a'e& 61
99! Durin' the mar/etin' strate') se%tion of the mar/etin' plan+ 'oals and (ud'ets are spelled out for ea%h month or 8uarter so mana'ement %an revie# ea%h periodSs results and ta/e %orre%tive a%tion as needed! "ns#er& Calse ?a'e& 61 Fevel of diffi%ult)& *edium 100! " 'ood illustration of a mar/etin' o(2e%tive #ould to Qde%rease %ustomer a%8uisition %osts () 1!5 per%ent per 8uarter!R "ns#er& -rue ?a'e& 64 Fevel of diffi%ult)& 9as)
Ess-2
101!-here are t#o vie#s of the value deliver) pro%ess that ma) (e follo#ed () or'ani.ations see/in' to 'ain (usiness from %onsumers! Driefl)+ summari.e ea%h of those vie#s!
Su00este5 Ans9e(3 -he traditional vie# of mar/etin' is that the firm ma/es somethin' and then sells it! In this vie#+ mar/etin' ta/es pla%e in the se%ond half of this pro%ess 4see Ci'ure 2!1 for additional details5! 3ompanies that su(s%ri(e to this vie# have the (est %han%e of su%%eedin' in e%onomies mar/ed () 'oods shorta'es #here %onsumers are not fuss) a(out the 8ualit)+ features+ or st)le! If a(undant %hoi%es are present+ this vie# does not #or/ #ell! "nother vie# emphasi.es the or'ani.ationSs role in the value deliver) pro%ess! $trate'i% and ta%ti%al mar/etin' are used to %hoose the value+ provide the value+ and %ommuni%ate the value to %onsumers and %hannel partners! *ar/etin' is moved to the first part of the deliver) pro%ess! ?a'es& 36U37 Fevel of diffi%ult)& *edium 102! -he firmSs su%%ess depends not onl) on ho# #ell ea%h department performs its #or/+ (ut also on ho# #ell the various departmental a%tivities are %oordinated to %ondu%t %ore (usiness pro%esses! Fist and (riefl) des%ri(e the five %ore (usiness pro%esses outlined in the te6t! Su00este5 Ans9e(3 -he %ore (usiness pro%esses in%lude 415 the mar/et sensin' pro%essMall the a%tivities involved in 'atherin' mar/et intelli'en%e+ disseminatin' it #ithin the or'ani.ation+ and a%tin' on the informationA 4s5 the ne# offerin' reali.ation pro%essMall the a%tivities involved in resear%hin'+ developin'+ and laun%hin' ne# hi'h,8ualit) offerin's 8ui%/l) and #ithin (ud'etA 435 the %ustomer a%8uisition pro%essMall the a%tivities involved in definin' tar'et mar/ets and prospe%tin' for ne# %ustomersA 445 the %ustomer relationship
146
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** mana'ement pro%essMall the a%tivities involved in (uildin' deeper understandin'+ relationships+ and offerin's to individual %ustomers+ and 455 the fulfillment mana'ement pro%essMall the a%tivities involved in re%eivin' and approvin' orders+ shippin' the 'oods on time+ and %olle%tin' pa)ment! ?a'e& 38 Fevel of diffi%ult)& >ard 103! " su%%essful %ompan) nurtures its resour%es and %ompeten%ies! " %ore %ompeten%) has three %hara%teristi%s! Des%ri(e those %hara%teristi%s! Su00este5 Ans9e(3 3ore %ompeten%) %hara%teristi%s are& 415 it is a sour%e of %ompetitive advanta'e in that it ma/es a si'nifi%ant %ontri(ution to per%eived %ustomer (enefitsA 425 it has appli%ations in a #ide variet) of mar/etsA and+ 435 it is diffi%ult for %ompetitors to imitate! ?a'es& 39 Fevel of diffi%ult)& *edium 104! " holisti% mar/etin' orientation %an provide insi'ht into the pro%ess of %apturin' %ustomer value! In this vain+ the holisti% mar/etin' frame#or/ is desi'ned to address three /e) mana'ement 8uestions! Des%ri(e and illustrate ea%h of these /e) mana'ement 8uestions! Su00este5 Ans9e(3 -he three mana'ement 8uestions are& 415 value e6plorationM ho# %an a %ompan) identif) ne# value opportunities1 425 value %reationMho# %an a %ompan) effi%ientl) %reate more promisin' ne# value offerin's1 and 435 value deliver)Mho# %an a %ompan) use its %apa(ilities and infrastru%ture to deliver the ne# value offerin's more effi%ientl)1 !age7 41 3e'el of diffic$lty7 .ard 105! *ar/etin' fa%es a num(er of %hallen'es in the t#ent),first %entur)! Dased on an e6tensive 2002 resear%h stud)+ *%Einse) 4a noted %onsultin' firm5 identified three main %hallen'es as refle%ted () differen%es in opinion (et#een %hief e6e%utive offi%ers 439:s5 and their most senior mar/etin' e6e%utives or %hief mar/etin' offi%ers 43*:s5! 0hat #ere those %hallen'es and #hi%h of the %hallen'es do )ou thin/ is most important1 0h)1 Su00este5 Ans9e(3 -he three %hallen'es are& 415 doin' more #ith less+ 425 drivin' ne# (usiness development+ and 435 (e%omin' a full (usiness partner! "ns#ers #ill var) in #hat students per%eive to (e the most important %hallen'e!
147
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** >o#ever+ (e sure that an) ans#er %hosen is supported () materials found in this se%tion of the %hapter! ?a'e& 42 Fevel of diffi%ult)& >ard 106! Indi%ate the differen%es and similarities (et#een the follo#in' terms& marketing plan, strategic marketing plan, and tactical marketing plan. Su00este5 Ans9e(3 -he mar/etin' plan is the %entral instrument for dire%tin' and %oordinatin' the mar/etin' effort! -he mar/etin' plan operates at t#o levels& strate'i% and ta%ti%al! -he strate'i% mar/etin' plan la)s out the tar'et mar/ets and the value proposition that #ill (e offered+ (ased on an anal)sis of the (est mar/et opportunities! -he ta%ti%al mar/etin' plan spe%ifies the mar/etin' ta%ti%s+ in%ludin' produ%t features+ promotion+ mer%handisin'+ pri%in' sales+ %hannels+ and servi%e! P-0e3 43 107! Le4e' o/ 5i//i6u't23 Me5iu:
<ood mission statements are essential to (ein' a su%%ess in (usiness! Des%ri(e the three ma2or %hara%teristi%s that 'ood mission statements should have! Su00este5 Ans9e(3 *a2or %hara%teristi%s in%lude& 415 the) fo%us on a limited num(er of 'oalsA 425 mission statements stress the %ompan)Ss ma2or poli%ies and valuesA and 435 the) define the ma2or %ompetitive spheres #ithin #hi%h the %ompan) #ill operate 4e!'!+ industr)+ produ%ts and appli%ations+ %ompeten%e+ mar/et se'ment+ verti%al+ and 'eo'raphi%al5! ?a'es& 44U45 Fevel of diffi%ult)& 9as)
108!
"ssessin' 'ro#th opportunities involves plannin' ne# (usinesses+ do#nsi.in'+ or terminatin' older (usinesses! -he %ompan)Ss plans for e6istin' (usinesses allo# it to pro2e%t total sales and profits! If there is a 'ap (et#een future desired sales and pro2e%ted sales+ %orporate mana'ement #ill have to develop or a%8uire ne# (usinesses to fill it! Identif) and des%ri(e the three strate'ies that %an (e used to fill the strate'i% 'ap! Su00este5 Ans9e(3 -he first option is to identif) opportunities to a%hieve further 'ro#th #ith %urrent (usinesses 4intensive 'ro#th opportunities5! -he se%ond is to identif) opportunities to (uild or a%8uire (usinesses that are related to %urrent (usinesses that are unrelated to %urrent (usinesses 4inte'rative 'ro#th opportunities5! -he third is to identif) opportunities to add attra%tive (usinesses that are unrelated to %urrent (usinesses 4diversifi%ation 'ro#th opportunities5! ?a'e& 47 Fevel of diffi%ult)& >ard
148
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 109! "ssume that )ou are dire%ted to prepare short (rief e6plainin' the steps of the Dusiness @nit $trate'i%,?lannin' ?ro%ess! Iour tas/ is to %onstru%t su%h a (rief () %arefull) outlinin' the steps of the aforementioned pro%ess! Su00este5 Ans9e(3 7efer to Ci'ure 2!7 in the %hapter for assistan%e! $tudents should (e a(le to des%ri(e 4in order5 the (usiness mission+ $0:- anal)sis+ 'oal formulation+ strate') formulation+ pro'ram formulation+ implementation+ and feed(a%/ and %ontrol! -he des%riptions do not need to (e lon'A ho#ever+ the) do need to (e %onsistent #ith the te6t material! "ns#ers #ill var) (ut %onsisten%) should (e a learnin' 'oal! Page: 51 110! Level of difficulty: Hard
"s a mar/etin' mana'er for a lar'e steel %ompan) )ou have (een assi'ned the tas/ of edu%atin' a 'roup of ne# mana'ers on ho# to prepare a mar/etin' plan! -hou'h fe# of these mana'ers #ill a%tuall) ever have to prepare su%h a plan (e%ause of their fun%tional roles in the or'ani.ation+ it is still ver) useful that ea%h ne# mana'er /no# ho# to %onstru%t a mar/etin' plan! ?repare a (rief summar) of the %ontents of the mar/etin' plan for the ne# mana'ers! Iou ma) /eep )our dis%ussion 'eneral or ma/e it spe%ifi% to the steel industr)! Su00este5 Ans9e(3 -he %ontents of a mar/etin' plan in%lude 415 an e6e%utive summar) and ta(le of %ontents+ 425 a situation anal)sis+ 435 mar/etin' strate')+ 445 finan%ial pro2e%tions+ and 455 implementation %ontrols! Des%riptions of the %ontent steps ma) var) (ut should (e in /eepin' #ith the 'eneral outline of this se%tion of the %hapter! $ee te6t material for further information! ?a'es& 60U61 Fevel of diffi%ult)& >ard
APPLI+ATION QUESTIONS Mu'ti.'e +,oi6e

111! If a mana'er #ere follo#in' the traditional vie# of mar/etin' #herein the firm ma/es somethin' and then sells it+ all of the follo#in' #ould part of the Qsell the produ%tR pro%ess se8uen%e 9L39?! a! pri%e (! advertiseTpromote %! desi'n produ%t
149
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** d! distri(ute e! servi%e "ns#er& % ?a'e& 36 Fevel of diffi%ult)& *edium
150
112! "s indi%ated in the te6t+ %riti%s of Gi/e and its shoe produ%ts often %omplain that !
a! (! %! d! e! "ns#er& d
113!
Gi/e has too man) professional athletes endorsin' their produ%ts Gi/e has an unfair advanta'e in produ%t desi'n Gi/e has unfair levera'e #ith distri(utors Gi/e shoes %ost almost nothin' to ma/e )et %ost the %onsumer so mu%h Gi/e does not support e%olo'i%al %auses ?a'e& 37 Fevel of diffi%ult)& >ard
"%%ordin' to the ;apanese vie# of the value deliver) pro%ess+ the %ompan) should re%eive the re8uired parts and supplies %ontinuousl) throu'h 2ust,in,time arran'ements #ith suppliers! -his %on%ept #ould (e most appropriatel) %alled !
a! (! %! d! e! "ns#er& %
114!
.ero %ustomer feed(a%/ time .ero produ%t improvement time .ero pur%hasin' time .ero setup time .ero defe%t ?a'e& 38 Fevel of diffi%ult)& *edium
"pe6 3orporation is /no#n in its industr) (ein' Q(est of %lassR in terms of %osts and performan%e! *an) %ompanies #ill pro(a(l) use "pe6 3orporation as a !
a! tar'et (! (en%hmar/ %! %ompetitor to (eat d! future supplier e! soundin' (oard for ideas "ns#er& ( ?a'e& 38
115!
;ames Cran/s has (een put in %har'e of 'atherin' mar/etin' intelli'en%e+ disseminatin' it #ithin his or'ani.ation+ and eventuall) dire%tin' a%tion on the information! 0hi%h of the follo#in' %ore (usiness pro%esses most %losel) mat%hes #ith the tas/ that *r! Cran/s has (een 'iven1
a! (! %! d! e! "ns#er& a
-he mar/et sensin' pro%ess! -he ne# offerin' reali.ation pro%ess! -he %ustomer a%8uisition pro%ess! -he %ustomer relationship mana'ement pro%ess! -he fulfillment mana'ement pro%ess! ?a'e& 38 Fevel of diffi%ult)& >ard
151
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 116! Getfli6+ the pioneer online DHD rental servi%e+ has #hat is %alled (e%ause the) are e6%ellent in (road (usiness pro%esses! a! %ore %ompeten%) (! distin%tive %apa(ilities %! mar/et savv) d! (usiness tou%h e! intuitive s)ner') "ns#er& ( ?a'e& 40 Fevel of diffi%ult)& *edium <eor'e Da) sees or'ani.ations as e6%ellin' in three distin%tive %apa(ilities& mar/et sensin'+ %ustomer lin/in'+ and %hannel (ondin'! a! produ%tion,driven (! 'lo(all),driven %! human resour%e,driven d! en'ineerin',driven e! mar/et,driven "ns#er& e ?a'e& 40 Fevel of diffi%ult)& *edium 118! >olisti% mar/eters a%hieve profita(le 'ro#th () e6pandin' %ustomer lo)alt)+ and %apturin' %ustomer lifetime value! a! desi'n s/ills (! %ustomer share %! promotion venues d! data(ase resour%es e! %ompetitive spa%e share "ns#er& ( ?a'e& 40 Fevel of diffi%ult)& >ard
119!
117!
+ (uildin'
In the past Eoda/ #as not ne%essaril) /no#n for em(ra%in' te%hnolo') that did not %ome from Eoda/ en'ineers and desi'ners! >o#ever+ as Eoda/ addresses the di'ital revolution ta/in' over the photo'raphi% industr)+ it #ants %ustomers to see it as a leader in di'ital photo'raph) and is movin' a#a) from its %onne%tion to print,onl) photo'raph)! -his #ould (e an e6ample of #hi%h of the follo#in' value,%reation steps1
a! (! %! d! e!
7edefinin' the (i' idea! 7eshapin' the (usiness s%ope! 7epositionin' the %ompan)Ss (rand identit)! 7edoin' its %orporate lo'o! 7esear%hin' its %ompetitors!
Answer: c
Page: 4"
Level of difficulty: #ard
152
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 120! "%%ordin' to a *%Einse) report+ 39:s need and e6pe%t all areas of their or'ani.ations to (e more effi%ient! 0hi%h of the follo#in' statements #ould (e the (est illustration of this need and e6pe%tation1 a! Doin' more #ith more! (! Doin' less #ith less! %! Doin' less #ith more! d! Doin' more #ith less! e! Doin' a(out the same #ith more! "ns#er& d ?a'e& 42 Fevel of diffi%ult)& 9as)
121! "%%ordin' to a re%ent *%Einse) report re'ardin' %hara%teristi%s that help to position mar/eters as (usiness development leaders+ illustrates one of those %hara%teristi%s!
a! Qnever (ite off more than )ou %an %he#R (! Qif it ainSt (ro/e+ donSt fi6 itR %! Qal#a)s pursue Internet opportunitiesR d! Qstri/e #hile the iron is hotR e! Qidentif) profita(le unmet needs (efore (rainstormin' %reative solutionsR "ns#er& e ?a'e& 42 Fevel of diffi%ult)& *edium 122! "%%ordin' to 3ollins and ?orrasS Built to Last, is %hara%teri.ed as a visionar) %ompan)Ma%/no#led'ed as the industr) leader and #idel) admired (e%ause the) set am(itious 'oals+ %ommuni%ated them to their emplo)ees+ and em(ra%ed a hi'h purpose (e)ond ma/in' mone)! a! <eneral 9le%tri% (! Delta "irlines %! CarmerSs Insuran%e d! 0ells Car'o e! *%DonaldSs
Answer: a
123!
Page: 43
Level of difficulty: #ard
;uan <ar%ia is seen as a planner (e%ause he plans the dail) promotional releases a(out his %ompan)Ss produ%ts and servi%es! a! strate'i% (! sele%tive %! ta%ti%al d! ni%he e! or'ani.ational "ns#er& % ?a'e& 43 Fevel of diffi%ult)& *edium
153
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 124! $on)Ss former president+ "/io *orita+ #anted ever)one to have a%%ess to Qpersonal porta(le sound+R so his %ompan) %reated the 0al/man and porta(le 3D pla)er! 0hi%h of the follo#in' plannin' aids most li/el) assisted *r! *orita #ith his vision1 a! -he mission statement! (! " $0:- anal)sis! %! Eno#led'e of %ustomers! d! " data(ase! e! "n e6e%utive summar) to a formal mar/etin' plan! "ns#er& a ?a'e& 44 Fevel of diffi%ult)& 9as)
125!0hi%h of the follo#in' most %losel) mat%hes a %orre%t mar/et,oriented definition of a (usiness1
a! *issouri,?a%ifi% 7ailroadM#e run a railroad! (! Lero6M#e ma/e %op)in' e8uipment! %! $tandard :ilM#e sell 'asoline! d! 9n%)%lopedia Dritanni%aM#e distri(ute information! e! 3olum(ia ?i%turesM#e ma/e movies! "ns#er& d ?a'e& 46 Fevel of diffi%ult)& *edium 126! If )ou #ere the 39: of a %ompan) that #as loo/in' to implement strate'ies to fill a per%eived strate'i%,plannin' 'ap+ )ou #ould most li/el) e6plore 'ro#th first (e%ause it #ould (e easier to improve an e6istin' (usiness rather than (uildin' a ne# one! a! intensive (! inte'rative %! diversifi%ation d! %on'lomerate e! %on%entri% "ns#er& a ?a'e& 47 Fevel of diffi%ult)& *edium
127!If )ou #ere the mar/etin' mana'er of an or'ani.ation that had %hosen 'ro#th via %urrent produ%ts sold to ne# mar/ets+ )our or'ani.ation #ould have %hosen a strate')!
a! (! %! d! e!
mar/et,penetration mar/et,development produ%t,development diversifi%ation %on%entri%
Answer: $
Page: 4%
154
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 128! des%ri(es the #a) people in an or'ani.ation are dressed+ ho# the) tal/ to one another+ and the #a) the) 'reet their %ustomers! a! $trate'i% orientation (! 3ompetitive positionin' %! Distin%tive advanta'e d! >7 trainin' strate') e! 3orporate %ulture "ns#er& e ?a'e& 50 Fevel of diffi%ult)& 9as) 129! :n%e an or'ani.ation esta(lishes its (usiness mission+ %ondu%ts a $0:- anal)sis+ and 'oes throu'h a 'oal formulation pro%ess+ it is read) to 'o throu'h a step %alled to %ontinue #ith a strate'i%,plannin' pro%ess! a! pro'ram formulation (! strate') formulation %! implementation d! fun%tional anal)sis e! feed(a%/ and %ontrol
Answer: $
130!
Page: 5"
*%DonaldSs has often teamed up #ith Disne) to offer produ%ts related to %urrent Disne) films as part of its meals for %hildren! -he (est des%ription of this form of allian%e #ould a allian%e! a! produ%t allian%e (! lo'isti%s allian%e %! pri%in' %olla(oration d! servi%e e! promotional "ns#er& e ?a'e& 57 Fevel of diffi%ult)& *edium
S,o(t Ans9e(
131!If )ou #ere the mar/etin' mana'er for small re'ional to) manufa%turer #ho em(ra%ed strate'i% mar/etin' appli%ation to )our value %reation and deliver) se8uen%e pro%ess+ )ou #ould use three pro%esses or a%ts to %hoose the value of )our offer! Game those three pro%esses!
Su00este5 Ans9e(3 -he three pro%esses #ould (e 415 %ustomer se'mentation+ 425 mar/et sele%tionTfo%us+ and 435 value positionin'! ?a'e& 36 Fevel of diffi%ult)& *edium 132! In the e6ample of <)m(oree+ #e learn that the) are a 530,store %hain that sells %hildrenSs %lothin' to ups%ale parents! De%ause there are not enou'h parents ma/in' more than V65+000 )ear to support more stores+ <)m(oree has %reated ;anie and ;a%/+ a %hain sellin' ups%ale (a() 'ifts! >ot -opi%+ a %hain that sells ro%/,(and inspired %lothes for teens+ re%entl) laun%hed -orrid to 'ive plus,si.e
155
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** teens the same fashion options! Instead of emphasi.in' ma/in' and sellin'+ this %ompan) sees itself as part of a value deliver) pro%ess! -he value deliver) pro%ess %onsists of three parts! 0hat are those parts and #hat is their fun%tion1 Su00este5 Ans9e(3 -he first phase+ %hoosin' the value+ represents the Qhome#or/R mar/etin' must do (efore an) produ%t e6ists! -he se%ond phase+ providin' the value+ is #here produ%t features+ pri%es+ and distri(ution are sele%ted! -he third phase+ %ommuni%atin' the value+ utili.es the sales for%e+ sales promotion+ advertisin'+ and other %ommuni%ation tools to announ%e and promote the produ%t! ?a'e& 37 Fevel of diffi%ult)& *edium 133! Define value %hain! 0hat does a value %hain do1 Su00este5 Ans9e(3 " value %hain is a tool for identif)in' #a)s to %reate more %ustomer value! "%%ordin' to this model+ ever) firm is a s)nthesis of a%tivities performed to produ%e+ mar/et+ deliver+ and support its produ%t! ?a'e& 38 Fevel of diffi%ult)& 9as) 134! If an or'ani.ation #as ver) stron' at definin' tar'et mar/ets and prospe%tin' for ne# %ustomers+ #hi%h of the %ore (usiness pro%esses #ould this or'ani.ation have mastered1 Su00este5 Ans9e(3 -he %ore (usiness pro%ess of %ustomer a%8uisition! ?a'e& 38 Fevel of diffi%ult)& *edium 135! In a holisti% mar/etin' frame#or/ #ith respe%t to %ustomer fo%us+ #hat #ould (e %omponents that #ould mat%h to value e6ploration+ value %reation+ and value deliver)1 Su00este5 Ans9e(3 0ith respe%t to %ustomer fo%us+ the value e6ploration #ould (e Q%o'nitive spa%eR+ value %reation #ould (e Q%ustomer (enefitsR+ and value deliver) #ould (e Q%ustomer relationship mana'ement! Cor additional information+ refer to Ci'ure 2!3! ?a'e& 40 Fevel of diffi%ult)& *edium 136! 0hat three spa%es are dis%ussed #hen a holisti% mar/etin' or'ani.ation 'oes throu'h a value e6ploration1 Su00este5 Ans9e(3 -he spa%es #ould (e %o'nitive spa%e 4%ustomer fo%us5+ %ompeten%) spa%e 4%ore %ompeten%ies5+ and resour%e spa%e 4%olla(orative net#or/5!
156
P-0es3 4%;4$
Le4e' o/ 5i//i6u't23 <-(5
157
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS 137! *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** In the %entral role of strate'i% plannin'+ onl) a handful of %ompanies stand out as master mar/etersM?ro%ter P <am(le+ $outh#est "irlines+ Gi/e+ Disne)+ Gordstrom+ 0al,*art+ and *%DonaldSs to name a fe#! Crom a %onsumers perspe%tive #h) do )ou thin/ the) stand out1 96plain! Su00este5 Ans9e(3 $tudents should e6plain that these %ompanies fo%us on the %ustomer and are or'ani.ed to respond effe%tivel) to %han'in' %ustomer needs! -he) all have #ell,staffed mar/etin' departments+ and all their other departments Mmanufa%turin'+ finan%e+ resear%h and development+ personnel+ pur%hasin'M also a%%ept the %on%ept that the %ustomer is /in'! ?a'es& 41U42 Fevel of diffi%ult)& *edium 138! "ll %orporate head8uarters underta/e four plannin' a%tivities! 0hat are those a%tivities1 Su00este5 Ans9e(3 -he a%tivities are 415 definin' the %orporate mission+ 425 esta(lishin' strate'i% (usiness units+ 435 assi'nin' resour%es to ea%h $D@+ and 445 assessin' 'ro#th opportunities! ?a'e& 44 Fevel of diffi%ult)& >ard 139! ?ors%he ma/es onl) e6pensive %ars and <er(er serves primaril) the (a() mar/et! 0hi%h of the ma2or %ompetitive spheres #ithin #hi%h a %ompan) #ill operate mat%hes most %losel) to the e6amples a(ove1 Su00este5 Ans9e(3 $everal %ompetitive spheres are mentioned 4e!'!+ industr)+ produ%ts and appli%ations+ %ompeten%e+ mar/et se'ment+ verti%al+ and 'eo'raphi%al5! -he sphere most appropriate in this %ase is mar/et se'ment! ?a'e& 45 Fevel of diffi%ult)& >ard 140! "nsoftSs produ%t,mar/et e6pansion 'rid sho#s three intensive 'ro#th strate'ies that %an (e used to assist a mar/etin' mana'er in findin' %reative #a)s to %lose a per%eived strate'i% 'ap! 3hara%teri.e ea%h of the %ells of "nsoftSs 'rid! Su00este5 Ans9e(3 -he three %ells are& 415 mar/et,penetration strate')M %urrent produ%ts sold to %urrent mar/ets+ 425 mar/et,development strate')M %urrent produ%ts sold to ne# mar/ets+ and 435 produ%t,development strate')M ne# produ%ts sold to %urrent mar/ets! ?a'e& 48 Fevel of diffi%ult)& *edium 141! If a %ompan) de%ides to a%8uire one of its suppliers to 'ain more %ontrol or 'enerate profit+ it #ould have %hosen #hi%h form of inte'rative 'ro#th strate')1 Su00este5 Ans9e(3 -he %ompan) #ould have sele%ted a (a%/#ard inte'ration strate')! ?a'e& 49 Fevel of diffi%ult)& *edium
158
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS 142! *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 0hen IahooJ (e'an to flounder in the 2001+ 39: -err) $emel imposed a more %onservative+ (uttoned,do#n atmosphere on the free#heelin' Internet startup! "t the ne# IahooJ+ spontaneit) is out and order is in! 0hat term is most %losel) applied to the or'ani.ational %han'e phenomenon des%ri(ed a(ove1 De sure to e6plain #hat the term means #ith respe%t to the e6ample provided! Su00este5 Ans9e(3 -he %orre%t term #ould (e corporate or organizational culture. 3orporate %ulture has (een defined as Qthe shared e6perien%es+ stories+ (eliefs+ and norms that %hara%teri.e an or'ani.ation!R ?a'e& 50 Fevel of diffi%ult)& *edium 143! Des%ri(e #hat happens in s%enario anal)sis and e6plain #h) firms su%h as 7o)al Dut%hT$hell <roup use the te%hni8ue! Su00este5 Ans9e(3 $%enario anal)sis %onsists of developin' plausi(le representations of a firmSs possi(le future that ma/e different assumptions a(out for%es drivin' the mar/et and in%lude different un%ertainties! "ns#ers ma) var) on #h) to use the %on%ept (ut ans#ers should (e mindful of the definition a(ove! ?a'e& 51 Fevel of diffi%ult)& *edium 144! 96plain #hat happens in a $0:- anal)sis durin' the strate'i% plannin' pro%ess! Su00este5 Ans9e(3 $0:- 4stren'ths+ #ea/nesses+ opportunities+ and threats5 monitors the e6ternal and internal environment () e6aminin' /e) ma%roe%onomi% and mi%roe%onomi% for%es and a%tors that have an impa%t on the or'ani.ationSs (usiness and industr)! $ee %hapter for additional details on the $0:-s anal)sis format! ?a'e& 52 Fevel of diffi%ult)& *edium 145! 0hat 8uestions #ould t)pi%all) (e as/ed durin' a mar/et opportunit) anal)sis 4*:"51 Su00este5 Ans9e(3 Questions #ould t)pi%all) (e& 415 3an the (enefits involved in the opportunit) (e arti%ulated %onvin%in'l) to a defined tar'et mar/et4s51 425 3an the tar'et mar/et4s5 (e lo%ated and rea%hed #ith %ost,effe%tive media and trade %hannels1 435 Does the %ompan) posses or have a%%ess to the %riti%al %apa(ilities and resour%es needed to deliver the %ustomer (enefits1 445 3an the %ompan) deliver the (enefits (etter than an) a%tual or potential %ompetitors1 "nd 455 0ill the finan%ial rate of return meet or e6%eed the %ompan)Ss re8uired threshold for investment1
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS 146! *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Cor an *D: s)stem to #or/+ the (usiness unit attemptin' to implement the pro%ess must meet four %riteria! 0hat are those %riteria1 Su00este5 Ans9e(3 -he %riteria are 415 the) must (e arran'ed hierar%hi%all)+ from the most to the least important+ 425 o(2e%tives should (e stated 8uantitativel) #henever possi(le+ 435 'oals must (e realisti%+ and 445 o(2e%tives must (e %onsistent! ?a'es& 54U55 Fevel of diffi%ult)& >ard 147! 0hi%h of *i%hael ?orterSs 'eneri% strate'ies #ould (e most appropriate for an or'ani.ation that %on%entrates on a%hievin' superior performan%e in an important %ustomer (enefit area valued () a lar'e part of the mar/et1 Qualit) leadership #ould (e one e6ample of the end result of su%h a strate')! Su00este5 Ans9e(3 -he strate') that #ould (e most appropriate #ould (e that of differentiation! ?a'e& 56 148! Fevel of diffi%ult)& *edium
0hen >P7 Dlo%/ and >)att Fe'al $ervi%es %om(ined their efforts 4t#o servi%e (usinesses5+ the) also 2oined mar/etin' for%es to %reate a stron' allian%e! 0hi%h of the allian%e forms %ited in the te6t most %losel) mat%hes the >P7 Dlo%/ and >)att Fe'al $ervi%es allian%e1 96plain! Su00este5 Ans9e(3 -his allian%e is %alled a product or service alliance #here one %ompan) li%enses another to produ%e its produ%t+ or t#o %ompanies 2ointl) mar/et their %omplementar) produ%ts+ or a ne# produ%t! ?a'e& 57 Fevel of diffi%ult)& *edium
149!
3hara%teri.e a mar/etin' plan! Su00este5 Ans9e(3 " mar/etin' plan is a #ritten do%ument that summari.es #hat the mar/eter has learned a(out the mar/etpla%e and indi%ates ho# the firm plans to rea%h its mar/etin' o(2e%tives! It %ontains ta%ti%al 'uidelines for the mar/etin' pro'rams and finan%ial allo%ations over the plannin' period! ?a'e& 60 Fevel of diffi%ult)& 9as)
150!
Durin' #hi%h sta'e of the mar/etin' plan #ill the mar/etin' mana'er esta(lish the produ%t lineSs positionin'1 Su00este5 Ans9e(3 -he sta'e #here produ%t line positionin' #ill (e addressed is the mar/etin' strate') sta'e! ?a'e& 60 Fevel of diffi%ult)& *edium
Marketing Management, 1 e &Kot'e()Ke''e(* +,-.te( 4 +on5u6tin0 M-(1etin0 Rese-(6,
160
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 15 provide dia'nosti% information a(out ho# and #h) #e o(serve %ertain effe%ts in the mar/etpla%e+ and #hat that means to mar/eters! "5 *ar/etin' insi'hts D5 *ar/etin' metri%s 35 *ar/etin' %hannels D5 *ar/etin' information s)stems 95 *ar/etin',mi6 models "ns#er& " ?a'e 7ef& 97 :(2e%tive& 1 Diffi%ult)& 9as) 25 is the s)stemati% desi'n+ %olle%tion+ anal)sis+ and reportin' of data and findin's relevant to a spe%ifi% mar/etin' situation fa%in' the %ompan)! "5 *ar/etin' %ommuni%ations D5 Internal mar/etin' 35 *ar/etin' resear%h D5 *ar/et se'mentation 95 *ar/etin' plannin' "ns#er& 3 ?a'e 7ef& 98 :(2e%tive& 1 Diffi%ult)& 9as) 35 "nne+ a (eauti%ian () profession+ o#ns a salon in the small to#n of Cran/lin+ Ge# ;erse)! 9ver) #ee/end+ she ma/es it a point to visit the other salons in Cran/lin to find out a(out the (eaut) servi%es the) offer to %ustomers! "nne is attemptin' to %ondu%t mar/et resear%h () ! "5 stud)in' %ustomer (ehavior D5 formin' allian%es #ith %ompetin' firms 35 usin' e6perimental resear%h te%hni8ues D5 %he%/in' out rivals 95 tappin' into mar/etin' partner e6pertise "ns#er& D ?a'e 7ef& 98 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate
161
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 45 0hi%h of the follo#in' t)pes of mar/etin' resear%h firms 'athers %onsumer and trade information and then sells it for a fee 4e!'!+ Gielsen *edia 7esear%h51 "5 %ustom mar/etin' resear%h firms D5 s)ndi%ated,servi%e resear%h firms 35 spe%ialt),line mar/etin' resear%h firms D5 'eneri% mar/etin' resear%h firms 95 fo%used mar/etin' resear%h firms "ns#er& D ?a'e 7ef& 99 :(2e%tive& 1 Diffi%ult)& 9as) 55 "mit) In%!+ is a firm #hi%h %olle%ts and pro%esses household data and sells it to other firms #hi%h produ%e %onsumer dura(les! "mit) is an e6ample of a ! "5 %ustom mar/etin' resear%h firm D5 spe%ialt),line mar/etin' resear%h firm 35 s)ndi%ated,servi%e resear%h firm D5 'eneri% mar/etin' resear%h firm 95 fo%used mar/etin' resear%h firm "ns#er& 3 ?a'e 7ef& 99 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 65 " field,servi%e firm is a ! "5 %ustom mar/etin' resear%h firm D5 s)ndi%ated,servi%e resear%h firm 35 spe%ialt),line mar/etin' resear%h firm D5 %onsumer mar/etin' resear%h firm 95 so%ial mar/etin' resear%h firm "ns#er& 3 ?a'e 7ef& 99 :(2e%tive& 1 Diffi%ult)& *oderate
162
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 75 Iou are the mar/etin' resear%h dire%tor of a medium,si.ed manufa%turin' firm and )ou #ould li/e to en'a'e an outside mar/etin' resear%h firm to %ondu%t field intervie#s! 0hi%h of the follo#in' options %ate'ories of mar/etin' resear%h firms should )ou use1 "5 s)ndi%ated,servi%e resear%h firms D5 %ustom mar/etin' resear%h firms 35 'lo(al resear%h mana'ement firms D5 spe%ialt),line mar/etin' resear%h firms 95 (rand mana'ement spe%ialt) resear%h firms "ns#er& D ?a'e 7ef& 99 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 85 -he mar/etin' resear%h pro%ess (e'ins () ! "5 developin' a resear%h plan D5 definin' the pro(lem+ the de%ision alternatives+ and resear%h o(2e%tives 35 anal).in' the internal environment D5 readin' mar/etin' resear%h 2ournals 95 %onta%tin' a professional resear%h %onsultant "ns#er& D ?a'e 7ef& 99 :(2e%tive& 1 Diffi%ult)& 9as) 95 0hi%h of the follo#in' is %onsidered to (e the last step in the mar/etin' resear%h pro%ess1 "5 presentin' findin's D5 anal).in' information 35 %ontrollin' the environment D5 arrivin' at a de%ision 95 draftin' the report "ns#er& D ?a'e 7ef& 99 :(2e%tive& 1 Diffi%ult)& 9as) 105 If the 'oal of mar/etin' resear%h is to shed li'ht on the real nature of a pro(lem and to su''est possi(le solutions or ne# ideas+ the resear%h is said to (e ! "5 des%riptive D5 8uantitative 35 primar) D5 se%ondar) 95 e6plorator) "ns#er& 9 ?a'e 7ef& 100
163
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** :(2e%tive& 1 Diffi%ult)& 9as) 115 @nistar In%!+ is an C*3< %ompan) that produ%es a #ide ran'e of offerin's su%h as 'ro%er) items and personal %are produ%ts! If @nistar #ants to estimate the demand for its ne# line of (od) moisturi.ers+ #hi%h are all pri%ed at V18+ it should opt for resear%h! "5 des%riptive D5 e6plorator) 35 pres%riptive D5 %ausal 95 8ualitative "ns#er& " ?a'e 7ef& 100 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 125 " %ompan) #ould li/e to stud) the impa%t of advertisin' e6penditure on sales and sales revenue! -his is an e6ample of resear%h! "5 pres%riptive D5 %ausal 35 se%ondar) D5 e6plorator) 95 8ualitative "ns#er& D ?a'e 7ef& 100 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 135 -he mar/etin' mana'er needs to /no# the %ost of the resear%h pro2e%t (efore approvin' it! Durin' #hi%h sta'e of the mar/etin' resear%h pro%ess #ould su%h a %onsideration most li/el) ta/e pla%e1 "5 $tep 1definin' the pro(lem D5 $tep 4anal).in' the information 35 $tep 5draftin' the report D5 $tep 2developin' the resear%h plan 95 $tep 3%olle%tin' information "ns#er& D ?a'e 7ef& 100 :(2e%tive& 1 Diffi%ult)& *oderate
164
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 145 Desi'nin' a resear%h plan %alls for de%isions on all of the follo#in' 9L39?! "5 resear%h o(2e%tives D5 data sour%es 35 resear%h approa%hes D5 resear%h instruments 95 samplin' plans "ns#er& " ?a'e 7ef& 100 :(2e%tive& 1 Diffi%ult)& 9as) 155 are data that #ere %olle%ted for another purpose and alread) e6ist! "5 ?rimar) data D5 $e%ondar) data 35 ?rimitive data D5 3ross,se%tional data 95 :rdinate data "ns#er& D ?a'e 7ef& 100 :(2e%tive& 1 Diffi%ult)& 9as) 165 Defore $andra opened her florist shop she read all she %ould a(out the floral industr)! $he also %onsulted several pu(lished resear%h reports to understand 'ro#th patterns in the lo%al area #ith parti%ular interest in the lo%ation of florists throu'hout the %it)! -his helped her to de%ide on the lo%ation of her store! "5 primar) data D5 se%ondar) data 35 primitive data D5 tertiar) information 95 li%ensed information "ns#er& D ?a'e 7ef& 100 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate
165
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 175 ?rimar) data %an (e %olle%ted in several #a)s! Installin' 33-H %ameras in a retail store #here() %onsumers= a%tions %an (e re%orded is an e6ample of 7 "5 fo%us 'roup resear%h D5 surve) resear%h 35 o(servational resear%h D5 (ehavioral resear%h 95 e6perimental resear%h "ns#er& 3 ?a'e 7ef& 101 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 185 approa%h uses %on%epts and tools from anthropolo') and other so%ial s%ien%e dis%iplines to provide deep %ultural understandin' of ho# people live and #or/! "5 3o'nitive resear%h D5 Indu%tive resear%h 35 "r%haeolo'i%al resear%h D5 9thno'raphi% resear%h 95 Dedu%tive resear%h "ns#er& D ?a'e 7ef& 101 :(2e%tive& 1 Diffi%ult)& 9as) 195 -he 'oal of ethno'raphi% resear%h is to ! "5 %apture %ause,and,effe%t relationships () eliminatin' %ompetin' e6planations of the o(served findin's D5 understand %onsumers= (ehavior () o(servin' a sample 'roups dis%ussin' various topi%s of interest at len'th 35 stud) demo'raphi% varia(les su%h as a'e+ 'ender+ in%ome+ edu%ation+ and so on+ in relation to %onsumer (u)in' patterns D5 anal).e %ustomers= pur%hasin' (ehavior throu'h %atalo' pur%hases and %ustomer data(ases 95 immerse the resear%her into %onsumers= lives to un%over unarti%ulated desires that mi'ht not surfa%e in an) other form of resear%h "ns#er& 9 ?a'e 7ef& 101 :(2e%tive& 1 Diffi%ult)& *oderate
166
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 205 "4n5 is a 'atherin' of 6 to 10 people %arefull) sele%ted () resear%hers (ased on %ertain demo'raphi%+ ps)%ho'raphi%+ or other %onsiderations and (rou'ht to'ether to dis%uss various topi%s of interest at len'th! "5 tar'et 'roup D5 pilot 'roup 35 fo%us 'roup D5 %ustomer (ase 95 ethno'raphi% 'roup "ns#er& 3 ?a'e 7ef& 101,102 :(2e%tive& 1 Diffi%ult)& 9as) 215 "s the mar/etin' mana'er of 3ominform ?vt! Ftd!+ a manufa%turer of health drin/s+ )ou have sele%ted 10 individuals #ho mat%h the profile of )our tar'et %ustomer+ to parti%ipate in a dis%ussion on %han'in' lifest)le trends related to health! Iou have also hired a s/illed moderator to fa%ilitate the dis%ussion and ensure that ever)one parti%ipates and sta)s fo%used on the topi%! -he moderator provides 8uestions and pro(es (ased on the Bs%riptB prepared () )ou! -he dis%ussions are also re%orded for further anal)sis! 0hi%h of the follo#in' methods of a%8uirin' primar) data is (ein' used in this %ase1 "5 o(servational resear%h D5 surve)s 35 (ehavioral data D5 e6periments 95 fo%us 'roups "ns#er& 9 ?a'e 7ef& 101,102 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 225 0h) must the resear%hers avoid 'enerali.in' from fo%us,'roup parti%ipants to the #hole mar/et1 "5 ?arti%ipants= responses are not relia(le! D5 *ost of the parti%ipants are li/el) to (e i'norant a(out the topi% of dis%ussion! 35 -he si.e of the 'roup is too small and the sample is not dra#n randoml)! D5 *ost of the parti%ipants are li/el) to e6hi(it similar tastes and preferen%es! 95 -he parti%ipants usuall) %ome from diverse (a%/'rounds! "ns#er& 3 ?a'e 7ef& 102 :(2e%tive& 1 Diffi%ult)& *oderate
167
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 235 0hi%h of the follo#in' is used to assess people=s /no#led'e+ (eliefs+ preferen%es+ and satisfa%tion and to measure these ma'nitudes in the 'eneral population1 "5 o(servational resear%h D5 des%riptive resear%h 35 8uantitative resear%h D5 surve) resear%h 95 e6perimental resear%h "ns#er& D ?a'e 7ef& 103 :(2e%tive& 1 Diffi%ult)& 9as) 245 -he most s%ientifi%all) valid resear%h is "5 o(servation D5 fo%us,'roup 35 surve) D5 (ehavioral 95 e6perimental "ns#er& 9 ?a'e 7ef& 103 :(2e%tive& 1 Diffi%ult)& 9as) resear%h!
255 is desi'ned to %apture %ause,and,effe%t relationships () eliminatin' %ompetin' e6planations of the o(served findin's! "5 96perimental resear%h D5 Dehavioral resear%h 35 :(servational resear%h D5 Co%us 'roup resear%h 95 Des%riptive resear%h "ns#er& " ?a'e 7ef& 103 :(2e%tive& 1 Diffi%ult)& 9as) 265 0hi%h of the follo#in' rules must (e /ept in mind #hile framin' a 8uestionnaire1 "5 @se (road and loosel) defined #ords in the 8uestions! D5 "void usin' response (ands! 35 9nsure that fi6ed responses overlap! D5 Crame h)potheti%al 8uestions! 95 "llo# for the ans#er BotherB in fi6ed,response 8uestions! "ns#er& 9 ?a'e 7ef& 104 :(2e%tive& 1 Diffi%ult)& *oderate
168
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 275 De%ause of its fle6i(ilit)+ are the most %ommon te%hni8ue of %olle%tin' primar) data! "5 8uestionnaires D5 telephoni% intervie#s 35 (ehavioral resear%h studies D5 e6perimental desi'ns 95 fo%us 'roups "ns#er& " ?a'e 7ef& 104 :(2e%tive& 1 Diffi%ult)& 9as) 285 allo# respondents to ans#er in their o#n #ords and often reveal more a(out ho# people thin/! "5 :pen,end 8uestions D5 Di%hotomous 8uestions 35 Fi/ert s%ale 8uestions D5 *ultiple %hoi%e 8uestions 95 $emanti% differential 8uestions "ns#er& " ?a'e 7ef& 104 :(2e%tive& 1 Diffi%ult)& 9as) 295 0hi%h of the follo#in' is true of 8ualitative resear%h1 "5 It is a stru%tured measurement approa%h that permits a ran'e of possi(le responses! D5 It is indire%t in nature+ so %onsumers ma) (e less 'uarded! 35 It re8uires lar'e sample si.es! D5 Its results %an (e easil) 'enerali.ed to (roader populations! 95 It 'enerall) results in similar results and %on%lusions a%ross resear%hers! "ns#er& D ?a'e 7ef& 104 :(2e%tive& 1 Diffi%ult)& *oderate 305 " s%ale that %onne%ts t#o (ipolar #ords is %alled a "5 di%hotomous 8uestion D5 multiple,%hoi%e 8uestion 35 Fi/ert s%ale D5 semanti% differential 95 #ord asso%iation "ns#er& D ?a'e 7ef& 105 :(2e%tive& 1 Diffi%ult)& *oderate !
169
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 315 " 8uestion that respondents %an ans#er in an almost unlimited num(er of #a)s is %alled a ! "5 stru%tured 8uestion D5 %losed,end 8uestion 35 %ompletel) unstru%tured 8uestion D5 di%hotomous 8uestion 95 multiple %hoi%e 8uestion "ns#er& 3 ?a'e 7ef& 105 :(2e%tive& 1 Diffi%ult)& 9as) 325 B-ruan%) should (e %he%/ed in s%hools& 15 $tron'l) disa'ree+ 25 Disa'ree+ 35 Geither a'ree nor disa'ree+ 45 "'ree+ 55 $tron'l) a'ree!B -his is an e6ample of a ! "5 Fi/ert s%ale D5 semanti% differential 35 multiple %hoi%e 8uestion D5 -hemati% "ppre%iation -est 4-"-5 95 di%hotomous 8uestion "ns#er& " ?a'e 7ef& 105 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 335 "n item in a 8uestionnaire states that Bmost politi%ians %annot (e trusted!B 7espondents are re8uired to provide their ans#ers () %hoosin' an) one of the follo#in' options& 15 $tron'l) disa'ree+ 25 Disa'ree+ 35 Geither a'ree nor disa'ree+ 45 "'ree+ 55 $tron'l) a'ree! -his is an e6ample of a ! "5 semanti% differential D5 #ord asso%iation 8uestion 35 -hemati% "ppre%iation -est 4-"-5 D5 Fi/ert s%ale 95 di%hotomous 8uestion "ns#er& D ?a'e 7ef& 105 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate
170
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 345 If a mar/etin' resear%her %hooses to use #ord asso%iations+ the resear%her is usin' ! "5 %losed,end 8uestions D5 Fi/ert s%ale 8uestions 35 open,end 8uestions D5 ratin' s%ale 8uestions 95 semanti% differential 8uestions "ns#er& 3 ?a'e 7ef& 105 :(2e%tive& 1 Diffi%ult)& *oderate 355 In #hi%h of the follo#in' t)pes of tests is a pi%ture presented and respondents are as/ed to ma/e up a stor) a(out #hat the) thin/ is happenin' or ma) happen in the pi%ture1 "5 visual per%eption test D5 7ors%ha%h In/,(lot -est 35 stor) %ompletion test D5 -hemati% "pper%eption -est 95 7enfre# "%tion ?i%ture -est "ns#er& D ?a'e 7ef& 105 :(2e%tive& 1 Diffi%ult)& *oderate 365 -he 8uestion B0hat is )our opinion of the measures ta/en () the 'overnment to %ontrol inflation1B is an e6ample of a 8uestion! "5 semanti% differential D5 #ord asso%iation 35 %ompletel) unstru%tured D5 stor) %ompletion 95 di%hotomous "ns#er& 3 ?a'e 7ef& 105 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 375 In #hi%h of the follo#in' 8ualitative method are su(2e%ts as/ed to %omplete an in%omplete stimulus1 "5 #ord asso%iation D5 pro2e%tive te%hni8ues 35 visuali.ation D5 (rand personifi%ation 95 ladderin' "ns#er& D
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** ?a'e 7ef& 106 :(2e%tive& 1 Diffi%ult)& *oderate 385 re8uires people to %reate a %olla'e from ma'a.ine photos or dra#in's to depi%t their per%eptions! "5 Drand personifi%ation D5 ?ro2e%tive te%hni8ue 35 Hisuali.ation D5 Fadderin' 95 *etaphor 9li%itation -e%hni8ue "ns#er& 3 ?a'e 7ef& 106 :(2e%tive& 1 Diffi%ult)& *oderate 395 -he primar) purpose of asso%iations in %onsumers= minds! "5 e6perimental resear%h D5 desh(oardin' 35 ladderin' D5 semanti% differentials 95 #ord asso%iations "ns#er& 9 ?a'e 7ef& 106 :(2e%tive& 1 Diffi%ult)& 9as) is to identif) the ran'e of possi(le (rand
405 0ith respe%t to the samplin' plan+ three de%isions must (e made& 415 the samplin' unitM#ho is to (e surve)edA 425 sample si.eMho# man) people should (e surve)edA and 435 ! "5 sample %ostMho# mu%h does samplin' %ost D5 surve)or s/illM#ho should %ondu%t the surve) 35 sample se%urit)Mho# should the sample data (e prote%ted D5 samplin' pro%edureMho# should respondents (e %hosen 95 sample supervisorM#ho leads the samplin' effort "ns#er& D ?a'e 7ef& 107 :(2e%tive& 1 Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 415 Durin' a fo%us,'roup session+ one set of parti%ipants indi%ated that Dell %omputers reminded them of a surfer+ "pple %omputers of a mad s%ientist+ and ID* #as e8uated to 9(ene.er $%roo'e from 3harles Di%/ens=s tale+ B" 3hristmas 3arolB! 0hi%h of the follo#in' 8ualitative resear%h approa%hes relates to the approa%h des%ri(ed a(ove1 "5 pro2e%tive te%hni8ues D5 visuali.ation 35 (rand personifi%ation D5 ladderin' 95 (rand ar%hite%ture "ns#er& 3 ?a'e 7ef& 107 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& Diffi%ult 425 "%%ordin' to the %on%ept of + a series of in%reasin'l) more spe%ifi% B#h)B 8uestions %an reveal %onsumer motivation and %onsumers= deeper+ more a(stra%t 'oals! "5 #ord asso%iation D5 pro2e%tion 35 visuali.in' D5 (rand personifi%ation 95 ladderin' "ns#er& 9 ?a'e 7ef& 107 :(2e%tive& 1 Diffi%ult)& 9as) 435 measure the interest or emotions aroused () e6posure to a spe%ifi% ad or pi%ture! "5 -a%histos%opes D5 ?ol)'raphs 35 <alvanometers D5 "udiometers 95 <?$ s)stems "ns#er& 3 ?a'e 7ef& 107 :(2e%tive& 1 Diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 445 flash an ad to a su(2e%t #ith an e6posure interval that ma) ran'e from less than one hundredth of a se%ond to several se%onds! "5 -a%histos%opes D5 "udiometers 35 ?ol)'raphs D5 <?$ s)stems 95 <alvanometers "ns#er& " ?a'e 7ef& 107 :(2e%tive& 1 Diffi%ult)& 9as) 455 atta%hed to television sets in parti%ipatin' homes no# re%ord #hen the set is on and to #hi%h %hannel it is tuned! "5 -a%histos%opes D5 ?ol)'raphs 35 <?$ s)stems D5 "udiometers 95 <alvanometers "ns#er& D ?a'e 7ef& 107 :(2e%tive& 1 Diffi%ult)& 9as) 465 0hi%h of the follo#in' statements a(out telephoni% intervie# is true1 "5 It usuall) ta/es a lon' time to 'ather information throu'h telephoni% intervie#s! D5 -he intervie#er is una(le to %larif) 8uestions if respondents do not understand them! 35 -he response rate for telephoni% intervie#s has (een t)pi%all) lo#er than for mailed 8uestionnaires! D5 -he @!$! 'overnment 'enerall) en%oura'es telemar/etin' () firms! 95 -elephone intervie#in' in the @!$! is 'ettin' more diffi%ult (e%ause of %onsumers= 'ro#in' antipath) to#ard telemar/eters! "ns#er& 9 ?a'e 7ef& 108 :(2e%tive& 1 Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 475 If a mar/etin' resear%her #ishes to rea%h those people #ho #ould not 'ive personal intervie#s or #hose responses mi'ht (e (iased or distorted () intervie#ers+ he or she should use ! "5 mail 8uestionnaires D5 telephoni% intervie#s 35 online intervie#s D5 fo%us 'roups 95 o(servational resear%h "ns#er& " ?a'e 7ef& 108 :(2e%tive& 1 Diffi%ult)& 9as) 485 0hi%h of the follo#in' is %onsidered to (e the most versatile of all the %onta%t methods1 "5 mail 8uestionnaires D5 telephone intervie#s 35 personal intervie#s D5 online intervie#s 95 field trials "ns#er& 3 ?a'e 7ef& 109 :(2e%tive& 1 Diffi%ult)& 9as) 495 In intervie#s+ resear%hers stop people at a shoppin' mall or (us) street %orner and re8uest an intervie# on the spot! "5 inter%ept D5 arran'ed 35 'roup D5 stru%tured 95 (ehavioral "ns#er& " ?a'e 7ef& 109 :(2e%tive& 1 Diffi%ult)& 9as) 505 0hi%h of the follo#in' is an advanta'e of personal intervie#s1 "5 It is a relativel) ine6pensive method of 'atherin' information! D5 -he possi(ilit) of intervie#er (ias is minimi.ed! 35 ?arti%ipants %an %hoose to respond at their o#n %onvenien%e! D5 It fa%ilitates anon)mous responses! 95 Intervie#ers %an re%ord additional o(servation a(out the respondent su%h as (od) lan'ua'e! "ns#er& 9 ?a'e 7ef& 109
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** :(2e%tive& 1 Diffi%ult)& *oderate 515 0hi%h of the follo#in' is one of the /e) disadvanta'es of online mar/et resear%h1 "5 :nline resear%h is e6pensive! D5 :nline resear%h is time %onsumin'! 35 ?eople tend to (e dishonest online! D5 :nline resear%h la%/s versatilit)! 95 $amples %an (e small and s/e#ed! "ns#er& 9 ?a'e 7ef& 110 :(2e%tive& 1 Diffi%ult)& 9as) 525 0hi%h of the follo#in' is an advanta'e of online resear%h1 "5 $amples are 'enerall) representative of the tar'et population! D5 *em(ers of online panels and %ommunities tend to have lo# turnover! 35 :nline resear%h is relativel) free of te%hnolo'i%al pro(lems and in%onsisten%ies! D5 ?eople tend to (e honest and thou'htful online! 95 :nline resear%h is slo# (ut 'ather detailed information! "ns#er& D ?a'e 7ef& 110 :(2e%tive& 1 Diffi%ult)& *oderate 535 -he phase of mar/etin' resear%h is 'enerall) the most e6pensive and the most prone to error! "5 %onta%t D5 resear%h plannin' 35 8uestionnaire desi'n D5 intervie# desi'n 95 data %olle%tion "ns#er& 9 ?a'e 7ef& 101 :(2e%tive& 1 Diffi%ult)& 9as) 545 "fter %olle%tin' the relevant information+ the ne6t step in the mar/etin' resear%h pro%ess is to ! "5 develop the resear%h plan D5 define the pro(lem and resear%h o(2e%tives 35 present the pro2e%t report D5 ma/e the final de%ision 95 anal).e the a%8uired data "ns#er& 9 ?a'e 7ef& 111
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** :(2e%tive& 1 Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 555 "fter %omputin' avera'es and measures of dispersion for the ma2or varia(les and appl)in' advan%ed statisti%al te%hni8ues and de%ision models in the hope of dis%overin' additional findin's from the 'athered information+ the resear%hers ! "5 define the pro(lem+ the de%ision alternatives+ and the resear%h o(2e%tives D5 present findin's relevant to the ma2or mar/etin' de%isions fa%in' mana'ement 35 evaluate the %osts asso%iated #ith data %olle%ted D5 anal).e the appropriateness of the data sour%es used 95 develop the resear%h plan "ns#er& D ?a'e 7ef& 111 :(2e%tive& 1 Diffi%ult)& *oderate 565 0h) do firms emplo) more than one persona to 'ather information a(out the tar'et %onsumers1 "5 0ithin a 'roup+ %onsumers usuall) e6hi(it similar tastes and preferen%es! D5 -he distri(ution of in%ome and #ealth are more or less e8ual a%ross different %ustomer se'ments! 35 "lthou'h %ustomers have uni8ues+ essentiall) their (asi% needs and re8uirements are the same! D5 "n) tar'et mar/et ma) have a ran'e of %onsumers #ho var) alon' a num(er of /e) dimensions! 95 -he firms #ant to provide %onsumers #ith a 'reater num(er of produ%t %hoi%es! "ns#er& D ?a'e 7ef& 112 :(2e%tive& 1 Diffi%ult)& *oderate 575 " has (een defined as a %oordinated %olle%tion of data+ s)stems+ tools+ and te%hni8ues #ith supportin' soft#are and hard#are () #hi%h an or'ani.ation 'athers and interprets relevant information from (usiness and environment and turns it into a (asis for mar/etin' a%tion! "5 mar/etin' metri% D5 mar/etin' %hannel s)stem 35 mar/etin' de%ision support s)stem D5 mar/etin' resear%h s)stem 95 data(ase mana'ement s)stem "ns#er& 3 ?a'e 7ef& 112 :(2e%tive& 1 Diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 585 "ll of the follo#in' are %onsidered to (e amon' the seven %hara%teristi%s of 'ood mar/etin' resear%h 9L39?! "5 the s%ientifi% method D5 resear%h %reativit) 35 multiple methods D5 ethi%al mar/etin' 95 independen%e of models and data "ns#er& 9 ?a'e 7ef& 113 :(2e%tive& 1 Diffi%ult)& *oderate 595 are a stru%tured #a) to disseminate the insi'hts 'leaned from the t#o %omplementar) approa%hes to measurin' mar/etin' produ%tivit) #ithin the or'ani.ation! "5 *ar/etin' metri%s D5 *ar/etin' de%ision support s)stems 35 *ar/etin' dash(oards D5 *ar/etin' se'ments 95 *ar/etin' mi6 models "ns#er& 3 ?a'e 7ef& 114 :(2e%tive& 2 Diffi%ult)& 9as) 605 -#o %omplimentar) approa%hes to measure mar/etin' produ%tivit) are mar/etin',mi6 modelin'! "5 8ualit) ratios D5 salesperson satisfa%tion rates 35 mar/etin' metri%s D5 retailer satisfa%tion indi%es 95 %ustomer feed(a%/ surve)s "ns#er& 3 ?a'e 7ef& 114 :(2e%tive& 2 Diffi%ult)& 9as) 615 0hi%h of the follo#in' refers to the set of measures that help firms to 8uantif)+ %ompare+ and interpret their mar/etin' performan%e1 "5 mar/etin' dia'nosti%s D5 mar/etin' information s)stems 35 mar/etin' simulation D5 mar/etin' intelli'en%e 95 mar/etin' metri%s "ns#er& 9 ?a'e 7ef& 114 :(2e%tive& 2 and
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Diffi%ult)& 9as) 625 Fondon Dusiness $%hool=s -im "m(ler (elieves the evaluation of mar/etin' performan%e %an (e split into t#o parts& ! "5 lon',term results and %han'es in (rand e8uit) D5 short,term results and %han'es in (rand e8uit) 35 lon',term results and %han'es in %onsumer per%eptions D5 short,term results and %han'es in profita(ilit) 95 %han'es in mar/et share and %han'es in profita(ilit) "ns#er& D ?a'e 7ef& 115 :(2e%tive& 2 Diffi%ult)& 9as) 635 0hi%h of the follo#in' is an e6ternal mar/etin' metri% that %ompanies need to monitor1 "5 resour%e ade8ua%) D5 staffin' or s/ill levels 35 a%tive innovation support D5 mar/et share 95 relative emplo)ee satisfa%tion "ns#er& D ?a'e 7ef& 115 :(2e%tive& 2 Diffi%ult)& *oderate 645 0hi%h of the follo#in' is an internal mar/etin' metri% that %ompanies need to monitor1 "5 mar/et share D5 %onsumer satisfa%tion 35 relative per%eived 8ualit) D5 total num(er of %ustomers 95 relative emplo)ee satisfa%tion "ns#er& 9 ?a'e 7ef& 115 :(2e%tive& 2 Diffi%ult)& *oderate 655 anal).e4s5 data from a variet) of sour%es+ su%h as retailer s%anner data+ %ompan) shipment data+ pri%in'+ media+ and promotion spendin' data+ to understand more pre%isel) the effe%ts of spe%ifi% mar/etin' a%tivities! "5 *ar/etin' metri%s D5 *ar/etin',mi6 models 35 *ar/etin' fore%astin' D5 *ar/etin' intelli'en%e data(ases 95 *ar/etin' de%ision s)stems "ns#er& D
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** ?a'e 7ef& 116 :(2e%tive& 3 Diffi%ult)& 9as) 665 0hen the mar/eters of a mo(ile phone manufa%turin' %ompan) #ant to determine the impa%t of individual media su%h as television and online displa) ads on sales as #ell as that of trade a%tivities li/e ever) da) lo# pri%e+ off,shelf displa) and so on+ the) usuall) use ! "5 mar/etin' metri%s D5 mar/et se'mentation strate'ies 35 mar/et %apitali.ation te%hni8ues D5 mar/et (as/et anal)sis 95 mar/etin',mi6 models "ns#er& 9 ?a'e 7ef& 116 :(2e%tive& 3 ""3$D& "nal)ti% s/ills Diffi%ult)& Diffi%ult 675 " re%ords ho# #ell the %ompan) is doin' )ear after )ear (ased on measures su%h as the avera'e per%eption of the %ompan)=s produ%t 8ualit) relative to its %hief %ompetitor! "5 %ustomer,performan%e s%ore%ard D5 sta/eholder,performan%e s%ore%ard 35 mar/etin' (alan%ed s%ore%ard D5 vendor s%ore%ard 95 'eneri% s%ore%ard "ns#er& " ?a'e 7ef& 116,117 :(2e%tive& 3 Diffi%ult)& 9as) 685 If a %ompan) a%tivel) tra%/s the satisfa%tion of its suppliers+ (an/s+ and distri(utors+ it is usin' #hat is %alled a ! "5 %ustomer,performan%e s%ore%ard D5 sta/eholder,performan%e s%ore%ard 35 mar/etin' (alan%ed s%ore%ard D5 vendor s%ore%ard 95 'eneri% s%ore%ard "ns#er& D ?a'e 7ef& 116 :(2e%tive& 3 Diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 695 "%%ordin' to mar/etin' %onsultant ?at Fa?ointe+ the measurement path#a) of the mar/etin' dash(oard refle%ts ho# prospe%ts (e%ome %onsumers! "5 %ustomer metri%s D5 unit metri%s 35 %ash,flo# metri%s D5 (rand metri%s 95 produ%tivit) metri%s "ns#er& " ?a'e 7ef& 117 :(2e%tive& 3 Diffi%ult)& 9as) 705 "%%ordin' to mar/etin' %onsultant ?at Fa?ointe+ the measurement path#a) of the mar/etin' dash(oard fo%uses on ho# #ell mar/etin' e6penditures are a%hievin' short,term returns! "5 %ustomer metri%s D5 unit metri%s 35 %ash,flo# metri%s D5 (rand metri%s 95 produ%tivit) metri%s "ns#er& 3 ?a'e 7ef& 118 :(2e%tive& 3 Diffi%ult)& 9as) 715 <ood mar/etin' insi'hts often form the (asis of su%%essful mar/etin' pro'rams! "ns#er& -7@9 ?a'e 7ef& 97 :(2e%tive& 1 Diffi%ult)& 9as) 725 *ost lar'e %ompanies prefer to use e6ternal mar/etin' resear%h %onsultants rather than emplo) their o#n mar/etin' resear%h department! "ns#er& C"F$9 ?a'e 7ef& 98 :(2e%tive& 1 Diffi%ult)& 9as) 735 0hen the %ompanies en'a'e students to desi'n and %arr) out pro2e%ts+ the pa)off to the students is e6perien%e and visi(ilit)A the pa)off to the %ompanies is a fresh sets of e)es to solve pro(lems at a fra%tion of #hat %onsultants #ould %har'e! "ns#er& -7@9 ?a'e 7ef& 98 :(2e%tive& 1 Diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 745 " 'ood e6ample of a s)ndi%ated,servi%e resear%h firm is Gielsen *edia 7esear%h! "ns#er& -7@9 ?a'e 7ef& 99 :(2e%tive& 1 Diffi%ult)& 9as) 755 3ustom mar/etin' resear%h firms sell field intervie#in' servi%es to other firms! "ns#er& C"F$9 ?a'e 7ef& 99 :(2e%tive& 1 Diffi%ult)& 9as) 765 "fter developin' the resear%h plan+ the mar/etin' resear%her should define the pro(lem and resear%h o(2e%tives! "ns#er& C"F$9 ?a'e 7ef& 99 :(2e%tive& 1 Diffi%ult)& 9as) 775 -he 'oal of e6plorator) resear%h is to shed li'ht on the real nature of the pro(lem and to su''est possi(le solutions or ne# ideas! "ns#er& -7@9 ?a'e 7ef& 100 :(2e%tive& 1 Diffi%ult)& 9as) 785 -he purpose of %ausal resear%h is to test a %ause,and,effe%t relationship! "ns#er& -7@9 ?a'e 7ef& 100 :(2e%tive& 1 Diffi%ult)& 9as) 795 ;ames %olle%ted primar) data #hen he distri(uted a surve) to dorm residents to dis%over their attitudes and opinions on %ampus life! "ns#er& -7@9 ?a'e 7ef& 100 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 805 $e%ondar) data are data freshl) 'athered for a spe%ifi% purpose or for a spe%ifi% resear%h pro2e%t! "ns#er& C"F$9 ?a'e 7ef& 100 :(2e%tive& 1 Diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 815 -he 'oal of ethno'raphi% resear%h is to immerse the resear%her into %onsumers= lives to un%over unarti%ulated desires that mi'ht not surfa%e in an) other form of resear%h! "ns#er& -7@9 ?a'e 7ef& 101 :(2e%tive& 1 Diffi%ult)& 9as) 825 7esear%hers should 'enerali.e findin's from fo%us,'roup parti%ipants to the #hole mar/et! "ns#er& C"F$9 ?a'e 7ef& 102 :(2e%tive& 1 Diffi%ult)& *oderate 835 Eeepin' a surve) short and simple and %onta%tin' %ustomers no more than on%e a month are t#o /e)s to dra#in' people into the data %olle%tion effort! "ns#er& -7@9 ?a'e 7ef& 103 :(2e%tive& 1 Diffi%ult)& 9as) 845 " 'ood e6ample of %olle%tin' (ehavioral data #ould (e #hen a store uses s%anners to read (ar %odes on produ%ts sele%ted () %onsumers! "ns#er& -7@9 ?a'e 7ef& 103 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 855 Dehavioral resear%h is the most s%ientifi%all) valid resear%h! "ns#er& C"F$9 ?a'e 7ef& 103 :(2e%tive& 1 Diffi%ult)& 9as) 865 96periments %all for sele%tin' mat%hed 'roups of su(2e%ts+ su(2e%tin' them to different treatments+ %ontrollin' e6traneous varia(les+ and %he%/in' #hether o(served response differen%es are statisti%all) si'nifi%ant! "ns#er& -7@9 ?a'e 7ef& 103 :(2e%tive& 1 Diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 875 :#in' to its 'reater fle6i(ilit)+ a 8uestionnaire is () far the most %ommon instrument used to %olle%t primar) data! "ns#er& -7@9 ?a'e 7ef& 104 :(2e%tive& 1 Diffi%ult)& 9as) 885 Qualitative resear%h te%hni8ues are relativel) stru%tured measurement approa%hes that permit limited possi(le responses! "ns#er& C"F$9 ?a'e 7ef& 104 :(2e%tive& 1 Diffi%ult)& *oderate 895 " 8uestionnaire should %ontain sophisti%ated and un%ommon #ords! "ns#er& C"F$9 ?a'e 7ef& 104 :(2e%tive& 1 Diffi%ult)& 9as) 905 If a mar/etin' resear%her de%ides to use a Fi/ert s%ale+ the resear%her has %hosen a te%hni8ue #herein the respondent revie#s a statement that sho#s the amount of a'reementTdisa'reement #ith some produ%t+ servi%e+ or %on%ept! "ns#er& -7@9 ?a'e 7ef& 105 :(2e%tive& 1 Diffi%ult)& *oderate 915 " di%hotomous 8uestion is a 8uestion #ith three or more ans#ers! "ns#er& C"F$9 ?a'e 7ef& 105 :(2e%tive& 1 Diffi%ult)& 9as) 925 " s%ale that des%ri(es the respondent=s intention to (u) a parti%ular produ%t is %alled a ratin' s%ale! "ns#er& C"F$9 ?a'e 7ef& 105 :(2e%tive& 1 Diffi%ult)& 9as) 935 Hisuali.ation re8uires people to %reate a %olla'e from ma'a.ine photos or dra#in's to depi%t their per%eptions! "ns#er& -7@9 ?a'e 7ef& 106 :(2e%tive& 1
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Diffi%ult)& 9as) 945 :n%e the) have determined the samplin' unit+ mar/eters must develop a samplin' frame so that a small se%tion in the tar'et population has a 'reater %han%e of (ein' sampled! "ns#er& C"F$9 ?a'e 7ef& 107 :(2e%tive& 1 Diffi%ult)& *oderate 955 $amples of less than 1W of a population %an often provide 'ood relia(ilit)+ #ith a %redi(le samplin' pro%edure! "ns#er& -7@9 ?a'e 7ef& 107 :(2e%tive& 1 Diffi%ult)& *oderate 965 ?ro(a(ilit) samplin' allo#s %onfiden%e limits to (e %al%ulated for samplin' error and ma/es the samplin' more representative! "ns#er& -7@9 ?a'e 7ef& 107 :(2e%tive& 1 Diffi%ult)& *oderate 975 -he response rate is usuall) ver) hi'h for mail 8uestionnaires! "ns#er& C"F$9 ?a'e 7ef& 108 :(2e%tive& 1 Diffi%ult)& 9as) 985 If a mar/etin' resear%her is loo/in' for a %onta%t method that %an 'ather information 8ui%/l) and allo# the intervie#er to %larif) 8uestions if ne%essar)+ he or she #ill %hoose the telephone intervie# method! "ns#er& -7@9 ?a'e 7ef& 108 :(2e%tive& 1 Diffi%ult)& *oderate 995 " 'ood illustration of #hat is %alled the arran'ed intervie# o%%urs #hen intervie#ers stop people in a shoppin' mall or on a (us) street and soli%it information ne%essar) to their resear%h effort! "ns#er& C"F$9 ?a'e 7ef& 109 :(2e%tive& 1 Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1005 :nline surve)s are fast (e%ause the surve) %an automati%all) dire%t respondents to appli%a(le 8uestions and transmit results immediatel)! "ns#er& -7@9 ?a'e 7ef& 110 :(2e%tive& 1 Diffi%ult)& 9as) 1015 :ne of the %hara%teristi%s of 'ood mar/etin' resear%h is that it uses multiple methods to in%rease %onfiden%e in the results! "ns#er& -7@9 ?a'e 7ef& 113 :(2e%tive& 1 Diffi%ult)& 9as) 1025 *ar/etin' resear%hers should have a health) s/epti%ism to#ard 'li( assumptions made () mana'ers a(out ho# a mar/et #or/s! "ns#er& -7@9 ?a'e 7ef& 113 :(2e%tive& 1 Diffi%ult)& 9as) 1035 *ar/etin' e6penses and investments as inputs %an (e 8uantified onl) in the lon' run+ #hereas the resultin' outputs su%h as (roader (rand a#areness+ enhan%ed (rand ima'e+ 'reater %ustomer lo)alt)+ and improved ne# produ%t prospe%ts manifest themselves in the short run! "ns#er& C"F$9 ?a'e 7ef& 114 :(2e%tive& 2 Diffi%ult)& *oderate 1045 *ar/etin',mi6 modelin' is used to estimate %ausal relationships and measure ho# mar/etin' a%tivit) affe%ts out%omes! "ns#er& -7@9 ?a'e 7ef& 114 :(2e%tive& 3 Diffi%ult)& *oderate 1055 *ar/etin' a%%ounta(ilit) means that mar/eters must more pre%isel) estimate the effe%ts of different mar/etin' investments! "ns#er& -7@9 ?a'e 7ef& 116 :(2e%tive& 3 Diffi%ult)& 9as)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1065 9spe%iall) popular #ith su%h %ompanies as ?ro%ter P <am(le+ mar/etin',mi6 modelin' is used to allo%ate or reallo%ate e6penditures! "ns#er& -7@9 ?a'e 7ef& 116 :(2e%tive& 3 Diffi%ult)& *oderate 1075 *ar/etin',mi6 modelin' fo%uses on (aseline sales or lon' term effe%ts instead of in%remental 'ro#th! "ns#er& C"F$9 ?a'e 7ef& 116 :(2e%tive& 3 Diffi%ult)& 9as) 1085 *ana'ement %an assem(le a summar) set of relevant internal and e6ternal measures in a mar/etin' dash(oard for s)nthesis and interpretation! "ns#er& -7@9 ?a'e 7ef& 116 :(2e%tive& 3 Diffi%ult)& 9as) 1095 " sta/eholder,performan%e s%ore%ard tra%/s the satisfa%tion #ith the %ompan) and its produ%ts and servi%es amon' su%h entities as suppliers+ (an/s+ and sto%/holders! "ns#er& -7@9 ?a'e 7ef& 116 :(2e%tive& 3 Diffi%ult)& 9as) 1105 Dis%uss the different #a)s #hi%h %an (e adopted () small manufa%turin' firms to %ondu%t mar/et resear%h! "ns#er& -he small firms %an adopt the follo#in' #a)s to %ondu%t mar/et resear%h& 15 -he) %an en'a'e students or professors to desi'n and %arr) out pro2e%ts! 25 -he) %an %olle%t %onsidera(le information at ver) little %ost () e6aminin' %ompetitors= 0e( sites+ monitorin' %hat rooms+ and a%%essin' pu(lished data! 35 -he o#ners of small (usiness firms %an routinel) visit %ompetitors to learn a(out %han'es the) have made! 45 D) tappin' into mar/etin' partner e6pertise! ?a'e 7ef& 98 :(2e%tive& 1 Diffi%ult)& 9as) 1115 0hat are the si6 steps involved in the mar/etin' resear%h pro%ess1 "ns#er& -he si6 steps are& 415 define the pro(lem and resear%h o(2e%tives+ 425 develop the resear%h plan+ 435 %olle%t the information+ 445 anal).e the information+ 455 present the findin's+ and 465 ma/e the de%ision! ?a'e 7ef& 99 :(2e%tive& 1
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Diffi%ult)& 9as) 1125 Fist the %hallen'es fa%ed to %ondu%t a 'ood fo%us 'roup dis%ussion! "ns#er& -here are man) %hallen'es to %ondu%tin' a 'ood fo%us 'roup! $ome resear%hers (elieve %onsumers have (een so (om(arded #ith ads+ the) un%ons%iousl) parrot (a%/ #hat the)=ve alread) heard instead of #hat the) reall) thin/! -here=s al#a)s a %on%ern that parti%ipants are 2ust tr)in' to maintain their self,ima'e and pu(li% persona or have a need to identif) #ith the other mem(ers of the 'roup! ?arti%ipants also ma) not (e #illin' to a%/no#led'e in pu(li%Mor ma) not even re%o'ni.eMtheir (ehavior patterns and motivations! "nd the Bloudmouth or /no#,it,allB pro(lem often %rops up #hen one hi'hl) opinionated person dro#ns out the rest of the 'roup! ?a'e 7ef& 102 :(2e%tive& 1 Diffi%ult)& Diffi%ult 1135 0hat are the relative advanta'es of online and in,person fo%us 'roups1 "ns#er& "n area of in%reasin' interest is online fo%us 'roups! -hese ma) %ost less than a fourth of a traditional+ in,person fo%us 'roup! :nline fo%us 'roups also offer the advanta'es of (ein' less intrusive+ allo#in' 'eo'raphi%all) diverse su(2e%ts to parti%ipate+ and )ieldin' fast results! -he) are useful at %olle%tin' rea%tions to fo%used topi%s su%h as a spe%ifi% ne# produ%t %on%ept! ?roponents of in,person fo%us 'roups+ on the other hand+ maintain that in,person fo%us 'roups allo# mar/eters to (e immersed in the resear%h pro%ess+ 'et a %lose,up loo/ to people=s emotional and ph)si%al rea%tions+ and ensure that sensitive materials are not lea/ed! *ar/eters %an also ma/e spontaneous ad2ustments to the flo# of dis%ussion and delve deepl) into more %omple6 topi%s+ su%h as alternative %reative %on%epts for a ne# ad %ampai'n! ?a'e 7ef& 102 :(2e%tive& 1 Diffi%ult)& Diffi%ult 1145 <ive an a%%ount of e6perimental resear%h! "ns#er& 96perimental resear%h is desi'ned to %apture %ause,and,effe%t relationships () eliminatin' %ompetin' e6planations of the o(served findin's! If the e6periment is #ell desi'ned and e6e%uted+ resear%h and mar/etin' mana'ers %an have %onfiden%e in the %on%lusions! 96periments %all for sele%tin' mat%hed 'roups of su(2e%ts+ su(2e%tin' them to different treatments+ %ontrollin' e6traneous varia(les+ and %he%/in' #hether o(served response differen%es are statisti%all) si'nifi%ant! ?a'e 7ef& 103 :(2e%tive& 1 Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1155 96plain #hat 8ualitative resear%h is and #h) it mi'ht (e useful to mar/eters! 0hat are its ma2or dra#(a%/s1 "ns#er& Qualitative resear%h te%hni8ues are relativel) unstru%tured measurement approa%hes to permit a ran'e of possi(le responses+ and the) are a %reative means of as%ertainin' %onsumer per%eptions that ma) other#ise (e diffi%ult to un%over! De%ause of the freedom it affords (oth resear%hers in their pro(es and %onsumers in their responses+ 8ualitative resear%h %an often (e an espe%iall) useful first step in e6plorin' %onsumers= (rand and produ%t per%eptions! It is indire%t in nature+ so %onsumers ma) (e less 'uarded and reveal more a(out themselves in the pro%ess! Qualitative resear%h does have its dra#(a%/s! *ar/eters must temper the in,depth insi'hts that emer'e #ith the fa%t that the samples are often ver) small and ma) not ne%essaril) 'enerali.e to (roader populations! "nd different resear%hers e6aminin' the same 8ualitative results ma) dra# ver) different %on%lusions! ?a'e 7ef& 96 :(2e%tive& 1 ""3$D& 7efle%tive thin/in' Diffi%ult)& *oderate 1165 <ive an a%%ount of the different te%hnolo'i%al devi%es that have (een developed to provide insi'ht into the %onsumers= (ehavior to the resear%hers! "ns#er& -here has (een mu%h interest in re%ent )ears in various te%hnolo'i%al devi%es! <alvanometers %an measure the interest or emotions aroused () e6posure to a spe%ifi% ad or pi%ture! -he ta%histos%ope flashes an ad to a su(2e%t #ith an e6posure interval that ma) ran'e from less than one hundredth of a se%ond to several se%onds! "fter ea%h e6posure+ the respondent des%ri(es ever)thin' he or she re%alls! 9)e %ameras stud) respondents= e)e movements to see #here their e)es land first+ ho# lon' the) lin'er on a 'iven item+ and so on! ?a'e 7ef& 107 :(2e%tive& 1 Diffi%ult)& *oderate 1175 0hat is the %hief advanta'e of usin' ea%h of the follo#in' %onta%t methods& mail 8uestionnaire+ telephone intervie#+ and personal intervie#1 "ns#er& -he %hief advanta'e of ea%h %onta%t method mentioned is 415 mail 8uestionnairethe (est #a) to rea%h people #ho #ould not 'ive personal intervie#s or #hose responses mi'ht (e (iased or distorted () the intervie#s+ 425 telephone intervie#sthe (est method for 'atherin' information 8ui%/l) and the intervie#er is also a(le to %larif) 8uestions if respondents do not understand them+ and 435 personal intervie#the most versatile method (e%ause the) %an as/ more 8uestions and re%ord additional o(servations a(out the respondent! ?a'e 7ef& 108,109 :(2e%tive& 1 Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1185 <ive reasons to 2ustif) that online resear%h is versatile! "ns#er& In%reased (road(and penetration offers online resear%h even more fle6i(ilit) and %apa(ilities! Cor instan%e+ virtual realit) soft#are lets visitors inspe%t 3,D models of produ%ts su%h as %ameras+ %ars+ and medi%al e8uipment and manipulate produ%t %hara%teristi%s! 9ven at the (asi% ta%tile level+ online surve)s %an ma/e ans#erin' a 8uestionnaire easier and more fun than paper,and,pen%il versions! :nline %ommunit) (lo's allo# %ustomer parti%ipants to intera%t #ith ea%h other! ?a'e 7ef& 110 :(2e%tive& 1 Diffi%ult)& *oderate 1195 0hat are the ma2or short%omin's of mar/etin',mi6 modelin'1 "ns#er& -he ma2or short%omin's of mar/etin',mi6 modelin' are, 15 "lthou'h mar/etin',mi6 modelin' helps to isolate effe%ts+ it is less effe%tive at assessin' ho# different mar/etin' elements #or/ in %om(ination! 25 *ar/etin',mi6 modelin' fo%uses on in%remental 'ro#th instead of (aseline sales or lon' term effe%ts! 35 -he inte'ration of important metri%s su%h as %ustomer satisfa%tion+ a#areness+ and (rand e8uit) into mar/etin',mi6 modelin' is limited! 45 *ar/etin',mi6 modelin' 'enerall) fails to in%orporate metri%s related to %ompetitors+ the trade+ or the sales for%e! ?a'e 7ef& 116 :(2e%tive& 3 Diffi%ult)& *oderate 1205 *ars <roup is a mar/et resear%h firm #hi%h sells field intervie#in' servi%es to a soft#are development firm! 3an *ars <roup (e %ate'ori.ed as a %ustom mar/et resear%h firm1 <ive reasons to support )our ans#er! "ns#er& Go+ *ars 'roup is a spe%ialt),line mar/etin' resear%h firm as it sells field intervie#in' servi%es+ #hereas a %ustom mar/etin' resear%h is hired to %arr) out spe%ifi% pro2e%ts! ?a'e 7ef& 99 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1215 "s a mar/etin' resear%her of *atri6 ?rivate Fimited )ou have (een as/ed to fore%ast the demand for )our ne# ran'e of (od) #ash if a dis%ount of 10 per%ent is offered on ea%h unit sold! Identif) the resear%h %ate'or) into #hi%h this mar/et resear%h falls! "ns#er& >ere the resear%her needs to stud) the effe%t of the dis%ount on the demand for (od) #ash! -he o(2e%tive of this resear%h is to esta(lish the %ause and effe%t relationship (et#een the dis%ount and the demand for (od) #ash! -herefore+ this %an (e %ate'ori.ed as %ausal resear%h! ?a'e 7ef& 100 :(2e%tive& 1 Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1225 >i'hspeed *otors is plannin' to introdu%e its ne# sports (i/e into the mar/et! It %olle%ts data on pri%es+ desi'ns+ features+ and performan%e of sports (i/es manufa%tured () other %ompanies from their respe%tive 0e( sites! 0hat t)pe of data is (ein' used () >i'hspeed motors in this %ase1 "ns#er& >i'hspeed *otors is usin' se%ondar) data for its resear%h! ?a'e 7ef& 100 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1235 7)an has (een appointed () -ar'et Internationals+ a hard#are manufa%turin' firm+ as a mar/etin' resear%her and has (een as/ed to %ondu%t a mar/etin' resear%h to produ%e ne# insi'hts of %onsumer attitude on its va%uum tu(es! 7)an (e'ins #ith the resear%h pro%ess () definin' the pro(lem+ the de%ision alternatives+ and resear%h o(2e%tives! *ention the ne6t step that 7)an #ill follo# to %ontinue #ith the resear%h! "ns#er& "fter definin' the pro(lem+ the de%ision alternatives+ and resear%h o(2e%tives+ the resear%her develops the most effi%ient plan for 'atherin' the needed information+ and #ill estimate the %ost of %ondu%tin' the resear%h! ?a'e 7ef& 100 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1245 "6is 3entre a departmental store has installed 33-H %ameras to re%ord %onsumer a%tions! 0hi%h resear%h approa%h has (een adopted () "6is and #h)1 "ns#er& "6is has adopted o(servational resear%h approa%h to 'ather fresh data () o(servin' the %onsumers= a%tions in the store! ?a'e 7ef& 101 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1255 "s a mar/etin' mana'er of Eids 3are+ a manufa%turer of (a() soaps+ -im plans to anal).e %ustomer attitudes () usin' the fo%us 'roup resear%h approa%h! >o# #ill he %ondu%t the resear%h in this %ase1 "ns#er& $tudent ans#ers #ill var)! -im sele%ts 8 first time mothers #ho %an ade8uatel) represent the users )ou #ant to tar'et! >e also appoints a s/illed moderator to fa%ilitate the dis%ussion amon' these #omen to ensure ever)one parti%ipates and sta)s on tra%/! -he moderator provides 8uestions (ased on the Bs%riptB prepared () -im! -he dis%ussions are re%orded for further anal)sis! ?a'e 7ef& 101,102 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1265 3opra+ a manufa%turer of %i'arettes+ %ondu%ts a surve) (efore laun%hin' its ne# ran'e of her(al %i'arettes! 0hat is the (asi% purpose of underta/in' su%h a surve) () 3opra1 "ns#er& 3opra underta/es the surve) to assess people=s /no#led'e+ (eliefs+ preferen%es+ and satisfa%tion and to measure these ma'nitudes in the 'eneral population! ?a'e 7ef& 103 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1275 <reenfoods+ a manufa%turer of read),to,eat foods+ %ondu%ts over 60+000 %ustomer surve)s ea%h month throu'h its retail outlets! 0hat ris/ is <reenfoods li/el) to fa%e () puttin' out so man) surve)s ea%h month1 "ns#er& D) puttin' out so man) surve)s ea%h month+ <reenfoods ma) run the ris/ of %reatin' Bsurve) (urnoutB and seein' response rates drop sharpl)! ?a'e 7ef& 103 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& Diffi%ult 1285 "s a mar/etin' resear%her of a firm+ )ou have planned to %ondu%t (ehavioral resear%h to develop mar/etin' insi'ht! 0hat pro%edure #ould )ou follo# in this %ase1 "ns#er& In order to %ondu%t (ehavioral resear%h+ the mar/etin' resear%hers need to develop %onsumer insi'ht () anal).in' store s%annin' data+ %atalo' pur%hases+ and %ustomer data(ases! ?a'e 7ef& 103 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1295 " 8uestionnaire used in a surve) %ontains a 8uestion su%h as& B7etail,7,@s offers the (est ever)da) pri%esB and the responses that the respondents %an opt for are& B$tron'l) Disa'reeB+ BDisa'reeB+ BGo opinionB+ B"'reeB+ B$tron'l) "'reeB! Identif) and define the t)pe of %losed,end 8uestion that has (een e6emplified in this %ase! "ns#er& -he 8uestion mentioned a(ove is a Fi/ert $%ale 8uestion! " Fi/ert $%ale is a statement #ith #hi%h the respondent sho#s the amount of a'reement or disa'reement! ?a'e 7ef& 105 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 1305 $uppose+ as a mar/etin' mana'er of a firm+ )ou have planned to %ondu%t a mar/et resear%h usin' 8ualitative measures! Cor the purpose of developin' %onsumer insi'ht )ou have distri(uted amon' the respondents a pi%ture of a man and #oman in a %offee shop+ and have as/ed the respondents to ma/e up a stor) a(out #hat is happenin' in the pi%ture! Identif) and define the t)pe of 8uestion used in this %ase! "ns#er& -he mar/etin' mana'er has used -hemati% "pper%eption -est in this %ase! In -hemati% "pper%eption -est+ a pi%ture is presented and respondents are as/ed to ma/e up a stor) a(out #hat the) thin/ is happenin' or ma) happen in the pi%ture! ?a'e 7ef& 105 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1315 -he Dledsoe *ar/etin' 7esear%h 'roup has (een hired to administer a series of 8uestions to shoppers in a lo%al mall! If 8uestions on the surve) 8uestionnaire have onl) t#o possi(le responses 4su%h as B)esTnoB 5+ #hat t)pe of 8uestions are these1 "ns#er& Questions of this t)pe are %losed,end 8uestions that are di%hotomous in nature! ?a'e 7ef& 105 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1325 "s a mar/etin' resear%her+ if )ou plan to %ondu%t )our resear%h usin' 8ualitative measures li/e (rand personifi%ation+ #hat are )ou li/el) to as/ the respondents in order to eli%it their impression on )our (rand1 "ns#er& $tudent ans#ers ma) var)! 0hen the mar/etin' resear%her uses the (rand personifi%ation approa%h to 'et inside %onsumers= minds and find out #hat the) thin/ or feel a(out (rands and produ%ts+ he is li/el) to as/ the respondents #hat /ind of person the) thin/ of #hen the (rand is mentioned! ?a'e 7ef& 107 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1335 ;ane is a mar/etin' resear%her of a %ellular servi%e providin' firm! $he is %ondu%tin' a mar/et resear%h (efore the firm de%ides to laun%h its 3< servi%es! "fter de%idin' on the resear%h approa%h and instruments+ #hat is the ne6t step that ;ane should follo#1 0hat are the three thin's that she is re8uired to %onsider in this step1 "ns#er& "fter de%idin' on the resear%h approa%h and instruments+ ;ane must desi'n a samplin' plan! In order to desi'n the plan+ ;ane has to de%ide upon the samplin' unit 4#hom she should surve)15+ the sample si.e 4ho# man) people should she surve)15+ samplin' pro%edure 4ho# should she %hoose the respondents15! ?a'e 7ef& 107 :(2e%tive& 1 ""3$D& "nal)ti% s/ills
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Diffi%ult)& Diffi%ult 1345 " mar/etin' resear%h firm has instru%ted its resear%h asso%iates to %olle%t primar) data () stoppin' people at a shoppin' mall or (us) street %orner and re8uest an intervie# on the spot! 0hi%h %onta%t method is (ein' used () the resear%hers in this %ase1 0hat pro(a(le ris/ ma) the resear%hers fa%e #hile usin' this method1 "ns#er& -he resear%hers are usin' inter%ept intervie#in' method for %olle%tin' primar) data in this %ase! -he resear%hers run the ris/ of in%ludin' nonpro(a(ilit) samples #hile usin' this method! ?a'e 7ef& 109 :(2e%tive& 1 Diffi%ult)& *oderate 1355 "romas is a popular (rand of %osmeti% produ%ts! Durin' the last 8uarter+ the %ompan) suffered a drop in sales of some of its more popular offerin's! In an attempt to find out the pro(lem+ "romas desi'ned an online 8uestionnaire for its e6istin' %ustomers+ #ho %an fill out the 8uestionnaire and also leave their %omments and su''estions for improvement! 0hat are the pro(lems that "romas is li/el) to fa%e () usin' this method of %onta%tin' its %ustomers1 "ns#er& $tudent ans#ers #ill var)! "romas is usin' online %onta%t method to 'ather %ustomer feed(a%/! -he ma2or pro(lems of usin' this method are, 15 samples ma) (e small and s/e#ed+ 25 online panels and %ommunities %an suffer from e6%essive turnover+ 35 su%h online mar/et resear%h %an suffer from te%hnolo'i%al pro(lems and in%onsisten%ies! ?a'e 7ef& 110 :(2e%tive& 1 ""3$D& "nal)ti% s/ills Diffi%ult)& Diffi%ult 1365 "s a mar/etin' %ontroller of a %ompan)+ )ou have (een as/ed to %reate a sta/eholder,performan%e s%ore%ard that tra%/s the satisfa%tion of various %onstituen%ies #ho have a %riti%al interest and impa%t )our %ompan)=s performan%e! Fist four %onstituen%ies that mi'ht (e in%luded! "ns#er& -he sta/eholder,performan%e s%ore%ard %ould tra%/ the satisfa%tion of emplo)ees+ suppliers+ (an/s+ distri(utors+ retailers+ and sto%/holders! ?a'e 7ef& 116 :(2e%tive& 3 ""3$D& "nal)ti% s/ills Diffi%ult)& *oderate 1375 "s a mar/etin' %ontroller of a %ompan) )ou have (een as/ed to develop a %ustomer, performan%e s%ore%ard for )our %ompan)=s to) division! Fist three measures )ou mi'ht in%lude! "ns#er& -he three measures that mi'ht (e in%luded are,415 per%enta'e of ne# %ustomers to avera'e num(er of %ustomersA 425 per%enta'e of lost %ustomers to avera'e num(er of %ustomersA 435 per%enta'e of #in,(a%/ %ustomers to avera'e num(er of %ustomers! "ns#ers ma) var)!
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** ?a'e 7ef& 117 :(2e%tive& 3 ""3$D& "nal)ti% s/ills Diffi%ult)& Diffi%ult
Question $
1 out of 1 points
In response to the @!$! in%ome distri(ution trend to#ard + Fevi,$trauss introdu%ed premium Fevi=s 3apital 9 line to ups%ale retailers and the e%onom) Fevi $trauss $i'nature line to mass,mar/et retailers!
"ns#er $ele%ted "ns#er&
lo# and hi'h in%omes
Question 2
1 out of 1 points
-oda)+ %orporations need to ma/e sure that the) are 'ood %orporate %iti.ens and that their %onsumer messa'es are honest in order to positivel) ali'n themselves #ith %onsumers= !
vie#s of or'ani.ations
Question 3
1 out of 1 points
Govamalt In%!+ a manufa%turer of health drin/s+ plans to introdu%e its ne# ran'e of #oman health drin/s into the mar/et! It involves a spe%iali.ed mar/etin' resear%h firm to fore%ast the sales of this produ%t! -he resear%h firm anal).es past (u)in' (ehavior of %ustomers and uses time,series anal)sis for ma/in' the sales fore%asts! 0hi%h of the follo#in' information (ases is (ein' used () the resear%h firm in this s%enario1
#hat people have done
Question 4
1 out of 1 points
is the sales limit approa%hed () %ompan) demand as %ompan) mar/etin' effort in%reases relative to that of %ompetitors!
3ompan) sales potential
Question 5
1 out of 1 points
" %ompan)=s sales potential #ould (e e8ual to mar/et potential if

196
the %ompan) 'ets 100 per%ent share of the mar/et
Question
1 out of 1 points
-he sales fore%astin' method of (uilds sets of e8uations that des%ri(e a s)stem and statisti%all) derives the different parameters that ma/e up the e8uations statisti%all)!
e%onometri% anal)sis
Question !
1 out of 1 points
0hen a %ompan) a%8uires %onsumer,panel data from firms li/e "!3! Gielsen 3ompan) and Information 7esour%es In%!+ #hi%h of the follo#in' steps to improve the 8ualit) of a %ompan) mar/etin' intelli'en%e s)stem is the %ompan) resortin' to1
pur%hasin' information from outside resear%h firms and vendors
Question "
1 out of 1 points
D) 2010+ pro2e%tions indi%ate that the lar'est %ate'or) of households #ill (e %omposed of
%hildless married %ouples and empt) nesters
Question #
1 out of 1 points
measures the impa%t of a set of %ausal fa%tors 4su%h as in%ome+ mar/etin' e6penditures+ and pri%e5 on the sales level!
$tatisti%al demand anal)sis
Question $%
1 out of 1 points
3ompanies %an pra%ti%e tar'eted mar/etin' () usin' personal (ro#sers!

,re%ords of 0e( site usa'e stored on
%oo/ie s
197
Mu'ti.'e +,oi6e
1! -he ma2or responsi(ilit) for identif)in' si'nifi%ant mar/etpla%e %han'es falls to the ! 1! @!$! Department of Fa(or 2! %ompan)Ss mar/eters 3! "meri%an *ar/etin' "sso%iation 4! industr) lo(() 'roups found in 0ashin'ton D!3! 5! mar/etin' resear%h industr)
"ns#er& ( ?a'e& 66 Diffi%ult)& 9as)
2! "ll of the follo#in' 8uestions 9L39?- one #ould (e %onsidered to (e forms of information needs pro(es! 0hi%h one1 1! 0hat de%isions do )ou re'ularl) ma/e1 2! 0hat information do )ou need to ma/e de%isions1 3! 0hat data anal)sis pro'rams #ould )ou #ant1 4! 0hat ma'a.ines and trade reports #ould )ou li/e to see on a re'ular (asis1 5! 0hat produ%ts #ould (e most %losel) mat%hed to %onsumer needs1
"ns#er& e ?a'e& 67 Diffi%ult)& *edium ""3$D& "nal)ti% $/ills
3!
%onsists of people+ e8uipment+ and pro%edures to 'ather+ sort+ anal).e+ evaluate+ and distri(ute needed+ timel)+ and a%%urate information to mar/etin' de%ision ma/ers! 1! " mar/etin' information s)stem 2! " mar/etin' resear%h s)stem 3! " mar/etin' intelli'en%e s)stem 4! " promotional %ampai'n 5! " mar/etin' data(ase
"ns#er& a ?a'e& 67 Diffi%ult)& *edium ""3$D& "nal)ti% $/ills
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 4! -he %ompan)Ss mar/etin' information s)stem should (e a %ross (et#een #hat mana'ers thin/ the) need+ #hat mana'ers reall) need+ and ! 1! #hat the mar/etin' resear%h department is a(le to do 2! #hat %onsumers are #illin' to share 3! #hat the %ompetition is doin' 4! #hat is a%%epta(le industr) pra%ti%e 5! #hat is e%onomi%all) feasi(le
"ns#er& e ?a'e& 67 Diffi%ult)& *edium ""3$D& 7efle%tive -hin/in'
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 5! -he heart of the internal re%ords s)stem is the 1! data(ase 2! asset a%8uisition pro%ess 3! order,to,pa)ment %)%le 4! servi%e %onsideration 5! information li8uidit) ratio !
"ns#er& % ?a'e& 67 Diffi%ult)& >ard
6! 0hen a mar/eter QminesR his or her %ompan)Ss data(ase+ fresh insi'hts %an (e 'ained into ne'le%ted %ustomer se'ments+ + and other useful information! 1! re%ent %ustomer trends 2! lon',term %ompetitive trends 3! possi(le ne# inventions 4! possi(le ne# te%hnolo'ies 5! ne# primar) data possi(ilities
7! -he internal re%ords s)stem supplies results data+ (ut the mar/etin' intelli'en%e s)stem supplies data! 1! %on%urrent 2! se%ondar) 3! resear%h 4! happenin's 5! premium
"ns#er& d ?a'e& 69 Diffi%ult)& *edium ""3$D& 7efle%tive -hin/in'
8! " is a set of pro%edures and sour%es mana'ers use to o(tain ever)da) information a(out developments in the mar/etin' environment! 1! mar/etin' resear%h s)stem 2! mar/etin' information s)stem 3! produ%t mana'ement s)stem 4! mar/etin' intelli'en%e s)stem 5! verti%al s)stem
200
"ns#er& d ?a'e& 69 Diffi%ult)& *edium ""3$D& @se of I-
9! " %ompan) %an ta/e several steps to improve the 8ualit) of its mar/etin' intelli'en%e! If the %ompan) pur%hases %ompetitive produ%ts for stud)+ attends open houses and trade sho#s+ and reads %ompetitorsS pu(lished reports and sto%/holder information+ the %ompan) is usin' to improve the 8ualit) of its mar/etin' intelli'en%e! 1! sales,for%e surro'ates 2! intermediaries 3! e6ternal net#or/s 4! advisor) panels 5! %ustomer feed(a%/ s)stems
"ns#er& % ?a'e& 69 Diffi%ult)& >ard ""3$D& "nal)ti% $/ills
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 10! "ll of the follo#in' #ould (e %onsidered to (e steps to improve the 8ualit) of mar/etin' intelli'en%e in a %ompan) 9L39?! 1! trainin' and motivatin' the sales for%e to spot and report ne# developments 2! usin' 'uerrilla ta%ti%s su%h as 'oin' throu'h a %ompetitorSs trash 3! motivatin' intermediaries to pass alon' important information 4! net#or/in' e6ternall) 5! pur%hasin' information from outside suppliers
"ns#er& ( ?a'es& 69U71 Diffi%ult)& 9as) ""3$D& 9thi%al 7easonin'
11! -he 2000 @!$! %ensus provides an in,depth loo/ at the population s#in's+ demo'raphi% 'roups+ re'ional mi'rations+ and %han'in' famil) stru%ture of 281X million people! 0hi%h of the follo#in' steps to improve the 8ualit) of a %ompan) mar/etin' intelli'en%e s)stem #ould (e most %losel) asso%iated #ith this illustration1 1! " %ompan) %an pur%hase information from outside suppliers! 2! " %ompan) %an ta/e advanta'e of 'overnment data sour%es! 3! " %ompan) %an use online %ustomer feed(a%/ s)stems to %olle%t data! 4! " %ompan) %an net#or/ e6ternall)! 5! " %ompan) %an use its sales for%e to %olle%t and report data!
"ns#er& ( ?a'es& 70U71 Diffi%ult)& 9as) ""3$D& 7efle%tive -hin/in'
12! :ne of the diffi%ulties of usin' %hat rooms and (lo's to %olle%t %ompetitive intelli'en%e is that ! 1! their unstru%tured nature ma/es it diffi%ult for mar/eters to find relevant messa'es 2! people are 'enerall) un#illin' to share their perspe%tive on produ%ts and servi%es #ithout (ein' paid for them 3! the) %onstitute a ver) e6pensive form of mar/et resear%h 4! it is diffi%ult to a%%ess %hat rooms and (lo's (e%ause of priva%) issues 5! "ll of the a(ove are diffi%ulties e6perien%ed #hen usin' %hat rooms and (lo's to %olle%t %ompetitive intelli'en%e!
"ns#er& a ?a'e& 71 Diffi%ult)& *edium ""3$D& @se of I-
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 13! -here are several #a)s mar/eters %an find relevant online information on %ompetitorsS produ%ts and #ea/nesses+ summar) %omments+ and overall performan%e ratin' of a produ%t+ servi%e+ or supplier! is4are5 a t)pe of site that is %on%entrated in finan%ial servi%es and hi'h,te%h produ%ts that re8uire professional /no#led'e! 1! Independent %ustomer 'oods and servi%e revie#s 2! Distri(utor or sales a'ent feed(a%/ sites 3! 3om(o sites offerin' %ustomer revie#s and e6pert opinions 4! 3ustomer %omplaint sites 5! $hoppin' (ot servi%e sites
"ns#er& % ?a'e& 72 Diffi%ult)& >ard ""3$D& @se of I-
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 14! " is Qunpredi%ta(le+ short,lived+ and #ithout so%ial+ e%onomi%+ and politi%al si'nifi%an%e!R 1! fad 2! fashion 3! trend 4! me'atrend 5! st)le
"ns#er& a ?a'e& 72 Diffi%ult)& *edium
15! " is a dire%tion or se8uen%e of events that has some momentum and dura(ilit)A the shape of the future is revealed and man) opportunities are provided! 1! fad 2! fashion 3! trend 4! me'atrend 5! st)le
"ns#er& % ?a'e& 72 Diffi%ult)& >ard ""3$D& "nal)ti% $/ills
16!
have (een des%ri(ed as Qlar'e so%ial+ e%onomi%+ politi%al and te%hnolo'i%al %han'es NthatO are slo# to form+ and on%e in pla%e+ the) influen%e us for some timeM(et#een seven and ten )ears+ or lon'er! 1! Cads 2! Cashions 3! -rends 4! *e'atrends 5! $t)les
"ns#er& d ?a'e& 73 Diffi%ult)& *edium
17! -he (e'innin' of the ne# %entur) (rou'ht a series of ne# %hallen'es! "ll of the follo#in' #ould (e %onsidered to (e amon' those %hallen'es 9L39?! 1! a deterioration of innovative ideas 2! the steep de%line of the sto%/ mar/et 3! in%reasin' unemplo)ment 4! %orporate s%andals
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 5! the rise of terrorism
"ns#er& a ?a'e& 74 Diffi%ult)& *edium ""3$D& 7efle%tive -hin/in'
18!0ith the rapidl) %han'in' 'lo(al pi%ture+ the firm must monitor si6 ma2or for%es! "ll of the follo#in' #ould (e amon' those for%es 9L39?!
1! 2! 3! 4! 5! demo'raphi% e%onomi% so%ial,%ultural natural promotional
"ns#er& e ?a'e& 74 Diffi%ult)& 9as) ""3$D& "nal)ti% $/ills
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19!-he main demo'raphi% for%e that mar/eters monitor is

1! 2! 3! 4! 5! suppliers %ompetitors %ommuni%ation 4su%h as advertisin'5 'overnment reports dealin' #ith (irth rates population
"ns#er& e ?a'e& 75 Diffi%ult)& 9as) ""3$D& 7efle%tive -hin/in'
20! " si'nifi%ant fa%t a(out population 'ro#th and population shifts is that in 2005+ ! 1! the )outh mar/et e6%eeded that of the adult mar/et 2! people over the a'e of 60 outnum(ered those under five )ears of a'e 3! (a() (oomers #ere e%lipsed () <en L )oun' adults 4! most a'e 'roup se'ments #ere a(out e8ual 5! G <eneration )oun' adults surpassed the (a() (oomers as the lar'est a'e se'ment
"ns#er& ( ?a'e& 76 Diffi%ult)& >ard
21! -he re'ions of the #orld %urrentl) a%%ount for 76W of the #orld population and are 'ro#in' almost four times faster than the populations of re'ions! 1! industriali.edA servi%e,(ased 2! less,developedA more developed 3! 0esternA 9astern 4! #ealthierA poorer 5! Demo%rati%A $o%ialist
"ns#er& ( ?a'es& 75U76 Diffi%ult)& 9as) ""3$D& "nal)ti% $/ills
22!
are 'roups of individuals #ho are (orn durin' the same time period and travel throu'h life to'ether! 1! 3ohorts 2! ?opulations 3! Demo'raphi%s 4! $o%ieties 5! *ar/ets
206
23! *ore than an) other 'roup+ the puts personal life ahead of #or/ life! 1! 0orld 0ar II 2! post#ar 3! leadin',ed'e (a() (oomer 4! trailin',ed'e (a() (oomer 5! <eneration L
%ohort a%%epts %ultural diversit) and
"ns#er& e ?a'e& 76 Diffi%ult)& *edium
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 24! "lthou'h still a #or/ in pro'ress+ the %ohort is more idealisti% and so%ial,%ause oriented+ #ithout the %)ni%al+ #hatSs,in,it,for,me mindset of other %ohorts! 1! G <eneration 2! post#ar 3! leadin',ed'e (a() (oomer 4! Depression 5! <eneration L
25! "%%ordin' to the 2000 %ensus+ the @!$! population of 276!2 million #as 72W #hite and W "fri%an "meri%an! -he remainder %onsisted of >ispani% "meri%ans and other minorities! 1! 20 2! 18 3! 15 4! 13 5! 11
"ns#er& d ?a'e& 77 Diffi%ult)& >ard ""3$D& *ulti%ulturalTDiversit)
26! Cre8uentl) noted as a me'atrend+ the in%reasin' per%enta'e of in the total population represents a ma2or shift in %ultural %enter of 'ravit) in the @nited $tates! 1! "fri%an "meri%ans 2! 9uropean "meri%ans 3! "sian "meri%ans 4! >ispani% "meri%ans 5! *iddle 9astern "meri%ans
"ns#er& d ?a'e& 77 Diffi%ult)& *edium ""3$D& *ulti%ulturalTDiversit)
27! Diversit) 'oes (e)ond ethni% and ra%ial mar/ets! *ore than million "meri%ans have disa(ilities+ and the) %onstitute a mar/et for home deliver) %ompanies 4and others5! 1! 50 2! 40
208
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 3! 30 4! 20 5! 10
"ns#er& a ?a'e& 78 Diffi%ult)& >ard
28! -#o,thirds of all illiterate adults are 1! 3hinese 2! middle,%lass 3! #omen 4! livin' in industriali.ed %ountries 5! none of the a(ove
"ns#er& % ?a'e& 78 Diffi%ult)& *edium ""3$D& *ulti%ulturalTDiversit)
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 29! -he household %onsists of a hus(and+ #ife+ and %hildren 4and sometimes 'randparents5! 1! QtraditionalR 2! Qe6tendedR 3! Qdiversit)R 4! QmodernR 5! QrevisedR
30! D) 2010+ pro2e%tions indi%ate that the lar'est %ate'or) of households #ill (e %omposed of ! 1! %hildless married %ouples and empt) nesters 2! sin'le,parent families 3! sin'le live,alones 4! sin'les livin' #ith nonrelatives 5! married %ouples #ith %hildren
"ns#er& a ?a'e& 78 Diffi%ult)& >ard ""3$D& *ulti%ulturalTDiversit)
31! -he 21st %entur) sa# mar/ets 'ro# more rapidl) a'ain due to a hi'her (irth rate+ a lo#er death rate+ and rapid 'ro#th from forei'n immi'ration! 1! su(ur(an 2! ur(an 3! rural 4! %oastal 5! se%ondar)
"ns#er& ( ?a'e& 78 Diffi%ult)& *edium ""3$D& "nal)ti% $/ills
32! -he movement () the @!$! population to the has lessened the demand for #arm %lothin' and home heatin' e8uipment and in%reased demand for air %onditionin'! 1! $un(elt 2! ?a%ifi% Gorth#est 3! Gortheast 4! *id,3oastal areas 5! >eartland
210
"ns#er& a ?a'e& 79 Diffi%ult)& 9as) ""3$D& "nal)ti% $/ills
33! "lmost one in people over the a'e of five 4120 million5 moved at least one time (et#een 1995 and 2000+ a%%ordin' to a 3ensus 2000 (rief+ #ith an emphasis a#a) from the *id#est and Gortheast! 1! t#o 2! three 3! four 4! five 5! ten
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 34! In #hi%h of the follo#in' e%onomies #ould #e e6pe%t to find the fe#est opportunities for mar/eters1 1! Industriali.in' e%onomies 2! Fand,lo%/ed e%onomies 3! 7a#,material,e6portin' e%onomies 4! Industrial e%onomies 5! $u(sisten%e e%onomies
"ns#er& e ?a'e& 79 Diffi%ult)& 9as) ""3$D& *ulti%ulturalTDiversit)
35! "%%ordin' to information presented in the te6t+ #hi%h of the follo#in' %ountries is surprisin'l) a ver) 'ood mar/et for Fam(or'hini automo(iles 4%ostin' more than V150+0005 (e%ause of the num(er of #ealth) families that %an afford e6pensive %ars! 1! <ree%e 2! $#it.erland 3! >olland 4! 7ussia 5! ?ortu'al
"ns#er& e ?a'e& 79 Diffi%ult)& >ard ""3$D& *ulti%ulturalTDiversit)
36! :ver the past three de%ades in the @nited $tates+ the ri%h have 'ro#n ri%her and the middle %lass has ! 1! sta)ed a(out the same 2! shrun/ 3! in%reased sli'htl) 4! mat%hed the ri%h in terms of relative 'ro#th 5! (een i'nored (e%ause of pro(lems #ith the poorer %lasses
"ns#er& ( ?a'e& 79 Diffi%ult)& *edium
37! 3onsumer e6penditures are affe%ted () 1! savin's 2! de(t 3! %redit availa(ilit) 4! all of the a(ove 5! none of the a(ove
212
"ns#er& d ?a'e& 80 Diffi%ult)& *edium ""3$D& "nal)ti% $/ills
38! 0hi%h of the follo#in' 'roups is most vulnera(le to re%ent in%ome distri(ution trends in the @nited $tates1 1! *a/ers of hi'h,end sports %ars 2! Far'e dis%ount %hains 3! ?harma%euti%al firms 4! 3onventional retailers offerin' medium,pri%ed 'oods 5! 96pensive and e6%lusive restaurants
"ns#er& d ?a'e& 80 Diffi%ult)& >ard ""3$D& 7efle%tive -hin/in'
213
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 39! shapes the (eliefs+ values+ and norms that lar'el) define tastes and preferen%es! 1! *ar/etin' 2! -he mass media 3! <overnment 4! ?rodu%tion innovation and en'ineerin' 5! $o%iet)
"ns#er& e ?a'e& 80 Diffi%ult)& *edium ""3$D& 7efle%tive -hin/in'
40! "%%ordin' to the information found in the so%ial,%ultural environment+ #ith respe%t to views of others, are %onsidered to (e thin's that allo# people #ho are alone to feel the) are not 4e!'!+ television+ home video 'ames+ and Internet %hat rooms5! 1! so%ial surro'ates 2! su(liminal fantasies 3! relationship avoidan%e 4! primar) produ%ts 5! se%ondar) produ%ts
"ns#er& a ?a'e& 81 Diffi%ult)& *edium ""3$D& 7efle%tive -hin/in'
41!-oda)+ %orporations need to ma/e sure that the) are 'ood %orporate %iti.ens and that their %onsumer messa'es are honest in order to positivel) ali'n themselves #ith %onsumersS !
1! 2! 3! 4! 5! vie#s of others vie#s of or'ani.ations vie#s of themselves vie#s of the universe vie#s of so%iet)
"ns#er& ( ?a'e& 81 Diffi%ult)& 9as) ""3$D& 7efle%tive -hin/in'
42! ?eople var) in their attitudes to#ard their so%iet)! fru'all)+ drive smaller %ars+ and #ear simpler %lothin'! 1! *a/ers 2! 9s%apers 3! $ee/ers
214
usuall) live more
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 4! 3han'ers 5! Developers
"ns#er& d ?a'e& 81 Diffi%ult)& >ard
43! ?eople var) in their attitudes to#ard so%iet) and rea%t a%%ordin'l)! a ma2or mar/et for movies+ musi%+ surfin'+ and %ampin'! 1! *a/ers 2! ?reservers 3! 9s%apers 4! 3han'ers 5! Developers
are
"ns#er& % ?a'e& 81 Diffi%ult)& 9as)
215
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 44! "ll of the follo#in' have (een %ited () the te6t as (ein' amon' "meri%ansS %ore values 9L39?! 1! (elief in #or/ 2! (elief in 'ettin' married 3! (elief in 'ivin' to %harit) 4! (elief in (ein' honest 5! (elief in se6ual permissiveness
"ns#er& e ?a'e& 81 Diffi%ult)& 9as) ""3$D& 7efle%tive -hin/in'
45! 0hi%h value1 1! 2! 3! 4! 5!
of the follo#in' #ould (e the (est illustration of a se%ondar) (elief or Delief in #or/ Delief in 'ivin' to %harit) Delief in 'ettin' married Delief in 'ettin' married earl) Delief in (ein' honest
"ns#er& d ?a'e& 81 Diffi%ult)& *edium ""3$D& "nal)ti% $/ills
46! 9a%h so%iet) %ontains + 'roups #ith shared values emer'in' from their spe%ial life e6perien%es or %ir%umstan%es! 1! demo'raphi% se'ments 2! %li8ues 3! %onsumer (undles 4! su(%ultures 5! (ehavioral ni%hes
47!*ar/eters are parti%ularl) interested in the %onsumption of + as developin' (rand lo)alt) in this a'e 'roup is li/el) to lead to the hi'hest %onsumer lifetime value! 1! infants 2! )oun' %hildren 3! teens 4! parents
216
5! retirees "ns#er& % ?a'es& 81U82 Diffi%ult)& >ard ""3$D& "nal)ti% $/ills
48!0hi%h of the follo#in' #ould (e the (est illustration of a su(%ulture1

1! 2! 3! 4! 5! " soft(all team " universit) alumni asso%iation -eena'ers " Do) $%out troop Cre8uent fl)ers
"ns#er& % ?a'e& 81 Diffi%ult)& *edium
217
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 49! "lthou'h %ore values are fairl) persistent+ %ultural s#in's do ta/e pla%e! %aused su%h a s#in' in the 1960s! 1! Cord *otor 3ompan) 2! <eor'e *%<overn 3! <!I! ;oe a%tion %hara%ters 4! -he infomer%ial 5! -he Deatles
"ns#er& e ?a'e& 81 Diffi%ult)& *edium
50! *ar/eters need to (e a#are of threats and opportunities asso%iated #ith four trends in the natural environment+ in%ludin' all of the follo#in' 9L39?! 1! the shorta'e of ra# materials 2! the in%reased %ost of ener') 3! near 90W %orporate support for Q'reen %ausesR 4! in%reased pollution levels 5! the %han'in' role of 'overnments
"ns#er& % ?a'e& 82 Diffi%ult)& 9as)
51! 0ith respe%t to the shorta'e of ra# materials+ air and #ater are %lassified as resour%es! >o#ever+ as #e /no#+ pro(lems are (e'innin' to pla'ue (oth our air and #ater 8ualit)! 1! infinite 2! near finite 3! finite rene#a(le 4! finite nonrene#a(le 5! a(solute
52! Cirms ma/in' produ%ts that re8uire these (e%ome in%reasin'l) s%ar%e! 1! infinite 2! near finite 3! finite rene#a(le 4! finite nonrene#a(le
fa%e su(stantial %ost in%reases as
218
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 5! a(solute
"ns#er& d ?a'e& 82 Diffi%ult)& 9as) ""3$D& "nal)ti% $/ills
53!
is the re%o'nition for the importan%e of environmental issues fa%in' the firm and the inte'ration of those issues into the firmSs strate'i% plans! 1! Gonrene#a(le resour%e 2! 3orporate environmentalism 3! *ulti%ultural a#areness 4! Dipartisanism 5! $e%ondar) (elief
219
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 54! Q<reen mar/etin' m)opiaR is a term used to des%ri(e the tenden%) to 1! %ompletel) i'nore environmental issues 2! re'ard environmental issues as too a(stra%t to provide %ustomer value 3! (alan%e environmental %on%erns #ith other forms of %ustomer value 4! overl) fo%us on a produ%tSs 'reenness 5! none of the a(ove !
"ns#er& d ?a'e& 83 Diffi%ult)& >ard
55! Crom a (randin' perspe%tive+ Q'reen mar/etin'R pro'rams have not (een entirel) su%%essful! must (e over%ome for Q'reen mar/etin'R pro'rams to (e more su%%essful! 1! ?er%eived inferior 8ualit) and la%/ of %redi(ilit) 2! >i'h %ost 3! ?oor promotions 4! 7esistan%e () the )outh se'ment in the mar/etpla%e 5! Fa%/ of support () 'overnmental a'en%ies and %on%erns
56!-he lar'est %onsumer environmental se'ment is the -rue Dlue <reens+ #ho are %hara%teri.ed () ! 1! a stron' /no#led'e of environmental issues and a hi'her li/elihood to en'a'e in environmentall) %ons%ious (ehavior 2! the (elief that their individual (ehavior %annot improve environmental %onditions 3! their (elief that environmental indifferen%e is mainstream 4! a la%/ of time or in%lination to (ehave entirel) 'reen 5! the pur%hase of environmentall) %ons%ious produ%ts+ (ut onl) if those produ%ts meet their needs "ns#er& a ?a'e& 83 Diffi%ult)& >ard
57!-he mar/eter should monitor the follo#in' trends in te%hnolo')+ 9L39?+ if pro'ress is to (e made in (usiness!
1! the pa%e of %han'e 2! the diffi%ulties found in sharin' information
220
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 3! the opportunities for innovation 4! var)in' 7PD (ud'ets 5! in%reased re'ulation
"ns#er& ( ?a'e& 85 Diffi%ult)& >ard ""3$D& @se of I-
58!-he environment %onsists of la#s+ 'overnment a'en%ies+ and pressure 'roups that influen%e and limit various or'ani.ations and individuals! 1! natural 2! te%hnolo'i%al 3! so%ial,%ultural 4! e%onomi% 5! politi%al,le'al "ns#er& e ?a'e& 86 Diffi%ult)& 9as) ""3$D& "nal)ti% $/ills
221
59!-he purpose of le'islation is to prote%t %ompanies from unfair %ompetition+ to prote%t %onsumers from unfair (usiness pra%ti%es+ and to prote%t the interests of so%iet) from un(ridled (usiness (ehavior!
1! 2! 3! 4! 5! (usiness %onsumer (ipartisan a%tivist 'lo(al
60! "n important for%e affe%tin' (usiness is the Ma movement of %iti.ens and 'overnment or'ani.ed to stren'then the ri'hts and po#ers of (u)ers in relation to sellers! 1! lo(()ist movement 2! %onsumerist movement 3! environmental movement 4! self,ri'hts movement 5! ethi%al reform movement
T(ue)F-'se
61! -oda)+ most firms are rather sophisti%ated a(out 'atherin' information!
"ns#er& Calse ?a'e& 67 Diffi%ult)& *edium
61! 3ompanies #ith superior information en2o) a %ompetitive advanta'e!
"ns#er& -rue ?a'e& 67 Diffi%ult)& 9as) ""3$D& 7efle%tive -hin/in'
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 61! " mar/etin' information s)stem is developed from internal %ompan) re%ords+ mar/etin' intelli'en%e+ and promotional models supplied () the mar/etin' department!
"ns#er& Calse ?a'e& 67 Diffi%ult)& *edium ""3$D& @se of I-
61! -he heart of the internal re%ords s)stem is the (ar %ode!
"ns#er& Calse ?a'e& 67 Diffi%ult)& *edium ""3$D& 7efle%tive -hin/in'
61! Ce# %onsumers a%tuall) delete %oo/ies fre8uentl)! 0hen %ustomers a%%ept %oo/ies+ the) e6pe%t %ustomi.ed mar/etin' appeals and deals!
"ns#er& -rue ?a'e& 68 Diffi%ult)& >ard ""3$D& @se of I-
61! $ales data are al#a)s unam(i'uous and %learl) interpreted!
"ns#er& Calse ?a'e& 68 Diffi%ult)& >ard ""3$D& 7efle%tive -hin/in'
61! "%%ordin' to prin%iples found in data(ase %onstru%tion and usa'e+ a Q%arpet (om(in'R mailin' of a ne# offer is usuall) the most su%%essful strate')!
"ns#er& Calse ?a'e& 68 Diffi%ult)& *edium ""3$D& @se of I-
223
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 61! If a %ompan) #ere pursuin' a poli%) of net#or/in' e6ternall)+ it mi'ht %olle%t %ompetitorsS ads or loo/ up ne#s stories a(out %ompetitors!
"ns#er& -rue ?a'e& 69 Diffi%ult)& *edium ""3$D& "nal)ti% $/ills
61! 3ompetitive intelli'en%e 'atherin' is inherentl) ille'al and unethi%al!
"ns#er& Calse ?a'e& 70 Diffi%ult)& 9as) ""3$D& 9thi%al 7easonin'
61! :ne of the #a)s to find relevant online information on %ompetitorsS stren'ths and #ea/nesses mi'ht (e to fre8uent distri(utor or sales a'ent feed(a%/ sites!
"ns#er& -rue ?a'e& 72 Diffi%ult)& *edium
61! " st)le is unpredi%ta(le+ short,lived+ and #ithout so%ial or e%onomi% si'nifi%an%e!
"ns#er& Calse ?a'e& 72 Diffi%ult)& *edium ""3$D& "nal)ti% $/ills
61! " me'atrend has (een des%ri(ed as (ein' #hat follo#s all fads that sta) on the mar/et at least one )ear!
61! :ne of the 10 si'nifi%ant me'atrends that #ill impa%t mar/etin' efforts in the future is in%reasin' s%rutin) on the role and (ehavior of (i' (usiness!
"ns#er& -rue ?a'e& 73 Diffi%ult)& *edium
61!*i%roenvironmental for%es have (een la(eled as (ein' Qun%ontrolla(le!R "ns#er& Calse ?a'e& 74 Diffi%ult)& *edium ""3$D& "nal)ti% $/ills
224
61!?opulation 'ro#th is hi'hest in %ountries and %ommunities that %an least afford it! "ns#er& -rue ?a'e& 75 Diffi%ult)& *edium ""3$D& *ulti%ulturalTDiversit)
61!" 'ro#in' population al#a)s means a 'ro#in' mar/et! "ns#er& Calse ?a'e& 76 Diffi%ult)& *edium ""3$D& 7efle%tive -hin/in'
61!-he (asis of %ohort se'mentation is that the o%%urren%e of /e) definin' moments #hile a person %omes of a'e imprints %ore values that remain lar'el) inta%t throu'hout life! "ns#er& -rue ?a'e& 76 Diffi%ult)& *edium ""3$D& "nal)ti% $/ills
61!;apan has one of the #orldSs oldest populations! "ns#er& -rue ?a'e& 76 Diffi%ult)& *edium ""3$D& *ulti%ulturalTDiversit)
61!"%%ordin' to the 2000 %ensus+ Fatinos ma/e up the lar'est minorit) in the @nited $tates #ith 13W of the total population! "ns#er& Calse ?a'e& 77 Diffi%ult)& *edium
61! In mar/etin' to ethni% 'roups+ "fri%an "meri%ans should (e treated as a uniform 'roup (e%ause of their shared herita'e and homo'eneous %onsumption patterns!
"ns#er& Calse ?a'e& 77 Diffi%ult)& 9as) ""3$D& "nal)ti% $/ills
225
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 61! -he @nited $tates has one of the hi'hest per%enta'es of %olle'e,edu%ated %iti.ens+ #hi%h spells a hi'h demand for 8ualit) (oo/s+ ma'a.ines+ and travel!
61!"%%ordin' to studies of minorit) mar/ets+ the disa(led mar/et is 10 times more li/el) to (e in a professional 2o(+ almost t#i%e as li/el) to o#n a va%ation home+ 8 times more li/el) to o#n a note(oo/ %omputer+ and t#i%e as li/el) to o#n individual sto%/s as %ompared to the 'eneral population! "ns#er& Calse ?a'e& 78 Diffi%ult)& *edium ""3$D& *ulti%ulturalTDiversit)
61!-he availa(le pur%hasin' po#er in an e%onom) depends on %urrent in%ome+ pri%es+ savin's+ de(t+ and %redit availa(ilit)! "ns#er& -rue ?a'e& 79 Diffi%ult)& 9as) ""3$D& "nal)ti% $/ills
61! 9')pt is a 'ood e6ample of a ra#,material,e6portin' e%onom)!
"ns#er& Calse ?a'e& 79 Diffi%ult)& >ard ""3$D& *ulti%ulturalTDiversit)
61!*ar/ets #ith a se'ment of ver) #ealth) %onsumers+ (ut hi'h in%ome disparit)+ present fe# opportunities to mar/eters! "ns#er& Calse ?a'e& 79 Diffi%ult)& *edium ""3$D& "nal)ti% $/ills
61!:ver the past three de%ades in the @nited $tates+ in%ome disparit) has 'ro#n #hile the middle %lass has shrun/! "ns#er& -rue ?a'e& 79 Diffi%ult)& *edium
226
61!>i'h de(t,to,in%ome ratios amon' @!$! %onsumers %an slo# do#n their e6penditures on housin' and lar'e,ti%/et items! "ns#er& -rue ?a'e& 80 Diffi%ult)& >ard ""3$D& "nal)ti% $/ills
61! If a sin'le person has a home entertainment s)stem that is ri%h in television %apa(ilities and home video 'ames+ he or she ma) (e usin' su%h a s)stem as a Qso%ial surro'ate!R
"ns#er& -rue ?a'e& 81 Diffi%ult)& >ard
61! In re%ent )ears+ (e%ause of a tou'h 2o( mar/et+ there has (een an in%reasin' amount of or'ani.ational lo)alt) amon' most emplo)ees!
61!0ith respe%t to vie#s of so%iet)+ %han'ers tend to (e hi'h a%hievers #ho live lavishl)! "ns#er& Calse ?a'e& 81 Diffi%ult)& *edium ""3$D& 7efle%tive -hin/in'
61! $e%ondar) (eliefs and values are passed on from parents to %hildren and reinfor%ed () ma2or so%ial institutions+ ma/in' them ver) diffi%ult to %han'e!
"ns#er& Calse ?a'e& 81 Diffi%ult)& *edium ""3$D& 7efle%tive -hin/in'
227
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 61! *ost "meri%ans still hold the importan%e of marria'e as a %ore (elief!
"ns#er& -rue ?a'e& 81 Diffi%ult)& 9as)
61! Cirms ma/in' produ%ts that re8uire in%reasin'l) s%ar%e finite nonrene#a(le resour%es fa%e su(stantial %ost in%reases!
61! 3onsumers are %onsistentl) in favor of environmental safet) and the ma2orit) sho# their %on%ern () pur%hasin' re%)%led and environmentall) safe produ%ts!
61! *ost #ealth) nations are doin' little a(out pollution+ lar'el) (e%ause the) la%/ the funds or the politi%al #ill!
61! 9ver) ne# te%hnolo') is a for%e for Q%reative destru%tion!R
61! " 'ro#in' portion of @!$! 7PD e6penditure is 'oin' into the development side of 7PD+ raisin' %on%erns a(out #hether the @nited $tates %an maintain its lead in (asi% s%ien%e!
"ns#er& -rue ?a'e& 85 Diffi%ult)& >ard ""3$D& 7efle%tive -hin/in'
61! Fe'islation affe%tin' (usiness has in%reased steadil) over the )ears!
228
61! :ne of the ma2or trends in the politi%al,le'al environment is the trend to#ard the 'ro#th of spe%ial,interest 'roups!
61! -oda)+ %ustomers are still #illin' to s#ap personal information for %ustomi.ed produ%ts from firms!
Ess-2
101! Des%ri(e a mar/etin' information s)stem 4*I$5! Crom #hat sour%es is the *I$ developed1
Su00este5 Ans9e(3 " marketing information system !"S# %onsists of people+ e8uipment+ and pro%edures to 'ather+ sort+ anal).e+ evaluate+ and distri(ute needed+ timel)+ and a%%urate information to mar/etin' de%ision ma/ers! " mar/etin' information s)stem is developed from internal %ompan) re%ords+ mar/etin' intelli'en%e a%tivities+ and mar/etin' resear%h! ?a'e& 67 Diffi%ult)& *edium ""3$D& @se of I-
229
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 101! Des%ri(e the order,to,pa)ment %)%le and #h) it is important to internal re%ords /eepin'!
Su00este5 Ans9e(3 -he heart of the internal re%ords s)stem is the order,to,pa)ments %)%le! $ales representatives+ dealers+ and %ustomers send orders to the firm! -he sales department prepares invoi%es and transmits %opies to various departments! :ut,of,sto%/ items are (a%/ ordered! $hipped items are a%%ompanied () shippin' and (illin' do%uments that are sent to various departments! -oda)Ss %ompanies must perform these steps 8ui%/l) and a%%uratel)! ?a'e& 67 Diffi%ult)& *edium ""3$D& 7efle%tive -hin/in'
101! 0hat are the various steps a %ompan) %an ta/e to improve the 8ualit) of its mar/etin' intelli'en%e fun%tion1
Su00este5 Ans9e(3 -he steps are& 415 " %ompan) %an train and motivate the sales for%e to spot and report ne# developmentsA 425 a %ompan) %an motivate distri(utors+ retailers+ and other intermediaries to pass alon' important intelli'en%eA 435 a %ompan) %an net#or/ e6ternall)A 445 a %ompan) %an set up a %ustomer advisor) panelA 455 a %ompan) %an ta/e advanta'e of 'overnment data resour%esA 465 a %ompan) %an pur%hase information from outside suppliersA and 475 a %ompan) %an use online %ustomer feed(a%/ s)stems to %olle%t %ompetitive intelli'en%e! ?a'es& 69U71 Diffi%ult)& >ard ""3$D& "nal)ti% $/ills
101! Fist and (riefl) des%ri(e the five main #a)s mar/eters %an find relevant online information on %ompetitorsS stren'ths and #ea/nesses+ summar) %omments+ and overall performan%e ratin' of a produ%t+ servi%e+ or supplier!
Su00este5 Ans9e(3 -he five #a)s are& 415 independent %ustomer 'oods and servi%e revie# forumsA 425 distri(utor or sales a'ent feed(a%/ sitesA 435 %om(o sites offerin' %ustomer revie#s and e6pert opinionsA 445 %ustomer %omplaint sitesA and 455 pu(li% (lo's!
230
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** ?a'e& 72 Diffi%ult)& >ard ""3$D& @se of I-
231
101! 0hat is a Qme'atrendR1 Driefl) des%ri(e five me'atrends shapin' the %onsumer lands%ape!
Su00este5 Ans9e(3 " megatrend is a lar'e+ so%ial+ e%onomi%+ politi%al+ and te%hnolo'i%al %han'e that is slo# to form+ and on%e in pla%e+ influen%es us for some time 4e!'!+ (et#een 7 and 10 )ears or lon'er5! -he 10 trends 4students dis%uss 55 dis%ussed in the te6t are 415 %enters of e%onomi% a%tivit) #ill shift+ (oth 'lo(all) and re'ionall)A 425 pu(li%,se%tor a%tivities #ill (alloon+ ma/in' produ%tivit) 'ains essentialA 435the %onsumer lands%ape #ill %han'e and e6pand si'nifi%antl)A 445 te%hnolo'i%al %onne%tivit) #ill transform the #a) people live and intera%tA 455 the (attlefield for talent #ill shiftA 465 the role and (ehavior of (i' (usiness #ill %ome under in%reasin'l) sharp s%rutin)A 475 demand for natural resour%es #ill 'ro#+ as #ill the strain on the environmentA 485 ne# 'lo(al industr) stru%tures are emer'in'A 495 mana'ement #ill 'o from art to s%ien%eA and 4105 u(i8uitous a%%ess to information is %han'in' the e%onomi%s of /no#led'e! ?a'e& 73 Diffi%ult)& >ard ""3$D& 7efle%tive -hin/in'
101!
0hat is the main demo'raphi% for%e monitored () mar/eters1 0h)1
Su00este5 Ans9e(3 -he main demo'raphi% for%e monitored () mar/eters is population! -he reason for its importan%e is (e%ause people ma/e up mar/ets! *ar/eters are /eenl) interested in the si.e and 'ro#th rate of population in %ities+ re'ions+ and nationsA a'e distri(ution and ethni% mi6A edu%ational levelsA household patternsA and re'ional %hara%teristi%s and movements! ?a'e& 75 Diffi%ult)& *edium ""3$D& 7efle%tive -hin/in'
101!
>o# are household patterns anti%ipated to %han'e over the ne6t fe# )ears1
Su00este5 Ans9e(3 D) 2010+ onl) one in five @!$! households #ill %onsist of married %ouples #ith %hildren under the a'e of 18+ the Qtraditional household!R *ore people are divor%in' or separatin'+ %hoosin' not to marr)+ marr)in' later+ or marr)in' #ithout the intention to have %hildren! D) 2010+ %hildless married %ouples and empt) nesters #ill %onstitute the lar'est household 'roup+ follo#ed
232
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** () sin'le live,alones! Gontraditional households are %urrentl) 'ro#in' more rapidl) than traditional ones! ?a'e& 78 Diffi%ult)& *edium ""3$D& 7efle%tive -hin/in'
101! ?eople a(sor(+ almost un%ons%iousl)+ a #orldvie# that defines their relationships! Fist and des%ri(e the Qvie#sR that assist or retard this relationship development pro%ess!
Su00este5 Ans9e(3 -he vie#s are& 415 vie#s of themselvesA 425 vie#s of othersA 435 vie#s of or'ani.ationsA 445 vie#s of so%iet)A 455 vie#s of natureA and 465 vie#s of the universe! $tudents should %hara%teri.e ea%h (ased on materials presented in the te6t! ?a'es& 80U81 Diffi%ult)& >ard ""3$D& 7efle%tive -hin/in'
101! Des%ri(e the differen%es (et#een a %ore (elief and a se%ondar) (elief! Fist the primar) %ore (eliefs of "meri%ans as revealed () the te6t!
Su00este5 Ans9e(3 -he people livin' in a parti%ular so%iet) hold man) core $eliefs and values that tend to persist! *ost "meri%ans still (elieve in #or/+ in 'ettin' married+ in 'ivin' to %harit)+ and in (ein' honest! 3ore (eliefs and values are passed on from parents to %hildren and are reinfor%ed () ma2or so%ial institutions! Secondary $eliefs and values are more open to %han'e! Delievin' in the institution of marria'e is a %ore (eliefA (elievin' that people ou'ht to 'et married earl) is a se%ondar) (elief! *ar/eters have some %han%e of %han'in' se%ondar) (eliefs! -here is little %han%e to %han'e %ore (eliefs or values! ?a'e& 81 Diffi%ult)& *edium ""3$D& "nal)ti% $/ills
101! *an) mar/eters have tried and failed #ith Q'reen mar/etin'R pro'rams! Identif) and (riefl) des%ri(e the t#o main pro(lems #ith su%h %ampai'ns!
233
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Su00este5 Ans9e(3 "lthou'h man) %ompanies have laun%hed Q'reen mar/etin'R pro'rams+ the) have not (een entirel) su%%essful from a (randin' perspe%tive! -#o main pro(lems are that 415 %onsumers ma) (elieve the produ%t is of inferior 8ualit) as a result of (ein' 'reen and 425 the) ma) feel the produ%t is not reall) that 'reen to (e'in #ith! ?a'e& 83 Diffi%ult)& *edium ""3$D& "nal)ti% $/ills
APPLI+ATION QUESTIONS
Mu'ti.'e +,oi6e
101! Du?ont %ommissioned mar/etin' studies to un%over personal pillo# (ehavior for its Da%ron ?ol)ester unit that supplies fillin' to pillo# ma/ers and sells its o#n 3omforel (rand! 0hi%h of the follo#in' #as revealed () resear%h to (e the primar) %hallen'e fa%ed () Du?ont in e6pandin' sales in the pillo# industr)1 1! ?ri%e 2! ?eople not #antin' to 'ive up their old pillo#s 3! -he smell asso%iated #ith pol)ester 4! -he la%/ of a favora(le reputation in the industr) 5! 3ompetition from 3hina
234
101! "s the mana'er of an or'ani.ation that is attemptin' to (uild a *I$+ )ou have (een informed that a *I$ is (uilt upon three fundamental information sour%es! -he sour%es are + mar/etin' intelli'en%e a%tivities+ and mar/etin' resear%h!
1! 2! 3! 4! 5! e6ternal re%ords and do%uments data(ases found on the Internet %onsultant reports internal %ompan) re%ords se%ondar) data from 'overnment sour%es su%h as the Detter Dusiness Dureau
"ns#er& d ?a'e& 67 Diffi%ult)& >ard ""3$D& @se of I-
101! -he is the pro%ess that starts #ith sales representatives+ dealers+ and %ustomers sendin' orders to the firm+ ends #ith item shipment and (ill pa)ment+ and in%ludes the preparation of invoi%es and the (a%/,order of out,of, sto%/ items! 1! sales information %)%le 2! order,to,pa)ment %)%le 3! demo'raphi% trend 4! mar/etin' information s)stem 5! mar/etin' intelli'en%e
101! D) e8uippin' its sales for%e #ith handheld devi%es #ith (ar,%ode readers and Internet %onne%tions to speed inventor) assessment+ -a)lor*adeSs sales reps have si'nifi%antl) more time to intera%t #ith their %onsumers! -his is an e6ample of the use of te%hnolo') in improvin' ! 1! sales information s)stems 2! order,to,pa)ment %)%les 3! %oo/ies 4! %ohort se'mentation 5! %ompetitive intelli'en%e 'atherin'
"ns#er& a ?a'e& 68 Diffi%ult)& *edium ""3$D& @se of I-
235
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 101! *ar/etin' mana'ers tend to us internal re%ords s)stems to suppl) data+ #hereas mar/etin' intelli'en%e s)stem are used to suppl) happenin's data! 1! demand 2! lo'isti%al 3! ps)%ho'raphi% 4! results 5! primar)
"ns#er& d ?a'e& 69 Diffi%ult)& >ard ""3$D& 7efle%tive -hin/in'
236
101! 0hi%h of the follo#in' (est des%ri(es the pra%ti%e used () *%DonaldSs #hen it hired m)ster) shoppers to assess storesS internal speed standards1 1! -rainin' and motivatin' the sales for%e to spot and report ne# developments 2! *otivatin' intermediaries to pass alon' important intelli'en%e 3! Get#or/in' e6ternall) 4! $ettin' up an advisor) panel 5! -a/in' advanta'e of 'overnment data sour%es
101! *an) (usiness s%hools have made up of alumni and re%ruiters #ho provide valua(le feed(a%/ on the %urri%ulum! 1! 'overnment data sour%es 2! advisor) panels 3! trends 4! order,to,pa)ment %)%les 5! 'reen mar/etin' initiatives
101! 9lan%e!%om is a servi%e provider that allo#s %ontra%tors to des%ri(e their level of satisfa%tion #ith su(%ontra%tors! -his is an e6ample of a4n5 ! 1! independent %ustomer 'oods and servi%e revie# forum 2! pu(li% (lo' 3! %ustomer %omplaint site 4! %om(o site offerin' %ustomer revie#s and e6pert opinions 5! distri(utor or sales a'ent feed(a%/ site
"ns#er& e ?a'e& 72 Diffi%ult)& >ard ""3$D& @se of I-
101! 96amples of that #ere %onsidered to (e su%%essful for to) retailers #ere Deanie Da(ies+ Cur(ies+ and -i%/le *e 9lmo dolls! 1! trends 2! fashions 3! fads
237
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 4! me'atrends 5! st)les
"ns#er& % ?a'e& 72 Diffi%ult)& *edium
101! "%%ordin' to information provided in the te6t+ is an e6ample of a %ountr) #ith a ver) )oun' and rapidl) e6pandin' population #here produ%ts su%h as mil/+ diapers+ s%hool supplies+ and to)s #ould (e important! 1! ;apan 2! Cran%e 3! $pain 4! *e6i%o 5! the @nited Ein'dom
"ns#er& d ?a'e& 76 Diffi%ult)& >ard ""3$D& *ulti%ulturalTDiversit)
101! %ohort!
1! 2! 3! 4! 5!
sho#s a spirit of entrepreneurship unmat%hed () an)
Da() (oomers 0ar (a(ies <eneration Y <eneration L G <eneration
"ns#er& d ?a'e& 76 Diffi%ult)& >ard ""3$D& "nal)ti% $/ills
101! made up half of all ne# #or/ers in the past de%ade and #ill ma/e up 25W of all #or/ers in the @nited $tates #ithin t#o 'enerations! 1! "sian "meri%ans 2! "fri%an "meri%ans 3! >ispani% "meri%ans 4! 9uropean "meri%ans 5! Gative "meri%ans
"ns#er& % ?a'e& 77 Diffi%ult)& *edium ""3$D& *ulti%ulturalTDiversit)
238
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 101! 0ithin the "fri%an "meri%an mar/et+ the lar'est and perhaps most influential so%io,(ehavioral su(se'ments are ! 1! the 7ea%hers and the "ttainers 2! the $ee/ers and the 3onservers 3! the 9lites and the "ttainers 4! the 9mulators and the 7ea%hers 5! the 3onservers and the 9mulators
"ns#er& a ?a'e& 77 Diffi%ult)& >ard ""3$D& *ulti%ulturalTDiversit)
101! D) 2010+ onl) of @!$! households #ill %onsist of married %ouples #ith %hildren under the a'e of 18! 1! 50W 2! 40W 3! 30W 4! 20W 5! 10W
"ns#er& d ?a'e& 78 Diffi%ult)& >ard ""3$D& "nal)ti% $/ills
101! *ar/eters loo/ at #here %onsumers are 'atherin' to 'ain insi'hts into %onsumption trends! -he movement to states has lessened the demand for #arm %lothin' and in%reased the demand for air %onditionin'! 1! Gortheast 2! $un(elt 3! *id#est 4! 0est 3oast 5! *ountain
"ns#er& ( ?a'e& 79 Diffi%ult)& 9as) ""3$D& "nal)ti% $/ills
101! In response to the @!$! in%ome distri(ution trend to#ard + Fevi, $trauss introdu%ed premium FeviSs 3apital 9 line to ups%ale retailers and the less, e6pensive Fevi $trauss $i'nature line to mass,mar/et retailers! 1! ver) lo# in%omes 2! mostl) lo# in%omes 3! ver) lo# and ver) hi'h in%omes 4! mostl) medium in%omes 5! lo# and hi'h in%omes+ #ith a shrin/in' middle in%ome se'ment
239
"ns#er& e ?a'es& 79U80 Diffi%ult)& >ard ""3$D& "nal)ti% $/ills
101! 0illiam rose rapidl) in his or'ani.ation and #as the )oun'est 39: in the %ompan)Ss histor)! 0illiam #ould (e %hara%teri.ed as a ! 1! preserver 2! ma/er 3! ta/er 4! see/er 5! reaper
"ns#er& ( ?a'e& 81 Diffi%ult)& *edium ""3$D& 7efle%tive -hin/in'
101! Crito,Fa) has seen a rise in %hip sna%/in' () 'ro#n,ups and (elieves it is a result of more dire%ted mar/etin' efforts to#ard + #ho %ontinued to sna%/ on Crito,Fa) produ%ts into adulthood! 1! infants 2! )oun' %hildren 3! parents 4! teens 5! none of the a(ove
101! -he -o)ota ?rius+ #ith its 55 miles per 'allon fuel effi%ien%)+ #as desi'ned in response to %onsumption trends as the) related to the environment! 1! demo'raphi% 2! politi%al,le'al 3! natural 4! e%onomi% 5! so%ial
"ns#er& % ?a'e& 82 Diffi%ult)& 9as) ""3$D& 7efle%tive -hin/in'
240
101! lo(() 'overnment offi%ials and pressure (usiness e6e%utives to pa) more attention to %onsumersS ri'hts+ #omenSs ri'hts+ senior %iti.ensS ri'hts+ minorit) ri'hts+ and 'a) ri'hts! 1! ?oliti%al a%tion %ommittees 4?"3s5 2! @niversities and %olle'es 3! -he Detter Dusiness Dureau 4! -he @!$! 3ham(er of 3ommer%e 5! *anufa%turin' trade asso%iations 4*-"s5
Which of the following statements about marketing is true?
B) It can help create jobs in the economy by increasing demand for goods and services.
B Page Ref: 2 Objective: 1 Difficulty: Easy
241
________ goods constitute the bulk of most countries production and marketing efforts. !) "urable B) Impulse #) $hysical ") %u&ury ') Intangible
C Page Ref: 3 Objective: 2 Difficulty: Easy
#ar rental firms( hair dressers( and management consultants provide ________. !) goods B) e&periences #) events ") services ') information
D Page Ref: 3 Objective: 2 AACSB: Analytic Skills Difficulty: Easy
242
)he *occer World #up is promoted aggressively to both companies and fans. )his is an e&ample of marketing a+n) ________. !) idea B) place #) lu&ury item ") event ') service
D Page Ref: 3 Objective: 2 Difficulty: M !e"ate
In Walt "isney s ,agic -ingdom( customers can visit a fairy kingdom( a pirate ship( or even a haunted house. "isney is marketing a+n) ________. !) e&perience B) service #) event ") organi.ation ') good
A Page Ref: 3
243
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Objective: 2 AACSB: Analytic Skills Difficulty: Easy
________ are basic human re/uirements( while ________ are the ways in which those re/uirements are satisfied. !) Wants0 needs B) "emands0 wants #) 1eeds0 wants ") 1eeds0 demands ') "emands0 needs
C Page Ref: # Objective: 3 Difficulty: Easy
244
When 2rank buys his own house( he would like to have a home theater system and a jacu..i. 3e plans to save enough money in the ne&t three years so that he can fulfill his wish. 2rank s desire for the home theater and the jacu..i is an e&ample of a+n) ________. !) need B) want #) demand ") unstated need ') latent demand
B Page Ref: # Objective: 3 AACSB: Analytic Skills Difficulty: M !e"ate
245
!+n) ________ need is one that the consumer is reluctant or unwilling to e&plicitly verbali.e. !) secondary B) unstated #) delight ") secret ') state
D Page Ref: $ Objective: 3 Difficulty: M !e"ate
!+n) ________ need is a need that the consumer e&plicitly verbali.es. !) stated B) affirmative #) unsought ") delight ') secret
A Page Ref: # Objective: 3 Difficulty: M !e"ate
246
#ompanies address needs by putting forth a ________( a set of benefits that they offer to customers to satisfy their needs. !) brand B) value proposition #) deal ") marketing plan ') demand
B Page Ref: $ Objective: 3 Difficulty: M !e"ate
________ reflects a customer s judgment of a product s performance in relation to his or her e&pectations. !) Brand e/uity B) *atisfaction #) 4alue ") $erception ') Brand image
B Page Ref: $ Objective: 3 Difficulty: Easy
247
)he value of an offering is described as ________. !) the price consumers are charged for a product B) the cost of manufacturing a product #) the degree to which consumer demand for a product is positive ") the sum of the tangible and intangible benefits and costs to customers ') the intangible benefits gained from a product
D Page Ref: $ Objective: 3 Difficulty: M !e"ate
248
When 4olvo runs ads suggesting that its cars are the safest that money can buy( it is trying to ________. !) segment the market B) provide a service #) enter into a new market ") develop brand loyalty ') position its product
E Page Ref: $ Objective: 3 AACSB: Analytic Skills Difficulty: M !e"ate
)he actual and potential rival offerings and substitutes that a buyer might consider are referred to as the ________. !) supply chain B) global market #) value proposition ") competition ') marketing environment
D Page Ref: %
249
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Objective: 3 Difficulty: Easy
)he ________ includes the actors involved in producing( distributing( and promoting an offering. )he main actors are the company( suppliers( distributors( dealers( and the target customers. !) economic environment B) management environment #) strategic environment ") task environment ') tactical environment
D Page Ref: % Objective: 3 AACSB: Analytic Skills Difficulty: M !e"ate
250
5ising promotion costs and shrinking profit margins are the result of ________. !) new and improved technology B) disintermediation #) industry convergence ") privati.ation ') heightened competition
E Page Ref: & Objective: ' Difficulty: M !e"ate
Industry boundaries are blurring rapidly as companies identify new opportunities at the intersection of two or more industries. )his is called ________. !) globali.ation B) customi.ation #) industry convergence ") disintermediation ') privati.ation
C Page Ref: & Objective: ' Difficulty: Easy
251
)he success of online purchasing resulted in ________ in the delivery of products and services by intervening in the traditional flow of goods through distribution channels. !) disintermediation B) diversification #) reduced competition ") deregulation ') privati.ation
A Page Ref: & Objective: ' Difficulty: M !e"ate
252
When eBay and !ma.on.com cut out the majority of middlemen that normally would participate in the e&change process( it is an e&ample of ________. !) deregulation B) reverse auctioning #) reintermediation ") disintermediation ') diversification
D Page Ref: & Objective: ' AACSB: (se f inf ")ati n tec*n l gy Difficulty: M !e"ate
"isintermediation via the Internet has resulted in ________. !) higher prices B) stronger brand loyalty #) greater emphasis on personal selling ") well6established brand names ') greater consumer buying power
E Page Ref: & Objective: '
253
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** AACSB: (se f inf ")ati n tec*n l gy Difficulty: M !e"ate
'ach of the following is true about the Internet s impact on the way business is conducted today( '7#'$) one. Identify the e&ception. !) It has facilitated high6speed communication among employees. B) It has empowered consumers with easy access to information. #) It can be used as a powerful sales channel. ") It has facilitated mass marketing but not the sale of customi.ed products. ') It enables marketers to use social media to advertise their products
D Page Ref: & Objective: ' AACSB: (se f inf ")ati n tec*n l gy Difficulty: Easy
254
What are customer touch points? !) all aspects of the offering that directly affect consumer preferences B) all needs and wants of customers #) all direct or indirect interactions between the customer and the company ") all interactions between customers and competitors ') all factors that affect buying behavior
C Page Ref: ' Objective: ' Difficulty: M !e"ate
Which of the following holds that consumers prefer products that are widely available and ine&pensive? !) the product concept B) the production concept #) the selling concept ") the performance concept ') the marketing concept
B Page Ref: +
255
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Objective: ' Difficulty: M !e"ate
)he ________ concept holds that consumers will favor offerings with the best /uality( performance( or innovative features. !) product B) marketing #) production ") selling ') holistic marketing
A Page Ref: + Objective: ' Difficulty: Easy
256
!s a major steel manufacturer( *teel,akers Inc. focuses on having the most efficient manufacturing processes in place. )he company believes that its competitive edge lies in its ability to offer the best prices. )hey also maintain an e&cellent distribution network that ensures wide availability of their products. *teel,akers has a ________. !) selling orientation B) production orientation #) product orientation ") marketing orientation ') social orientation
B Page Ref: + Objective: ' AACSB: Analytic Skills Difficulty: M !e"ate
257
Webma& Inc. produced and marketed cameras. !fter considerable research and development( they developed a new digital camera that had an array of new features. Webma& was so sure about the new offering that they even reduced their marketing budget. What sort of orientation does Webma& have toward the marketplace? !) production orientation B) product orientation #) selling orientation ") marketing orientation ') holistic marketing orientation
B Page Ref: + Objective: ' AACSB: Analytic Skills Difficulty: M !e"ate Page Ref: + Objective: ' AACSB: Analytic Skills Difficulty: M !e"ate
258
,arketers at 8ohnny Inc. believe in putting their customers ahead of everything else. )heir products are carefully designed to meet customer re/uirements and the entire focus is on achieving customer satisfaction. 8ohnny Inc. follows the ________ concept in doing business. !) production B) product #) selling ") marketing ') social responsibility
D Page Ref: 1, Objective: ' AACSB: Analytic Skills Difficulty: M !e"ate
259
)he ________ concept holds that consumers and businesses( if left alone( will ordinarily not buy enough of the organi.ation s products. !) production B) selling #) marketing ") product ') holistic marketing
B Page Ref: + Objective: ' Difficulty: Easy
260
)he marketing concept holds that ________. !) a firm should find the right products for its customers( and not the right customers for its products B) customers who are coa&ed into buying a product will most likely buy it again #) a new product will not be successful unless it is priced( distributed( and sold properly ") consumers and businesses( if left alone( won t buy enough of the organi.ation s products ') a better product will by itself lead people to buy it without much effort from the sellers
A Page Ref: 1, Objective: ' Difficulty: M !e"ate
261
What are the four broad components of holistic marketing? !) relationship( internal( position( and performance marketing B) integrated( internal( position( and performance marketing #) relationship( integrated( internal( and performance marketing ") integrated( relationship( social responsibility( and position marketing ') relationship( social responsibility( internal( and performance marketing
C Page Ref: 1, Objective: ' Difficulty: M !e"ate
262
________ marketing aims to build mutually satisfying long6term collaboration with key constituents( such as customers( employees( suppliers( distributors( and other marketing partners( in order to earn and retain their business. !) Integrated B) "emand6based #) "irect ") 5elationship ') Internal
D Page Ref: 11 Objective: ' Difficulty: Easy
263
)he ultimate outcome of relationship marketing is a uni/ue company asset called the ________( consisting of the company and its supporting stakeholders. !) brand B) supply chain #) marketing network ") value proposition ') service channel
C Page Ref: 11 Objective: ' Difficulty: M !e"ate
264
Which aspect of holistic marketing motivates employees and ensures that everyone in the organi.ation embraces appropriate marketing principles( especially senior management? !) relationship marketing B) integrated marketing #) internal marketing ") network marketing ') performance marketing
C Page Ref: 11 Objective: ' AACSB: Analytic Skills Difficulty: M !e"ate
2inancial accountability and social responsibility marketing are elements of ________. !) performance marketing B) relationship marketing #) internal marketing ") social marketing ') mass marketing
A Page Ref: 12
265
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Objective: ' Difficulty: M !e"ate
#ompanies are recogni.ing that much of their market value comes from ________( particularly their brands( customer base( employees( distributor and supplier relations( and intellectual capital. !) variable assets B) value propositions #) intangible assets ") market offerings ') industry convergence
C Page Ref: 12 Objective: ' AACSB: Reflective -*inking Difficulty: Easy '&.
266
8oanna owns a chain of fast6food joints. !s the chain became more and more successful( she decided to contribute a share of her profits each year to support cancer research. )his is an e&ample of ________. !) corporate community involvement B) environmental marketing #) cause6related marketing ") benefit marketing ') responsible marketing
C Page Ref: 13 Objective: ' AACSB: Analytic Skills Difficulty: M !e"ate
267
,c#arthy classified marketing activities into the four $s of the marketing mi&. )hese four $s stand for ________. !) product( positioning( place( and price B) product( production( price( and place #) promotion( place( positioning( and price ") place( promotion( production( and positioning ') product( price( promotion( and place
E Page Ref: 13 Objective: ' Difficulty: Easy
268
Incorporating the holistic view of marketing( the four $s of the marketing mi& can be updated to ________. !) product( positioning( people( and price B) people( processes( place( and promotion #) product( processes( price( and people ") people( processes( programs( and performance ') product( price( promotion( and people
D Page Ref: 13 Objective: ' AACSB: Multicultu"al an! !ive"sity un!e"stan!ing Difficulty: M !e"ate Difficulty: M !e"ate
269
Which of the four new $s encompasses the old four $s as well as a range of other marketing activities that might not fit well into the old view of marketing? !) programs B) processes #) promotion ") people ') performance
A Page Ref: 1' Objective: ' Difficulty: M !e"ate
!t the heart of any marketing program is the firm s ________( its tangible offering to the market. !) strategy B) product #) brand ") value ') people
B Page Ref: 1'
270
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Objective: # Difficulty: Easy
________ activities include those the company undertakes to make the product accessible and available to target customers. !) %ine e&tension B) *egmentation #) ,arketing research ") #hannel ') 1ew6product development
D Page Ref: 1# Objective: # Difficulty: M !e"ate #$. Page Ref: 2 Objective: 2 AACSB: Analytic Skills Difficulty: Easy
)he 9.*. economy today consists of a :;6<; services6to6goods mi&.

-R(E Page Ref: 3 Objective: 2 Difficulty: M !e"ate
271
$roperties are tangible rights of ownership to either real property +real estate) or financial property +stocks and bonds).
/A0SE Page Ref: 3 Objective: 2 Difficulty: Easy
=2riends "on t %et 2riends "rive "runk(= is an e&ample of marketing information to an interested audience.
/A0SE Page Ref: ' Objective: 2 AACSB: Reflective -*inking Difficulty: M !e"ate
*hops and stores have a physical e&istence and as such are e&amples of marketspace.
/A0SE Page Ref: ' Objective: 2 AACSB: (se f inf ")ati n tec*n l gy Difficulty: Easy
Wants are basic human re/uirements( such as food and shelter.

/A0SE Page Ref: # Objective: 3 Difficulty: Easy
272
"emands are wants for specific products backed by an ability to pay.

-R(E Page Ref: # Objective: 3 AACSB: Analytic Skills Difficulty: Easy $3. Objective: 3 Difficulty: Easy
)he task environment of a firm consists of demographic( economic( natural( and technological environments( as well as the political6legal system and the social6cultural arena.
/A0SE Page Ref: % Objective: 3 AACSB: Analytic Skills Difficulty: M !e"ate
5egulation of industries has created greater competition and growth opportunities because the playing field has been leveled.
/A0SE Page Ref: %1& Objective: ' AACSB: Reflective -*inking Difficulty: Easy
273
#ompanies can facilitate and speed e&ternal communication among customers by creating online and offline =bu..= through brand advocates and user communities.
-R(E Page Ref: & Objective: ' Difficulty: M !e"ate
)he selling concept holds that consumers will favor those products that offer the most /uality( performance( or innovative features.
/A0SE Page Ref: + Objective: ' AACSB: Analytic Skills Difficulty: M !e"ate
5elationship marketing aims to build mutually satisfying long6term relationships with key parties.
-R(E Page Ref: 11 Objective: ' Difficulty: Easy
274
>ne of the key themes of integrated marketing is that there are very few marketing activities that can effectively communicate and deliver value.
/A0SE Page Ref: 11 Objective: ' AACSB: Reflective -*inking Difficulty: M !e"ate %1.
Integrated marketing is the task of hiring( training( and motivating able employees who want to serve customers well.
/A0SE Page Ref: 11 Objective: ' Difficulty: Easy
$erformance marketing involves reviewing metrics assessing market share( customer loss rate( customer satisfaction( and product /uality in the evaluation of the effectiveness of marketing activities.
-R(E Page Ref: 12 Objective: ' Difficulty: M !e"ate
275
#ause6related marketing involves donating a percentage of revenues to a specific cause based on the revenue occurring during the announced period of support.
-R(E Page Ref: 13 Objective: ' AACSB: Analytic Skills Difficulty: M !e"ate
,aking gifts of money( goods( or time to help nonprofit organi.ations( groups( or individuals is known as corporate philanthropy.
-R(E Page Ref: 13 Objective: ' Difficulty: Easy
,arketers are involved in marketing ?; types of entities. %ist and briefly characteri.e these entities.
-*e ty2es f entities t*at a"e )a"kete! a"e 31. g !s12*ysical g !s4 32. se"vices1* tels an! ca" "ental se"vices4 33. events1ti)e1base! events suc* as t"a!e s* 5s4 3'. e62e"iences17alt Disney8s Magic 9ing! )4 3#. 2e"s ns1 celeb"ity )a"keting4 3$. 2laces1cities4 states4 "egi ns4 an! even 5* le nati ns4 3%. 2" 2e"ties1intangible "ig*ts f 5ne"s*i2 f eit*e" "eal 2" 2e"ty " financial 2" 2e"ty4 3&. "gani:ati ns1c "2 "ate i!entity4 3+. inf ")ati n1 inf ")ati n 2" !uce! an! )a"kete! as a 2" !uct4 an! 31,. i!eas1)a"keting t*e basic i!ea f a )a"ket ffe"ing;
276
Identify and define the traditional four $s. !lso identify the new four $s and the reason for developing the new interpretation.
-*e t"a!iti nal f u" Ps a"e: P" !uct 32" !uct va"iety4 <uality4 !esign4 featu"es4 b"an! na)e4 2ackaging4 si:es4 se"vices4 5a""anties4 "etu"ns.4 P"ice 3list 2"ice4 !isc unts4 all 5ances4 2ay)ent 2e"i !4 c"e!it te")s.4 P" ) ti n 3sales 2" ) ti n4 a!ve"tising4 sales f "ce4 2ublic "elati ns4 !i"ect )a"keting.4 an! Place 3c*annels4 c ve"age4 ass "t)ents4 l cati ns4 invent "y4 t"ans2 "tati n.; = 5eve"4 given t*e b"ea!t*4 c )2le6ity4 an! "ic*ness f )a"keting4 as e6e)2lifie! by * listic )a"keting4 t*ese ' Ps a"e n t t*e 5* le st "y any ) "e; (2!ating t*e) t "eflect t*e * listic )a"keting c nce2t4 "esea"c*e"s in t*is fiel! a""ive! at a ) "e "e2"esentative set t*at enc )2asses ) !e"n )a"keting "ealities: 2e 2le4 2" cesses4 2" g"a)s4 an! 2e"f ")ance;
"iscuss the concept of disintermediation and provide an e&ample.

Disinte")e!iati n g"e5 ut f t*e "us* t e)b"ace t*e ! t1c )s an! e1 c ))e"ce; Essentially4 t*e ! t1c )s "e) ve! )any f t*e t"a!iti nal inte")e!ia"ies by enc u"aging c nsu)e"s t !eal !i"ectly 5it* t*e c )2any via t*e >nte"net; ?B"ick1an!1click? businesses eventually b" ug*t s )e f t*e inte")e!ia"ies back t*" ug* a 2" cess calle! "einte")e!iati n; Page Ref: & Objective: ' AACSB: (se f inf ")ati n tec*n l gy Difficulty: Easy &,. @ u *ave been given t*e assign)ent f justifying cause1"elate! )a"keting t y u" b a"! f !i"ect "s; 7*at 5 ul! be y u" 2"i)a"y a"gu)ent in fav " f suc* a 2" 2 salA Ans5e": C )2anies see cause1"elate! )a"keting as an 22 "tunity t en*ance t*ei" c "2 "ate "e2utati n4 "aise b"an! a5a"eness4 inc"ease cust )e" l yalty4 buil! sales4 an! inc"ease 2"ess c ve"age; -*ey believe cust )e"s 5ill inc"easingly l k f " signs f g ! c "2 "ate citi:ens*i2 t*at g bey n! su22lying "ati nal an! e) ti nal benefits; -*is s* ul! be t*e )ain line f a"gu)ent in su22 "t f any cause1"elate! )a"keting eff "t; Page Ref: 12113 Objective: '
277
What is the traditional view of marketing? !) 2irms should just focus on production because if the products are good then they will automatically sell. B) 2irms should just focus on production and selling because marketing occurs as a part of the selling process. #) 2irms should have a proper marketing team that can increase consumers awareness of their products and rouse their interest in them. ") 2irms should price their products as low as possible so that marketing them becomes easy. ') 2irms should remember that promotion is the most important of the four $s.
B Page Ref: 1& Objective: 1 Difficulty: Easy
278
4alue delivery process can be divided into three phases( out of which =choosing the value= implies ________( which is the essence of strategic marketing. !) segmentation( developing( and delivering B) targeting( positioning( and communicating #) targeting( positioning( and delivering ") segmentation( targeting( and positioning ') researching( developing( and delivering
D Page Ref: 3' Objective: 1 AACSB: Reflective -*inking Difficulty: Easy '. Page Ref: 1& Objective: 1 AACSB: Reflective -*inking Difficulty: Easy
279
8ames 2rank has been put in charge of gathering marketing intelligence( disseminating it within his organi.ation( and eventually directing action on the information. ,r. 2rank s task is best described as part of the ________. !) market6sensing process B) new6offering reali.ation process #) customer ac/uisition process ") customer relationship management process ') fulfillment management process
A Page Ref: 1+ Objective: 1 AACSB: Analytic Skills Difficulty: M !e"ate
280
When a customer places an order at BookBo&.com( the company processes the customer s payment information( sends the order to the nearest warehouse( and ships the order via 2ed'&. )his is best described as the ________. !) market6sensing process B) customer ac/uisition process #) customer relationship management process ") fulfillment management process ') new6offering reali.ation process
D Page Ref: 1+ Objective: 1 AACSB: Analytic Skills Difficulty: M !e"ate
281
)he first phase of the value creation and delivery se/uence is ________ that represents the =homework= marketing must do before any product e&ists. !) choosing the value B) providing the value #) communicating the value ") considering the value ') ac/uiring the value
A Page Ref: 1& Objective: 1 Difficulty: Easy &. Page Ref: 1& Objective: 1 Difficulty: Easy
282
In the cycle of complete strategic planning( taking corrective action is a part of ________. !) planning B) implementation #) controlling ") organi.ing ') analy.ing
C Page Ref: 21 Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
283
)he ________ in the value chain cover the se/uence of bringing materials into the business +inbound logistics)( converting them into final products +operations)( shipping out final products +outbound logistics)( marketing them +marketing and sales)( and servicing them +service). !) operations processes B) manufacturing processes #) primary activities ") secondary activities ') tertiary activities
C Page Ref: 1+ Objective: 1 Difficulty: Easy
284
,icheal $orter s value chain would identify which of the following as a support activity? !) shipping out final products B) marketing products #) procurement ") servicing products ') operations
C Page Ref: 1+ Objective: 1 AACSB: Analytic Skills Difficulty: Easy 12. Page Ref: 1+ Objective: 1 AACSB: Reflective -*inking Difficulty: M !e"ate
285
With respect to core business processes( the ________ includes all the activities involved in gathering e&ternal information( disseminating it within the organi.ation( and acting on the information. !) market6sensing process B) market research process #) target marketing process ") market pulse process ') deployment process
A Page Ref: 1+ Objective: 1 AACSB: Analytic Skills Difficulty: Easy
286
With respect to the core business processes( the ________ includes all the activities involved in developing( and launching high6/uality products /uickly and within budget. !) market6sensing process B) new6offering reali.ation process #) fulfillment management process ") customer ac/uisition process ') customer relationship management process
B Page Ref: 1+ Objective: 1 AACSB: Analytic Skills Difficulty: Easy
287
!ctivities involved in building deeper understanding of e&isting consumers and what the product offerings mean to them would be a part of ________. !) customer ac/uisition process B) customer relationship management process #) customer prospecting process ") customer integrating management process ') customer e/uity process
B Page Ref: 1+ Objective: 1 AACSB: Reflective -*inking Difficulty: M !e"ate 1$. Page Ref: 1+ Objective: 1 Difficulty: Easy
288
)he key to utili.ing organi.ational core competencies is to ________ that make up the essence of the business. !) force organi.ational departments to justify the budgetary components B) vertically integrate and own all intermediaries #) own and nurture the resources and competencies ") emphasi.e global promotions ') segment the workforces
C Page Ref: 1+ Objective: 1 AACSB: Reflective -*inking Difficulty: Easy
289
________ has three characteristics@ +?) it is a source of competitive advantage in that it makes a significant contribution to perceived customer benefits0 +A) it has applications in a wide variety of markets0 and +<) it is difficult for competitors to imitate. !) #ore competency B) ,arket sensing process #) #orporate social responsibility ") *trategic business unit ') $hilanthropy
A Page Ref: 2, Objective: 1 AACSB: Analytic Skills Difficulty: M !e"ate
290
#ore competencies tend to refer to areas of special technical and production e&pertise( whereas ________ tend to describe e&cellence in broader business processes. !) process benchmarks B) distinctive capabilities #) distributive capabilities ") facultative benchmarks ') concentric capabilities
B Page Ref: 2, Objective: 1 Difficulty: Easy 2,. Page Ref: 2, Objective: 1 AACSB: Analytic Skills Difficulty: Easy
291
!s -odak addresses the digital revolution taking over the photographic industry( it wants customers to see it as a leader in digital photography. )hus( it is moving away from the production of film roll cameras. )his would be an e&ample of which of the following value creation steps? !) abandoning current product lines B) changing the corporate vision #) repositioning the company s brand identity ") redoing the corporate logo ') realigning core competencies
C Page Ref: 1& Objective: 1 AACSB: Analytic Skills Difficulty: M !e"ate
292
>f the four organi.ational levels( the corporate level is likely to make which of the following decisions? !) entering a new market B) resource allocation for each product #) strategic plan for individual business units ") choosing specific suppliers for each business unit ') marketing plan for each product
A Page Ref: 2, Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
293
,ost large companies consist of four organi.ational levels@ the corporate level( the ________( the business unit level( and the product level. !) board of director level B) major stakeholder level #) management team level ") division level ') strategic level
D Page Ref: 2, Objective: 2 AACSB: Analytic Skills Difficulty: Easy 2'. Page Ref: 2, Objective: 1 AACSB: Reflective -*inking Difficulty: M !e"ate
294
)he marketing plan( the central instrument for directing and coordinating the marketing effort( operates at ________ levels. !) functional and operational B) strategic and tactical #) corporate and operational ") customer and e&penditure ') corporate and division
B Page Ref: 2, Objective: 2 AACSB: Analytic Skills Difficulty: Easy
)he ________ lays out the target markets and the value proposition that will be offered( based on an analysis of the best market opportunities. !) organi.ational plan B) strategic marketing plan #) corporate tactical plan ") corporate mission ') customer6value statement
B Page Ref: 2, Objective: 2
295
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Difficulty: M !e"ate 2%. Page Ref: 2, Objective: 2 AACSB: Analytic Skills Difficulty: Easy
Which of the following is 1>) one of the four planning activities undertaken by all corporate head/uarters? !) defining the corporate mission B) establishing strategic business units #) assigning resources to each *B9 ") assessing growth opportunities ') deciding sales channels
E Page Ref: 21 Objective: 2 Difficulty: Easy
296
! clear( thoughtful mission statement provides employees with a shared sense of purpose( direction( and ________. !) profitability B) target market feasibility #) opportunity ") continuous improvement ') /uality products
C Page Ref: 21 Objective: 2 AACSB: Reflective -*inking Difficulty: M !e"ate
297
Which of the following is one of the five major characteristics of good mission statements? !) )hey focus on a large number of goals. B) )hey e&pand the range of individual employee discretion. #) )hey define the major competitive spheres within which the company will operate. ") )hey take a short6term view. ') )hey are long and comprehensive to ensure that all critical concepts are included.
C Page Ref: 21 Objective: 2 AACSB: Reflective -*inking Difficulty: Easy 31.
298
Berber primarily serves the baby food market. In choosing to focus on this market( Berber is defining its competitive sphere on the basis of ________. !) vertical segmentation B) backward integration #) market segmentation ") diversification ') differentiation
C Page Ref: 22 Objective: 2 AACSB: Analytic Skills Difficulty: Easy
299
While viewing businesses in terms of customer needs can suggest additional growth opportunities( a ________ tends to focus on selling a product or service to a current market. !) strategic market definition B) target market definition #) cognitive definition ") product definition ') tactical definition
B Page Ref: 22 Objective: 2 Difficulty: Easy
300
What are hollow corporations? !) companies that market their products through franchisees B) companies that have liabilities e&ceeding their assets #) companies that outsource all production to suppliers ") companies that do not have any physical presence and only operate online ') companies that are hori.ontally integrated
C Page Ref: 22 Objective: 2 Difficulty: Easy 3#. Objective: 2 Difficulty: M !e"ate
301
,arket6penetration( product6development( and market6development strategies would all be e&amples of ________ strategies. !) concentric growth B) conglomerate #) hori.ontal ") intensive growth ') integrative growth
D Page Ref: 23 Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
302
Which of the following is an e&ample of growth by diversification? !) a company introducing its e&isting products in a new market B) a company introducing new product category in a new market #) a company increases its product line in an e&isting market ") a company introducing a new product category in an e&isting market ') a company integrates backward to cut costs
B Page Ref: 23 Objective: 2 Difficulty: M !e"ate
303
! company that seeks to increase its sales and profits through backward( forward( or hori.ontal integration within the industry is said to be employing a+n) ________ strategy. !) diversification growth B) intensive growth #) target growth ") integrative growth ') conglomerate growth
D Page Ref: 23 Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate 3+. Page Ref: 23 Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
304
>nce *tarbucks had established its presence in thousands of cities internationally( the company sought to increase the number of purchases by e&isting customers with a ________ strategy that led to new in6store merchandise( including compilation #"s and high6speed wireless access. !) product6development B) market6penetration #) diversification ") market6development ') conglomerate
A Page Ref: 23 Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
305
!+n) ________ is when a company might seek new businesses that have no relationship to its current technology( products( or markets. !) concentric strategy B) conglomerate strategy #) hori.ontal strategy ") intensive growth strategy ') integrative strategy
B Page Ref: 23 Objective: 2 Difficulty: M !e"ate
Which of the following terms can be defined as =the shared e&periences( stories( beliefs( and norms that characteri.e an organi.ation=? !) organi.ational dynamics B) a business mission #) an ethicalCvalue statement ") customer relationships ') corporate culture
E Page Ref: 23 Objective: 2 AACSB: Analytic Skills
306
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Difficulty: Easy '3. Page Ref: 2' Objective: 2 Difficulty: Easy
)hrough its cutting6edge point6of6sale inventory management technology and highly efficient shipping practices( Wal6,art is able to keep its inventory e&penditure e&tremely low and to pass these savings on to consumers in the form of low prices. Wal6,art s strategy is best described as ________. !) a focused approach B) integrative growth #) differentiation ") market development ') overall cost leadership
E Page Ref: 2% Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
307
When a firm aims to underprice competitors and win market share( it is using a+n) ________ strategy that re/uires relatively less marketing skills as compared to other strategies. !) product differentiation B) overall cost leadership #) focus ") domestic customer relationship ') price skimming
B Page Ref: 2% Objective: 2 AACSB: Reflective -*inking Difficulty: Easy '$. Page Ref: 2% Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
308
9nlike its competitors in the online air travel industry( )ravelocity provides its customers with a greater variety of services such as cruise reservations( package tours( hotel bookings( and car rentals. )his is an e&ample of a+n) ________ strategy. !) overall cost leadership B) focus #) differentiation ") diversification ') promotional
C Page Ref: 2% Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
309
,c"onald s has often teamed up with "isney to offer products related to current "isney films as part of its meals for children. )he best description of this form of alliance would be a ________. !) product alliance B) logistics alliance #) pricing collaboration ") network alliance ') promotional alliance
E Page Ref: 2% Objective: 2 AACSB: Analytic Skills Difficulty: Easy '+. Page Ref: 2% Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
310
,aster#ard and 4isa may team up with university alumni associations to offer affinity credit cards that typically display an iconic image associated with the university on the card itself and may include an incremental donation program associated with purchases made using the card. )he best description of this form of alliance would be called a ________. !) product alliance B) logistics alliance #) pricing collaboration ") network alliance ') promotional alliance
E Page Ref: 2% Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
311
When one company licenses another to produce its offerings( or two companies jointly market their complementary offerings( it is called a ________. !) pricing collaboration B) product or service alliance #) promotional alliance ") logistics collaboration ') total /uality management
B Page Ref: 2% Objective: 2 AACSB: Analytic Skills Difficulty: Easy #2. Page Ref: 2% Objective: 2 AACSB: Analytic Skills Difficulty: Easy
312
Which of the following statements is true of marketing plans? !) )hey can be independently developed without worrying about other functional areas. B) )hey provide direction and focus for a brand( product( or company. #) )hey are usually profit6oriented. ") )hey are of limited use to non6profit organi.ations. ') )hey are typically five6year plans and they lay out the strategies re/uired to achieve targets in those five years.
B Page Ref: 2& Objective: 3 Difficulty: M !e"ate
313
Which of the following elements of a marketing plan permits senior management to grasp the plan s major thrust? !) the situation analysis B) the marketing strategy #) the e&ecutive summary ") the financial projections ') the short6term targets
C Page Ref: 2+ Objective: 3 Difficulty: Easy
314
)he ________ is the last section of the marketing plan and spells out the goals and budget for each month or /uarter( so management can review each period s results and take action as needed. !) e&ecutive summary B) situation analysis #) marketing strategy ") financial projections ') implementation and controls
E Page Ref: 2+ Objective: 3 AACSB: Analytic Skills Difficulty: Easy #$. Page Ref: 1& Objective: 1 AACSB: Reflective -*inking Difficulty: Easy
)he traditional view of marketing works best in economies with many different types of people( each with individual wants( perceptions( preferences( and buying criteria.
/A0SE Page Ref: 1&
315
)he customer relationship management process involves all the activities related to receiving and approving orders( shipping the goods on time( and collecting payment.
/A0SE Page Ref: 1+ Objective: 1 AACSB: Analytic Skills Difficulty: Easy
)he new6offering reali.ation process involves all activities in defining target markets and prospecting for new customers.
/A0SE Page Ref: 1+ Objective: 1 AACSB: Analytic Skills Difficulty: M !e"ate
! principle of the value chain is that every firm is a synthesis of activities performed to design( produce( market( deliver( and support its product.
-R(E Page Ref: 1+ Objective: 1 Difficulty: Easy
316
!nother name for a company s value delivery network is =distribution chain.=

/A0SE Page Ref: 1+ Objective: 1 AACSB: Analytic Skills Difficulty: Easy
3olistic marketing focuses on the integration of value e&ploration( value creation( and value delivery as a means to build long6term relationships with consumers.
-R(E Page Ref: 2, Objective: 1 Difficulty: Easy $3. Page Ref: 2, Objective: 1 AACSB: Analytic Skills Difficulty: Easy
Bood mission statements should be long and clear( should emphasi.e on a wide range of goals( and stress on the company s major policies and values.
/A0SE Page Ref: 21 Objective: 2 AACSB: Reflective -*inking Difficulty: M !e"ate
317
!n intensive growth strategy involving marketing current products to new markets is a market6 development strategy.
-R(E Page Ref: 23 Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
! company seeking to e&pand the number of e&isting products sold to its current markets( would be using a =market6penetration strategy.=
/A0SE Page Ref: 23 Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
If a company sought to grow by starting new businesses that have no relation to its current technology( products( or markets( the company would be using a market penetration strategy.
/A0SE Page Ref: 23 Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
318
!n environmental threat is a challenge posed by an unfavorable trend or development that( in the absence of defensive marketing action( would lead to lower sales or profit.
-R(E Page Ref: 2$ Objective: 2 Difficulty: Easy
>nce a *W>) analysis has been completed( the strategic planner is ready to proceed to the goal formulation stage of the strategic6planning process model.
-R(E Page Ref: 2$ Objective: 2 AACSB: Analytic Skills Difficulty: Easy
$artner relationship management is now considered as a core skill fundamental to the development and maintenance of strategic alliances.
-R(E Page Ref: 2% Objective: 2 Difficulty: Easy
319
2irms directing the same strategy to the same target market constitute a strategic group.
-R(E Page Ref: 2% Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
! marketing plan should open with a situation analysis.

/A0SE Page Ref: 2+ Objective: 3 Difficulty: Easy
*ales forecasts( e&pense forecasts( and break6 even analysis are usually found in the section on financial projections in the marketing plan.
-R(E Page Ref: 2+ Objective: 3 Difficulty: Easy
)he marketing strategy section of the marketing plan spells out goals and budgets for each month or /uarter so the management can review each period s results and take corrective action as needed.
/A0SE Page Ref: 2+
320
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Objective: 3 Difficulty: Easy %$. Page Ref: 1+ Objective: 1 AACSB: Analytic Skills Difficulty: M !e"ate
Identify and give e&amples of the four major categories of strategic alliances.
-*e f u" )aj " categ "ies f st"ategic alliances inclu!e 31. 2" !uct " se"vice alliances4 5*e"e ne c )2any licenses its 2" !uct4 " t5 c )2anies j intly )a"ket t*ei" c )2le)enta"y 2" !ucts " a ne5 2" !uctB 32. 2" ) ti nal alliances4 5*e"e ne c )2any ag"ees t ca""y a 2" ) ti n f " an t*e" c )2any8s 2" !uct " se"viceB 33. l gistics alliances4 5*e"e ne c )2any ffe"s l gistical se"vices f " an t*e" c )2any8s 2" !uctB an! 3'. 2"icing c llab "ati n4 5*e"e ne " ) "e c )2anies j in in an ag"ee)ent n c "!inate! 2"icing; Stu!ent e6a)2les )ay va"y; Page Ref: 2% Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
"escribe what happens in scenario analysis and e&plain why firms such as 5oyal "utchC*hell Broup use the techni/ue.
Scena"i analysis c nsists f !evel 2ing 2lausible "e2"esentati ns f a fi")8s 2 ssible futu"e t*at )ake !iffe"ent assu)2ti ns ab ut f "ces !"iving t*e )a"ket an! inclu!e !iffe"ent unce"tainties; Ans5e"s )ay va"y n 5*y t use t*e c nce2t but ans5e"s s* ul! be )in!ful f t*e !efiniti n given; Stu!ents s* ul! t"y t antici2ate t*e 2" ble)s t*at a"e likely t agg"avate in t*e ene"gy in!ust"y an! * 5 scena"i analysis )ay *el2 t*e c )2anies t antici2ate t*e futu"e an! be 2"e2a"e! t a!just t*ei" 2" cesses acc "!ingly; Page Ref: 2' Objective: 2 AACSB: Analytic Skills Difficulty: M !e"ate
321
'&plain what happens in a *W>) analysis during the strategic planning process.
S7O- 3st"engt*s4 5eaknesses4 22 "tunities4 an! t*"eats. ) nit "s t*e e6te"nal an! inte"nal envi" n)ent by e6a)ining key )ac" ec n )ic an! )ic" ec n )ic f "ces an! act "s t*at *ave an i)2act n t*e "gani:ati n8s business an! in!ust"y; Page Ref: 2# Objective: 2 Difficulty: M !e"ate Page Ref: 3' Objective: 1 Difficulty: Easy
)he heart of the internal records system is the ________. !) pay6roll system B) purchase order cycle #) order6to6payment cycle ") e&pense cycle ') human resources system
C Page Ref: 3' Objective: 2 Difficulty: M !e"ate
322
)he ________ begins with sales representatives and dealers sending orders to the firms and is followed by the sales department preparing invoices( and finally generating shipping and billing documents which are then sent to various departments. !) payroll system B) market research process #) human resources system ") e&pense cycle ') order6to6payment cycle
E Page Ref: 3' Objective: 2 Difficulty: M !e"ate '. Page Ref: 3' Objective: 2 AACSB: (se f inf ")ati n tec*n l gy Difficulty: M !e"ate
323
#ompanies can practice targeted marketing by using ________6records of Web site usage stored on personal browsers. !) plug6ins B) black swans #) cookies ") trolls ') honey6pots
C Page Ref: 3' Objective: 2 AACSB: (se f inf ")ati n tec*n l gy Difficulty: Easy
)he internal records system supplies results data( but the marketing intelligence system supplies ________ data. !) internal B) revenue #) thematic ") happenings ') process
D Page Ref: 3'
324
! ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment. !) data warehousing system B) viral marketing campaign #) product management system ") marketing intelligence system ') sales information system
D Page Ref: 3' Objective: 3 Difficulty: M !e"ate &. Page Ref: 3# Objective: 3 AACSB: Analytic Skills Difficulty: M !e"ate
325
When gathering marketing intelligence( companies often use the A;;; 9.*. census( which provides an in6depth look at the population swings( demographic groups( regional migrations( and changing family structure of AD?E million people. Which of the following steps to improve the /uality of a company marketing intelligence system would be most closely associated with this illustration? !) ! company can purchase information from outside suppliers. B) ! company can take advantage of government data sources. #) ! company can use online customer feedback systems to collect data. ") ! company can network e&ternally. ') ! company can use its sales force to collect and report data.
B Page Ref: 3# Objective: 3 Difficulty: M !e"ate
326
)he sites which offer positive or negative product or service reviews and are built by the retailers of a particular product or service are called ________. !) combo sites B) distributor or sales agent feedback sites #) public blogs ") independent service review forums ') customer complaint sites
B Page Ref: '3 Objective: 3 AACSB: (se f inf ")ati n tec*n l gy Difficulty: Easy
327
! ________ is =unpredictable( short6lived( and without social( economic( and political significance.= !) fad B) fashion #) trend ") megatrend ') style
A Page Ref: '3 Objective: ' Difficulty: Easy 12. Page Ref: '3 Objective: ' Difficulty: Easy
328
Which of the following is true about trends in worldwide population growth? !) Birthrates are on the rise in developed countries. B) >verall( the world population growth is declining. #) Birthrates are on the rise in developing countries. ") "eath rates are rising in developing countries. ') $opulation growth is highest in developing countries.
E Page Ref: '$ Objective: ' Difficulty: Easy 1'. Page Ref: '% Objective: ' Difficulty: M !e"ate
329
2irms find =reverse innovation= advantage by ________. !) introducing a commodity in a developed country and then distributing it globally B) introducing a commodity in a developing country and then distributing it in other developing countries #) introducing a commodity in a developing country and then distributing it globally ") introducing a commodity in a developed country and then distributing it in developing countries ') introducing a commodity in a developed country and then distributing it in other developed countries
C Page Ref: '$ Objective: ' Difficulty: M !e"ate 1$. Page Ref: '$ Objective: ' Difficulty: Easy
330
)he three largest subgroups of the 3ispanics in the 9.*. are ________( ________( and ________. !) $uerto 5ican0 ,e&ican0 #hilean B) *alvadoran0 #uban0 "ominican #) ,e&ican0 $uerto 5ican0 #uban ") Bra.ilian0 ,e&ican0 #uban ') *alvadoran0 "ominican0 #olumbian
C Page Ref: '$ Objective: ' Difficulty: Easy
331
)he traditional household consists of ________. !) a husband( wife( and children +and sometimes grandparents) B) a group of related persons living together #) two or more families living together ") a man and a woman living together +whether married or not) ') related or unrelated persons who share living arrangements
A Page Ref: '% Objective: ' Difficulty: Easy
332
Which of the following is likely to occur during economic downturns? !) $eople tend to spend more on lu&ury goods B) #onsumption of necessary goods decline #) %ong term credit is available at concessional rates of interest ") )he purchasing power of the people declines ') )he level of investment in the economy rises
D Page Ref: '% Objective: ' AACSB: Dyna)ics f t*e gl bal ec n )y Difficulty: M !e"ate 2,. Page Ref: '% Objective: ' Difficulty: Easy
333
In the 9.*.( consumer e&penditures on homes and big ticket items tend to slacken during recessions because ________. !) the consumers generally have a low debt6to6 income ratio B) of steady supply of loanable funds in the economy during recession #) the consumers have a high debt6to6income ratio ") consumer borrowing increases during recession ') of stringent credit policies adopted by the 2ed before the onset of recession
C Page Ref: '% Objective: ' Difficulty: M !e"ate
334
Which of the following elements of sociocultural environment can be associated with the growing demand for =social surrogates= like social networking sites( television( etc.? !) views of ourselves B) views of organi.ations #) views of others ") views of nature ') views of the universe
C Page Ref: '& Objective: ' Difficulty: M !e"ate
335
)oday( corporations need to make sure that they are good corporate citi.ens and that their consumer messages are honest in order to positively align themselves with consumers ________. !) views of others B) views of organi.ations #) views of themselves ") views of the universe ') views of society
B Page Ref: '& Objective: ' AACSB: Reflective -*inking Difficulty: M !e"ate 2'. Page Ref: '& Objective: ' Difficulty: M !e"ate
336
Which of the following would be the best illustration of a secondary belief or value? !) belief in work B) belief in giving to charity #) belief in getting married ") belief in getting married early ') belief in being honest
D Page Ref: '& Objective: ' Difficulty: M !e"ate
'ach society contains ________( groups with shared values emerging from their special life e&periences or circumstances. !) stakeholders B) cli/ues #) consumer bundles ") subcultures ') behavioral niches
D Page Ref: '& Objective: ' Difficulty: Easy
337
2irms whose products re/uire ________ resourcesFoil( coal( platinum( .inc( silverFface substantial cost increases as depletion approaches. !) infinite B) near finite #) finite renewable ") finite nonrenewable ') perishable
D Page Ref: '+ Objective: ' Difficulty: Easy 2&. Page Ref: '+ Objective: ' AACSB: Analytic Skills Difficulty: Difficult
338
Which of the following is true about the technology trends that marketers should monitor? !) ! growing portion of 9.*. 5G" e&penditures are going toward the research side as opposed to the development side. B) )oday( the time between idea and implementation is e&panding. #) ,ore single companies rather than consortiums are directing research efforts toward major breakthroughs. ") )he pace of change is accelerating today. ') )he government has decreased regulation of technological change.
D Page Ref: '+ Objective: ' Difficulty: M !e"ate
339
,andatory recycling laws have boosted the recycling industry and launched do.ens of new companies making new products from recycled materials. Which of the following most closely resembles the situation discussed above? !) Bovernment makes reforestation mandatory for lumbering firms leading to a rise in timber production. B) Bovernment restricts industries from purchasing farmland thereby increasing agricultural produce. #) Bovernment subsidi.es e&port of beef to promote production of beef cattle. ") Bovernment pollution control norms increase the production of pollution control e/uipments. ') Bovernment restricts unfair trade practices to promote international trade.
D Page Ref: '+ Objective: ' AACSB: Analytic Skills Difficulty: Difficult 31.
340
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Page Ref: #, Objective: ' Difficulty: M !e"ate
!n important force affecting business is the ________ movement( a movement of citi.ens and government organi.ed to strengthen the rights and powers of buyers in relation to sellers. !) human rights B) consumerist #) environmental ") self6determination ') materialistic
B Page Ref: #, Objective: ' Difficulty: Easy
341
)he ________ market is the set of consumers with an ade/uate interest( income( and access to a particular offer. !) potential B) available #) target ") penetrated ') reserve
B Page Ref: ', Objective: # Difficulty: Easy
)he ________ market is the part of the /ualified available market the company decides to pursue. !) potential B) available #) target ") penetrated ') reserve
C Page Ref: ', Objective: # Difficulty: Easy 3#. Page Ref: ',
342
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** Objective: # Difficulty: Easy
When the government of any country restricts the sale of a particular commodity to certain groupsFfor e&ample( restricting sales of alcohol to individuals above the age of A?Fthe eligible consumers who have income( interest( access and /ualification constitute the ________. !) accessible market B) target market #) potential market ") /ualified potential market ') /ualified available market
E Page Ref: ', Objective: # Difficulty: Easy
343
8eanine would like to own a ,ercedes but is unable to afford one at this time. 8eanine is part of the ________ for this product. !) potential market B) available market #) target market ") projected market ') penetrated market
A Page Ref: ', Objective: # AACSB: Analytic Skills Difficulty: M !e"ate
344
________ for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program. !) #ompany demand B) !rea market potential #) ,arket demand ") #ompany sales potential ') )otal market potential
C Page Ref: '1 Objective: # Difficulty: Easy 3+. Page Ref: '1 Objective: # Difficulty: M !e"ate
345
)he base sales of an organi.ation that takes place even without any demand6stimulating e&penditures is called ________. !) primary demand B) market potential #) market minimum ") optimum demand ') market demand
C Page Ref: '1 Objective: # Difficulty: Easy
>nly one level of industry marketing e&penditure will actually occur. )he market demand corresponding to this level is called the ________. !) market minimum B) market share #) market forecast ") market potential ') company demand
+,-.te( $3 De/inin0 M-(1etin0 /o( t,e 2$st +entu(2
346
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** GENERAL +ON+EPT QUESTIONS Mu'ti.'e +,oi6e
1! <ood mar/etin' is no a%%ident+ (ut a result of %areful plannin' and a! e6e%ution (! sellin' %! strate'ies d! ta%ti%s e! resear%h "ns#er& a ?a'e& 4 Fevel of diffi%ult)& *edium 2! !
*ar/etin' is (oth an QartR and a Qs%ien%eRMthere is %onstant tension (et#een the formulated side of mar/etin' and the side! a! %reative (! sellin' %! mana'ement d! fore%astin' e! (ehavior "ns#er& a ?a'e& 4 Fevel of diffi%ult)& 9as) 3! -he most formal definition of mar/etin' is ! a! meetin' needs profita(l) (! identif)in' and meetin' human and so%ial needs %! the 4?s 4?rodu%t+ ?ri%e+ ?la%e+ ?romotion5 d! an or'ani.ational fun%tion and a set of pro%esses for %reatin'+ %ommuni%atin'+ and deliverin'+ value to %ustomers+ and for mana'in' %ustomer relationships in #a)s that (enefit the or'ani.ation and its sta/e holders! e! improvin' the 8ualit) of life for %onsumers "ns#er& d ?a'e& 6 Fevel of diffi%ult)& *edium 4! *ar/etin' mana'ement is ! a! mana'in' the mar/etin' pro%ess (! monitorin' the profita(ilit) of the %ompanies produ%ts and servi%es %! sele%tin' tar'et mar/ets d! developin' mar/etin' strate'ies to move the %ompan) for#ard e! the art and s%ien%e of %hoosin' tar'et mar/ets and 'ettin'+ /eepin'+ and 'ro#in' %ustomers throu'h %reatin'+ deliverin'+ and %ommuni%atin' superior %ustomer value "ns#er& e ?a'e& 6 Fevel of diffi%ult)& 9as)
347
5! " transa%tion involves ! a! at least t#o parties (! ea%h part) has somethin' that mi'ht (e of value to the other part) %! ea%h part) is %apa(le of %ommuni%ation and deliver) d! ea%h part) is free to a%%ept or re2e%t the e6%han'e offer e! all of the a(ove "ns#er& e ?a'es& 6U7 Fevel of diffi%ult)& *edium 6! 'oods %onstitute the (ul/ of most %ountriesS produ%tion and mar/etin' efforts! a! Dura(le (! Impulse %! ?h)si%al d! $ervi%e e! 9vent "ns#er& % ?a'e& 8 Fevel of diffi%ult)& *edium 7! %an (e produ%ed and mar/eted as a produ%t! a! Information (! 3ele(rities %! Dura(le 'oods d! :r'ani.ations e! ?roperties "ns#er& a ?a'e& 9 Fevel of diffi%ult)& *edium 8! 3harles 7evson of 7evlon o(served& QIn the fa%tor)+ #e ma/e %osmeti%sA in the store+ 88888888!R a! #e ma/e profits (! #e %hallen'e %ompetitors %! #e implement ads d! #e sell hope e! #e sell 8ualit) "ns#er& d ?a'e& 9 Fevel of diffi%ult)& 9as) 9! " is someone see/in' a response 4attention+ a pur%hase+ a vote+ a donation5 from another part)+ %alled the 888888887 a! salesperson+ %ustomer (! fund raiser+ %ontri(utor %! politi%ian+ voter d! mar/eter+ prospe%t e! %ele(rit)+ audien%e "ns#er& d ?a'e& 10 Fevel of diffi%ult)& >ard
348
10! In M%onsumers ma) share a stron' need that %annot (e satisfied () an e6istin' produ%t! a! ne'ative demand (! latent demand %! de%linin' demand d! irre'ular demand e! non,e6istent demand "ns#er& ( ?a'e& 10 Fevel of diffi%ult)& *edium 11! In Mmore %ustomers #ould li/e to (u) the produ%t than %an (e satisfied! a! latent demand (! irre'ular demand %! overfull demand d! e6%essive e! ne'ative demand "ns#er& % ?a'e& 10 Fevel of diffi%ult)& *edium 12! *ar/eters often use the term a! people (! (u)in' po#er %! demo'raphi% se'ment d! so%ial %lass position e! mar/et "ns#er& e ?a'e& 10 to %over various 'roupin's of %ustomers!
13! 3ompanies sellin' mass %onsumer 'oods and servi%es su%h as soft drin/s+ %osmeti%s+ air travel+ and athleti% shoes and e8uipment spend a 'reat deal of time tr)in' to esta(lish a superior (rand ima'e in mar/ets %alled ! a! (usiness mar/ets (! 'lo(al mar/ets %! %onsumer mar/ets d! nonprofit and 'overnmental mar/ets e! servi%e mar/ets "ns#er& % ?a'e& 11 Fevel of diffi%ult)& *edium 14! In (usiness mar/ets+ advertisin' %an pla) a role+ (ut a stron'er role ma) (e pla)ed () the sales for%e+ + and the %ompan)Ss reputation for relia(ilit) and 8ualit)! a! (rand ima'e (! distri(ution %! promotion d! pri%e e! performan%e "ns#er& d ?a'e& 11 Fevel of diffi%ult)& >ard
349
15! <lo(al mar/eters must de%ide ! a! #hi%h %ountries to enter (! ho# to enter ea%h %ountr) 4as an e6porter+ li%enser+ 2oint venture partner+ %ontra%t manufa%turer+ or solo manufa%turer5 %! ho# to adapt their produ%t and servi%e features to ea%h %ountr) d! ho# to pri%e their produ%ts in different %ountries e! all of the a(ove "ns#er& e ?a'es& 11U12 Fevel of diffi%ult)& *edium 16! *ohan $a#hne) has proposed the %on%ept of to des%ri(e a %luster of %omplementar) produ%ts and servi%es that are %losel) related in the minds of %onsumers (ut are spread a%ross a diverse set of industries! a! metamar/et (! verti%al inte'ration %! hori.ontal inte'ration d! (etamar/et e! s)n%hroni.ed mar/etin' "ns#er& a ?a'e& 12 Fevel of diffi%ult)& >ard 17! -he promises to lead to more a%%urate levels of produ%tion+ more tar'eted %ommuni%ations+ and more relevant pri%in'! a! "'e of <lo(ali.ation (! "'e of Dere'ulation %! Industrial "'e d! Information "'e e! ?rodu%tion "'e "ns#er& d ?a'e& 13 Fevel of diffi%ult)& *edium 18! *an) %ountries have industries to %reate 'reater %ompetition and 'ro#th opportunities! a! open,mar/et (! dere'ulated %! re'ulated d! s%ientifi%all) se'mented e! %reated mass mar/et "ns#er& ( ?a'e& 13 Fevel of diffi%ult)& *edium 19! 3ustomers are sho#in' 'reater pri%e sensitivit) in their sear%h for a! the ri'ht produ%t (! the ri'ht servi%e %! the ri'ht store d! value e! relationships "ns#er& d ?a'e& 14 Fevel of diffi%ult)& *edium !
350
20! 7isin' promotion %osts and shrin/in' profit mar'ins are the result of a! %han'in' te%hnolo') (! 'lo(ali.ation %! dere'ulation d! privati.ation e! hei'htened %ompetition "ns#er& e ?a'e& 14 Fevel of diffi%ult)& >ard !
21! Industr) (oundaries are (lurrin' at an in%redi(le rate as %ompanies are re%o'ni.in' that ne# opportunities lie at the interse%tion of t#o or more industriesMthis is %alled ! a! 'lo(ali.ation (! %ustomi.ation %! industr) %onver'en%e d! hei'htened %ompetition e! a%8uisition "ns#er& % ?a'e& 14 Fevel of diffi%ult)& *edium 22! In response to 'iant retailers and %ate'or) /illers+ entrepreneurial retailers are (uildin' entertainment into stores #ith %offee (ars+ le%tures+ demonstrations+ and performan%es! -he) are mar/etin' a4n5 rather than a produ%t assortment! a! e6perien%e (! %ustomer value %! %ustomer deli'ht d! total servi%e solution e! intan'i(le (enefit4s5 "ns#er& a ?a'e& 15 Fevel of diffi%ult)& *edium 23! In response to threats from su%h %ompanies as ":F+ "ma.on+ Iahoo+ eDa)+ 9S-7"D9+ and do.ens of others+ esta(lished manufa%turers and retailers (e%ame Q(ri%/,and,%li%/R oriented () addin' online servi%es to their e6istin' offerin's! -his pro%ess (e%ame /no#n as ! a! reintermediation (! disintermediation %! e,%ommer%e d! e,%olla(oration e! ne# mar/et s)n%hroni.ation "ns#er& a ?a'e& 15 Fevel of diffi%ult)& >ard
351
24! *an) (ri%/,and,%li%/ %ompetitors (e%ame stron'er %ontenders in the mar/etpla%e than the pure,%li%/ firms (e%ause the) had a lar'er pool of resour%es to #or/ #ith and ! a! (etter pri%es (! 'reater value %! #ell,esta(lished (rand names d! one,on,one %ommuni%ations e! dire%t sellin' %apa(ilit) "ns#er& % ?a'e& 15 Fevel of diffi%ult)& *edium 25! -he is pra%ti%ed most a''ressivel) #ith unsou'ht 'oods+ 'oods that (u)ers normall) do not thin/ of (u)in'+ su%h as insuran%e+ en%)%lopedias+ and funeral plots! a! mar/etin' %on%ept (! sellin' %on%ept %! produ%tion %on%ept d! produ%t %on%ept e! holisti% mar/etin' %on%ept "ns#er& ( ?a'e& 15 Fevel of diffi%ult)& *edium 26! -he %on%ept holds that %onsumers #ill favor those produ%ts that offer the most 8ualit)+ performan%e+ or innovative features! a! produ%t (! mar/etin' %! produ%tion d! sellin' e! holisti% mar/etin' "ns#er& a ?a'e& 15 Fevel of diffi%ult)& 9as) 27! -he %on%ept holds that %onsumers and (usinesses+ if left alone+ #ill ordinaril) not (u) enou'h of the or'ani.ationSs produ%ts! a! produ%tion (! sellin' %! mar/etin' d! produ%t e! holisti% mar/etin' "ns#er& ( ?a'e& 15 Fevel of diffi%ult)& *edium 28! $everal s%holars have found that %ompanies #ho em(ra%e the mar/etin' %on%ept a%hieve superior performan%e! -his #as first demonstrated for %ompanies pra%ti%in' a Munderstandin' and meetin' %ustomersS e6pressed needs! a! rea%tive mar/et orientation (! proa%tive mar/etin' orientation %! total mar/et orientation d! impulsive mar/et orientation e! holisti% mar/et orientation "ns#er& a ?a'e& 16 Fevel of diffi%ult)& *edium 29! "%%ordin' to -heodore Fevitt+ #ho dre# a per%eptive %ontrast (et#een the sellin' and mar/etin' %on%epts+ is preo%%upied #ith the need to %onvert produ%ts into %ash! a! mar/etin' (! sellin' %! dire%t mar/etin' d! holisti% mar/etin' e! servi%e mar/etin' "ns#er& ( ?a'e& 16 Fevel of diffi%ult)& *edium 30! In the %ourse of %onvertin' to a mar/etin' orientation+ a %ompan) fa%es three hurdlesM !
352
a! or'ani.ed resistan%e+ slo# learnin'+ and fast for'ettin' (! mana'ement+ %ustomer rea%tion+ %ompetitive response %! de%reased profits+ in%reased 7PD+ additional distri(ution d! fore%asted demand+ in%reased sales e6pense+ in%reased inventor) %osts e! %ustomer fo%us+ profita(ilit)+ slo# learnin' "ns#er& a ?a'e& 16 Fevel of diffi%ult)& >ard 31! 3ompanies that pra%ti%e (oth a rea%tive and proa%tive mar/etin' orientation are implementin' a ________ and are li/el) to (e the most su%%essful! a! total mar/et orientation (! e6ternal fo%us %! %ustomer fo%us d! %ompetitive+ %ustomer fo%us e! %onfrontation pro%ess "ns#er& a ?a'e& 16 Fevel of diffi%ult)& *edium 32! *ar/eters ar'ue for a in #hi%h all fun%tions #or/ to'ether to respond to+ serve+ and satisf) the %ustomer! a! %ross,fun%tional team orientation (! %olla(oration model %! %ustomer orientation d! mana'ement,driven or'ani.ation e! total 8ualit) model "ns#er& % ?a'e& 16 Fevel of diffi%ult)& *edium 33! %an (e seen as the development+ desi'n+ and implementation of mar/etin' pro'rams+ pro%esses+ and a%tivities that re%o'ni.es the (readth and interdependen%ies of their effe%ts! a! Gi%he mar/etin' (! >olisti% mar/etin' %! 7elationship mar/etin' d! $uppl),%hain mar/etin' e! Demand,%entered mar/etin' "ns#er& ( ?a'e& 17 Fevel of diffi%ult)& *edium 34! mar/etin' has the aim of (uildin' mutuall) satisf)in' lon',term relations #ith /e) parties su%h as %ustomers+ suppliers+ distri(utors+ and other mar/etin' partners in order to earn and retain their (usiness! a! >olisti% (! Demand,(ased %! Dire%t d! 7elationship e! $)ntheti% "ns#er& d ?a'es& 17U18 Fevel of diffi%ult)& 9as) 35! 3ompanies #ho form a %olle%t information on ea%h %ustomerSs past transa%tions+ demo'raphi%s+ ps)%ho'raphi%s+ and media and distri(ution preferen%es! a! sales net#or/ (! holisti% union %! mar/etin' net#or/ d! suppl),%hain net#or/ e! inte'rated net#or/ "ns#er& % ?a'e& 18 Fevel of diffi%ult)& >ard 36! -he a(ilit) of a %ompan) to deal #ith %ustomers one at a time has (e%ome pra%ti%al as a result of advan%es in + %omputers+ the Internet+ and data(ase mar/etin' soft#are! a! improved %ommuni%ation flo#
353
(! information te%hnolo') %! 2ust,in,time manufa%turin' d! fa%tor) %ustomi.ation e! %ustomer,%entered strate'ies "ns#er& d ?a'e& 18
37! :ne traditional depi%tion of mar/etin' a%tivities is in terms of the mar/etin' mi6 or four ?s! -he four ?s are %hara%teri.ed as (ein' ! a! produ%t+ positionin'+ pla%e+ and pri%e (! produ%t+ produ%tion+ pri%e+ and pla%e %! promotion+ pla%e+ positionin'+ and pri%e d! pla%e+ promotion+ produ%tion+ and positionin' e! produ%t+ pri%e+ promotion+ and pla%e "ns#er& e ?a'e& 19 Fevel of diffi%ult)& 9as)
354
38! -he four ?s represent the sellersS vie# of the mar/etin' tools availa(le for influen%in' (u)ers! Crom a (u)erSs point of vie#+ ea%h mar/etin' tool is desi'ned to deliver a %ustomer (enefit! 7o(ert Fauter(orn su''ested that the sellersS four ?s %orrespond to the %ustomersS four 3s! -he four 3s are ! a! %ustomer fo%us+ %ost+ %onvenien%e+ and %ommuni%ation (! %ustomer solution+ %ustomer %ost+ %onvenien%e+ and %ommuni%ation %! %onvenien%e+ %ontrol+ %ompetition+ and %ost d! %ompetition+ %ost+ %onvenien%e+ and %ommuni%ation e! %ate'or) %ontrol+ %ost+ %on%ept development+ and %ompetition "ns#er& ( ?a'es& 19U20 Fevel of diffi%ult)& *edium 39! >olisti% mar/etin' in%orporates + ensurin' that ever)one in the or'ani.ation em(ra%es appropriate mar/etin' prin%iples+ espe%iall) senior mana'ement! a! profit o(2e%tives (! share of %ustomer %! internal mar/etin' d! the mar/etin' mi6 e! strate'i% plannin' "ns#er& % ?a'e& 20 Fevel of diffi%ult)& >ard 40! *ar/etin' is not a department so mu%h as a ! a! %ompan) orientation (! philosoph) %! fun%tion d! (ran%h of mana'ement e! (ran%h of e%onomi%s "ns#er& a ?a'e& 20 Fevel of diffi%ult)& *edium 41! >olisti% mar/etin' in%orporates and understandin' (roader %on%erns and the ethi%al+ environmental+ le'al+ and so%ial %onte6t of mar/etin' a%tivities and pro'rams! a! safe produ%t desi'n (! %ultural mar/etin' %! so%ial responsi(ilit) mar/etin' d! %ross,fun%tional teams e! dire%t sales poli%ies "ns#er& % ?a'e& 20 Fevel of diffi%ult)& *edium
355
42! -he holds that the or'ani.ationSs tas/ is to determine the needs+ #ants+ and interests of tar'et mar/ets and to deliver the desired satisfa%tions more effe%tivel) and effi%ientl) than %ompetitors in a #a) that preserves or enhan%es the %onsumerSs and the so%iet)Ss #ell,(ein'! a! %ustomer,%entered (usiness (! fo%used (usiness model %! so%ietal mar/etin' %on%ept d! ethi%all) responsi(le mar/etin' mana'er e! produ%tion,%entered (usiness "ns#er& % ?a'e& 22 Fevel of diffi%ult)& *edium 43! 3ompanies see as an opportunit) to enhan%e their %orporate reputation+ raise (rand a#areness+ in%rease %ustomer lo)alt)+ (uild sales+ and in%rease press %overa'e! a! %ause,related mar/etin' (! (rand mar/etin' %! e8uit) mar/etin' d! dire%t mar/etin' e! re%o'nition mar/etin' "ns#er& a ?a'e& 23 Fevel of diffi%ult)& *edium 44! 0hen a %ustomer has a4n5 is lo#! a! stated (! real %! unstated d! deli'ht e! se%ret "ns#er& ( ?a'e& 24 45! 0hen a %ustomer has a4n5 %onsumer! a! real (! unstated %! deli'ht d! se%ret e! stated "ns#er& d ?a'e& 24 need heTshe #ants a %ar #hose operatin' %ost+ not its initial pri%e+
Fevel of diffi%ult)& >ard need the %ustomer #ants to (e seen () friends as a savv)
356
46! Durin' mar/et se'mentation anal)sis+ the mar/eter identifies #hi%h se'ments present the 'reatest opportunit)! -hese se'ments are %alled ! a! tar'et mar/ets (! primar) mar/ets %! tertiar) mar/ets d! demo'raphi% mar/ets e! fo%used mar/ets "ns#er& a ?a'e& 24 Fevel of diffi%ult)& *edium 47! Cor ea%h tar'et mar/et+ the firm develops a ! -he offerin' is positioned in the minds of the tar'et (u)ers as deliverin' some %entral (enefit4s5! a! value offerin' (! ni%he offerin' %! mar/et offerin' d! se'ment offerin' e! so%ial offerin' "ns#er& % ?a'e& 24 Fevel of diffi%ult)& *edium 48! ________ refle%ts the per%eived tan'i(le and intan'i(le (enefits and %osts to %ustomers! a! Fo)alt) (! $atisfa%tion %! Halue d! 96pe%tations e! 3omparison shoppin' "ns#er& % ?a'e& 25 Fevel of diffi%ult)& *edium 49! If a mar/eter de%ides to use #arehouses+ transportation %ompanies+ (an/s+ and insuran%e %ompanies to fa%ilitate transa%tions #ith potential (u)ers+ the mar/eter is usin' #hat is %alled a ! a! servi%e %hannel (! distri(ution %hannel %! (rand %hannel d! relationship %hannel e! intermediar) %hannel "ns#er& a ?a'e& 26 Fevel of diffi%ult)& *edium 50! in%ludes all the a%tual and potential rival offerin's and su(stitutes that a (u)er mi'ht %onsider! a! 3ompetition (! -he produ%t offerin' %! " value proposition d! -he suppl) %hain e! -he mar/etin' environment "ns#er& a ?a'e& 26 Fevel of diffi%ult)& 9as) 51! -he in%ludes the immediate a%tors involved in produ%in'+ distri(utin'+ and promotin' the offerin'! -he main a%tors are the %ompan)+ suppliers+ distri(utors+ dealers+ and the tar'et %ustomers! a! operations environment (! mana'ement environment %! strate'i% environment d! tas/ environment e! ta%ti%al environment "ns#er& d ?a'e& 26 Fevel of diffi%ult)& *edium 52! -he pro%ess %onsists of anal).in' mar/etin' opportunitiesA sele%tin' tar'et mar/etsA desi'nin' mar/etin' strate'iesA developin' mar/etin' pro'ramsA and mana'in' the mar/etin' effort!
357
a! mar/etin' plannin' (! strate'i% plannin' %! mar/et resear%h d! opportunit) anal)sis e! share of %ustomer "ns#er& a ?a'e& 27
Fevel of diffi%ult)& *edium !R
53! David ?a%/ard of >e#lett,?a%/ard on%e said+ Q*ar/etin' is far too important to leave to a! the advertisin' (o)s (! uninformed mana'ers %! novi%es d! the 39: e! the mar/etin' department "ns#er& e ?a'e& 27 Fevel of diffi%ult)& *edium
54! $ome %ompanies are no# s#it%hin' from (ein' solel) produ%t,%entered 4#ith produ%t mana'ers and produ%t divisions to mana'e them5 to (ein' more %entered! a! %ompeten%) (! strate') %! mar/etin' d! %ustomer,se'ment e! sales "ns#er& d ?a'e& 27 Fevel of diffi%ult)& >ard
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55! 3ompanies are re%o'ni.in' that mu%h of their mar/et value %omes from + parti%ularl) their (rands+ %ustomer (ase+ emplo)ees+ distri(utor and supplier relations+ and intelle%tual %apital! a! varia(le assets (! the value proposition %! intan'i(le assets d! tan'i(le assets e! %ustomer preferen%es "ns#er& % ?a'e& 28 Fevel of diffi%ult)& 9as) 56! %an in%reasin'l) (e %ondu%ted ele%troni%all)+ #ith (u)er and seller seein' ea%h other on their %omputer s%reens in real time! a! ?u(li% relations (! 9,%ommer%e %! "dvertisin' d! ?ersonal sellin' e! *ass mar/etin' "ns#er& d ?a'e& 28 Fevel of diffi%ult)& *edium 57! -op mana'ement is 'oin' (e)ond sales revenue alone to e6amine the mar/etin' s%ore%ard to interpret #hat is happenin' to ! a! mar/et share (! %ustomer loss rate %! %ustomer satisfa%tion d! produ%t 8ualit) e! all of the a(ove "ns#er& e ?a'e& 29 Fevel of diffi%ult)& *edium 58! "t the heart of an) mar/etin' pro'ram is the Mthe firmSs tan'i(le offerin' to the mar/et! a! servi%e offer (! produ%t %! sales support team d! pa%/a'in' e! au6iliar) offer "ns#er& ( ?a'e& 30 Fevel of diffi%ult)& *edium 59! a%tivities are the means () #hi%h firms attempt to inform+ persuade+ and remind %onsumers Mdire%tl) or indire%tl)Ma(out the (rands the) sell! a! 3onsumer (ehavior (! *ar/et se'mentation %! *ar/etin' resear%h d! *ar/etin' %ommuni%ation e! Ge# produ%t development "ns#er& d ?a'e& 30 Fevel of a%tivit)& *edium 60! *ar/etin' evaluation and pro%esses are ne%essar) to understand the effi%ien%) and effe%tiveness of mar/etin' a%tivities and ho# (oth %ould (e improved! a! %ontrol (! anal)sis %! measurement d! feed(a%/ e! %onsumer (ehavior "ns#er& a ?a'e& 30 Fevel of diffi%ult)& *edium
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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** +,-.te( 33 G-t,e(in0 In/o(:-tion -n5 S6-nnin0 t,e En4i(on:ent GENERAL +ON+EPT QUESTIONS Mu'ti.'e +,oi6e
1! -he ma2or responsi(ilit) for identif)in' si'nifi%ant mar/etpla%e %han'es falls to the a! @!$! Department of Fa(or (! %ompan)Ss mar/eters %! "meri%an *ar/etin' "sso%iation d! industr) lo(() 'roups found in 0ashin'ton+ D!3! e! mar/etin' resear%h industr) "ns#er& ( ?a'e& 72 Fevel of diffi%ult)& 9as) 2! !
*ar/eters have e6tensive information a(out ho# %onsumption patterns var) a%ross %ountries! :n a per %apita (asis #ithin 0estern 9urope+ the smo/e the most %i'arettes! a! $#iss (! <ree/s %! Irish d! "ustrians e! Cren%h "ns#er& d ?a'e& 72 Fevel of diffi%ult)& >ard 3! "ll of the follo#in' 8uestions 9L39?+ #ould (e %onsidered to (e forms of information needs pro(es! a! 0hat de%isions do )ou re'ularl) ma/e1 (! 0hat information do )ou need to ma/e de%isions1 %! 0hat data anal)sis pro'rams #ould )ou #ant1 d! 0hat ma'a.ines and trade reports #ould )ou li/e to see on a re'ular (asis1 e! 0hat produ%ts #ould (e most %losel) mat%hed to %onsumer needs1 "ns#er& e ?a'e& 73 Fevel of diffi%ult)& *edium
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4! %onsists of people+ e8uipment+ and pro%edures to 'ather+ sort+ anal).e+ evaluate+ and distri(ute needed+ timel)+ and a%%urate information to mar/etin' de%ision ma/ers! a! " mar/etin' information s)stem (! " mar/etin' resear%h s)stem %! " mar/etin' intelli'en%e s)stem d! " promotional %ampai'n e! " mar/etin' data(ase "ns#er& a ?a'e& 73 Fevel of diffi%ult)& *edium 5! -he %ompan)Ss mar/etin' information s)stem should (e a %ross (et#een #hat mana'ers thin/ the) need+ #hat mana'ers reall) need+ and ! a! #hat the mar/etin' resear%h department is a(le to do (! #hat %onsumers are #illin' to share %! #hat the %ompetition is doin' d! #hat is a%%epta(le industr) pra%ti%e e! #hat is e%onomi%all) feasi(le "ns#er& e ?a'e& 73 Fevel of diffi%ult)& *edium 6! *ar/etin' mana'ers rel) on internal reports! D) anal).in' this information+ the) %an spot a! mi%ro,mar/ets (! opportunities and pro(lems %! ma%ro,mar/ets d! %ompetitive strate'ies e! %onsumer demo'raphi% units "ns#er& ( ?a'e& 73 Fevel of diffi%ult)& 9as) 7! -he heart of the internal re%ords s)stem is the ! a! data(ase (! asset a%8uisition pro%ess %! order,to,pa)ment %)%le d! servi%e %onsideration e! information li8uidit) ratio "ns#er& % ?a'e& 73 Fevel of diffi%ult)& >ard 8! 0hen a mar/eter QminesR his or her %ompan)Ss data(ase+ fresh insi'hts %an (e 'ained into ne'le%ted %ustomer se'ments+ + and other useful information! a! re%ent %ustomer trends (! lon',term %ompetitive trends %! possi(le ne# inventions d! possi(le ne# te%hnolo'ies e! ne# primar) data possi(ilities "ns#er& a ?a'e& 74 Fevel of diffi%ult)& *edium 9! -he internal re%ords s)stem supplies results data+ (ut the mar/etin' intelli'en%e s)stem supplies data! a! %on%urrent (! se%ondar) %! resear%h d! happenin's e! premium "ns#er& d ?a'e& 74 Fevel of diffi%ult)& *edium 10! " is a set of pro%edures and sour%es mana'ers use to o(tain ever)da) information a(out developments in the mar/etin' environment! a! mar/etin' resear%h s)stem !
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(! mar/etin' information s)stem %! produ%t mana'ement s)stem d! mar/etin' intelli'en%e s)stem e! verti%al s)stem "ns#er& d ?a'e& 74
11! " %ompan) %an ta/e several steps to improve the 8ualit) of its mar/etin' intelli'en%e! If the %ompan) pur%hases %ompetitive produ%ts for stud)+ attends open houses and trade sho#s+ and reads %ompetitorsS pu(lished reports and sto%/holder information+ the %ompan) is usin' to improve the 8ualit) of its mar/etin' intelli'en%e! a! sales for%e surro'ates (! intermediaries %! e6ternal net#or/s d! advisor) panels e! %ustomer feed(a%/ s)stems "ns#er& % ?a'es& 74U75 Fevel of diffi%ult)& >ard 12! "ll of the follo#in' #ould (e %onsidered to (e steps to improve the 8ualit) of mar/etin' intelli'en%e in a %ompan) 9L39?! a! a %ompan) %an train and motivate the sales for%e to spot and report ne# developments (! a %ompan) %an use 'uerrilla ta%ti%s su%h as 'oin' throu'h a %ompetitorSs trash %! a %ompan) %an motivate intermediaries to pass alon' important information d! a %ompan) %an net#or/ e6ternall) e! a %ompan) %an pur%hase information from outside suppliers "ns#er& ( ?a'es& 74U76 Fevel of diffi%ult)& 9as)
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13! -he 2000 @!$! %ensus provides an in,depth loo/ at the population s#in's+ demo'raphi% 'roups+ re'ional mi'rations+ and %han'in' famil) stru%ture of 281X million people! 0hi%h of the follo#in' steps to improve the 8ualit) of %ompan) mar/etin' intelli'en%e s)stem #ould (e most %losel) asso%iated the a(ove illustration1 a! " %ompan) %an pur%hase information from outside suppliers! (! " %ompan) %an ta/e advanta'e of 'overnment data sour%es! %! " %ompan) %an use online %ustomer feed(a%/ s)stems to %olle%t data! d! " %ompan) %an net#or/ e6ternall)! e! " %ompan) %an use its sales for%e to %olle%t and report data! "ns#er& ( ?a'e& 76 Fevel of diffi%ult)& 9as) 14! -here are four main #a)s that mar/eters %an find relevant online information on %ompetitorsS produ%ts and #ea/nesses+ and summar) %omments and overall performan%e ratin' of a produ%t+ servi%e+ or supplier! is4are5 a t)pe of site that is %on%entrated in finan%ial servi%es and hi'h,te%h produ%ts that re8uire professional /no#led'e! a! Independent %ustomer 'oods and servi%e revie#s (! Distri(utor or sales a'ent feed(a%/ sites %! 3om(o,sites offerin' %ustomer revie#s and e6pert opinions d! 3ustomer %omplaint sites e! $hoppin' (ot servi%e sites "ns#er& % ?a'e& 77 Fevel of diffi%ult)& >ard 15! " is Qunpredi%ta(le+ short,lived+ and #ithout so%ial+ e%onomi%+ and politi%al si'nifi%an%e!R a! fad (! fashion %! trend d! me'atrend e! st)le "ns#er& a ?a'e& 77 Fevel of diffi%ult)& *edium 16! " is a dire%tion or se8uen%e of events that has some momentum and dura(ilit)A the
shape of the future is revealed and man) opportunities are provided! a! fad (! fashion %! trend d! me'atrend e! st)le "ns#er& %
?a'e& 77
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17! have (een des%ri(ed as Qlar'e so%ial+ e%onomi%+ politi%al and te%hnolo'i%al %han'es NthatO are slo# to form+ and on%e in pla%e+ the) influen%e us for some timeM(et#een seven and ten )ears+ or lon'er! a! Cads (! Cashions %! -rends d! *e'atrends e! $t)les "ns#er& d
?a'e& 77
18! 0hi%h of the follo#in' minorit) 'roups in the @nited $tates has (een asso%iated #ith one of the ten me'atrends shapin' the %onsumer lands%ape1 a! "fri%an "meri%ans (! "sian "meri%ans %! 9uropean "meri%ans d! >ispani% "meri%ans e! *iddle 9astern "meri%ans "ns#er& d ?a'e& 78 Fevel of diffi%ult)& *edium 19! -he (e'innin' of the ne# %entur) (rou'ht a series of ne# %hallen'es! "ll of the follo#in' #ould (e %onsidered to (e amon' those %hallen'es 9L39?a! a deterioration of innovative ideas (! steep de%line of the sto%/ mar/et %! in%reasin' unemplo)ment d! %orporate s%andals e! the rise of terrorism "ns#er& a ?a'e& 78 !
20! 0ith the rapidl) %han'in' 'lo(al pi%ture+ the firm must monitor si6 ma2or for%es! "ll of the follo#in' #ould (e amon' those for%es 9L39?! a! (! %! d! e! demo'raphi% e%onomi% so%ial,%ultural natural promotional "ns#er& e
?a'e& 78
Fevel of diffi%ult)& 9as) !
21! -he main demo'raphi% for%e that mar/eters monitor is4are5 a! (! %! d! e!
suppliers %ompetitors %ommuni%ation 4su%h as advertisin'5 'overnment reports dealin' #ith (irth rates population "ns#er& e ?a'e& 79 Fevel of diffi%ult)& 9as)
22! -he population e6plosion has (een a sour%e of ma2or %on%ern! @n%he%/ed population 'ro#th and %onsumption %ould eventuall) result in all of the follo#in' 9L39?!
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a! insuffi%ient food suppl) (! depletion of /e) minerals %! over%ro#din' d! restri%tions on %ompetition e! pollution "ns#er& d ?a'e& 79
23! :ne impa%t of e6plosive population 'ro#th is illustrated () the %ase of 3hina! -he 3hinese 'overnment passed re'ulations limitin' families to one %hild! :ne %onse8uen%e of these re'ulations is that ! a! the %hildren are so fussed over and spoiled that the) (e%ome Qlittle emperorsR (! s%hool enrollments are droppin' %! the fled'lin' automotive (usiness in 3hina #ill not have %ustomers in a fe# )ears d! open re(ellion is (ein' prea%hed e! Q%hild,oriented (usinessesR have fe# %ustomers "ns#er& a ?a'e& 80 Fevel of diffi%ult)& *edium 24! " si'nifi%ant fa%t a(out population 'ro#th and population shifts is that in 2004 or 2005+ a! the )outh mar/et #ill e6%eed that of the adult mar/et (! people over the a'e of 60 #ill outnum(er those under five )ears of a'e %! (a() (oomers #ill (e e%lipsed () <en L )oun' adults d! most a'e 'roup se'ments #ill (e a(out e8ual e! <en I )oun' adults #ill surpass the (a() (oomers as the lar'est a'e se'ment "ns#er& ( ?a'e& 80 Fevel of diffi%ult)& >ard 25! 0hi%h of the follo#in' a'e 'roups is thou'ht to %ontrol three,8uarters of the %ountr)Ss #ealth1 a! 0U20 a'e se'ment (! 60X a'e se'ment %! 20U30 a'e se'ment d! 30U40 a'e se'ment e! 40X a'e se'ment "ns#er& e ?a'e& 81 Fevel of diffi%ult)& >ard !
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26! "t one time the @nited $tates #as %alled a Qmeltin' potR so%iet) (e%ause of the num(er of different %ultures that #ere inte'rated into the @!$! %ulture! -oda)+ the @nited $tates is des%ri(ed as a so%iet) (e%ause man) ethni% 'roups are maintainin' their ethni% differen%es+ nei'h(orhoods+ and %ultures! a! Q(oilin' potR (! Qsalad (o#lR %! Q(anana splitR d! Qdou(led upR e! Qnon,%ommuni%ativeR "ns#er& ( ?a'e& 81 Fevel of diffi%ult)& *edium 27! "%%ordin' to the 2000 %ensus+ the @!$! population of 276!2 million #as 72 per%ent #hite and per%ent "fri%an "meri%an! -he remainder %onsisted of >ispani% "meri%ans and other minorities! a! 20 (! 18 %! 15 d! 13 e! 11 "ns#er& d ?a'e& 81 Fevel of diffi%ult)& >ard 28! Diversit) 'oes (e)ond ethni% and ra%ial mar/ets! *ore than million "meri%ans have disa(ilities+ and the) %onstitute a mar/et for home deliver) %ompanies 4and others5! a! 50 (! 40 %! 30 d! 20 e! 10 "ns#er& a ?a'e& 83 Fevel of diffi%ult)& >ard 29! 0hi%h of the follo#in' %ountries is /no#n for havin' 99 per%ent of its population literate1 a! 9n'land (! <erman) %! Cran%e d! @nited $tates e! ;apan "ns#er& e ?a'e& 83 Fevel of diffi%ult)& *edium
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30! -he household %onsists of a hus(and+ #ife+ and %hildren 4and sometimes 'randparents5! a! QtraditionalR (! Qe6tendedR %! Qdiversit)R d! QmodernR e! QrevisedR "ns#er& a ?a'e& 83 Fevel of diffi%ult)& *edium 31! *arried %ouple householdsMthe dominant %ohort sin%e the formulation of the @nited $tatesMhas slipped from nearl) 80 per%ent in the 1950s to around per%ent toda)! a! 70 (! 60 %! 50 d! 40 e! 35 "ns#er& % ?a'e& 83 Fevel of diffi%ult)& >ard 32! -he t#ent),first %entur) sa# mar/ets 'ro# more rapidl) a'ain due to a hi'her (irth rate+ a lo#er death rate+ and rapid 'ro#th from forei'n immi'ration! a! su(ur(an (! ur(an %! rural d! %oastal e! se%ondar) "ns#er& ( ?a'e& 84 Fevel of diffi%ult)& *edium 33! -he movement () population to the has lessened the demand for #arm %lothin' and home heatin' e8uipment and in%reased demand for air %onditionin'! a! <rain(elt (! ?a%ifi% Gorth#est %! $un(elt d! *id,3oastal areas e! >eartland "ns#er& % ?a'e& 84 Fevel of diffi%ult)& 9as)
367
34! *ar/eters loo/ at #here %onsumers are 'atherin'! "lmost one in people over the a'e of five 4120 million5 moved at least one time (et#een 1995 and 2000+ a%%ordin' to a 3ensus 2000 (rief! a! t#o (! three %! four d! five e! ten Answer: a Page: %5 Level of difficulty: #ard
35! In #hi%h of the follo#in' e%onomies #ould #e e6pe%t to find fe# opportunities for mar/eters1 a! Industriali.in' e%onomies! (! Fand,lo%/ed e%onomies! %! 7a#,material,e6portin' e%onomies! d! Industrial e%onomies! e! $u(sisten%e e%onomies! "ns#er& e ?a'e& 86 Fevel of diffi%ult)& 9as) 36! "%%ordin' to information presented in the te6t+ #hi%h of the follo#in' %ountries is surprisin'l) a ver) 'ood mar/et for Fam(or'hini automo(iles 4%ostin' more than V150+0005 (e%ause of the num(er of #ealth) families that %an afford e6pensive %ars! a! <ree%e (! $#it.erland %! >olland d! 7ussia e! ?ortu'al "ns#er& e ?a'e& 86 Fevel of diffi%ult)& >ard 37! :ver the past three de%ades in the @nited $tates+ the ri%h have 'ro#n ri%her and the middle %lass has ! a! sta)ed a(out the same (! shrun/ %! in%reased sli'htl) d! mat%hed the ri%h in terms of relative 'ro#th e! (een i'nored (e%ause of pro(lems #ith the poorer %lasses "ns#er& ( ?a'e& 86 Fevel of diffi%ult)& *edium 38! shapes the (eliefs+ values+ and norms that lar'el) define the tastes and preferen%es! a! *ar/etin' (! -he mass media %! <overnment d! ?rodu%tion innovation and en'ineerin' e! $o%iet) "ns#er& e ?a'e& 87 Fevel of diffi%ult)& *edium 39! If a %onsumer lives the lifest)le of a Qpleasure see/erR or 'oes on a Qself,reali.ationR 8uest+ he or she is e6pressin' #hat is %alled ! a! vie#s of others (! vie#s of so%iet) %! vie#s of themselves d! vie#s of or'ani.ations e! vie#s of the universe "ns#er& % ?a'es& 87U88 Fevel of diffi%ult)& 9as)
368
40! "%%ordin' to the information found in the so%ial,%ultural environment+ #ith respe%t to views of others, are %onsidered to (e thin's that allo# people #ho are alone to feel the) are not 4e!'!+ television+ home video 'ames+ and %hat rooms on the Internet5! a! so%ial surro'ates (! su(liminal fantasies %! relationship avoidan%e d! primar) produ%ts e! se%ondar) produ%ts "ns#er& a ?a'e& 88 Fevel of diffi%ult)& *edium 41! -oda)+ %orporations need to ma/e sure that the) are 'ood %orporate %iti.ens and that their %onsumer messa'es are honest! $u%h a vie# #ould (e %onsistent #ith #hi%h of the follo#in' vie#s1 a! Hie#s of others! (! Hie#s of or'ani.ations! %! Hie#s of themselves! d! Hie#s of the universe! e! Hie#s of so%iet)! "ns#er& ( ?a'e& 88
42! ?eople var) in their attitudes to#ard their so%iet)! usuall) live more fru'all)+ drive smaller %ars+ and #ear simpler %lothin'! a! *a/ers (! 9s%apers %! $ee/ers d! 3han'ers e! Developers "ns#er& d ?a'e& 88 Fevel of diffi%ult)& >ard
369
43! ?eople var) in their attitudes to#ard so%iet) and rea%t a%%ordin'l)! movies+ musi%+ surfin'+ and %ampin'! a! *a/ers (! ?reservers %! 9s%apers d! 3han'ers e! Developers "ns#er& % ?a'e& 88 Fevel of diffi%ult)& 9as) are a ma2or mar/et for
44! "ll of the follo#in' have (een %ited () the te6t as (ein' amon' "meri%ansS %ore values 9L39?! a! the) (elieve in #or/ (! the) (elieve in 'ettin' married %! the) (elieve in 'ivin' to %harit) d! the) (elieve in (ein' honest e! the) (elieve in se6ual permissiveness "ns#er& e ?a'e& 88 Fevel of diffi%ult)& 9as) 45! 0hi%h of the follo#in' #ould (e the (est illustration of a se%ondar) (elief or value1 a! Delief in #or/! (! Delief in 'ivin' to %harit)! %! Delief in 'ettin' married! d! Delief in 'ettin' married earl)! e! Delief in (ein' honest! "ns#er& d ?a'e& 88 Fevel of diffi%ult)& *edium 46! 0hi%h of the follo#in' is () far the most popular "meri%an leisure a%tivit) in that it is preferred () 59 per%ent of adults #ho parti%ipate in su%h a%tivities1 a! <ardenin'! (! 0al/in' for e6er%ise! %! $#immin'! d! ?hoto'raph)! e! ;o''in' or runnin'! "ns#er& ( ?a'e& 89 Fevel of diffi%ult)& *edium 47! 9a%h so%iet) %ontains e6perien%es or %ir%umstan%es! a! demo'raphi% se'ments (! %li8ues %! %onsumer (undles d! su(%ultures e! (ehavioral ni%hes "ns#er& d ?a'e& 89 + 'roups #ith shared values emer'in' from their spe%ial life
370
48! 0hi%h of the follo#in' #ould (e the (est illustration of a su(%ulture1 a! " soft(all team! (! " universit) alumni asso%iation! %! -eena'ers! d! " Do) $%out troop! e! Cre8uent fl)ers! "ns#er& % ?a'e& 89
49! "ll of the follo#in' 9L39?have (een found to influen%e )oun' people toda) and %ause a shift of se%ondar) %ores values for this 'roup! a! @2Ss Dono! (! 9lvis ?resle)! %! -he GD"Ss FeDron ;ames! d! <olfSs -i'er 0oods! e! $/ate(oarder -on) >a#/! "ns#er& ( ?a'e& 89 Fevel of diffi%ult)& 9as) 50! "lthou'h %ore values are fairl) persistent+ %ultural s#in's do ta/e pla%e! in the 1960s! a! Cord *otor 3ompan) (! <eor'e *%<overn %! <!I! ;oe a%tion %hara%ters d! -he infomer%ial e! -he Deatles "ns#er& e ?a'e& 89 Fevel of diffi%ult)& *edium %aused su%h a s#in'
51! *ar/eters need to (e a#are of threats and opportunities asso%iated #ith four trends in the natural environment! "ll of the follo#in' are amon' those trends 9L39?! a! the shorta'e of ra# materials (! the in%reased %ost of ener') %! near 90 per%ent %orporate support for Q'reen %ausesR d! in%reased pollution levels e! the %han'in' role of 'overnments "ns#er& % ?a'e& 90 Fevel of diffi%ult)& 9as) 52. 0ith respe%t to the shorta'e of ra# materials+ air and #ater are %lassified as >o#ever+ as #e /no#+ pro(lems are (e'innin' to pla'ue (oth our air and #ater 8ualit)! a! infinite (! near finite %! finite rene#a(le d! finite nonrene#a(le e! a(solute "ns#er& a ?a'e& 90 Fevel of diffi%ult)& *edium resour%es!
371
53! :ne finite nonrene#a(le resour%e+ + has %reated serious pro(lems for the #orld e%onom)! De%ause of anti%ipated shorta'es+ investment and %ommodit) mar/ets have had #ild s#in's! a! #ater (! air %! su'ar d! %offee e! oil "ns#er& e ?a'e& 90 Fevel of diffi%ult)& 9as) 54! Crom a (randin' perspe%tive+ Q'reen mar/etin'R pro'rams have not (een entirel) su%%essful! has (een %ited as one of the o(sta%les that must (e over%ome for Q'reen mar/etin'R pro'rams to (e more su%%essful! a! :vere6posure and la%/ of %redi(ilit) (! >i'h %ost %! ?oor promotions d! 7esistan%e () the )outh se'ment in the mar/etpla%e e! Fa%/ of support () 'overnmental a'en%ies and %on%erns "ns#er& a ?a'e& 91 Fevel of diffi%ult)& >ard 55! 0hi%h of the follo#in' %ountries is noted for their Q'reen movementR and support #ithin its 'overnment for environmental 8ualit) enhan%ement1 a! *e6i%o (! 3hina %! <erman) d! 9n'land e! Ital) "ns#er& % ?a'e& 91 Fevel of diffi%ult)& *edium 56! -he mar/eter should monitor the follo#in' trends in te%hnolo')+ 9L39?is to (e made in (usiness! a! the pa%e of %han'e (! the diffi%ulties found in sharin' information %! the opportunities for innovation d! var)in' 7PD (ud'ets e! in%reased re'ulation "ns#er& ( ?a'e& 92 Fevel of diffi%ult)& >ard 57! "%%ordin' to some industr) anal)sts and inventors+ #ill eventuall) e%lipse the ?3 as our most important te%hnolo'i%al devi%e! a! i?od (! >D-H %! holo'raphi% television d! the mo(ile phone e! solar,po#ered %ar "ns#er& d ?a'e& 92 Fevel of diffi%ult)& *edium 58! "ll of the follo#in' #ill most li/el) (e amon' the advanta'es for a so%iet) that em(ra%es tele%ommutin' as an emplo)mentT%ommuni%ation alternative 9L39?! a! redu%tion of auto pollution (! (rin'in' the famil) %loser to'ether %! in%reased (onuses and %ompensation per/s d! %reatin' more home,%entered shoppin' e! entertainment %entered on the home environment "ns#er& % ?a'e& 92 Fevel of diffi%ult)& *edium + if pro'ress
372
59! le'islation has as its purposes to prote%t %ompanies from unfair %ompetition+ to prote%t %onsumers from unfair (usiness pra%ti%es+ and to prote%t the interests of so%iet) from un(ridled (usiness (ehavior! a! Dusiness (! 3onsumer %! Di,partisan d! "%tivist e! <lo(al "ns#er& a
?a'e& 94
60! "n important for%e affe%tin' (usiness is the Ma movement of %iti.ens and 'overnment or'ani.ed to stren'then the ri'hts and po#ers of (u)ers in relation to sellers! a! lo(()ist movement (! %onsumerist movement %! environmental movement d! self,ri'hts movement e! ethi%al reform movement "ns#er& ( ?a'e& 95 Fevel of diffi%ult)& *edium
373
+,-.te( 2$3 T-..in0 into G'o=-' M-(1ets

1! 7ed Dull has 'ained 'lo(al )outh! of the #orld#ide ener') drin/ mar/et () s/illfull) %onne%tin' #ith
a! 70 per%ent (! 80 per%ent %! 60 per%ent d! 50 per%ent e! 90 per%ent "ns#er& a
?a'e& 667
2! 7ed Dull (uilt (u.. a(out the produ%t throu'h its ! a! Q(u.. mar/etin' pro'ramR (! Qin pro'ramR %! Qmar/etin' pro'ramR d! Qseedin' pro'ramR e! Qadvertisin' %ampai'nR "ns#er& d ?a'e& 667 Fevel of diffi%ult)& *edium 3! " 'lo(al industr) is defined as ! a! an industr) in #hi%h the strate'i% positions of %ompetitors are fundamentall) affe%ted () their overall 'lo(al positions (! an industr) that operates in more than one %ountr) and %aptures 7PD+ mar/etin'+ and other finan%ial advanta'es in its %osts and reputation! %! an industr) that operates in more than one %ountr) and has a strate'i% position in man) %ountries d! a firm that operates in more than one %ountr) and has a sales and mar/etin' staff in those %ountries e! an industr) that has strate'i% positions in man) %ountries (ut is not affe%ted () %ompetition "ns#er& a ?a'e& 668 Fevel of diffi%ult)& *edium
374
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 4! " 'lo(al firm is one that ! a! #here the strate'i% positions of %ompetitors are fundamentall) affe%ted () their overall 'lo(al positions (! operates in more than one %ountr) and %aptures 7PD+ mar/etin'+ and other finan%ial advanta'es in its %osts and reputation %! operates in more than one %ountr) and has a sales and mar/etin' staff in those %ountries d! operates in more than one %ountr) and has a sales and mar/etin' staff in those %ountries developin' e! has strate'i% positions in man) %ountries (ut is not affe%ted () %ompetition resear%hin' "ns#er& ( ?a'e& 668 Fevel of diffi%ult)& *edium 5! International trade in 2003 a%%ounted for over of @!$! <D? up from 11 per%ent in 1970! a! one,third (! one,ei'hth %! one,half d! one,8uarter e! 18 per%ent "ns#er& d ?a'e& 668 Fevel of diffi%ult)& 9as) 6! <lo(al firms plan+ operate+ and a! produ%e (! %oordinate %! distri(ute d! pri%e e! servi%e "ns#er& ( ?a'e& 668 their a%tivities on a #orld#ide (asis!
7! -he ma2or de%isions in international mar/etin' in%lude #hi%h of the follo#in' steps1 a! De%idin' #hether to 'o a(road! (! De%idin' #hi%h mar/ets to enter! %! De%idin' ho# to enter the mar/et! d! De%idin' on the mar/etin' pro'ram! e! "ll of the a(ove! "ns#er& e ?a'e& 669 Fevel of diffi%ult)& *edium 8! -he internationali.ation pro%ess has four sta'es! -hese sta'es are a! no re'ular e6port a%tivities (! e6port via independent representatives 4a'ents5 %! esta(lishment of one or more sales su(sidiaries d! esta(lishment of produ%tion fa%ilities a(road e! all are part of the internationali.ation pro%ess "ns#er& e ?a'e& 670 Fevel of diffi%ult)& *edium !
375
9! *ost firms #or/ #ith an and enter a near() or similar %ountr)!
a! independent a'ent (! %ontra%tual e6port department %! importTe6port department d! fran%hisee e! mana'ement %ontra%t "ns#er& a ?a'e& 670
10! " Q#aterfallR approa%h to international mar/etin' is defined as ! a! %ountries that are 'raduall) entered se8uentiall) (! %ountries in #hi%h the demand for the produ%t is 'reatest is entered first %! %ountries in #hi%h the demand for the produ%t is 'reatest is entered last d! %ountries in #hi%h the suppl) of ra# material is 'reatest is entered first e! %ountries are entered (ased upon ease of entr) "ns#er& a ?a'e& 671 Fevel of diffi%ult)& *edium 11! " Qsprin/lerR approa%h to international mar/etin' is defined as ! a! %ountries that are entered #hen timin' is ri'ht (! %ountries that are 'raduall) entered se8uentiall) %! %ountries in #hi%h the suppl) of ra# material is 'reatest is entered first d! %ountries in #hi%h the demand for the produ%t is 'reatest is entered first e! man) %ountries are entered simultaneousl) #ithin a limited period of time "ns#er& e ?a'e& 671 Fevel of diffi%ult)& *edium 12! -he developed nations and the prosperous parts of developin' nations a%%ount for less than of the #orldSs population! a! 10 per%ent (! 15 per%ent %! 20 per%ent d! 25 per%ent e! 30 per%ent "ns#er& ( ?a'e& 671 Fevel of diffi%ult)& 9as) 13! *ar/eters must %han'e their %onventional mar/etin' to sell their produ%ts to developin' %ountries! :ne of the %han'es that mar/eters %an ma/e is to ! a! redu%e the pri%e of the produ%t (ut in%rease the pa%/a'in' si.e (! redu%e the si.e (ut /eep the pri%in' the same %! redu%e the pri%e of the produ%t d! redu%e the si.e and pri%e of the pa%/a'in' e! in%rease the pri%e and the pa%/a'in' si.e (e%ause these %ountries have never seen the produ%t (efore "ns#er& d ?a'e& 671 Fevel of diffi%ult)& *edium
376
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 14! Ca%tors that influen%e the Qattra%tivenessR of a %ountr) to enter in%lude #hi%h of the follo#in'1 a! produ%t+ 'eo'raph)+ in%ome and population+ politi%al %limate+ and other fa%tors (! produ%t+ 'eo'raph)+ in%ome+ %limate+ and sour%e of in%ome %! population+ in%omes+ %ompetition+ and politi%al %limate d! in%omes+ profit potentials+ %ompetition+ and %limate e! in%omes+ families+ %ompetition+ and %ultural differen%es "ns#er& a ?a'e& 671 Fevel of diffi%ult)& *edium 15! 7e'ional e%onomi% inte'ration is defined as ! a! a'reements (et#een individual firms for the sa/e of %ommer%e (! tradin' a'reements (et#een individual %ountries %! tradin' a'reements (et#een individual firms d! tradin' a'reements (et#een %ountries and firms e! tradin' a'reements (et#een (lo%s of %ountries "ns#er& e ?a'e& 673 Fevel of diffi%ult)& 9as)
16! -he 9uropean @nion founded in 1957 added 25 %ountries! in *a) 2004 (rin'in' its total mem(ership to
a! 10 %ountries (! 5 %ountries %! 20 %ountries d! 6 %ountries e! 4 %ountries "ns#er& a
?a'e& 673
17! G"C-" esta(lished a free trade .one (et#een #hat three %ountries1 a! 3anada+ *e6i%o+ and $outh "meri%a (! 3anada+ *e6i%o+ and ?eru %! *e6i%o+ $outh "meri%a+ and the @nited $tates d! 3anada+ *e6i%o+ and the @nited $tates e! 3anada+ *e6i%o+ and ;apan "ns#er& d ?a'e& 673 Fevel of diffi%ult)& *edium 18! *973:$@F is a free trade .one lin/in' #hi%h of the follo#in' $outh "meri%an %ountries1 a! *e6i%o+ ;apan+ Dra.il+ and ?ara'ua) (! *e6i%o+ Dra.il+ and ?ara'ua) %! Dra.il+ "r'entina+ and ?ara'ua) d! 3anada+ Dra.il+ and ?ara'ua) e! Dra.il+ "r'entina+ ?ara'ua)+ and @ru'ua) "ns#er& e ?a'e& 673 Fevel of diffi%ult)& *edium
377
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS 19! *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** -he five modes of entr) into forei'n mar/ets 'enerall) flo# () in%reasin' !
%ommitment+ ris/+ %ontrol+ and profit potential as follo#s
a! indire%t e6portin'+ dire%t e6portin'+ li%ensin'+ 2oint ventures+ and dire%t investment (! dire%t investment+ 2oint ventures+ li%ensin'+ dire%t e6portin'+ and indire%t e6portin'! %! dire%t investment+ 2oint ventures+ and li%ensin' d! dire%t investment+ 2oint ventures+ li%ensin'+ and indire%t e6portin' e! none of the a(ove "ns#er& a ?a'e& 674 Fevel of diffi%ult)& >ard 20! In %hoosin' #hi%h %ountries to invest in+ %ompanies sometimes %hoose ps)%hi% pro6imit) to their o#n %ountr)! ?s)%hi% pro6imit) %an (est (e defined as ! a! %ountries %lose to the QhostR %ountr) in #hi%h the %ompan) feels %omforta(le #ith the lan'ua'e+ la#s+ and %ulture (! %ountries that Qmimi%R the host %ountr) in terms of lan'ua'e and %ulture %! %ountries that the host %ountr)Ss mana'ement team have visited d! %ountries %lose to the QhostR %ountr) in #hi%h the %ompan) feels that the) %an infiltrate 8ui%/l) and profita(le e! %ountries %lose to the QhostR %ountr) in #hi%h the %ompan) %an easil) transport their produ%ts "ns#er& a ?a'e& 674 Fevel of diffi%ult)& *edium 21! -he normal #a) to 'et involved in an international mar/et is throu'h e6portin'! :%%asional e6portin' is defined as a! (! %! d! e! !
#hen the %ompan) %arries on e6portin' a%tivities on the (ehalf of others #hen the %ompan) ma/es a %ommitment to e6pand into parti%ular mar/ets #hen the %ompan) #or/s throu'h independent a'ents #hen the %ompan) hires domesti%,(ased a'ents to ne'otiate forei'n pur%hases a passive level of involvement in #hi%h the %ompan) e6ports its produ%ts from time to time "ns#er& e ?a'e& 674 Fevel of diffi%ult)& *edium
22! "%tive e6portin' ta/es pla%e #hen the %ompan) to e6pand into a parti%ular mar/et!
a! (! %! d! e!
forms a Qs/un/R 'roup forms an e6port department hires an a'ent ma/es an effort ma/es a %ommitment "ns#er& e ?a'e& 674
378
23! Domesti%,(ased e6port mer%hants !
a! (u) the manufa%turerSs produ%ts and then sell them a(road (! (u) the manufa%turerSs produ%ts then sell them in the host %ountr) %! (u) the manufa%turerSs produ%ts then fine a'ents and %ustomers in forei'n %ountries d! see/ and ne'otiate forei'n pur%hases e! %arr) on e6portin' a%tivities on (ehalf of several produ%ers "ns#er& a ?a'e& 674 Fevel of diffi%ult)& >ard
24! Domesti% (ased e6port a'ents perform a valua(le servi%e for the %ompanies see/in' to enter forei'n mar/ets! -he primar) fun%tion of these a'ents is to !
a! %arr) on e6portin' a%tivities on (ehalf of several produ%ers (! (u) the manufa%turerSs produ%ts and then sell them a(road %! (u) the manufa%turerSs produ%ts then sell them in the host %ountr) d! see/ and ne'otiate forei'n pur%hases and are paid a %ommission on those sales e! e6port produ%ts to forei'n %ountries "ns#er& d ?a'e& 674 Fevel of diffi%ult)& *edium 25! 3ompan)Ss prefer to enter a %ountr) that ran/s hi'h on mar/et attra%tiveness+ lo# in mar/et ris/s and ! a! in #hi%h it #ould possesses a %ompetitive advanta'e (! turn a 8ui%/ profit %! a(le to dominate its forei'n %ompetitors throu'h superior produ%t desi'n and performan%e d! 'ain a dominate mar/et share #ithin one )ear of e6portin' e! in%rease its forei'n mar/et share () 50 per%ent in one )ear "ns#er& a ?a'e& 674 Fevel of diffi%ult)& *edium 26! Indire%t e6port has t#o advanta'es for the firm! Cirst in involves less investment for the firm and se%ondl) it ! a! involves less paper#or/ (! involves less intrusion () the 'overnment %! involves less ris/ d! involves less people to mana'e the pro%ess e! involves less produ%ts and produ%t lines "ns#er& % ?a'e& 675 Fevel of diffi%ult)& *edium 27! " %ompan) %an %arr) on dire%t e6portin' in several #a)s! -hese in%lude domesti%, (ased e6port department or division+ overseas sales (ran%h or su(sidiar)+ travelin' e6port sales representatives+ and ! a! forei'n,(ased distri(utors or a'ents (! mar/etin' departments (ased in the forei'n %ountr) %! e6port mer%hants in forei'n %ountries d! e6port mana'ement %ompanies e! none of the a(ove "ns#er& a ?a'e& 675 Fevel of diffi%ult)& *edium
379
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 28! "%%ordin' to the te6t+ $haper Ima'e re%eives more than of its online (usiness form overseas %ustomers! a! 15 per%ent (! 30 per%ent %! 25 per%ent d! 40 per%ent e! 10 per%ent "ns#er& % ?a'e& 675 Fevel of diffi%ult)& >ard 29! Q<oin' a(roadR usin' the Internet has its %hallen'es! :ne of the %hallen'es that a 'lo(al mar/eter ma) run up a'ainst #hen usin' the 0e( are ! a! %ultural restri%tions (! lan'ua'e (arriers %! pri%in' pro%edures d! monetar) e6%han'es e! lo'isti%al limitations "ns#er& a ?a'e& 675 Fevel of diffi%ult)& *edium 30! Fi%ensin' is a simple #a) to (e%ome involved in international mar/etin'! In li%ensin'+ the li%ensor issues a li%ense to a forei'n %ompan) to use a pro%ess+ trademar/+ patent+ or trade se%ret for a4n5 ! a! limited period of time (! fee or ro)alt) %! e6%han'e of information or propriet) information d! e6%han'e for a%%ess to the mar/et pla%e e! e6%han'e for QtheirR pro%ess+ trademar/+ patent+ or se%ret "ns#er& ( ?a'e& 676 Fevel of diffi%ult)& 9as) 31! 3ompanies su%h as *arriott and >)att sell a variation of the li%ensin' a'reement %alled to the o#ners of forei'n hotels to mana'e these (usinesses for them in forei'n %ountries! a! %ontra%t manufa%turin' (! mana'ement %ontra%ts %! fran%hisin' d! hotel mana'ement li%ensin' e! none of the a(ove "ns#er& ( ?a'e& 676 Fevel of diffi%ult)& *edium
380
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 32! In + the firm hires lo%al manufa%turers to produ%e the produ%t! -his 'ives the %ompan) less %ontrol over the manufa%turin' pro%ess and loss of profits of the manufa%turin' effi%ien%ies! a! %ontra%t manufa%turin' (! mana'ement %ontra%ts %! li%ensin' d! fran%hisin' e! none of the a(ove "ns#er& a ?a'e& 676 Fevel of diffi%ult)& 9as) 33! " %ompan) %an enter a forei'n mar/et throu'h + #hi%h is a %omplete form of li%ensin' in #hi%h the %ompan) offers a %omplete (rand %on%ept and operatin' s)stem desi'ned to ensure that the operates a%%ordin' to the re8uirements of the li%ensor! a! %ontra%t manufa%turesTli%ensor (! %ontra%t mana'ementTfirm %! mana'ement %ontra%tsTfirm d! 2oint ventureTfirm e! fran%hisin'Tfran%hisor "ns#er& e ?a'e& 676 Fevel of diffi%ult)& *edium 34! -he definition of a 2oint venture %ompan) is one ! a! in #hi%h forei'n inventors 2oin #ith lo%al investors #here the) share o#nerships and %ontrol (! in #hi%h t#o people or more o#n the firm 2ointl) %! #here forei'n investors 2oin #ith others to o#n the firm d! #here o#nership () lo%al and distant investors in share o#nership of a fran%hise e! #here o#nership is () investors of forei'n firms "ns#er& a ?a'e& 676 Fevel of diffi%ult)& *edium 35! " 2oint venture ma) (e ne%essar) or desira(le for e%onomi% or politi%al reasons! "dditionall)+ a forei'n firm mi'ht la%/ the + or mana'erial resour%es to underta/e the venture alone! a! resour%e+ %ompeten%) (! finan%ial+ ph)si%al %! finan%ial+ #illin'ness d! politi%al+ finan%ial e! politi%al+ %ompeten%) "ns#er& ( ?a'e& 677 Fevel of diffi%ult)& *edium
381
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 36! In an adapted mar/etin' mi6+ the produ%ersS the mar/etin' pro'ram to ea%h tar'et mar/et! a! redu%e the importan%e of ea%h element of the mar/etin' pro'ram to ad2ust for %ost differential (et#een %ountries (! de%ide on #hi%h element of the mar/etin' mi6 to %han'eT%ountr)Ttar'et mar/et prior to enterin' the %ountr) %! adapt the %ommuni%ations messa'e to the host %ountr) d! %han'e onl) one element of the mar/etin' mi6T%ountr) e! ad2ust "ns#er& e ?a'e& 677 Fevel of diffi%ult)& *edium 37! International %ompanies must de%ide on ho# mu%h to adapt their mar/etin' strate') to lo%al %onditions! "t one e6treme are %ompanies that use a 'lo(all) standardi.ed mar/etin' mi6 #orld#ide! " standardi.ed mar/etin' mi6 in%ludes ! a! a %on%entri% strate') #hi%h in%ludes the produ%t+ inte'rated mar/etin' %ommuni%ations mi6+ and distri(ution strate') (! standardi.ation of the produ%t+ %ommuni%ation+ and distri(ution %hannels promisin' lo#est %osts! %! %han'es onl) to the produ%t /eepin' distri(ution %hannels and mar/etin' %ommuni%ations %onsistent a%ross %ountries d! %han'in' onl) the distri(ution %hannels to a%%ommodate the host %ountr) e! %han'es onl) to the produ%t and %ommuni%ation messa'e "ns#er& ( ?a'e& 677 Fevel of diffi%ult)& *edium 38! -he ultimate form of forei'n involvement is dire%t o#nership of forei'n,(ased assem(l) or manufa%turin' fa%ilities! :ne of the advanta'es of dire%t o#nership %an in%lude e%onomies of s%ale+ %reatin' 2o(s in the host %ountr)+ developin' deeper relations #ith lo%al suppliers et%etera and the firm ! a! retains full %ontrol over its investment (! revie#s 'lo(al outrea%h pro2e%tions %! redefines the (usiness %on%ept d! revie#s the su%%esses from e,%ommer%e e! re%eives no disadvanta'es to dire%t investment "ns#er& a ?a'e& 677 Fevel of diffi%ult)& *edium 39! >ofstede identifies four %ultural dimensions that %an differentiate %ountries! -hese are individualism versus %olle%tivism+ hi'h versus lo# po#er distan%es+ mas%uline versus feminine+ and ________. a! %ustomer relationship mana'ement versus po#er distan%es (! strate'i% mana'ement versus mar/etin' mana'ement %! #ea/ versus stron' un%ertaint) avoidan%e d! total 8ualit) mana'ement versus ;I- deliveries e! mar/etin' mana'ement versus %ustomer relationships "ns#er& % ?a'e& 677 Fevel of diffi%ult)& *edium
382
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 40! $trai'ht e6tension of the produ%t means ! a! introdu%in' the produ%t to the forei'n mar/et #ithout an) %han'es to the produ%t! (! introdu%in' the produ%t to the forei'n mar/et #ithout ma2or %han'es to the produ%t %! introdu%in' the produ%t to the forei'n mar/et #ith ma2or %han'es to the produ%t d! introdu%in' the produ%t to the forei'n mar/et #ith no ma2or mar/etin' pro'ram e! not introdu%in' the produ%t to the forei'n mar/et until %han'es have (een made "ns#er& a ?a'e& 678 Fevel of diffi%ult)& *edium 41! "n advanta'e of 'lo(al mar/etin' is that it %an lo#er mar/etin' %osts+ has e%onomies of s%ale in produ%tion and distri(ution+ %an produ%e %onsisten%) in (rand ima'e+ has the a(ilit) to levera'e 'ood ideas 8ui%/l) and effi%ientl)+ and ! a! is easier to adapt to forei'n %ountries (! allo#s for the same messa'e to (e used #orld#ide %! allo#s for individual %ountries to add their spe%ifi% needs to the messa'e d! is easier for %orporations to evaluate the mar/etin' messa'e e! allo#s for uniformit) of mar/etin' pra%ti%es "ns#er& e ?a'e& 678 Fevel of diffi%ult)& >ard 42! ?rodu%t adaptation involves ! a! alterin' the produ%t to meet lo%al %onditions or preferen%es (! alterin' the produ%t to meet minimum a%%epta(le standards %! %han'in' the produ%t periodi%all) d! up'radin' the produ%t on a periodi% (asis e! %han'in' the produ%t to meet %ompetition "ns#er& a ?a'e& 679 Fevel of diffi%ult)& *edium 43! " firm %an su%%essful introdu%e four versions of its produ%ts into a forei'n %ountr) or a firm ma) sele%t one of these for in%lusion! -hese versions in%lude ! a! %ustomer version+ re'ional version+ and %it) version (! %ustomer version+ %ountr) version+ and retailer version %! re'ional version+ %ountr) version+ %it) version+ and retailer version d! %ustomer version+ re'ional version+ %it) version+ and retailer version e! re'ional version+ %ountr) version+ %it) version+ and mar/et versions "ns#er& % ?a'es& 680U681 Fevel of diffi%ult)& 9as) 44! ?rodu%t invention %onsists of %reatin' somethin' ne#! Da%/#ard invention is reintrodu%in' earlier produ%t forms that are #ell adapted to a forei'n %ountr)Ss needs! Cor#ard invention is ! a! %reatin' a ne# produ%t to meet a need in another %ountr) (! %reatin' a ne# produ%t to meet the need in the host %ountr) %! understandin' the differen%es (et#een host and forei'n %ountr) mar/ets d! in%reasin' the %ontrol over the development of ne# produ%ts e! inventin' somethin' that )et has a Qmar/etR "ns#er& a ?a'e& 681 Fevel of diffi%ult)& *edium
383
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 45! 3ompanies %an run the same mar/etin' %ommuni%ations pro'rams as used in the home mar/et or %han'e them for ea%h lo%al mar/et+ a pro%ess %alled ! a! produ%t %ommuni%ations (! (rand %ommuni%ations %! dual adaptation d! mar/etin' %ommuni%ations e! %ommuni%ation adaptation "ns#er& e ?a'e& 682 Fevel of diffi%ult)& *edium 46! *an) multinationals are pla'ued () the 'ra) mar/et pro(lem! -he 'ra) mar/et %onsists of ! a! the mar/etin' of produ%ts to older %onsumers (! (randed produ%ts diverted from normal distri(ution %hannels in the %ountr) of produ%t ori'in %! (randed produ%ts diverted from one %ountr) to another d! produ%ts (ein' repa%/a'ed from the intended %ountr) to a diverted %ountr) e! produ%ts not havin' full #arranties () the manufa%turer "ns#er& ( ?a'e& 682 Fevel of diffi%ult)& *edium 47! If a %ompan) adapts or %han'es (oth the produ%t and the %ommuni%ations+ the %ompan) en'a'es in a pro%ess %alled ! a! strai'ht e6tension (! mar/etin' %ommuni%ation %! produ%t adaptation d! dual adaptation e! full adaptation "ns#er& d ?a'e& 682 Fevel of diffi%ult)& *edium
48! -he use of media re8uires international adaptation (e%ause media availa(ilit) varies from %ountr) to %ountr)! Gor#a)+ Del'ium+ and Cran%e do not allo# %i'arettes and al%ohol to (e advertised on -D! "ustria and Ital) re'ulate -H advertisin' ! a! (et#een the hours of 9 p!m! and 6 a!m!
(! to %hildren %! for those under the a'e of ma2orit) d! re'ardin' %ontent and %larit) e! usin' #omen in advertisin' "ns#er& ( ?a'e& 683
384
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 49! " <u%%i (a' sells for V120 in Ital) and V240 in the @nited $tates! -his is an e6ample of #hen a firm tries to sell its produ%ts a(road! -his phenomenon is %alled a ! a! strate'i% mar/etin' pri%in' pro(lem (! mar/et pri%in' pro(lem %! ta%ti%al pri%in' pro(lem d! pri%e es%alation pro(lem e! transfer pri%in' pro(lem "ns#er& d ?a'e& 684 Fevel of diffi%ult)& *edium
50! " firm that %har'es a pri%e to another unit in the %ompan) sets the su(sidiaries! pri%e for 'oods that it ships to its forei'n
a! ori'inal pri%e (! transfer pri%e %! mar'in pri%e d! (rea/,even pri%e e! %ustomer value pri%e "ns#er& ( ?a'e& 684
51! -he %ost es%alation pro(lem e6ists for multinationals and varies from %ountr) to %ountr)A the 8uestion is& >o# to set pri%es in different %ountries1 3ompanies have three %hoi%es! :ne is to set a uniform pri%e ever)#here+ t#o is to set a mar/et,(ased pri%e in ea%h %ountr)+ and three is to ! a! set a final Q%ost plusR pri%e in ea%h %ountr) (! set a %ost,(ased pri%e in ea%h %ountr) %! let the mar/et di%tate pri%eT%ountr) d! var) the pri%eTmar/etT%ountr) on a dail) (asis to refle%t %onsumer demand e! set the transfer pri%e at mar'inal %osts Z mar'inal revenue "ns#er& ( ?a'e& 684 Fevel of diffi%ult)& >ard 52! In 2000 $tel%o a 3anadian steelma/er+ su%%essfull) fou'ht dumpin' %han'es a'ainst steelma/ers in Dra.il and other %ountries! QDumpin'R is defined or o%%urs #hen ! a! a %ompan) %har'es either less than its %osts or less than it %har'es in its home mar/et (! the %ompan) %har'es less that its %osts (ut more than it %har'es in its home mar/et %! the %ompan)Ss pri%in' plans are (elo# %urrent domesti% pri%es d! a %ompan) must in%rease its pri%esTprodu%t prior to importin' the produ%t e! a %ompan) unloads an e6%ess suppl) of the produ%t at the (est possi(le pri%es to the %onsumer "ns#er& a ?a'e& 684 Fevel of diffi%ult)& 9as)
385
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 53! -he Q#hole %hannel %on%ept for international mar/etin'R in%ludes the follo#in' steps ! a! seller to sellerSs international mar/etin' head8uarters to %hannels (et#een nations to %hannels #ithin forei'n nations to final (u)ers (! seller to mar/etin' head8uarters to %hannels #ithin forei'n mar/ets to final (u)ers %! sellers to %hannels (et#een nations to final (u)ers d! sellers to %hannels #ithin forei'n nations to final (u)ers e! sellers to international mar/ets to %hannels #ithin forei'n nations to final (u)ers "ns#er& a ?a'e& 685 Fevel of diffi%ult)& >ard 54! In an in%reasin'l) %onne%ted+ hi'hl) %ompetitive 'lo(al mar/etpla%e+ 'overnment offi%ials+ and mar/eters are %on%erned #ith ho# attitudes and (eliefs a(out their %ountr) affe%t %onsumer and (usiness de%ision,ma/in'! is4are5 the mental asso%iations and (eliefs tri''ered () a %ountr)! a! 3orporate o#nership of the firm (! *aterials used in manufa%turin' %! Drand names and trademar/s d! 3ountr),of,ori'in per%eptions e! 3ompetitive positions in the mar/etpla%e "ns#er& d ?a'e& 686 Fevel of diffi%ult)& *edium 55! " %ompan) has several options #hen its produ%ts are %ompetitivel) pri%ed (ut their pla%e of ori'in turns %onsumers off! -he %ompan) %an %onsider ! a! re,pa%/a'in' the produ%t to dis'uise the %ountr) of ori'in (! %o,(randin' %! redu%in' their %ountr) of ori'in mentions in their advertisin' d! re,(randin' the produ%t to dis'uise the %ountr) of ori'in e! %o,produ%tion #ith a forei'n %ompan) that has a (etter name! "ns#er& e ?a'e& 687 Fevel of diffi%ult)& *edium 56. *ost (rands are adapted to some e6tent to refle%t si'nifi%ant differen%es in + %ompetitive for%es+ and the le'al and politi%al environment! a! %onsumer (ehavior+ (rand development (! (usiness mission+ (rand development %! strate') and %onsumer (ehavior d! pro'rams and mar/etin' %ommuni%ations e! politi%al and so%ial mores differen%es "ns#er& a ?a'e& 677 Fevel of diffi%ult)& *edium +
386
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 57! Disadvanta'es to 'lo(al mar/etin' in%lude differen%es in %onsumer needs+ #ants+ and usa'e patterns for produ%tsA differen%e in %onsumer response to mar/etin',mi6 elementsA differen%es in (rand and produ%t development and the %ompetitive environmentA and ! a! differen%es in mar/etin' institutions (! differen%es in lan'ua'e and %onsumer e6pe%tations %! differen%es in produ%t performan%e d! differen%es in mana'ementSs rea%tion to the mar/etpla%e e! none of the a(ove "ns#er& a ?a'e& 678 Fevel of diffi%ult)& >ard
58! *ar/eters must also adapt sales promotion te%hni8ues to different mar/ets! $everal 9uropean %ountries have la#s preventin' or limitin' sales promotion tools su%h as dis%ounts! In <erman)+ FandsS 9nd %ould not advertise its !
a! #omanSs (athin' suits (! sale pri%e %! %lose,out spe%ials d! end,of,the,season sale e! mone),(a%/ 'uarantee "ns#er& e ?a'e& 683
59! 3ompanies %an mana'e their international mar/etin' a%tivities in three #a)s! -hese in%lude+ throu'h e6port departments+ international divisions+ ! a! or a 'lo(al or'ani.ation (! or from a fi6ed %orporate head8uarters %! or throu'h a stron' mar/etin' department in the QhostR %ountr) d! and throu'h lo%al mar/etin' efforts e! none of the a(ove
"ns#er& a ?a'e& 688 Fevel of diffi%ult)& *edium
60! Dartlett and <hoshal have identified three or'ani.ational strate'ies for international firms! -hese are& 415 a 'lo(al strate') treats the #orld as a sin'le mar/etA 425 a multinational strate') treats the #orld as a portfolio of national opportunitiesA and 435 !
a! a lo%al strate') standardi.es all of the lo%al elements (! the mar/etin' strate') identifies those elements assi'ned to a %ountr) and uses those elements plus %orporateSs %ontri(ution in the mar/etin' plan %! a Q'lo%alR strate') standardi.es %ertain %ore elements and lo%ali.es other elements d! assumes that there are no Qlo%alR or multinational differen%es in formulatin' the mar/etin' mi6 e! none of the a(ove "ns#er& % ?a'es& 689U690 Fevel of diffi%ult)& >ard
387
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61! *ar/eters are al#a)s loo/in' for emer'in' trends that su''est ne# mar/etin' opportunities! :ne su%h trend is the Qmetrose6ual!R 0hi%h of the follo#in' items #ould the metrose6ual most li/el) have some interest for1 a! "n ID* %omputer! (! -i%/ets to 00C #restlin'! %! $a6ophone lessons! d! "n all,over (od) spra) () "6e! e! 3o#(o) (oots made from elephant hide! "ns#er& d ?a'e& 173 Fevel of diffi%ult)& *edium 2! 88888888 is the stud) of ho# individuals+ 'roups+ and or'ani.ations sele%t+ (u)+ use+ and dispose of 'oods+ servi%es+ ideas+ or e6perien%es to satisf) their needs and #ants! a! -ar'et mar/etin' (! ?s)%ho'raphi% se'mentation %! ?s)%holo') d! 3onsumer (ehavior f! ?rodu%t differentiation "ns#er& d ?a'e& 173 Fevel of diffi%ult)& 9as) 3! -he fundamental determinant of a personSs #ants and (ehavior is the personSs ! a! ps)%he (! national ori'in %! %ulture d! peer 'roup e! famil) tree "ns#er& % ?a'e& 174 Fevel of diffi%ult)& *edium 4! " %hild 'ro#in' up in the @nited $tates is e6posed to all of the follo#in' values 9L39?! a! a%hievement and su%%ess (! a%tivit) %! effi%ien%) and pra%ti%alit) d! the importan%e of the 'roup in dail) life
388
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** e! freedom "ns#er& d ?a'e& 174 Fevel of diffi%ult)& *edium
389
5! 0hi%h of the follo#in' #ould (e the (est illustration of a su(%ulture1
a! " reli'ion! (! " 'roup of %lose friends! %! Iour universit)! d! " fraternit) or sororit)! e! Iour o%%upation! "ns#er& a ?a'e& 174
6! 0ith respe%t to fa%ts a(out the "meri%an %onsumer+ #hi%h of the follo#in' %onsumer ele%troni%s is o#ned () the vast ma2orit) of %onsumin' households #ith a 93 per%ent reportin' o#nership1
a! " personal %omputer! (! -iHo DH7! %! " %ellular phone! d! " mi%ro#ave oven! e! " H37! "ns#er& e ?a'e& 175 7!
is defined as (ein' relativel) homo'eneous and endurin' divisions in a so%iet)+ #hi%h are hierar%hi%all) ordered and #hose mem(ers share similar values+ interests+ and (ehavior! a! 3ulture (! $u(%ulture %! $o%ial %lass d! -he famil) e! " 'roup "ns#er& % ?a'e& 175 Fevel of diffi%ult)& *edium 8! $o%ial %lasses sho# distin%t produ%t and (rand preferen%es in all the follo#in' areas 9L39?! a! %lothin' (! home furnishin's %! leisure a%tivities d! automo(iles e! fast food "ns#er& e ?a'e& 176 Fevel of diffi%ult)& *edium 9! " personSs %onsist4s5 of all the 'roups that have a dire%t 4fa%e,to,fa%e5 or indire%t influen%e on hisTher attitudes or (ehavior! a! %ulture (! su(%ulture %! ps)%ho'raphi%s d! referen%e 'roups e! demo'raphi%s "ns#er& d ?a'e& 177 Fevel of diffi%ult)& *edium 10! "4n5 'roup is one #hose values or (ehavior an individual re2e%ts!
390
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** a! aspirational (! disasso%iative %! mem(ership d! primar) e! pro%reational "ns#er& ( ?a'e& 177 Fevel of diffi%ult)& 9as) 11! If a dire%t mail mar/eter #ished to dire%t promotional efforts to#ard the famil) of + efforts need to (e dire%ted to#ard parents and si(lin's of the famil) mem(ers! a! orientation (! pro%reation %! immedia%) d! intima%) e! referen%e "ns#er& a ?a'e& 177 Fevel of diffi%ult)& *edium 12! 96pe%ted to a%%ount for a 8uarter of the @!$! population () 2050+ fastest 'ro#in' minorit)! a! "fri%an "meri%ans (! "sian "meri%ans %! >ispani% "meri%ans d! 9uropean "meri%ans e! "ra(i% "meri%ans "ns#er& % ?a'e& 178 Fevel of diffi%ult)& 9as) are the
13! -he dominant %ohort+ #ith respe%t to families+ for the ne6t fift) )ears ma) ver) #ell (e the %ohort! a! married,%ouple household (! sin'le adults %! sin'le seniors d! married seniors e! married,%ouples #ith parents livin' #ith them "ns#er& ( ?a'e& 179 Fevel of diffi%ult)& >ard
14! >us(ands and #ives displa) different de%ision,ma/in' roles in most families! -he trend for dominant de%ision ma/in' in families is for to (e responsi(le for most of the de%isions!
a! (! %! d! e! "ns#er& %
the hus(and the #ife 2oint de%ision ma/in' 4(oth hus(and and #ife5 holisti% de%ision ma/in' %hild,oriented de%ision ma/in' ?a'e& 179 Fevel of diffi%ult)& *edium
391
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 15! -he Disne) 3hannel has (e%ome the %ompan)Ss %ash %o# for its a(ilit) to rea%h the underserved mar/etM8, to 14,)ear,olds! a! teen (! t#i6t %! mid, d! t#een e! )oun' adult "ns#er& d ?a'e& 179 Fevel of diffi%ult)& *edium 16! ?eople %hoose produ%ts that refle%t and %ommuni%ate their role and a%tual or desired in so%iet)! a! 'roup (! status %! attitudes d! (eliefs e! feelin's "ns#er& ( ?a'e& 180 Fevel of diffi%ult)& *edium 17! 3onsumption ma) (e shaped () a! the ps)%holo'i%al life %)%le (! the produ%t life %)%le %! the lifeTdeath life %)%le d! post,pu(ert) %)%les e! %riti%al life events or transitions "ns#er& e ?a'e& 181 4su%h as marria'e+ %hild(irth+ or divor%e5!
18! ?rodu%t %hoi%e is 'reatl) affe%ted () e%onomi% %ir%umstan%es! "ll of the follo#in' #ould (e amon' those %ir%umstan%es 9L39?! a! spenda(le in%ome (! savin's and assets %! de(ts d! o%%upation e! (orro#in' po#er "ns#er& d ?a'e& 182 Fevel of diffi%ult)& 9as) 19! is a set of distin'uishin' human ps)%holo'i%al traits that lead to relativel) %onsistent and endurin' responses to environmental stimuli! a! Ima'e (! ?ersonalit) %! Deliefs d! >eredit) e! 3ulture "ns#er& ( ?a'e& 182 Fevel of diffi%ult)& *edium
392
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 20! 0hen the *arl(oro *an #as depi%ted in advertisin' as a ru''ed outdoor+ tou'h %o#(o) t)pe+ this #as done to esta(lish #hat is %alled a ! a! trademar/ (! (rand name %! (rand personalit) d! ps)%holo'i%al approa%h to advertisin' e! (rand referen%e "ns#er& % ?a'e& 182 Fevel of diffi%ult)& *edium 21! portra)s the Q#hole personR intera%tin' #ith his or her environment! a! "ttitude (! 7eferen%e 'roup %! Fifest)le d! 3ulture e! $u(%ulture "ns#er& % ?a'e& 183 Fevel of diffi%ult)& *edium 22! 3onsumers toda) are e6perien%in' a time famine (e%ause of their (us) lifest)les! :ne #a) to avoid the diffi%ulties of time famine+ #hi%h is of parti%ular interest to mar/eters+ is ! a! to set fe#er 'oals (! to multitas/ %! to 'ive in to personal (urdens d! to report frustration to mana'ement e! to develop a %allous attitude to#ard mar/eters "ns#er& ( ?a'e& 183 Fevel of diffi%ult)& >ard 23! 0ith respe%t to understandin' %onsumer (ehavior+ there are four /e) ps)%holo'i%al pro%esses! "ll of the follo#in' #ould (e amon' those pro%esses 9L39?! a! motivation (! per%eption %! learnin' d! self,relian%e e! memor) "ns#er& d ?a'e& 184 Fevel of diffi%ult)& 9as) 24! " #hen it is aroused to a suffi%ient level of intensit)! a! need (e%omes a motive (! motive (e%omes a need %! desire (e%omes a realit) d! unfulfilled demand (e%omes a %risis e! personal demand e6%eeds the a(ilit) to rationall) re2e%t "ns#er& a ?a'e& 184 Fevel of diffi%ult)& >ard
393
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 25! assumed that the ps)%holo'i%al for%es shapin' peopleSs (ehavior are lar'el) un%ons%ious+ and that a person %annot full) understand his or her o#n motivations! a! "(raham *aslo# (! Crederi%/ >er.(er' %! $i'mund Creud d! ;ohn 3a%ioppo e! Earl *ar6 "ns#er& % ?a'e& 184 Fevel of diffi%ult)& *edium 26! Crederi%/ >er.(er' developed a dissatisfiers and satisfiers! a! trait,role theor) (! ps)%holo'i%al %onstraint theor) %! pro(a(ilit) s%ale d! leadership model e! t#o,fa%tor theor) "ns#er& e ?a'e& 185 that distin'uishes
27! "t the top of *aslo#Ss hierar%h) of needs 4sho#n as a p)ramid in the te6t5 are needs! a! esteem (! self,a%tuali.ation %! so%ial d! safet) e! ph)siolo'i%al "ns#er& ( ?a'e& 185 Fevel of diffi%ult)& *edium 28! It has (een estimated that the avera'e person is e6posed to over (rand %ommuni%ations a da)! a! 1+500 (! 1+300 %! 1+000 d! 800 e! 500 "ns#er& a ?a'e& 186 Fevel of diffi%ult)& >ard 29! ads or
is the tenden%) to interpret information in a #a) that #ill fit our pre%on%eptions! a! $ele%tive retention (! 3o'nitive dissonan%e %! $ele%tive distortion d! $u(liminal per%eption e! Dis%rimination "ns#er& % ?a'e& 186 Fevel of diffi%ult)& *edium
394
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 30! " %i'arette ad has a pi%ture of a )oun' man la)in' on his (a%/ and dreamil) loo/in' at %louds in the s/)! -hou'h not readil) o(vious to the %asual reader+ there is a messa'e in the %louds that sa)s Qr,e,l,a,6!R -his #ould (e an e6ample of #hi%h of the follo#in'1 a! $ele%tive distortion (! 3o'nitive dissonan%e %! $ele%tive retention d! $u(liminal per%eption e! $hort,term memor) "ns#er& d ?a'e& 187 Fevel of diffi%ult)& >ard 31! " is a stron' internal stimulus impellin' a%tion! a! %ue (! drive %! reinfor%ement d! dis%rimination e! (elief "ns#er& ( ?a'e& 187 Fevel of diffi%ult)& *edium 32! tea%hes mar/eters that the) %an (uild demand for a produ%t () asso%iatin' it #ith stron' drives+ usin' motivatin' %ues+ and providin' positive reinfor%ement a! Demand theor) (! Fearnin' theor) %! 9%onomi% theor) d! ?s)%holo'i%al theor) e! Demo'raphi% theor) "ns#er& ( ?a'e& 187 Fevel of diffi%ult)& *edium 33! "s 7ita s%ans the )ello# pa'es se%tion of her phone (oo/ loo/in' for a florist+ she sees several others produ%ts and servi%es advertised! -hou'h interestin' on first 'lan%e+ she 8ui%/l) returns to her primar) tas/ of findin' a florist! -he items that distra%ted her from her sear%h #ere most li/el) stored in #hi%h of the follo#in' t)pes of memor)1 a! $hort,term memor) (! Fon',term memor) %! *iddle memor) d! $u(%ons%ious memor) e! $u(liminal memor) "ns#er& a ?a'e& 187 Fevel of diffi%ult)& *edium
395
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 34! Drand asso%iations %onsist of all the (rand,related thou'hts+ feelin's+ per%eptions+ ima'es+ e6perien%es+ (eliefs+ attitudes+ and so on that (e%ome lin/ed to the (rand ! a! stimulus (! lin/ %! %onne%tion d! personalit) e! node "ns#er& e ?a'e& 188 Fevel of diffi%ult)& >ard 35! In 'eneral+ the more attention pla%ed on the meanin' of information durin' + the stron'er the resultin' asso%iations in memor) #ill (e! a! en%odin' (! de%odin' %! %lassifi%ation d! retrieval e! memori.ation "ns#er& a ?a'e& 189 Fevel of diffi%ult)& *edium 36! 7epeated e6posures to information provide 'reater opportunit) for pro%essin' and thus the potential for ! a! more profits (! more sales %! stron'er asso%iations d! in%reased (rand personalit) e! more one,to,one relationships "ns#er& % ?a'e& 190 Fevel of diffi%ult)& *edium 37! 3o'nitive ps)%holo'ists (elieve that memor) is + so that on%e information (e%omes stored in memor)+ its stren'th of asso%iation de%a)s ver) slo#l)! a! ver) limited (! some#hat limited %! fluid d! often refle%tive e! e6tremel) dura(le "ns#er& e ?a'e& 191 Fevel of diffi%ult)& *edium 38! -he five,sta'e model of the %onsumer (u)in' pro%ess in%ludes all of the follo#in' sta'es 9L39?! a! pro(lem re%o'nition (! information sear%h %! so%ial intera%tion d! pur%hase de%ision e! influen%er "ns#er& % ?a'e& 191 Fevel of diffi%ult)& 9as)
396
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 39! -he (u)in' pro%ess starts #hen the (u)er re%o'ni.es a ! a! produ%t (! an advertisement for the produ%t %! a salesperson from a previous visit d! pro(lem or need e! an internal %ue "ns#er& d ?a'e& 191 Fevel of diffi%ult)& *edium 40! 0hi%h of the follo#in' is %onsidered to (e a more advan%ed form of information sear%h #herein the person mi'ht phone friends or 'o online to se%ure information a(out a produ%t or servi%e1 a! >ei'htened attention (! $hort,term memor) pro%essin' %! $u(liminal pro%essin' of information d! Fon',term memor) pro%essin' e! "%tive information sear%h "ns#er& e ?a'es& 191U192 Fevel of diffi%ult)& >ard 41! :f /e) interest to mar/eters are the ma2or informational sour%es to #hi%h the %onsumer #ill turn and the relative importan%e of ea%h! 0hi%h of the follo#in' #ould (e %onsidered to (e an e6periential information sour%e1 a! 3onsumer,ratin' or'ani.ations! (! -he mass media! %! "%8uaintan%es! d! 0e( sites! e! @sin' the produ%t itself! "ns#er& e ?a'e& 192 Fevel of diffi%ult)& *edium 42! 0hi%h of the follo#in' is %onsidered to (e (i''est sin'le sour%e of %onsumer information from a %ommer%ial sour%e 4over 40 per%ent of %ar (u)ers use this sour%e to 'ather information51 a! -he @!$! 3ham(er of 3ommer%e (! ;!D! ?o#er P "sso%iates c. %onsumer &eports d! -he Detter Dusiness Dureau e! @nder#riterSs Fa(orator) "ns#er& % ?a'e& 192 Fevel of diffi%ult)& *edium 43! Drands that meet %onsumersS initial (u)in' %riteria are %alled the a! total set (! a#areness set %! %onsideration set d! %hoi%e set e! de%ision set "ns#er& % ?a'e& 192 Fevel of diffi%ult)& 9as) !
397
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 44! 0ith respe%t to %onsumer de%ision ma/in'+ the is the set of stron' %ontenders from #hi%h one #ill (e %hosen as a supplier of a 'ood or servi%e! a! total set (! a#areness set %! %onsideration set d! %hoi%e set e! de%ision set "ns#er& d ?a'e& 192 Fevel of diffi%ult)& *edium 45! "4n5 a! attitude (! (elief %! desire d! feelin' e! emotion "ns#er& ( is a des%riptive thou'ht that a person holds a(out somethin'!
?a'e& 193
46! "4n5 puts people into a frame of mind& li/in' or disli/in' an o(2e%t+ movin' to#ard or a#a) from it! a! attitude (! (elief %! feelin' d! position e! stan%e "ns#er& a ?a'e& 194 Fevel of diffi%ult)& *edium 47! -he e6pe%tan%),value model of attitude formation posits that %onsumers evaluate produ%ts and servi%es () %om(inin' their ! a! needs (! #ants %! desires d! (rand (eliefs e! %onsumin' attitudes "ns#er& d ?a'e& 194 Fevel of diffi%ult)& *edium 48! "ll of the follo#in' #ould (e %onsidered to (e strate'ies for approa%hin' %onsumers #ho had re2e%ted )our %ompan)Ss model of a produ%t for another %ompetitive (rand 9L39?! a! redesi'n )our %ompan)Ss produ%t (! alter (eliefs a(out )our %ompan)Ss (rand %! %overtl) alter the 8ualitative data a(out )our produ%t d! alter (eliefs a(out %ompetitorsS (rands e! %all attention to ne'le%ted attri(utes "ns#er& % ?a'es& 195U196 Fevel of diffi%ult)& *edium
398
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 49! 3ustomer value anal)sis reveals the %ompan)Ss stren'ths and #ea/nesses relative to various %ompetitors! 0hi%h of the follo#in' #ould (e %onsidered to (e the first step in this pro%ess1 a! *onitor %ustomer values over time! (! "ssess the 8uantitative importan%e of the different attri(utes! %! "ssess the %ompan) and %ompetitorsS performan%es on %ustomer values! d! Identif) the ma2or attri(utes %ustomers value! e! 96amine %ustomer ratin's of the %ompan) and %ompetitors! "ns#er& d ?a'e& 196 Fevel of diffi%ult)& *edium 50! 0ith respe%t to %onsumer pur%hase intention+ all of the follo#in' #ould (e amon' the su(,de%isions made () %onsumers 9L39?! a! emotional value (! (rand %! dealer d! timin' e! pa)ment method "ns#er& a ?a'es& 196U197 Fevel of diffi%ult)& *edium 51! 0ith the heuristi%+ the %onsumer sets a minimum a%%epta(le %utoff level for ea%h attri(ute and %hooses the first alternative that meets the minimum standard for all attri(utes! a! %on2un%tive (! le6i%o'raphi% %! elimination,(),aspe%ts d! primar) e! se%ondar) "ns#er& a ?a'es& 197 Fevel of diffi%ult)& >ard 52! 9ven if %onsumers form (rand evaluations+ t#o 'eneral fa%tors %an intervene (et#een the pur%hase intention and the pur%hase de%ision! :ne of these is unanti%ipated situational fa%tors! 0hat is the se%ond fa%tor1 a! "mount of pur%hasin' po#er! (! "ttitudes of others! %! $hort,term memor) %apa(ilities! d! "(ilit) to return mer%handise! e! -he self,%on%ept! "ns#er& ( ?a'es& 197 Fevel of diffi%ult)& *edium 53! ris/ o%%urs if the produ%t fails to perform up to e6pe%tations! a! ?h)si%al (! Cinan%ial %! $o%ial d! ?s)%holo'i%al e! Cun%tional "ns#er& e ?a'e& 198 Fevel of diffi%ult)& >ard
399
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 54! If performan%e meets %onsumer e6pe%tations+ the %onsumer is ! a! deli'hted (! satisfied %! disappointed d! surprised e! over#helmed "ns#er& ( ?a'e& 198 Fevel of diffi%ult)& 9as) 55! " /e) driver of sales fre8uen%) is the a! produ%t %onsumption (! disposal %! refusal d! utilit) e! option "ns#er& a ?a'e& 199 rate!
56! -he level of en'a'ement and a%tive pro%essin' underta/en () the %onsumer in respondin' to a mar/etin' stimulus is %alled ! a! ela(oration li/elihood (! %onsumer disen'a'ement %! %onsumer involvement d! variet),see/in' e! lo#,involvement "ns#er& % ?a'e& 200 Fevel of diffi%ult)& *edium 57! If a %onsumer is persuaded to (u) a produ%t () a messa'e that re8uires little thou'ht and is (ased on an asso%iation #ith a (randSs positive %onsumption e6perien%es from the past+ the %onsumer used a to arrive at this pur%hase de%ision! a! %entral route (! peripheral route %! (ehavioral route d! su(2e%tive route e! o(2e%tive route "ns#er& ( ?a'e& 200 Fevel of diffi%ult)& >ard 58! 0ith the + predi%tions of usa'e are (ased on 8ui%/ness and ease of use! a! availa(ilit) heuristi% (! representative heuristi% %! an%horin' heuristi% d! ad2ustment heuristi% e! semanti% heuristi% "ns#er& a ?a'e& 201 Fevel of diffi%ult)& *edium
400
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 59! Den al#a)s rea%hes for the (ri'ht (lue and )ello# (o6 of 7it. %ra%/ers #hen he visits the sna%/ food aisle in the 'ro%er) store! >e rarel) even reads the (o6 or %he%/s the pri%e! 0hi%h of the follo#in' heuristi%s is most li/el) (ein' used () Den1 a! "vaila(ilit) (! 7epresentative %! "n%horin' d! "d2ustment e! $emanti% "ns#er& ( ?a'e& 201 Fevel of diffi%ult)& >ard
60! refers to the manner () #hi%h %onsumers %ode+ %ate'ori.e+ and evaluate finan%ial out%omes of %hoi%es! a! 3ost a%%ountin'
(! Cinan%ial a%%ountin' %! Dehavioral a%%ountin' d! *ental a%%ountin' e! Ca%tual a%%ountin' "ns#er& d ?a'e& 202
401
3hapter 7& "nal).in' Dusiness *ar/ets

1! -o %reate and %apture value+ sellers need to understand (usiness or'ani.ationsS needs+ resour%es+ poli%ies+ and ! '! demands h! proto%ols i! strate'ies 2! (u)in' pro%edures /! personnel poli%ies "ns#er& d ?a'e& 209 Fevel of diffi%ult)& 9as) 62! 0e(ster and 0ind define as the de%ision,ma/in' pro%ess () #hi%h formal or'ani.ations esta(lish the need for pur%hased produ%ts and servi%es and identif)+ evaluate+ and %hoose amon' alternative (rands and suppliers! a! mar/etin' %hannels (! or'ani.ational (u)in' %! demand,oriented (u)in' d! pur%hasin' e! inventor) %ontrol "ns#er& ( ?a'e& 210 Fevel of diffi%ult)& *edium 63! -he %onsists of all the or'ani.ations that a%8uire 'oods and servi%es used in the produ%tion of other produ%ts or servi%es that are sold+ rented+ or supplied to others! a! (usiness mar/et (! %onsumer mar/et %! e,%ommer%e mar/et d! 'lo(al mar/et e! supplier mar/et "ns#er& a ?a'e& 210 Fevel of diffi%ult)& *edium
402
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 64! Dusiness mar/ets have several %hara%teristi%s that %ontrast sharpl) #ith those of %onsumer mar/ets! "ll of the follo#in' #ould (e amon' those %hara%teristi%s 9L39?! a! fe#er+ lar'er (u)ers (! %lose supplier,%ustomer relationship %! professional pur%hasin' d! inverted demand e! multiple sales %alls "ns#er& d ?a'es& 210U211 Fevel of diffi%ult)& >ard 65! "ll of the follo#in' #ould (e amon' the ma2or industries that ma/e up the (usiness mar/et 9L39?! a! a'ri%ulture+ forestr)+ and fisheries (! manufa%turin' %! %onstru%tion d! (an/in'+ finan%e+ and insuran%e e! the Internet "ns#er& e ?a'e& 210 Fevel of diffi%ult)& hard 66! -rained pur%hasin' a'ents+ #ho must follo# their or'ani.ationSs pur%hase (usiness 'oods! a! %ulture (! past pur%hasin' histor) %! pur%hasin' poli%ies+ %onstraints+ and re8uirements d! needs e! finan%ial (ud'ets "ns#er& % ?a'e& 211 Fevel of diffi%ult)& *edium + often
67! @ltimatel)+ the amount of steel sold to <eneral *otors depends on the %onsumerSs demand for <* %ars and tru%/s! Crom the standpoint of the steel manufa%turer+ #hi%h of the follo#in' demand forms is most pertinent1 a! Derived demand (! Inelasti% demand %! <eo'raphi% demand d! 7elational demand e! $tati% demand "ns#er& a ?a'e& 211 Fevel of diffi%ult)& >ard 68! -he demand for (usiness 'oods is ultimatel) derived from the demand for a! ra# materials (! %onsumer 'oods %! ele%troni%s d! (usiness solutions e! e,%ommer%e "ns#er& ( ?a'e& 211 Fevel of diffi%ult)& 9as) !
403
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 69! -he (usiness (u)er fa%es man) de%isions in ma/in' a pur%hase! -he num(er of de%isions depends on the (u)in' situation! "ll of the follo#in' e6amples are appropriate to the pre%edin' 9L39?! a! %omple6it) of the pro(lem (ein' solved (! ne#ness of the (u)in' re8uirement %! num(er of people involved d! appli%a(ilit) of situation to mission statement e! time re8uired "ns#er& d ?a'e& 212 Fevel of diffi%ult)& >ard 70! -he pur%hasin' department (u)s offi%e supplies on a routine (asis! -his t)pe of pur%hase is %lassified as a ! a! strai'ht re(u) (! modified re(u) %! ne# tas/ d! se%ondar) pur%hase e! preordained pur%hase "ns#er& a ?a'e& 212 Fevel of diffi%ult)& 9as) 71! -here are a series of 'uidelines for sellin' to small (usinesses! 0hi%h of the follo#in' should not (e amon' those 'uidelines1 a! DonSt #aste their time! (! Do /eep it simple! %! Do use the Internet! d! DonSt for'et a(out dire%t %onta%t! e! Do lump small and midsi.e (usinesses to'ether for effi%ien%) sa/e! "ns#er& e ?a'e& 212 Fevel of diffi%ult)& *edium
7 , -he .#siness .#)er ma/es the fe0est decisions in the 11111111,
a! modified re(u) (! re'ular (u) %! strai'ht re(u) d! ne# re(u) e! ne# tas/ (u) "ns#er& % ?a'e& 213
73! *an) (usiness (u)ers prefer to (u) a total solution to a pro(lem from one seller! is the %orre%t term for this pro%ess! a! 3hannel %onsolidation (! $)stems (u)in' %! Herti%al (u)in' d! >ori.ontal (u)in' e! $uppl) (u)in' "ns#er& ( ?a'e& 213 Fevel of diffi%ult)& *edium
404
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 74! Lero6 offers a approa%h to prospe%tive %lients #hen it offers a %omplete turn/e) pro%edure+ operation+ and mana'ement of the %lientSs information and %ommuni%ation need! a! suppl) (u)in' (! primar) (u)in' %! s)stems (u)in' d! %o,op (u)in' s)stem e! dire%t (u)in' "ns#er& % ?a'e& 213 Fevel of diffi%ult)& *edium 75! If "mpe6 $upport $)stems is the sin'le supplier for a lo%al manufa%turin' %ompan)Ss *7: 4maintenan%e+ repair+ operatin'5 supplies and needs+ "mpe6 $upport $)stems #ould then (e %onsidered as providin' for the manufa%turer! a! s)stems (u)in' (! pur%hasin' support %! turn/e) lo'isti%s d! de%ision support e! s)stems %ontra%tin' "ns#er& e ?a'e& 214 Fevel of diffi%ult)& >ard 76! is a /e) industrial mar/etin' strate') in (iddin' to (uild lar'e,s%ale industrial produ%ts 4e!'!+ dams+ pipelines+ et %etera5! a! $)stems %ontra%tin' (! $)stems (u)in' %! $)stems sellin' d! $olutions (u)in' e! -urn/e) lo'isti%s "ns#er& % ?a'e& 214 Fevel of diffi%ult)& >ard 77! is %omposed of all those individuals and 'roups #ho parti%ipate in the pur%hasin' de%ision,ma/in' pro%ess+ #ho share some %ommon 'oals and the ris/s arisin' from their de%isions! a! -he (u)in' %enter (! -he mar/etin' sales team %! $trate'i% mana'ement d! 9n'ineerin' support e! -he lo'isti%s %enter "ns#er& a ?a'e& 214 Fevel of diffi%ult)& *edium
405
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 78! In the pur%hasin' de%ision pro%ess+ the are those #ho re8uest that somethin' (e pur%hased! -he) ma) (e users or others in the or'ani.ation! a! users (! initiators %! influen%ers d! de%iders e! approvers "ns#er& ( ?a'e& 214 Fevel of diffi%ult)& 9as) 79! In the pur%hasin' de%ision pro%ess+ the are those #ho have the po#er to prevent sellers or information from rea%hin' mem(ers of the (u)in' %enter! a! 'ate/eepers (! (u)ers %! initiators d! approvers e! de%iders "ns#er& a ?a'e& 215 Fevel of diffi%ult)& *edium 80! -he t)pi%al (u)in' %enter has a minimum of mem(ers! a! 2U3 (! 3U4 %! 4U5 d! 5U6 e! 10 "ns#er& d ?a'e& 215 Fevel of diffi%ult)& >ard 81! 0e(ster %autions that ultimatel)+ a! onl) senior mana'ers (! individuals+ not or'ani.ations %! or'ani.ations+ not individuals d! third parties e! s)stems %ontra%tors "ns#er& ( ?a'e& 215 ma/e pur%hasin' de%isions!
82! $mall sellers %on%entrate their mar/etin' efforts on rea%hin' ! a! approvers (! initiators %! /e) (u)in' influen%ers d! users e! the pur%hasin' staff "ns#er& % ?a'e& 216 Fevel of diffi%ult)& *edium
406
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 83! -o the pri%e is ever)thin' and transa%tional sellin' is used! a! solution,oriented %ustomers (! in%ome,oriented %ustomers %! 'old,standard %ustomers d! strate'i%,value %ustomers e! pri%e,oriented %ustomers "ns#er& e ?a'e& 216 Fevel of diffi%ult)& 9as) 84! -he strate'i%,value %ustomers #ant a fairl) permanent sole,supplier relationship #ith )our %ompan)! 0hi%h of the follo#in' #ould (e the (est sellin' format to use #ith the strate'i%,value %ustomer1 a! -ransa%tional sellin' (! 3onsultative sellin' %! Qualit) sellin' d! 9nterprise sellin' e! Indire%t demand sellin' "ns#er& d ?a'e& 216 Fevel of diffi%ult)& >ard 85! $ome %ustomers are #illin' to handle pri%e,oriented (u)ers () settin' a lo#er pri%e+ (ut esta(lishin' restri%tive %onditions! "ll of the follo#in' #ould (e amon' those %onditions 9L39?! a! limitin' the 8uantit) that %an (e pur%hased (! no refunds %! no ad2ustments d! no servi%es e! no %ustomer advertisin' "ns#er& e ?a'e& 216 Fevel of diffi%ult)& *edium 86! If a supplier si'ns an a'reement #ith a %ustomer that states V350+000 in savin's #ill (e earned () the %ustomer over the ne6t 18 months in an e6%han'e for a ten,fold in%rease in the %ustomerSs share of supplies ordered () the %ustomer+ the t#o parties #ill have parti%ipated in #hat is %alled ! a! solution sellin' (! %onsultative sellin' %! ris/ and 'ain sharin' d! strate'i% ali'nment e! demand shiftin' "ns#er& % ?a'e& 217 Fevel of diffi%ult)& *edium
407
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 87! 0!0! <rain'er emplo)ees #or/ at lar'e %ustomer fa%ilities to redu%e materials, mana'ement %osts! 0hi%h of the follo#in' forms of solution sellin' is 0!0! <rain'er usin'1 a! $olutions to partnerships! (! $olutions to alter %orporate %ulture! %! $olutions to enhan%e %ustomer revenues! d! $olutions to de%rease %ustomer ris/s! e! $olutions to redu%e %ustomer %osts! "ns#er& e ?a'e& 217 Fevel of diffi%ult)& *edium 88! In prin%iple+ (usiness (u)ers see/ to in relation a mar/et offerin'Ss %osts! a! spread ris/s (! o(tain the hi'hest (enefit pa%/a'e %! maintain ever)da),lo#,pri%es d! outsour%e as mu%h as is possi(le e! eliminate partnersS shares in profits as mu%h as possi(le "ns#er& ( ?a'e& 217 Fevel of diffi%ult)& >ard 89! In the past+ #hat position did pur%hasin' departments hold in the mana'ement hierar%h) of most or'ani.ations1 a! " hi'h level (e%ause of their role in mana'in' the %ompan)Ss %osts! (! " moderate level (e%ause of their spott) re%ord on %ontrollin' %osts! %! " lo# level despite the fa%t that the) mana'e more than half of the %ompan)Ss %osts! d! " se%retive position! e! -here has (een no determination of this position! "ns#er& % ?a'e& 218 Fevel of diffi%ult)& >ard 90! -he ne#+ more strate'i%all),oriented pur%hasin' departments have a mission! 0hi%h of the follo#in' most a%%uratel) des%ri(es that mission1 a! *a/e the most profit possi(le and remain independent of entan'lements! (! "pproa%h ever) pur%hasin' opportunit) as means to %reate interdependen%)! %! $ee/ the (est value from fe#er and (etter suppliers! d! :utsour%e the suppl) fun%tion! e! "(andon all strate'ies e6%ept for s)stems sellin' and (u)in'! "ns#er& % ?a'e& 218 Fevel of diffi%ult)& >ard 91! 0hen the pur%haserSs fo%us is short term and ta%ti%al and the) are re#arded on their a(ilit) to o(tain the lo#est pri%e from suppliers for the 'iven level of 8ualit) and availa(ilit)+ this is referred to as ! a! pro%urement orientation (! suppl) %hain mana'ement orientation %! (u)in' orientation d! sellers orientation e! mar/et orientation "ns#er& % ?a'e& 218 Fevel of diffi%ult)& *edium
408
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 92! 0hen (u)ers simultaneousl) see/ 8ualit) improvements and %ost redu%tions and the) develop %olla(orative relationships #ith ma2or suppliers and see/ savin's throu'h (etter mana'ement of a%8uisition+ %onversion+ and disposal %osts+ this is referred to as ! a! sellers orientation (! suppl) %hain mana'ement orientation %! mar/et orientation d! pro%urement orientation e! (u)in' orientation "ns#er& d ?a'e& 218 Fevel of diffi%ult)& >ard 93! 0hen the pur%hasin' role is further (roadened to (e%ome a more strate'i%+ value, addin' operation+ this is referred to as ! a! suppl) %hain mana'ement orientation (! (u)in' orientation %! sellers orientation d! pro%urement orientation e! routine orientation "ns#er& a ?a'e& 218 Fevel of diffi%ult)& *edium 94! ?eter Eral2i% distin'uished four produ%t,related pur%hasin' pro%esses! 0hi%h of the follo#in' mat%hes to produ%ts that have hi'h value and %ost to the %ustomer (ut involve little ris/ of suppl) (e%ause man) %ompanies ma/e them1 a! $trate'i% produ%ts (! Dottlene%/ produ%ts %! Fevera'e produ%ts d! 7outine produ%ts e! 3ommodit) produ%ts "ns#er& % ?a'e& 219 Fevel of diffi%ult)& >ard 95! -he produ%ts that have hi'h value and %ost to the %ustomer and also involve hi'h ris/ 4e!'!+ mainframe %omputers5 are %alled ! a! strate'i% produ%ts (! (ottlene%/ produ%ts %! levera'e produ%ts d! routine produ%ts e! %ommodit) produ%ts "ns#er& a ?a'e& 219 Fevel of diffi%ult)& *edium
409
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 96! *ost pur%hasin' professionals des%ri(e their 2o(s as more + te%hni%al+ team, oriented+ and involvin' more responsi(ilit) than ever (efore! a! ris/) (! strate'i% %! ethi%all) diffi%ult d! 0e(,(ased e! human,(ased "ns#er& ( ?a'e& 219 Fevel of diffi%ult)& >ard 97! 7o(inson and "sso%iates have identified ei'ht sta'es and %alled them $uyphases. -his model is %alled the frame#or/! a! (u)'rid (! (u)in'Tsellin' %! seller,%entered d! %ommer%ial e! (u),anal)sis "ns#er& a ?a'e& 219 Fevel of diffi%ult)& *edium 98! -he first step 4(u)phase5 in the strai'ht re(u) (u)%lass is ! a! pro(lem re%o'nition (! 'eneral need des%ription %! produ%t spe%ifi%ation d! supplier sear%h e! proposal soli%itation "ns#er& % ?a'e& 220 Fevel of diffi%ult)& >ard 99! " ne# tas/ (u)%lass de%ision (e'ins #ith #hi%h of the follo#in' (u)phases1 a! ?ro(lem re%o'nition (! <eneral need des%ription %! ?rodu%t spe%ifi%ation d! $upplier sear%h e! ?roposal soli%itation "ns#er& a ?a'e& 220 Fevel of diffi%ult)& *edium 100! Dusiness mar/eters %an stimulate pro(lem re%o'nition () ! a! trade dire%tories (! dire%t mail+ telemar/etin'+ and %allin' on prospe%ts %! en%oura'in' the Detter Dusiness Dureau to release statisti%s d! %onsumer advertisin' e! re8uestin' testimonials from e6istin' %ustomers "ns#er& ( ?a'e& 221 Fevel of diffi%ult)& *edium
410
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 101! 0hen >e#lett,?a%/ard sells su%h %omple6 produ%ts as a net#or/ %omputer s)stem+ it is en'a'in' in #hat it %alls the %on%ept (e%ause it offers information and spe%ifi% solutions to uni8ue pro(lems! a! Qprodu%t spe%ifi%ationR (! Qpri%e de,es%alationR %! Qs)stems sellin'R d! Qtrusted advisorR e! Qstrate'i% allian%eR "ns#er& d ?a'e& 221 Fevel of diffi%ult)& *edium 102! @!$! (usinesses spent a(out on online transa%tions #ith other (usinesses in 2002 as %ompared to %onsumer online pur%hases of V71 (illion durin' the same time period! a! V650 (illion (! V500 (illion %! V482 (illion d! V225 (illion e! V53 (illion "ns#er& % ?a'e& 222 Fevel of diffi%ult)& >ard 103! 0ith respe%t to e,pro%urement+ 0e( sites are or'ani.ed around t#o t)pes of e, hu(s& ! a! verti%al and hori.ontal hu(s (! verti%al and fun%tional hu(s %! fun%tional hu(s and or'ani.ational hu(s d! supplier and user hu(s e! manufa%turer and supplier hu(s "ns#er& ( ?a'e& 222 Fevel of diffi%ult)& >ard 104! 0ith respe%t to e,pro%urement+ 3o%a,3ola+ $ara Fee+ Eraft+ ?epsi3o+ <illette+ ?P<+ and several other %ompanies 2oined for%es to form a %alled -ransora to use their %om(ined levera'e to o(tain lo#er pri%es for ra# materials! a! manufa%turerSs %o,op (! supplierSs %o,op %! middleman 'roup d! (u)in' allian%e e! %a(al "ns#er& d ?a'e& 222 Fevel of diffi%ult)& *edium
411
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 105! Dusiness,to,(usiness %)(er(u)in' is flourishin' on the Internet! $o far+ most of the produ%ts that (usinesses are (u)in' ele%troni%all) are + and travel and entertainment servi%es! a! promotion servi%es su%h as advertisin' (! >7 servi%es 4e!'!+ emplo)ee re%ruitment5 %! *7: materials 4maintenan%e+ repair+ and operations5 d! food servi%es e! mar/etin' resear%h servi%es "ns#er& % ?a'e& 223 Fevel of diffi%ult)& *edium 106! *ovin' into e,pro%urement has man) (enefits! 0hi%h of the follo#in' #ould not (e amon' those (enefits1 a! "''re'atin' pur%hasin' a%ross multiple departments 'ains lar'er volume dis%ounts! (! "''re'atin' pur%hasin' a%ross multiple departments 'ains %entrall) ne'otiated volume dis%ounts! %! -here is less (u)in' of su(standard 'oods from outside the approved list of suppliers! d! " smaller pur%hasin' staff is re8uired! e! ?ur%hasin' 'ains a si'nifi%ant levera'e #ith top mana'ement (e%ause of its mana'ement team! "ns#er& e ?a'e& 224 Fevel of diffi%ult)& >ard 107! 0ith respe%t to e,pro%urement %ommitment+ in 2003 #as named num(er one in BtoB ma'a.ineSs annual ran/in' of the top D,to,D 0e( sites (e%ause of its a(ilit) to 'enerate sales 4a(out 55 per%ent of the %ompan)Ss total sales5 and %ommitment to the pro%ess! a! 3o%a,3ola (! Dell 3omputers %! >e#lett,?a%/ard d! 3adilla% e! Doein' "ns#er& % ?a'e& 224 Fevel of diffi%ult)& >ard 108! In the proposal soli%itation pro%ess+ should (e mar/etin' do%uments that des%ri(e value and (enefits in %ustomer terms! a! #ritten proposals (! oral proposals %! e,proposals d! allian%e proposals e! 'lo(al proposals "ns#er& a ?a'e& 225 Fevel of diffi%ult)& *edium
412
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 109! Lero6 8ualifies onl) suppliers #ho meet the I$: 9000 8ualit) standards+ (ut to #in the %ompan)Ss top a#ardM%ertifi%ation statusMa supplier must first %omplete ! a! 'overnment %ertifi%ation (! an e6tensive ethi%s statement evaluation %! the Lero6 *ultinational $upplier Qualit) $urve) d! a %ompan) trainin' and indo%trination period e! a *al%olm Daldrid'e Gational Qualit) "#ard entr) form and then enter "ns#er& % ?a'e& 225 Fevel of diffi%ult)& *edium 110! "ll of the follo#in' are %onsidered to (e methods of assessin' %ustomer value 9L39?! a! dire%t surve) 8uestions (! e6it intervie#in' %! fo%us,'roup value assessment d! %on2oint anal)sis e! (en%hmar/s "ns#er& ( ?a'e& 226 Fevel of diffi%ult)& *edium 111! "%%ordin' to pur%hasin' professionals+ #hi%h of the follo#in' is %onsidered to (e the ma2or responsi(ilit) of the pur%hasin' a'ent in supplier ne'otiations1 a! Cormin' net#or/s for future (usiness! (! "ssurin' 8ualit) %onforman%e! %! Dein' fair #ith all parties! d! -o use a team approa%h in ne'otiations! e! Ge'otiatin' pri%e! "ns#er& e ?a'e& 226 Fevel of diffi%ult)& >ard 112! If an industrial (u)er leases heav) e8uipment li/e ma%hiner) and tru%/s rather than pur%hasin' them+ the lessee 'ains several advanta'es! 0hi%h of the follo#in' #ould G:- (e amon' those advanta'es1 a! >i'her 8ualit) produ%ts! (! 3onservin' %apital! %! <ettin' the latest produ%ts! d! 7e%eivin' (etter servi%e! e! $ome ta6 advanta'es! "ns#er& a ?a'e& 227 Fevel of diffi%ult)& >ard 113! Q:-ICG9R is a term that summari.es three desira(le out%omes of a D,to,D transa%tion& :-Mdeliver on timeA ICMin fullA and+ G9M ! a! no error (! no emer'en%ies %! non,e6perimental d! ne# entrepreneurs e! need e8uipment "ns#er& a ?a'e& 227 Fevel of diffi%ult)& 9as)
413
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 114! 3orporate %redi(ilit) depends on three fa%tors& %orporate e6pertise+ %orporate trust#orthiness+ and ! a! %orporate manpo#er (! %orporate mission statement %! %orporate li/ea(ilit) d! %orporate 'overnan%e e! %orporate mana'ement stru%ture "ns#er& % ?a'e& 228 Fevel of diffi%ult)& >ard 115! 3annon and ?erreault found that (u)er,suppler relationships differed a%%ordin' to four fa%tors! 0hi%h of the follo#in' #ould G:- (e amon' those fa%tors1 a! Importan%e of suppl)! (! 3omple6it) of suppl)! %! "vaila(ilit) of alternatives! d! $uppl) mar/et d)namism! e! Demand mar/et %onservatism! "ns#er& e ?a'e& 229 Fevel of diffi%ult)& *edium 116! "%%ordin' to 3annon and ?erreault+ (u)er,supplier relationships fall into ei'ht different %ate'ories! 0hi%h of the follo#in' relationships is %hara%teri.ed as (ein' one that has mu%h trust and %ommitment leadin' to a true partnership1 a! *utuall) adaptive (! 3olla(orative %! Dasi% (u)in' and sellin' d! 3ustomer suppl) e! 3ooperative s)stems "ns#er& ( ?a'e& 229 Fevel of diffi%ult)& *edium 117! In the %ate'or) of 3annon and ?erreaultSs (u)er,supplier relationship %ate'ori.ation+ althou'h (onded () a %lose+ %ooperative relationship+ the seller adapts to meet the %ustomerSs needs #ithout e6pe%tin' mu%h adaptation or %han'e on the part of the %ustomer in e6%han'e! a! %ontra%tual transa%tion (! %ooperative s)stem %! %olla(orative d! mutuall) adaptive e! %ustomer is /in' "ns#er& e ?a'e& 229 Fevel of diffi%ult)& *edium
414
MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *** 118! Herti%al %oordination %an fa%ilitate stron'er %ustomer,seller ties (ut at the same time ma) in%rease the ris/ to %onsumerSs and supplierSs 4e!'!+ those e6penditures tailored to a parti%ular %ompan) and value %hain partner5! a! lo'isti%s %hannel (! independent operations %! spe%ifi% investments d! levera'e a(ilit) e! li8uidit) situation "ns#er& % ?a'e& 230 Fevel of diffi%ult)& >ard 119! -he mar/et %onsists of s%hools+ hospitals+ nursin' homes+ prisons+ and other institutions that must provide 'oods and servi%es to people in their %are! a! verti%al (! nonprofit %! spot d! se%ondar) (usiness e! institutional "ns#er& e ?a'e& 230 Fevel of diffi%ult)& *edium 120! 0ith pur%hases of V200 (illion annuall) in 'oods and servi%es+ lar'est %ustomer in the #orld! a! 0al,*art (! <rain'er %! the $tate of 3alifornia d! the @!$! 'overnment e! Fatin "meri%a "ns#er& d ?a'e& 232 Fevel of diffi%ult)& *edium is the
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MKTG 490 Fall 07 Exam Pool

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MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS *** ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER ***

Collecting Information and Forecasting Demand

had emerged and if so what would be the appropriate response.

Components of a Modern Marketing Information System

The Order to !ayment Cycle

Sales Information Systems

Data"ases, Data #areho$sing, and Data Mining

Collecting Marketing Intelligence on the Internet

Comm$nicating and %cting on Marketing Intelligence

Tic#et bro#er 4tub(ub monitors online activity so that )hen confusion

%naly&ing the Macroen'ironment

(eeds and Trends

Identifying the Ma)or Forces

The Demographic *n'ironment

hotographer3 2orad Doucha#our. 0ourtesy of =eneral Clectric 0ompany

The *conomic *n'ironment

The Socioc$lt$ral *n'ironment

Cxercise :aerobics* )eights;

Den Da#er/Redux ictures

The (at$ral *n'ironment

The Technological *n'ironment

The !olitical 3egal *n'ironment

Forecasting and Demand Meas$rement

The Meas$res of Market Demand

There are many productive )ays to brea# do)n the mar#et3

% /oca"$lary for Demand Meas$rement

*stimating C$rrent Demand

spent on alcoholic beverage s

s that is spent on beer

*stimating F$t$re Demand

Disintermediation via the Internet has resulted in "ns#er

need is a need that the %onsumer e6pli%itl) ver(ali.es!

$ele%ted "ns#er& stated

-he mar/etin' resear%h pro%ess (e'ins () "ns#er $ele%ted "ns#er&

definin' the pro(lem+ the de%ision alternatives+ and resear%h o(2e%tives

-he 'oal of ethno'raphi% resear%h is to "ns#er $ele%ted "ns#er&

" profita(le %ustomer "ns#er $ele%ted "ns#er&

)ields a revenue stream that e6%eeds the %ompan)=s %ost stream

+,-.te( 23 De4e'o.in0 M-(1etin0 St(-te0ies -n5 P'-ns

GENERAL +ON+EPT QUESTIONS Mu'ti.'e +,oi6e

Fevel of diffi%ult)& *edium

Fevel of diffi%ult)& *edium

Fevel of diffi%ult)& >ard

Fevel of diffi%ult)& 9as)

21! -he /e) to utili.in' or'ani.ational %ore %ompeten%ies is to

Fevel of diffi%ult)& *edium

Fevel of diffi%ult)& *edium

Fevel of diffi%ult)& 9as)

Fevel of diffi%ult)& 9as)

Fevel of diffi%ult)& *edium

Level of difficulty: Medium

"ns#er& -rue "ns#er& Calse

Fevel of diffi%ult)& 9as) Fevel of diffi%ult)& *edium

Level of difficulty: Medium

Fevel of diffi%ult)& >ard

Fevel of diffi%ult)& *edium

Fevel of diffi%ult)& 9as)

Level of difficulty: Medium

Fevel of diffi%ult)& *edium

Fevel of diffi%ult)& *edium

Fevel of diffi%ult)& *edium

Fevel of diffi%ult)& *edium

93! -he mar/etin' plan should open #ith a situation anal)sis!

MARKETING PLANNING FUNDAMENTALS EXAM POOL ITEMS * ACTUAL EXAM = 100 ITEMS @ 20 ITEMS/EACH CHAPTER *

The conomic n'ironment

"ns#er& d ?a'e& 77 Diffi%ult)& edium ""3$D& ulti%ulturalTDiversit)

"ns#er& % ?a'e& 78 Diffi%ult)& edium ""3$D& ulti%ulturalTDiversit)