Faculty of Business, Economics & Accounting

Department of Business Studies

HELP Bachelor of Business (HONS) Year 1 – HUBBU

TUTORIAL QUESTIONS
Semester 1, 2014

Subject: MKT 101

Principles of Marketing

Subject Convener: Ms Liew Huey Min

Tutorial 1

Chapter 1 Marketing: Creating and Capturing Customer Value

Chapter 2 Company and Marketing Strategy: Partnering to Build Customer
Relationships

A) Objective Questions

1. The first step in the marketing process is ________.

A) capturing value from customers to create profits and customer equity
B) constructing an integrated marketing program that delivers superior value
C) building profitable relationships and creating customer delight
D) understanding the marketplace and customer needs and wants
E) designing a customer-driven marketing strategy

2. Abel now has the buying power to purchase the computer that he wanted for the last six
months. Abel's want has now become a(n) ________.
A) need
B) necessity
C) demand
D) exigency
E) desire

3. Selecting particular segments of a population of customers to serve is called ________.

A) value reengineering
B) brand synchronizing
C) mass customizing
D) target marketing
E) selective administering

4. A brand's ________ is the set of benefits or values it promises to deliver to consumers to

satisfy their needs.
A) dominant affect
B) fringe benefit
C) cardinality
D) value proposition
E) fundamental benefit

5. Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further
for increased consumer affordability. This reflects the ________.
A) customer-driving marketing concept
B) marketing concept
C) societal marketing concept
D) production concept
E) selling concept
6. Which of the following reflects the marketing concept philosophy?
A) We don't have a marketing department, we have a customer department.
B) We're in the business of making and selling superior products.
C) We build them so you can buy them.
D) When it's profits versus customers' needs, profits will always win out.
E) You won't find a better deal anywhere else.

7. Nickson released a new range of watches that were titled after the famous mountaineer Adam
Wills. These new watches were promoted through claims that the design is a favorite of
Adam Wills who used a similar watch designed by Nickson for its high durability and quality
on his expeditions. Such a measure to entice customers to buy one's products aims at creating
________.
A) customer equity
B) relationship marketing campaign
C) customer-perceived value
D) equitable relationship
E) societal marketing campaign

8. Customers can be classified into four relationship groups, according to their profitability and
projected loyalty. Based on this classification, you should avoid ________ and shouldn't
invest anything in them.
A) barnacles
B) strangers
C) butterflies
D) true believers
E) true friends

9. Carla, a team leader in charge of customer relationship management, is planning strategies

for improving the profitability of her firm's least profitable but loyal customers. She is also
examining methods for "firing" customers in this group who cannot be made profitable. To
which of the following customer relationship groups do these customers belong?
A) butterflies
B) true friends
C) strangers
D) barnacles
E) short-term customers
10. Which of the following is true of strategic planning in a firm?
A) Strategic planning deals with maintaining the company's current business ventures.
B) Strategic planning focuses on the firm's internal environment rather than the external
environment.
C) Strategic planning occurs at the business-unit, product, and market levels rather than a
company-wide level.
D) Strategic planning deals with adapting the firm to take advantage of opportunities in its
changing environment.
E) Strategic planning involves the formulation of supporting objectives for business units
based on the company's mission statement.

11. Which of the following companies is using a divesting strategy?

A) Juggernaut Bikes aims to maintain its market share, but does not have the resources to
increase its share.
B) Noting the potential for growing its market share, LBD Inc. steps up investments in
advertising and promotion.
C) When sales of its clothing division decline, Blackstone's sells off the division to a
competitor.
D) Getix Computers is increasing the price of its products in order to maximize its short-term
profits.
E) Harlow's market share remains steady over two years even though the company does not
increase investment in the product in that time.

12. Nathan is conducting a portfolio analysis for his company. Which of the following activities
would this involve?
A) studying the products and strategies of competitors in order to improve the company's
own products
B) collecting consumer feedback in order to better position the company's products in the
minds of consumers
C) evaluating the attractiveness of an SBU's market and the strength of its position in the
market
D) segmenting the company's markets to effectively reach the target consumers
E) conducting marketing research to estimate the efficiency and effectiveness of the
company's marketing strategy

13. Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in
Terrania. Its closest competitor, Febex, has a 25% share in the market, while three other
drugs split the remainder. Which of the following would most indicate that Cetaprin would
be classified as a cash cow according to the BCG matrix?
A) Cetaprin is priced higher than other similar products in the market.
B) A customer survey revealed that Cetaprin has the highest brand-name recognition of any
analgesic in the market.
C) The demand for analgesic drugs in the Terranian market is expected to remain stable.
D) Febex is rapidly gaining market share over Cetaprin as a result of aggressive marketing
efforts.
E) The Terranian market for healthcare products is expanding rapidly.
14. Starbucks has introduced a debit card that lets its customers prepay for coffee and snacks.
This effort by Starbucks management is an example of ________.
A) market development
B) product development
C) diversification
D) market penetration
E) product adaptation

15. Arranging for a product to occupy a clear, distinctive, and desirable place relative to
competing products in the minds of target consumers is known as ________.
A) product placement
B) positioning
C) divesting
D) market penetration
E) diversification

16. Which of the following best describes the functional organizational format of marketing
departments?
A) A company creates large teams, or even whole divisions, to serve large customers.
B) Market managers are responsible for developing marketing strategies and plans for their
specific markets or customers and the company is organized around the needs of specific
customer segments.
C) A product manager develops and implements a complete strategy and marketing program
for a specific product or brand.
D) Sales and marketing people are assigned to specific countries, regions, and districts.
E) Different marketing activities are headed by specialists such as a sales manager, an
advertising manager, a marketing research manager, or a customer-service manager.

17. In a SWOT analysis, which of the following would be considered a strength for a company?
A) a favorable economic climate that encourages consumption
B) the exit of a competitor from the market
C) inflation, which leads to higher prices of the company's products
D) increasing consumer interest in its products
E) the company developing improved production technology

18. Evaluating the results of marketing strategies and plans and taking corrective action to ensure
that objectives are attained is called ________.
A) marketing control
B) marketing implementation
C) market planning
D) marketing development
E) market targeting
B) Essay Questions

1. What are the five different marketing management orientations?

2. a) What is business portfolio planning?

b) Explain the Boston Consulting Group's product portfolio analysis method.

C) Application Question

1. There are five marketing management orientations. Which orientation(s) do you believe your
school follows when marketing itself?
Tutorial 2

Chapter 3: Analyzing the Marketing Environment

Chapter 4: Managing Marketing Information to Gain Customer Insights

A) Objective Questions

1. Which of the following would be a component of a company's marketing microenvironment?

A) a just-in-time inventory system followed by the company when making purchase decisions
B) a set of laws that require the company to scale down its promotional phone calls to customers
C) a changing demographic picture that the firm has to constantly adapt its products to
D) a new technology that would ensure significant cost-cutting if implemented in the firm
E) a set of environmental sustainability laws that significantly impact the company's production
processes

2. Which of the following is an example of an internal public in a company's marketing

environment?
A) a community organization that tries to bridge the gap between the company and the
community
B) a supplier responsible for sourcing most of the raw materials used in production
C) a company director who is working to improve the company's image in the society
D) a bank that helps the company acquire loans
E) a consumer organization that questions the actions taken by the company

3. Which of the following would be considered a factor of the company's marketing economic
environment?
A) suppliers to the competitor
B) distributional channels adopted by competitors
C) consumer spending patterns
D) migratory patterns of the population
E) race and ethnicities of different populations

4. Which of the following defines a nation with a subsistence economy?

A) The agricultural products are imported, while the industrial outputs are produced within the
nation.
B) The agricultural and industrial outputs are just enough for the nation to survive.
C) The economical outputs of the nation are in abundance and are mostly exported.
D) The economy offers outstanding marketing opportunities only for industrial products.
E) Both agriculture and industrial components are produced indigenously by the country and
exported in large quantities.
5. Hysterias Inc. is a soft drink manufacturer that has many manufacturing plants around the
world. They are planning to shift from using thermal power to wind power for their
manufacturing plants in the Netherlands to decrease dependency on nonrenewable sources of
energy. In which of the following segments of the company's marketing environment would this
change be categorized?
A) the economic environment
B) the natural environment
C) the demographic environment
D) the political environment
E) the cultural environment

6. Ursa Martin, a book publisher, has decided to tie up with Hope in Children, a charity
foundation that helps feed and educate children in poor countries. Ursa Martin has decided that a
percentage of every book it sells will go to the charity. Their books are marketed by conveying
this message to customers. Which of the following marketing techniques describes Ursa Martin's
association with Hope in Children?
A) tying arrangement
B) cause-related marketing
C) niche marketing
D) green marketing
E) test marketing

7. A marketing information system begins with the step of ________.

A) generating insights into the consumption patterns seen in the market
B) analyzing the results of marketing research studies
C) developing information from internal or external sources
D) assessing the information the company needs
E) hiring marketing research firms to conduct research for the company

8. Diane Chambers, the marketing manager for FarmFresh, is currently scanning the data
collected from the cash counters of the various stores that make up its retail chain, to make sound
marketing decisions. Diane is making use of ________ databases.
A) external
B) secondary
C) historical
D) internal
E) dialog
9. Which of the following statements regarding marketing intelligence is true?
A) Marketing intelligence typically involves sensitive and confidential information kept out of
the public domain.
B) The advantage of using competitive intelligence is negligible as it is based on internal sources
of data only.
C) All marketing intelligence is available at no cost to all potential users.
D) Marketing intelligence involves publicly available information.
E) Marketing intelligence gathering is more focused on gaining insights into a firm's consumers'
activities than its competitors' activities.

10. The marketing manager at Appeal has constituted a cross-functional team to study the
consumer trends in the cosmetic industry. The team has come up with two dominant trends: a
preference for cruelty-free cosmetics and for organic cosmetics. To study these preferences
further, the team has to convert them into operational concepts and break them down to smaller
research questions. This cross-functional team is at the stage of ________ in the marketing
research process.
A) developing the research plan
B) determining a research approach
C) defining the problem and research objectives
D) selecting a research agency to help
E) interpreting data and deciding on type of research

11. As a marketing researcher for SoundSense, Nancy Bales has been asked to gather
preliminary information that will help create a research hypothesis about EasyPlay, the new
music player by SoundSense. Nancy has the task of conducting first-hand research about the
characteristics of the target group that would buy EasyPlay, which the company believes to be
superior to i-Pods and cell phones in terms of audio quality. Nancy Bales should conduct
________ research at this stage.
A) causal
B) experimental
C) secondary
D) internal
E) exploratory

12. Roxanne Ramirez is organizing marketing research in Central American countries for a large
American corporation that is interested in expanding its market. The survey Roxanne is using
was written in English and then translated into Spanish for use by Spanish-speaking respondents.
Which of the following must Roxanne ensure prior to administering this questionnaire to a
sample of the market?
A) make sure that the survey can be conducted without a moderator to cut costs and time
B) decide whether to collect primary or secondary data for the research study
C) determine which type of research instrument to use
D) eliminate any discrepancies in meaning that may rise from the two versions of the test
E) determine whether to focus on descriptive or causal objectives
B) Discuss the Concepts

1) Who are the major players in a company's microenvironment? Explain the role 5 of the major
actors play.

2) Marketers can obtain needed information from internal data, marketing intelligence, and
marketing research. Explain some common sources for each of these.
Tutorial 3
Chapter 5: Understanding Consumer & Business Buyer Behavior

A) Objective Questions

1. Which of the following is the characteristic that distinguishes consumer buying from business
buying?
A) the age and education level of the buyers
B) whether or not the products are bought for personal consumption
C) whether or not the product is advertised to the public using mass media
D) the price of the product bought
E) the number of people involved in making the final purchase decision

2. A shoe company uses ads featuring the members of a country music band knowing that the
band's fans will see the members wearing the company's shoes and will want to wear the same
shoes. In this case, the band is a(n) ________ for its fans.
A) membership group
B) reference group
C) laggard
D) early adopter
E) late majority

3. Which of the following needs in Maslow's hierarchy of needs is generally satisfied the last?
A) physiological needs
B) social needs
C) esteem needs
D) self-actualization needs
E) safety needs

4. People cannot focus on all of the stimuli that surround them each day. A person's tendency to
screen out most of the information to which he or she is exposed is called ________.
A) selective retention
B) selective distortion
C) selective calling
D) selective attention
E) selective perception

5. Consumers can obtain information about their needs from any of several sources. Which of the
following is a commercial source?
A) acquaintances
B) family and friends
C) dealer Web sites
D) using the product
E) Internet searches
6. Alyce believes very strongly that the public school system offers students the best
opportunities to develop mentally, emotionally, and physically. Which of the following, if true,
would cause Alyce the most cognitive dissonance?
A) Research reveals that students from public schools make up 80% of college students in the
country.
B) Homeschooled students fare better on standardized tests, and are more mature than students in
the public school system.
C) Colleges consider a variety of qualifications during the admission process, in which academic
performance plays only a small part.
D) Students from non-public school backgrounds often have trouble fitting in when they enter
colleges.
E) A majority of students entering college are motivated by monetary concerns rather than a
desire for education.

7. ________ is the decision by an individual to become a regular user of the product.

A) New product recognition
B) Adoption
C) Evaluation
D) Information search
E) Quality assessment

8. ________ is the degree to which the results of using the innovation can be observed or
described to others.
A) Relative advantage
B) Compatibility
C) Complexity
D) Divisibility
E) Communicability

B) Discuss the Concepts

1. Discuss the personal factors influencing consumer buyer behavior. Which of these factors
have the greatest influence on your decision made on the college or university you are
currently attending?

2. Explain the stages of the consumer buyer decision process and describe how you or your
family went through this process to make a recent purchase.

3. Describe the five adopter categories for new products. Which group best describes your or
your family’s behavior with respect to high-definition televisions?
Tutorial 4
Chapter 5 Understanding Consumer & Business Buyer Behavior

A) Objective Questions

1. Which of the following is true of business markets?

A) The business marketer normally deals with far more but far smaller buyers than the consumer
marketer does.
B) Business markets involve far less money and items than do consumer markets.
C) Business demand is derived demand as it ultimately derives from the demand for consumer
goods.
D) A small percentage decrease in consumer demand can cause large increases in business
demand.
E) The total demand for business products is much affected by price changes in the short and
long run.

2. A company regularly purchases cleaning supplies for its cleaning staff, using the same vendor
and ordering relatively consistent amounts of the same products with each purchase. This is an
example of a ________ situation.
A) modified rebuy
B) new task
C) straight rebuy
D) solution selling
E) value analysis

3. Which of the following statements about buying centers is true?

A) The buying center is a fixed and formally identified unit within the buying organization.
B) The buying center roles are specified on the organizational chart.
C) The typical buying center has five employees, one to assume each of the buying center's roles.
D) The individual's role in the buying center does not change.
E) The buying center may involve informal participants who are not obvious to sellers.

4. Mike Myer's company has standardized the size of its paper bags so that each bag can be used
in five to seven different store departments. This approach to cost reduction is most likely to
have taken place in the ________ stage of the business buying process.
A) problem recognition
B) general need description
C) product specification
D) supplier search
E) proposal solicitation
5. Ourkansas Retail Corp. uses Knowitall.com to improve sales force effectiveness and facilitate
sharing of expertise. It allows Ourkansas retailers to link with other Ourkansas retailers to ask for
managerial and marketing advice. It also allows Ourkansas retailers to ask their suppliers about
product usage, deliveries, and warranties, and it allows suppliers to send new-product
information directly to Pace retailers. Ourkansas Retail Corp. is using a(n) ________.
A) extranet
B) intranet
C) search engine
D) trading exchange
E) reverse auction

6. Members of the buying center at ABC Kid's World are drawing up a list of desired toy
supplier attributes and their relative importance. Next, they intend to compare several suppliers
to these attributes. In which step of the business buying process is the buying center at ABC
Kid's World engaged?
A) supplier search
B) proposal solicitation
C) supplier selection
D) order-routine specification
E) performance review

7. PCK Sdn Bhd, provides food services to schools, hospitals, and nursing homes in the
Singapore. Management at PCK is involved in the ________ market.
A) government
B) not-for-profit
C) local
D) institutional
E) global

8. Voorhees' Farms raises chickens. For years, it has used wooden coops for hauling its poultry
to market. When the owner, Jason Voorhees, went to reuse some of his coops, he noticed many
of them could not be sufficiently cleaned for reuse and needed to be replaced. At which stage of
the business buying process was Voorhees when he decided to replace his old coops?
A) problem recognition
B) general need description
C) product specification
D) product value analysis
E) performance review
Refer to the scenario below to answer the following questions.

A-1 Stampings, Inc. produces 14 metal stampings for the automotive industry. Due to industry
design changes, for the next model year, six of those stampings will require a slight change: two
will have an extra hole punched through the side, two will require an extra plating process, and
two will require an additional weld operation.
In the meantime, the purchasing agent Richard Koehl has been asked to reduce the number of A-
1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel
samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his
suppliers based on quality and price, but a major consideration had been the type of steel
required and the specialized production processes of his respective suppliers. Not all of A-1's
suppliers could produce the exact grades of steel needed; some suppliers were better at producing
certain types of steel than others.
Richard contacted several employees at A-1 who had worked with the various types of steel in
the past. The quality control manager and line inspector, for example, could help to determine
which suppliers had the capabilities of producing specific types of steel. The production control
manager could provide input regarding which types of steel worked best in which presses. Even
the warehouse foreman gave input regarding how long various types of steel could be held in
inventory before rust spots began to form on their surfaces. Each person contributed the
necessary information to help Richard in making his decision.

9. The demand for A-1 Stampings' products is ultimately based on the demand for new
automobiles in the consumer market. This is an example of ________ demand.
A) inelastic
B) static
C) increasing
D) derived
E) independent

10. In this scenario, which of the following had the greatest influence on the business buying
behavior at A-1 Stampings?
A) regulatory developments
B) organizational structure
C) shifting authority
D) technological changes
E) individuals' risk attitudes

11. The management directive to reduce the number of steel suppliers is most accurately
classified as which type of influence affecting business buying behavior?
A) environmental
B) organizational
C) interpersonal
D) individual
E) commercial
12. At what stage in the buying process was Richard when he sought input from others in the
firm?
A) supplier selection
B) general need description
C) supplier search
D) proposal solicitation
E) order-routine specification

B) Discuss the Concepts

1. Describe the eight steps in the business buying process.

2. How do business markets differ from the consumer markets?

C) Applciation Questions

In a buying center purchasing process, which buying center participant is most likely to make
each of the following statements?

 “This new LCD projector for our conference room better be compatible with my laptop. I
need to do a sales presentation in the conference room next week.”
 “I recommended this service vendor as I find this service vendor is quite reliable through
my experience with them previously.”
 “Mr Beh is not in the office now. Do you want me to fix an appointment for you to meet
with him?”
 “Okay, I’ll approve this purchase.”
 “I’ll try to talk to the supplier for a better deal.”
Tutorial 5
Chapter 6 Customer-Driven Marketing Strategy: Creating Value for Target Customers

A) Objective Questions

1) When a company identifies the parts of the market it can serve best and most profitably, it is
practicing ________.
A) concentrated marketing
B) mass marketing
C) market targeting
D) segmenting
E) differentiation

2) Through market segmentation, companies divide large, heterogeneous markets into smaller
segments that can be reached more ________ with products and services that match their unique
needs.
A) efficiently
B) effectively
C) intensely
D) indirectly
E) both A and B

3) When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most
likely using which type of segmentation?
A) age and life cycle
B) gender
C) behavior
D) psychographic
E) geographic

5) Which type of segmentation centers on the use of the word when, such as when consumers get
the idea to buy, when they actually make their purchase, or when they use the purchased item?
A) behavioral
B) psychographic
C) occasion
D) impulse
E) emergency

4) Many firms make an effort to identify smaller, better-defined target groups by using
________.
A) user rates
B) loyalty segmentation
C) multiple segmentation bases
D) positioning
E) mass marketing
5) Consumer and business marketers use many of the same variables to segment markets.
Business marketers use all of the following EXCEPT ________.
A) operating characteristics
B) purchasing approaches
C) situational factors
D) personal characteristics
E) brand personalities

6) Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation,
income, and family life cycle. What type of segmentation does Pendergraff use?
A) geographic
B) behavioral
C) lifestyle
D) demographic
E) psychographic

7) When marketers at Procter & Gamble selected the Millennials, a demographic that includes
college students, as an untapped group of potential customers for their Febreze line of products,
they were executing which step in the process of designing a customer-driven marketing
strategy?
A) market segmenting
B) mass marketing
C) differentiation
D) targeting
E) positioning

8) Which of the following is NOT one of the reasons a segment would be less attractive to a
company?
A) strong competitors
B) substitute products
C) concentrated market
D) power of buyers
E) power of suppliers

9) In general, a company should enter only segments in which it can ________ and ________.
A) offer lower prices; ship faster
B) offer superior value; gain advantages over competitors
C) offer superior value; ship faster
D) gain advantages over competitors; differentiate its products
E) identify behaviors; understanding spending power
10) The 55-year-old baby boomers share common needs in music and performers. When a music
company decides to serve this group, the group is called a(n) ________.
A) market segment
B) target market
C) well-defined market
D) differentiated market
E) undifferentiated market

11) Developing a strong position within several segments creates more total sales than ________
marketing across all segments.
A) undifferentiated
B) differentiated
C) niche
D) target
E) individual

12) A product's position is based on important attributes as perceived by ________.

A) suppliers
B) competitors
C) market conditions
D) consumers
E) managers

13) Consumers position products and services ________.

A) after marketers put marketing mixes in place
B) generally after consulting friends who use them
C) with or without the help of marketers
D) only reluctantly
E) based on nearby competitors' positions

14) You have just created the "perfect" ad. It communicates the full mix of benefits upon which
the brand is differentiated and positioned. This full positioning of the brand is called ________.
A) its value proposition
B) target marketing
C) capturing the consumers' attention
D) value profiling
E) differentiated marketing

15) The answer to the customer's question "Why should I buy your brand?" is found in the
________.
A) quality image
B) customer services
C) value proposition
D) differentiation
E) pricing and promotion structure
B) Essay Questions

1. Compare and contrast undifferentiated, differentiated, concentrated, and micromarketing

targeting strategies. Which strategy is best?

2. Imagine that you are presenting a workshop on the Requirements for Effective Segmentation.
Briefly describe the five items that will help your audience understand your topic.

C) Applying the Concepts

1. There are four major sets of variables that might be used in segmenting consumer markets.
Which segmenting variable(s) do you think Starbucks is using?

2. Assume you work at a regional state university whose traditional target market, high school
students within your region, is shrinking and projections are that this segment will decrease
approximately 5 percent per year over the next ten years. Recommend other potential market
segments.
Tutorial 6
Chapter 8 Product, Services, and Branding Strategies: Building Customer Value

A) Objective Questions

1) A ________ is defined as anything that can be offered to a market for attention, acquisition,
use, or consumption that might satisfy a want or need.
A) private brand
B) service variability
C) service
D) product
E) service encounter

2) ________ are a form of product that consists of activities, benefits, or satisfactions offered for
sale that are essentially intangible and do not result in the ownership of anything.
A) Line extensions
B) Services
C) Brands
D) Consumer products
E) Supplements

3) A product is a key element in the ________. At one extreme, it may consist of pure tangible
goods or at the other extreme, pure services.
A) market offering
B) brand equity
C) brand extension
D) co-branding
E) value chain

4) To differentiate themselves, many companies are going beyond products and services, they
are developing and delivering customer ________.
A) quality
B) experiences
C) brands
D) product lines
E) events

5) Product planners must design the actual product and also find ways to ________ it in order to
create the bundle of benefits that will create the most customer value.
A) promote
B) package
C) brand
D) augment
E) present
6) An alternative to product line stretching is ________, adding more items within the present
range of the line.
A) product mixing
B) interactive marketing
C) product line filling
D) co-branding
E) service marketing

7) At the very least, the ________ identifies the product or brand. It might also describe several
things about the product and promote the brand.
A) line extension
B) social marketing
C) label
D) specialty product
E) package

8) A(n) ________ is a name, term, sign, symbol, design, or a combination of these, that identifies
the maker or seller of a product or service.
A) service
B) brand
C) co-branding
D) internal marketing
E) external marketing

9) A stripped-down model without any extras is the starting point; a company can create a
higher-level model by adding ________.
A) co-brandings
B) features
C) product quality
D) service variability
E) conformance

10) Product mix ________ refers to the number of versions offered of each product in the line.
Crest toothpaste comes in 13 varieties, ranging from Crest Multicare to Crest Baking Soda
formulations.
A) length
B) depth
C) height
D) width
E) perimeter
11) ________ means that services cannot be separated from their providers, whether the
providers are people or machines.
A) Service intangibility
B) Service inseparability
C) Service variability
D) Service perishability
E) Service heterogeneity

12) The fundamental asset underlying brand equity is ________–-the value of the customer
relationships that the brand creates. A powerful brand is important, but what it really represents
is a set of loyal consumers.
A) the customer mix
B) customer equity
C) line equity
D) service variability
E) the service encounter

13) In most ________ situations, one company licenses another company's well-known brand to
use in combination with its own.
A) brand extension
B) brand equity
C) co-branding
D) internal marketing
E) line extension

14) All of the following are methods for developing a differentiated service delivery EXCEPT
which one?
A) having more capable customer-contact people
B) developing a superior environment in which the service is offered
C) having more reliable customer-contact people
D) developing symbols and branding
E) designing a superior delivery process
B) Discuss the Concepts

1. How does an industrial product differ from a consumer product? Discuss the types of
industrial products and provide an example of each.

2. Name and explain the brand development strategies marketers use to develop brands. Provide
an example of each strategy.

C) Applying the Concepts

1. You are the marketing director for an inline skate manufacturer that holds 45 percent of the
men’s 18- to 29-year-old segment. Using the four brand development strategies discussed in
the chapter, give examples of products you could add to your brand.

2. Classify the following consumer products as convenience, shopping, specialty, or

unsought goods: a laptop computer, a surgeon, and automobile tires.
Tutorial 7
Chapter 9 Pricing: Understanding and Capturing Customer Value

A) Objective Questions

1) Consumer perceptions of the product's value set the ________ for prices.
A) demand curve
B) floor
C) ceiling
D) variable cost
E) image

2) In ________, price is considered along with the other marketing mix variables before the
marketing program is set.
A) target return pricing
B) value-based pricing
C) variable costs
D) price elasticity
E) cost-based pricing

3) If a seller charges ________ than the buyer's perceived value, the company's sales will
________.
A) more; benefit
B) more; suffer
C) less; increase
D) less; suffer
E) none of the above

4) The company designs what it considers to be a good product, totals the expenses of making
the product, and sets a price that adds a standard mark-up to the cost of the product. This
approach to pricing is called ________ pricing.
A) value-based
B) fixed cost
C) cost-plus
D) variable
E) skimming

5) With target costing, marketers will first ________ and then ________.
A) build the marketing mix; identify the target market
B) identify the target market; build the marketing mix
C) design the product; determine its cost
D) use skimming pricing; use penetrating pricing
E) determine a selling price; target costs to ensure that the price is met
6) Under ________, the market consists of many buyers and sellers trading in a uniform
commodity such as wheat, copper, or financial securities.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) a pure monopoly
E) anti-trust agreements

7) The relationship between the price charged and the resulting demand level can be shown as
the ________.
A) demand curve
B) variable cost
C) target cost
D) break-even chart
E) experience curve

8) If demand hardly changes with a small change in price, we say the demand is ________.
A) variable
B) inelastic
C) value-based
D) at break-even pricing
E) market penetrating

9) Assume a manufacturer with fixed costs of $100,000, a variable cost of $10, and expected
sales of 50,000 units wants to earn a 20-percent markup on sales. What is the manufacturer's
markup price?
A) $14
B) $15
C) $18
D) $18.50
E) none of the above

10) Ecstasy Pharmaceuticals faces fixed costs with their new drug of $1,000,000. The company
sells the drug in bottles of 50 pills for $10.00. They estimate that they must sell 200,000 bottles
to break even. What is the total variable cost to produce a bottle of 50 pills?
A) $2.50
B) $5.00
C) $6.00
D) $7.50
E) not enough information to calculate
11) In Vin del Mar, Chile, there are a dozen stores specializing in selling the same quality of
seafood products on one street. An individual store dare not charge more than the going price
without the risk of losing business to the other stores that are selling the fish at a common price.
This is an example of what type of market?
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) pure monopoly
E) socialist

12) Companies facing the challenge of setting prices for the first time can choose between two
broad strategies: market-penetration pricing and ________.
A) market-level pricing
B) market-competitive pricing
C) market-skimming pricing
D) market-price lining
E) market-price filling

13) ________ pricing is the approach of setting a low initial price in order to attract a large
number of buyers quickly and win a large market share.
A) Market-skimming
B) Market-penetration
C) Below-market
D) Value-based
E) Leader

14) When using price steps, the seller must establish perceived ________ that support the price
differences among the products in the line.
A) nonprice competition
B) value differences
C) quantity levels
D) images
E) strategies

15) Companies involved in deciding which items to include in the base price and which to offer
as options are engaged in ________ pricing.
A) product bundle
B) optional-product
C) captive-product
D) by-product
E) skimming
16) By definition, this type of pricing is used when a firm sells a product or service at two or
more prices, even though the difference in price is not based on differences in cost.
A) segmented pricing
B) variable pricing
C) flexible pricing
D) cost-plus pricing
E) reference pricing

17) Consumers usually perceive higher-priced products as ________.

A) not within reach of most people
B) having a higher quality
C) having high profit margins
D) popular brands
E) being in the introductory stage of the product life cycle

18) ________ prices are the prices that a buyer carries in his or her mind and refers to when
looking at a given product.
A) Psychological
B) Reference
C) Promotional
D) Geographical
E) Dynamic

19) Which of the following is NOT on an effective action that a company can take to combat a
competitor's price cut on a product?
A) reduce price
B) raise perceived value
C) improve quality and increase price
D) bundle products together
E) launch a low-price "fighting brand"

20) Which of the following is a reason for a company to raise its prices?
A) to address the issue of overdemand for a product
B) to win a larger share of the market
C) to use excess capacity
D) to boost sales volume
E) to balance out decreasing costs
B) Discuss the Concepts

1. Name and describe the four types of markets recognized by economists and discuss the
pricing challenges posed by each.

2. Name and discuss the TWO new product pricing strategies you have learned.
Tutorial 8
Chapter 10 Marketing Channels: Delivering Customer Value

A) Objective Questions

1) Which of the following is NOT a typical supply chain member?

A) resellers
B) customers
C) intermediaries
D) government agencies
E) raw materials supplier

2) ________ the manufacturer or service provider is the set of firms that supply the raw
materials, components, parts, information, finances, and expertise needed to create a product or
service.
A) Downstream from
B) Upstream from
C) Separated from
D) Congruous to
E) Parallel with

3) Another term for the supply chain that suggests a sense and respond view of the market is
________.
A) supply and demand chain
B) demand chain
C) channel of distribution
D) distribution channel
E) physical distribution

4) An advantage of a channel of distribution over selling direct to consumers is that each channel
member plays a ________ in the channel.
A) time-saving part
B) specialized role
C) decisional role
D) informational role
E) disciplinary role

5) ________ conflict, which occurs between different levels of the same channel, is more
common than ________ conflict, which occurs among firms at the same level of the channel.
A) Horizontal; vertical
B) Vertical; horizontal
C) Contractual; corporate
D) Corporate; franchise
E) Wholesaler; retailer
6) To increase a channel's service level, it must provide a greater assortment of products, more
add-on services, and ________.
A) lower prices
B) more efficiency
C) faster delivery
D) better terms
E) follow-up

7) Marketing channel management calls for selecting, managing, ________, and evaluating
channel members over time.
A) reducing conflict
B) reducing waste
C) motivating
D) pruning
E) all of the above

8) Exclusive dealing is legal as long as it does not ________ or tend to create a monopoly and as
long as both parties enter into the agreement ________.
A) substantially lessen competition; coercively
B) restrict trade; for a cause
C) substantially lessen competition; voluntarily
D) interfere with competitors; forcefully
E) create a smaller market; permanently

9) Marketing logistics involves getting the right product to the right customer in the right place at
the right time. Which one of the following is NOT included in this process?
A) planning the physical flow of goods and services
B) implementing the plan for the flow of goods and services
C) controlling the physical flow of goods, services, and information
D) gathering customer's ideas for new products
E) A and C

10) To reduce inventory management costs, many companies use a system called ________,
which involves carrying only small inventories of parts or merchandise, often only enough for a
few days of operation.
A) reduction-inventory management
B) just-in-time logistics
C) limited inventory logistics
D) supply chain management
E) economic order quantity
11) Staples Office Supply opened an online store that created competition with many of its
dealers. The corporate office created a ________ conflict.
A) vertical
B) problematic
C) no-win
D) horizontal
E) intermediation

12) Tiffany & Co jewelry can only be found in a limited number of intermediaries. This is an
example of ________ distribution.
A) exclusive
B) intensive
C) quality
D) high-end
E) independent

B) Discuss the Concepts

1. What are the 3 distribution strategies discussed in your textbook? Give an example of a
product or brand that is distributed at each level.

2. Discuss the various types of conflict that may arise in the channel of distribution. Is all
channel conflict bad?

C) Applying the Concepts

1. What factors does a cosmetics company need to consider when designing its marketing
channel for a new low-priced line of cosmetics?
Tutorial 9
Communicating Customer Value: Integrated Marketing Communication Strategy

A) Objective Questions

1) A company's total marketing communications mix consists of a special blend of advertising,

sales promotion, public relations, personal selling, and direct-marketing tools that the company
uses to communicate customer value and build customer relationships. This is also called
________.
A) direct marketing
B) integrated marketing
C) the promotion mix
D) competitive marketing
E) target marketing

2) Today's consumers do not need to rely on marketer-supplied information about products and
services because they can use ________ to seek out a wealth of information.
A) public relations
B) direct marketing
C) the Internet and other technologies
D) mass market media
E) informative advertising

3) More companies are adopting the concept of ________, which carefully integrates and
coordinates the company's many communication channels to deliver a clear, consistent, and
compelling message about the organization and its brands.
A) integrated marketing communications
B) integrated personal selling
C) integrated competitive methods
D) nonpersonal communication channels
E) buzz marketing

4) Advertising, sales promotion, personal selling, public relations, and direct marketing are all
________.
A) communications channels that should be integrated under the concept of integrated marketing
communications
B) communications channels focused more on narrowcasting than broadcasting
C) promotional tools used for push strategies but not pull strategies
D) promotional tools used for pull strategies but not push strategies
E) promotional tools adapted for use in mass marketing
5) Integrated marketing communications involves identifying the target audience and shaping a
well-coordinated ________ to elicit the desired audience response.
A) pull strategy
B) push strategy
C) promotional program
D) opinion leader
E) target market

6) Companies use all of the following methods to set their advertising budget EXCEPT the
________.
A) objective-and-task method
B) integrated method
C) competitive-parity method
D) percentage-of-sales method
E) affordable method

7) Using the ________ method for setting an advertising budget, the company starts with total
revenues, deducts operating expenses and capital outlays, and then devotes some portion of the
remaining funds to advertising.
A) integrated
B) moving-average
C) competitive-parity
D) percentage-of-sales
E) affordable

8) ________ is the company's most expensive promotion tool.

A) Advertising
B) Personal selling
C) Mass media
D) Public relations
E) Publicity

9) A.Y. McDonald, a manufacturer of pumps and plumbing valves, employs regional salespeople
to sell its products to wholesalers and cities. This is an example of ________.
A) sales promotion
B) personal selling
C) public relations
D) direct marketing
E) advertising
10) Delia's is a clothing retailer that targets teenage girls. It runs coordinated promotions for its
catalogs, Web site, and retail outlets. It uses the same models in its catalog and in its print ads as
well as on its Web site. Delia's works to make sure its public relations activities as well as its
sales promotions harmonize with its advertising in all venues. From this information, you can
infer that Delia's is using ________.
A) buzz marketing
B) experiential marketing
C) integrated marketing communication
D) word of mouth marketing
E) database marketing

11) HP's advertising agency assembles words and illustrations into an advertisement that will
convey the company's intended brand message. In the communication process, HP is ________.
A) messaging
B) encoding
C) sending
D) decoding
E) responding

12) An e-mail from Amazon.com offers free shipping on your next purchase of more than $35.
This is an example of ________.
A) sales promotion
B) personal selling
C) public relations
D) an advertising objective
E) a push strategy

B) Discuss the Concepts

1. Discuss the three major factors changing the face of today’s marketing communications.

2. Describe the role of public relations in an organization and the tools used to carry out that
role.

C) Applying the concept

1. You are the Marketing Director of a soft drink company. Your company is introducing a new
soft drink into the market. You are asked to design a viral marketing campaign targeted to
teens for a brand of soft drink. Discuss the challenges marketers might encounter when
implementing this campaign.
Tutorial 10 Global Marketplace & Online Marketing

Chapter 17 Online Marketing

Chapter 19 The Global Marketplace

A) Objective Questions

1) Which of the following is true about online direct marketing?

A) Online direct marketing is also referred to as multi-level marketing.
B) Salespersons are compensated for other salespeople they recruit.
C) Online direct marketing results in speedier handling of channel and logistics functions.
D) Online direct marketing involves two or more intermediaries.
E) In online direct marketing, outside and inside sales forces coordinate to provide value
products to customers.

2) Which of the following is an advantage of using digital catalogs?

A) lists the phone numbers of interested prospects
B) coordinates with direct-response television ads
C) points customers to the nearest kiosk
D) eliminates printing and mailing costs
E) creates emotional contact with customers

3) Why are historically online shops such as Zappos.com adding catalogs to their marketing
methods?
A) to meet the increased demand in print catalogs
B) to reduce the costs involved in online marketing
C) to connect with customers in hard-to-reach places
D) to drive online sales and services
E) to reduce the need for telemarketers

4) ________ allows consumers to gain additional information about a product through the use of
a remote control.
A) Telemarketing
B) Kiosk marketing
C) Podcasting
D) Video conferencing
E) Interactive television

5) Kirk's Comic Store has its own mobile app that users can download for free. The app lets
users know about special events, discounts, and merchandise currently available in the store.
Which of the following forms of marketing is exemplified from this scenario?
A) social media marketing
B) kiosk marketing
C) direct-response television marketing
D) catalog marketing
E) direct-mail marketing
6) The ________, a vast public web of computer networks, connects users of all types all around
the world to each other and to an amazingly large information repository.
A) Internet
B) Intranet
C) digital catalog
D) customer database
E) network bridge

7) Gen-next Clothing has clothing stores across the U.S., and the firm also sells online directly to
customers. Which of the following best describes Gen-next Clothing?
A) click-and-mortar company
B) buy-here pay-here company
C) brick-and-mortar company
D) shell company
E) click-only company

8) ________ are online journals where people post their thoughts, usually on a narrowly defined
topic.
A) Social networks
B) Blogs
C) Forums
D) Search engines
E) Web directories

9) Firms that play it safe and do not enter the global market are likely to lose their chances to
enter other markets ________.
A) but achieve more stability at home
B) but gain a competitive edge in their home markets
C) but successfully shield themselves from foreign competition
D) and risk losing their home markets
E) A and B

10) A ________ is one that, by operating in more than one country, contains marketing,
production, research and development, and financial advantages that are not available to purely
domestic competitors.
A) global firm
B) global industry
C) whole-channel view
D) direct investment
E) free trade zone
11) The ________ is a 60-year-old treaty designed to promote world trade by reducing tariffs
and other international trade barriers.
A) WTO
B) GATT
C) EU
D) CAN
E) NAFTA

12) Economic communities are also known as ________.

A) global firms
B) free trade zones
C) management communities
D) production communities
E) open channels

13) All of the following are types of industrial structures EXCEPT?

A) subsistence economies
B) raw material exporting economies
C) developing economies
D) industrializing economies
E) industrial economies

14) The two key economic factors reflecting a country's attractiveness as a market are its
industrial structure and its ________.
A) communication adaptation
B) nontariff trade barriers
C) exchange controls
D) income distribution
E) transportation systems

15) All of the following are modes of entry that companies can use when they have decided to
sell in a foreign country EXCEPT ________.
A) exporting
B) embargo
C) joint venturing
D) direct investment
E) licensing

16) The simplest way to enter a foreign market is through ________.

A) joint venturing
B) direct investment
C) exporting
D) joint ownership
E) contract manufacturing
17) ________ involves less investment because the firm does not require an overseas marketing
organization or network. It also involves less risk.
A) Indirect exporting
B) Direct exporting
C) Joint venturing
D) Licensing
E) Contract manufacturing

18) Sellers may eventually move into ________, whereby they handle their own exports. The
investment and risk are somewhat greater in this strategy.
A) direct exporting
B) embargo
C) product adaptation
D) indirect exporting
E) licensing

B) Discuss the Concepts

1. Name and define the four types of country industrial structures.

2. Discuss the three ways to enter foreign markets. Which is the best?