4. Discuss the demand states and role of marketer and example for each?

II. Answer the following multiple choice questions

1) Which of the following is an example of enhancing the growth potential of each customer
through cross-selling?
A) In addition to bicycles, 2Wheels stocks biking gear such as helmets, bottles, jackets and other
accessories.
B) 2Wheels has a club for its regular customers, organizing cycling events and parties for them.
C) Though 2Wheels previously offered free delivery, it now charges for deliveries made outside
the city.
D) 2Wheels allows existing customers to upgrade to a newer model at less than the sticker price
by trading in their older model.
E) 2Wheels encourages customers to send in their suggestions for product improvement
2) Which of the following is a policy a store can adopt to make low-profit customers more
profitable?
A) 2Wheels sends birthday greetings to its best customers and gives them discounts on
merchandise.
B) 2Wheels has a club for its regular customers, organizing cycling events and parties for them.
C) Though 2Wheels previously offered free delivery, it now charges for deliveries made outside
the city.
D) 2Wheels allows existing customers to upgrade to a newer model at less than the sticker price
by trading in their older model.
E) 2Wheels encourages customers to send in their suggestions for product improvement.
3) Companies provide rewards to customers who buy often and in substantial amounts. These
reward schemes are referred to as ________.
A) benefit programs
B) frequency programs
C) satisfaction programs
D) profitability programs
E) quality programs
4) All of the following are benefits of following the ________ approach to target market
selection: a strong knowledge of the segment's needs, a strong market presence,
operating economies through specializing in production, distribution, and promotion.
A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage
5) Coca Cola's original marketing strategy that offered a single drink Coca Cola Classic in a
single sized bottle with the advertising theme "Coke is it," is an example of ________
marketing.
A) concentrated
B) niche
C) differentiated
D) micro
E) undifferentiated
6) If a marketing manager observes that his or her market shows no natural segments
and consumers seem to have roughly the same preferences, the marketing manager will
most likely be faced with a ________ preferences pattern.
A) homogeneous
B) heterogeneous
C) diffused
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 D) clustered
E) scattered
7) In ________ marketing, the firm ignores segment differences and goes after the whole
market with one offer.
A) niche
B) mass
C) guerrilla
D) segmented
E) differentiated
8) If married and unmarried women respond similarly to a sale on perfume, these
hypothetical segments fail the ________ criterion for useful market segments.
A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable
9) Many banks and phone companies now charge fees for once-free services to ensure minimum
customer revenue levels. This helps the banks to .
A) reduce the rate of customer defection
B) make low-profit customers more profitable
C) enhance the growth potential for each customer through cross-selling
D) increase the longevity of the customer relationship
E) focus disproportionate effort on high-value customer
10) Which of the following is an example of focusing disproportionate effort on high-profit
customers?
A) In addition to bicycles, 2Wheels sells biking gear such as helmets, bottles, jackets and other
accessories.
B) 2Wheels has a club for its regular customers, organizing cycling events and parties for them.
C) Though 2Wheels previously offered free delivery, it now charges for deliveries made outside
the city.
D) 2Wheels allows existing customers to upgrade to a newer model at less than the sticker price
by trading in their older model.
E) 2Wheels encourages customers to send in their suggestions for product improvement.

III. State TRUE or False and correct the false statements.

1) When a company introduces a new brand name in the same product category, it is called
line extension.
2) Product support services identify the product or brand, describe several things about the
product, and promote the product through attractive graphics.
3) A service is anything that can be offered to a market for attention, acquisition, use, or
consumption and that might satisfy a want or need.
4) Unsought products are products that the customer usually buys frequently, immediately,
and with a minimum of comparison and buying effort.
5) Branding can add consumer value to a product.
6) A company might stretch its product line upward to add prestige to its current products.
7) Conformance quality and performance quality are identical in the marketing sense.
8) A customer touch point is the time when the customer makes a purchase.

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 9) Sony offers consumers more than just camcorders; it provides consumers with a complete
solution to their picture-taking problems. This offering is called an augmented product.
10) A company's product mix has four important dimensions: width, length, depth, and
consistency.

Olivia James Case: Refer to the scenario below to answer the following questions.
Olivia James, owner of Eagle Spirit, watched her investment grow from a small, seaside motel to a thriving year-
round resort in just a few years. Atop a cliff overlooking the Maine coast, Eagle Spirit had attracted thousands of
visitors during summer, but then faced a tremendous downturn in business during winter. "But, given the
established industries in the nearby towns, very little year-round competition, and our close proximity to
Portland," Olivia added, "I couldn't understand why seasonality had to hit Eagle Spirit so hard!"

So Olivia spent her first winter devising a new marketing plan. She put together a promotional package
designed to attract business travelers year-round. Olivia 's plan also involved a seasonal promotional gimmick—
to be implemented from early winter to late spring—that would attract the same numbers as the large summer
crowd. Her idea worked! During her second winter, Olivia greeted numerous business travelers—both satisfied
repeat guests as well as new guests who had been snagged by her promotional appeals.

"We still have a long way to go," Olivia admitted. "Our delicatessen offers entrees that are a part of the local
cuisine, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually
provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a
renovation of our guest rooms and I'm quite proud of the results." Olivia then added, "Actually there are so
many possibilities. With an indoor pool area, I will eventually offer weekend getaways throughout winter."

1. Eagle Spirit offers its customers good accommodations, local delicacies, and amazing seaside
views. The overall experience provided at the motel is a part of its ___.
A) product positioning
B) market segment
C) marketing mix
D) market offering
E) target market
2. Olivia James 's plan also involves a seasonal promotional gimmick which she wants to promote
aggressively. This is an example of the ________ concept.
A) selling
B) marketing
C) product
D) societal marketing
E) production
3. Renovations of the guest rooms at the Eagle Spirit and plans to add an indoor pool area are
examples of the ________ concept.
A) production
B) marketing
C) product
D) selling
E) societal marketing
4. Olivia James has decided to ask selected guests to participate in an extensive survey about their
experience at Eagle Spirit and about their requirements in terms of amenities and cuisines. By
implementing the suggestions she receives from guests, Carol would be following the ________ concept.
A) product
B) societal marketing
C) selling

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D) marketing
E) production
5. Which of the following groups is specifically part of Eagle Spirit 's target market?
A) healthcare customers
B) societal marketing
C) seasonal business travelers
D) latent demand customer
E) regular customers