MKTG 2270 Review Questions for Final Exam

Professor: C. Kim

Chapter 7: Segmentation, Targeting, and Positioning

1) What are the four steps, in order, to designing a customer-driven marketing strategy? (pp. 239-240)
A) market segmentation, differentiation, positioning, and targeting
B) positioning, market segmentation, mass marketing, and targeting
C) market segmentation, targeting, differentiation, and positioning
D) market alignment, market segmentation, differentiation, and market positioning
E) market recognition, market preference, market targeting, and market insistence

2) Pabst beer had a revival in Canada when it began targeting hipsters, a group of people who embrace
edginess in their lives with independent thought, progressive thought, creativity, and witty banter. This
targeting likely follows which segmentation approach? (p. 242)
A) social class
B) lifestyle
C) occupation
D) attitude towards the product
E) personality

3) When the size, purchasing power, and profiles of a market segment can be determined, it possesses
the requirement of being ________. (p. 252)
A) measurable
B) accessible
C) substantial
D) actionable
E) observable

4) Typically, developing a strong position within several market segments creates more total sales than
________ marketing across all segments. (p. 253)
A) differentiated
B) niche
C) undifferentiated
D) target
E) individual

5) Niche marketing offers smaller companies the opportunity to compete by focusing their limited
resources on serving niches that may be ________ or ________ larger companies. (p. 255)
A) unimportant to; desired by
B) disappointed by; geographically far from
C) too large; undesirable to
D) unknown by; desired by
E) unimportant to; overlooked by

6) Under what circumstances would local marketing likely be the most effective? (p. 256)
A) when pronounced differences in psychographics are present
B) when pronounced differences in lifestyles are present
C) when pronounced regional and local differences in demographics and lifestyles are present
D) when regional demographics and lifestyles are similar
E) when pronounced similarities in psychographics are present
7) Which of the listed choices is a very important positioning task? (p. 261)
A) identifying a set of possible competitive advantages upon which to build a position
B) surveying frequent uses of the product
C) selecting a specific positioning statement
D) effectively selling the cheapest position to the market
E) selecting the right competition

8) Jaygo Food Stores hires better employees than the competition by conducting lengthy searches and
interviews. Management also trains employees much better than competitors. Jaygo has gained a strong
competitive advantage through which type of differentiation? (p. 262)
A) image
B) channel
C) services
D) product
E) people

9) Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What
does USP stand for? (p. 263)
A) unique selling product
B) unique services practice
C) unique sales pitch
D) unique selling proposition
E) universally strategic practice

10) Neiman Marcus claims superior quality, performance, and style. The owners provide the most upscale
products and services and charge a higher price to cover the higher costs. What type of positioning does
Neiman Marcus use? (p. 264)
A) more-for-the-same
B) the-same-for-less
C) repositioning
D) more-for-more
E) more-for-less

Chapter 8: Developing and Managing Products and Services

1) Product planners consider products and services on three levels. The most basic level is the
________, which addresses the question, "What is the buyer really buying?" (p. 279)
A) actual product
B) core customer value
C) augmented product
D) co-branding
E) exchange

2) Mabel Lu is planning to buy a new washing machine. She notices that they come in numerous price
ranges. She wants to make sure she gets the most for her money. This product is a(n) ________
product.(p. 280)
A) augmented
B) shopping
C) convenience
D) specialty
E) unsought

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3) The creation of a successful new product depends on a company's understanding of its ________ and
its ability to deliver ________ to customers. (pp. 285-286)
A) competitors, distributors, and employees; new styles
B) customers, brands, products; product images
C) product, marketing mix, and marketing strategy; functional features
D) customers, competitors, and markets; superior value
E) product life cycle, legal responsibilities, and social responsibilities; innovations

4) In the ________ stage of new-product development, products undergo rigorous tests to make sure that
they perform safely and effectively or that consumers will find value in them. (p. 290)
A) business analysis
B) idea generation
C) concept development and testing
D) product development
E) marketing mix

5) What are the two main focuses of the product life cycle theory? (p. 291)
A) distributors and suppliers
B) competitors and costs
C) profits and target markets
D) target markets and competitors
E) sales and profits

6) Some products that have entered the decline stage have been cycled back to the growth stage through
________. (p. 292)
A) repositioning
B) concept testing
C) business analysis
D) innovation management
E) customer-centered product development

7) Developing a product involves defining the benefits that it will offer. These benefits are communicated
and delivered by ________ such as quality, features, and style and design. (p. 297)
A) private brands
B) product attributes
C) consumer products
D) product mixes
E) marketing tools

8) A ________ consists of all the product lines and items that a particular seller offers for sale. (p. 301)
A) brand line
B) consumer mix
C) product mix
D) packaging mix
E) line extension

9) Service providers must consider four special service characteristics when designing marketing
programs. Which is the BEST description? (p. 303)
A) service intangibility, service heterogeneity, service inseparability, service variability
B) service inseparability, service heterogeneity, service intangibility, service variability
C) service perishability, service heterogeneity, service inseparability, service variability
D) service heterogeneity, service perishability, service inseparability, service intangibility
E) service variability, service intangibility, service inseparability, service perishability

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10) Through ________, the service firm trains and motivates its customer-contact employees and
supporting service people to work as a team to provide customer satisfaction. (p. 305)
A) service inseparability
B) service intangibility
C) internal marketing
D) service variability
E) external marketing

Chapter 9: Brand Strategy and Management

1) Brand managers often describe their brands using the same kinds of adjectives typically used for
people. Words like: traditional, youthful, sophisticated, reliable. These managers are trying to build brand
________. (p. 327)
A) profit
B) extensions
C) word-of-mouth
D) evaluations
E) personality

2) Young & Rubicam measures brand strength along all of the following dimensions except __________.
(p. 327)
A) equity
B) differentiation
C) relevance
D) knowledge
E) esteem

3) Some companies like Godiva, Starbucks, Apple, and Victoria's Secret rely less on a product's tangible
attributes and more on creating ________. (p. 330)
A) advertisements
B) promotions
C) public relations campaigns
D) touch points
E) surprise, passion, and excitement

4) In the competition between ________ and ________ brands, retailers have the advantages of
controlling what products will be stocked, where products will be stocked, what prices will be charged,
and which products will be featured in print promotions. (p. 332)
A) national; manufacturer's
B) store; private
C) national; private
D) store; licensed
E) private; distributor

5) A modest manufacturing company in Regina has recently paid the Tommy Hilfiger and Quicksilver
companies for the right to use their brand names in everything from belts to blouses, and shirts to socks.
These are examples of ________. (p. 332)
A) branding
B) trademarking
C) licensing
D) knock offs
E) copying

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6) Costco recently teamed up with mattress maker Stearns & Foster to market a line of Kirkland Signature
mattress sets by Stearns & Foster. This is a good example of ________. (p. 333)
A) branding
B) co-branding
C) advertising
D) product mixing
E) trademarking

7) Procter & Gamble recently used the Mr. Clean character on its new line of auto cleaning kits. P & G did
this to increase recognition and speed consumer acceptance. This success story is a good example of
________. (p. 334)
A) promotion
B) brand extension
C) research and development
D) customer service
E) sales savvy

8) Recently General Motors was on the brink of bankruptcy. One of the solutions was to deal with their
problem of multibranding. What did GM do to reduce costs and increase profitability? (p. 335)
A) They cut many modest or failing brands to focus on their stronger brands.
B) They offered employee discounts to everyone.
C) They lobbied along with Chrysler for huge government bailout payments.
D) They sold stock to generate revenue.
E) They sold more cars and trucks.

9) Jerry recently bought a Sony Bravia HD television. He first heard about the TV through an
advertisement and later talked to a friend who has one and recommended it. These are examples of
________. (p. 336)
A) solicitations
B) line extensions
C) touchpoints
D) product mix
E) word-of-mouth elements

10) BMW was the first company to create branded entertainment in the form of a series of short films. In
each film the star was ________. (p. 340)
A) a male
B) a female
C) from Hollywood
D) a BMW car
E) a car owner

Chapter 10: Pricing

1) Measuring ________ can be difficult. A company might conduct surveys or experiments to test this in
the different products they offer. (p. 356)
A) target returns
B) fixed costs
C) perceived value
D) break-even pricing
E) variable costs

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2) Xbox One decides to add a free subscription to Xbox magazine with every game bought in an effort to
differentiate its offering from PS4 games. This is an example of ________. (p. 358)
A) good-value pricing
B) add-on pricing
C) product-support pricing
D) value-added pricing
E) cost-based pricing

3) 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? (p.
359)
A) $14
B) $15
C) $18
D) $18.50
E) none of the above

4) A company faces fixed costs of $100,000 and variable costs of $8.00/unit. They plan to directly sell
their product to the market for $12.00. How many units must they produce and sell to break even? (p.
359)
A) 25,000
B) 20,000
C) 40,000
D) 50,000
E) not enough information to calculate

5) With target costing, marketers will first ________ and then ________. (p. 362)
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) Johnson Boats wants to introduce a new model of boat into mature markets in highly developed
countries with the goal of quickly gaining mass-market share. As a consultant, you should recommend a
________ pricing strategy. (p. 368)
A) market-skimming
B) market-penetration
C) zone
D) discount
E) captive-product

7) Mach 3 razor blades must be used in the Mach 3 razor. Which type of pricing is most likely used? (p.
370)
A) product line pricing
B) optional-product pricing
C) captive-product pricing
D) by-product pricing
E) allowance pricing

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8) When General Motors provides payments or price reductions to its new car dealers as rewards for
participating in advertising and sales support programs, it is granting a(n) ________. (p. 372)
A) trade discount
B) functional discount
C) allowance
D) promotional allowance
E) trade credit

9) Big Mike's Health Food Store sells nutritional energy-producing foods. The price of the products sold
varies according to individual customer accounts and situations. For example, long-time customers
receive discounts. This strategy is an example of ________. (p. 375)
A) promotional pricing
B) dynamic pricing
C) cost-plus pricing
D) value pricing
E) penetration pricing

10) Which of the following is a poor reason for a company to initiate a price cut? (p. 376)
A) to boost sales
B) to obtain prestige
C) to dominate the market
D) to relieve excess capacity
E) to influence falling demand

Chapter 11: Marketing Channels

1) Which of the following is true of downstream channels in a company's supply chain? (pp. 391-392)
A) They form an intermediary link between the company and its customers.
B) They manufacture the products of the company.
C) They supply raw materials and components to the company.
D) They contribute financially to the company during production.
E) They provide their expertise in product design.

2) From the economic system's point of view, the role of marketing intermediaries is to ________. (p. 393)
A) facilitate the production of products without direct customer feedback
B) help a company develop a direct channel selling system
C) buy small quantities of products from producers and break them down into narrow assortments for
customers
D) increase the amount of work that must be done by producers and consumers
E) transform the assortments of products made by producers into the assortments wanted by consumers

3) A firm that uses direct marketing would most likely sell its products through ________. (p. 398)
A) one marketing intermediary
B) big box retailers
C) the company website
D) multiple intermediaries
E) large wholesalers

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4) Sonic Shack, an audio equipment retailer, signs an agreement with PineWire, a renowned electronics
company, to sell PineWire products. The deal requires Sonic Shack to provide PineWire products with
superior displays, shelf space, and promotion compared to competing products. Sonic agrees to these
terms as PineWire products command a huge share in the market. Which of the following types of
channel arrangements do PineWire and Sonic Shack most likely have? (p. 400)
A) corporate vertical marketing system
B) administered vertical marketing system
C) indirect marketing system
D) wholesaler franchise system
E) horizontal marketing system

5) TruMart, a leading retail chain, decides to open a restaurant inside its stores, so the firm partners with
MeatMe, a popular burger chain. MeatMe opens a restaurant inside TruMart. The MeatMe chain of
restaurants also has a deal with Westman Cola to serve only Westman soft drinks at its outlets. This
arrangement will benefit all three companies. What kind of channel arrangement is being followed in this
case? (p. 401)
A) administered vertical marketing system
B) horizontal marketing system
C) direct marketing system
D) contractual vertical marketing system
E) corporate vertical marketing system

6) For over ten years, Erudite, a publishing and educational company that produces college textbooks,
has been selling its books online through studysmart.com, a popular online retailer that sells textbooks
published by different companies. Recently, Erudite stopped selling its books through studysmart.com
and set up its own website for selling its books. This change in channel organization is called ________.
(pp. 404-405)
A) disintermediation
B) intensive distribution
C) brokering
D) franchising
E) selective distribution

7) Selective distribution is a strategy in which ________. (p. 408)

A) all willing intermediaries are given rights to sell a product
B) products are stocked in as many outlets as possible by a seller
C) products are not sold through intermediaries but directly to customers from producers
D) more than one but fewer than all willing intermediaries are used by a seller
E) common household goods are preferred over luxury products by intermediaries

8) In a just-in-time logistics system, ________. (p. 413)

A) producers that are geographically far from their retailers use an express-delivery system
B) retailers store products for long periods to avoid an interruption in supply
C) producers supply products to resellers before customers place their orders
D) retailers carry small inventories of merchandise to last for only a few days
E) retailers incur high inventory-carrying and inventory-handling costs

9) A ________ is highly automated and designed to receive goods from various plants and suppliers, take
orders, fill them efficiently, and deliver goods to customers as quickly as possible. (p. 417)
A) distribution center
B) storage warehouse
C) cold storage unit
D) controlled-atmosphere unit
E) storage silo

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10) Under ________, a customer shares real-time data on sales and current inventory levels with a
supplier, and the supplier then takes full responsibility for managing inventories and deliveries. (p. 418)
A) periodic inventory systems
B) vendor-managed inventory systems
C) selective-trading inventory systems
D) manual inventory replenishment systems
E) customer-managed inventory systems

Chapter 12: Retailing (No questions will come from International Retailing to the chapter’s end,
pp. 451 - 456)

1) Flax is a chain of stores that carries several product lines including clothing, home furnishings, and
household appliances. Each line is operated as a separate department, and employees are available to
assist and advise customers in every phase of the shopping process. Flax is most likely a ________. (p.
435)
A) self-service retailer
B) category killer
C) full-service retailer
D) supermarket
E) pop-up store

2) Which term refers to a giant specialty store with a very deep assortment of a particular product line? (p.
436)
A) category killer
B) convenience store
C) factory outlet
D) department store
E) independent store

3) What is most likely the first major marketing decision that a retailer must take? (pp. 438-439)
A) positioning
B) segmentation
C) targeting
D) differentiation
E) promoting

4) The Toby's chain of first-class department stores carries a wide range of product lines, including
clothing, jewelry, kitchenware, and home furnishings. Toby's typically charge higher prices on an
everyday basis and then holds frequent sales and price promotions to increase store traffic. Toby's most
likely uses ________. (P. 442)
A) self-service retailing
B) high-low pricing
C) experiential retailing
D) everyday low pricing
E) franchise retailing

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5) Which of the following statements is true of shopping centers? (p. 443)
A) Most shopping centers function at the regional level rather than at the neighborhood level.
B) Shopping centers typically contain only those stores that target a niche market segment of high income
groups.
C) Shopping centers are groups of retail businesses built on a site that is planned, developed, owned,
and managed as a unit.
D) Shopping centers usually contain exclusive brands and specialty stores rather than convenience
stores or department stores.
E) Shopping centers are huge superstores that offer a deep assortment of a particular product line.

6) All of the following are trends in Canadian retail except ________. (pp. 444-451)
A) experiential retailing
B) enhanced use of in-store technology
C) increased gift card usage
D) social media and mobile
E) rapid growth of malls

7) Checking out products in traditional stores and purchasing them online is referred to as ________. (p.
447)
A) warehousing
B) wholesaling
C) retailing
D) showrooming
E) franchising

8) Retail convergence most likely leads to ________. (p. 450)

A) reduced differentiation
B) reduced competition
C) increased sales
D) increased profit margins
E) reduced advertising costs

Chapter 13: Communicating Customer Value (No questions will come from Public Relations, pp.
494 – 497)

1) Companies are using less ________ and more ________ as a result of an explosion of more focused
media that better match today's targeting strategies. (p. 469)
A) marketing; media
B) media; sales
C) narrowcasting; broadcasting
D) mass media; targeted media
E) advertising; word-of-mouth

2) More companies are adopting the concept of ________, which carefully coordinates the company's
many communication channels to deliver a clear, consistent, and compelling message about the
organization and its brands. (p. 473)
A) integrated marketing communications
B) integrated personal selling
C) integrated competitive methods
D) nonpersonal communication channels
E) buzz marketing

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3) Sales promotion features a wide assortment of tools. Which is one set of these tools? (p. 475)
A) contests, catalogues
B) catalogues, premiums
C) catalogs, coupons
D) coupons, contests
E) dealer warranties, coupons

4) Which promotional tool is described as less public, immediate, customized, and interactive? (p. 476)
A) segmented advertising
B) sales promotions
C) public relations
D) brand contacts
E) direct and digital marketing

5) Business-to-consumer companies are more likely to emphasize a ________ promotion strategy, while
business-to-business companies are more likely to emphasize a ________ promotion strategy. (p. 477)
A) pulse; pull
B) push; pull
C) pull; push
D) continuity; pulse
E) pulse; continuity

6) Persuasive advertising becomes comparative advertising, also known as ________, when a company
directly or indirectly compares its brand with one or more other brands. (p. 478)
A) informative advertising
B) reminder advertising
C) attack advertising
D) POP promotion advertising
E) institutional advertising

7) Which of the following are the three characteristics an advertising appeal should have? (p. 484)
A) engaging, informative, and stylish
B) meaningful, believable, and distinctive
C) trendy, compelling, and appealing
D) unique, emotional, and entertaining
E) humorous, memorable, and interesting

8) An ad for a new convection oven shows a busy professional woman serving dinner to her family. The
convection oven is seen in the background, and the headline reads, "The latest development in time
travel." This is an example of what type of execution style? (p. 485)
A) mood or image
B) testimonial evidence
C) fantasy
D) scientific evidence
E) slice of life

9) An amateur video showing the result of mixing Diet Coke with Mentos candies is an example of which
growing trend in advertising? (pp. 486-87)
A) Youtube webisodes
B) Youtube consumer-generated messages
C) multiple minicampaigns
D) consumer-driven promotions
E) competitive consumer messages

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10) Which of the following are some of the major steps in selecting advertising media? (p. 487)
A) deciding on reach, frequency, and impact, choosing among major media types
B) choosing among major media types, selecting target markets
C) selecting specific media vehicles, deciding on format elements
D) deciding on format elements, selecting target markets
E) deciding on format elements, deciding on timing

Short-Answer Questions

1. Define or explain the following terms/concepts

(a) Perceptual map (Ch. 7)
(b) Internal marketing (Ch.8)
(c) Dynamic pricing (Ch.10)
(d) Intensive distribution (Ch. 11)
(e) Short message service (SMS) marketing (Ch. 13)

2. Compare and contrast four major segmenting strategies – undifferentiated marketing, differentiated
marketing, concentrated (or niche) marketing, and micromarketing. (Ch. 7)

3. (a) A typical product life cycle curve is pictured to the right. The
curve has been divided into 4 sections and each section
corresponds to a different stage in the product life cycle. Identify
each of the four stages and describe each stage in terms of sales, 1 2 3 4
profit, and competition.
(b) Looking at the diagram in part (a), you will notice that the
current life cycle position of “yogurt” is indicated by a star ().
Considering yogurt’s stage in the product life cycle, what should a
yogurt manufacturer’s strategy be for product, pricing, promotion,
and distribution?
(Ch. 8)

4 (a) Explain what ‘value-added pricing’ involves and describe Starbucks’ value-added pricing practice.
(b) Explain ‘pricing power’ – a concept related to value-added pricing.
(Ch. 10)

5. There are three types of vertical marketing system (corporate, contractual, and administered) in which
producers, wholesalers, and retailers act as a unified system. Describe each vertical marketing
system and provide a real world example of each system.
(Ch. 11)

6. A company's marketing communications mix – also called its promotion mix – blends five different
tools. Name and define these tools. (Ch. 13)

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