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Introduction to Marketing
4. What was the reason that Finlands Nokia lost their position as the worlds dominant mobilephone manufacturer.
a. Customers liked Steve Jobs better than Stephen Elop.
b. Nokia was not well positioned to exploit the shift in consumer tastes towards more technically
advanced smartphones.
c. Nokias promotional campaign failed
d. Legal changes in Finland did not allow Nokia to lower prices
5. What are the four forms of customer value?
a. price-, performance-, emotional-, relational value
b. exchange-, performance-, emotional-, relational value
c. cash-, performance-, counter-, relational value
d. nominal-, performance-, emotional-, redemption value
6. Connect which company/business are/is primarily building on what type of value:
a. price value
Dyson ___(a,b,c or d?) _______________
b. performance value
Ryanair_________________
c. emotional value
Good quality service providers_____________
d. relational value
Volvo __________________
7. What might be indicators of an internally orientated, non-marketing-orientated business?
a. assume price and performance key to most sales
b. ignore competition
c. Search for latent markets
d. customer concern throughout the business.
8. Please complete the missing words in the statement below.
_____________? Abstract ?Academic research and ample ____________?evidence ?rumors from
practice shows that there is a strong relationship between _____________? marketing ?sales
orientation and business performance.
Prof. Dr. Erika Graf
Review Questions
Introduction to Marketing
false
When companies are developing and offering many variations of their product
they are following a product orientation.
When companies are making heavy use of discounts, coupons and other
promotional tools they are following a marketing orientation.
When companies are trying to understand customer needs and constantly seek
new market opportunities they are following a marketing orientation.
The societal marketing concept means that companies should be also engage in
activities such as reducing pollution, or developing corporate social responsibility
programmes.
One of the great benefits of having satisfied customers is that they they tell others
about their experiences, further enhancing sales.
The marketing concept holds that a company should do should not worry about
efficient production capabilities.
Review Questions
Introduction to Marketing
Open Questions
18. Pick a product and explain how the marketing of that product would be different under each of
the marketing management orientations.
19. Pick a company that in your view is marketing-oriented and describe how they do it.
Review Questions
Introduction to Marketing
false
Low growth rates are reflected in high unemployment levels, which in turn affect
consumer spending power.
In times of economic recession consumers tend to postpone spending and/or
become more cost conscious.
Growth rates and unemployment rates are almost the same throughout the world.
In times of economic recession companies tend to spend more on advertising.
BRIC nations are growing strongly.
Higher taxes have a positive impact on consumer spending
5. What are examples of social forces that have implications for marketing?
a. changes in the demographic profile of the population
b. cultural differences within and between nations
c. social responsibility and marketing ethics
d. economic cycles like the financial crisis
e. natural disasters, such as hurricanes, floods,
f. influence of the consumer movement
6. List the four key components of the microenvironment
1_______________________2__________________________3___________________________
4______________________
Review Questions
Introduction to Marketing
false
Strengths and weaknesses result from internal, opportunities and threats from
external forces or sources.
Companies find their opportunities by eliminating their weaknesses.
To enter a market segment is not an opportunity.
The SWOT analysis is rather a synthesis of the marketing audit than an
investigation of new factors inside and outside the company.
Strategies and marketing initiatives are being developed by leveraging strengths
and opportunities
8. Environmental scanning is a process of examining the companys marketing environment. Firms
exhibit a number of different responses to environmental change, including
a. no change through ignorance
b. issuing new stocks
c. delay and retrenchment
d. gradual or radical repositioning
Open Questions
9. Pick a company and discuss how they might be affected by macoenvironmental forces as
described in the chapter.
Review Questions
Introduction to Marketing
a) The individual with the power and/or financial authority tomake the
ultimate choice regarding which product to buy.
Influencer
Decider
Initiator
Buyer
5. Please complete the missing words in the statement below about Consumer Behavior.
The objective of the information search is to build up the _____________? awareness ?relevant
set. Those products or services that a buyer considers seriously before making a purchase are
known as the _________? consideration ?evoked set.
6. Status is an example of:
a. A) Technical choice criteria
b. B) Economic choice criteria
c. C) Social choice criteria
d. D) Personal choice criteria
e. E) Structural choice criteria
7. The very popular, humorous Volkswagen Passat commercial Darth Vader shows that:
Prof. Dr. Erika Graf
Review Questions
o
o
o
o
o
o
Introduction to Marketing
false
RedBullusinghumorousadvertisingtoappealtoitstargetmarketofyoung
adultsisanexampleofclassicconditioning.
Inoperantconditioningreinforcementresultsfromrewards.
Theuseoffreesamplesandbonuspointsisbasedontheprinciplesofoperant
conditioning.
Maslows hierarchy of needs is a motivation theory that explains that people are
moving through a hierarchy of motives.
Prof. Dr. Erika Graf
Review Questions
Introduction to Marketing
14. Which statements of the consumer decision making behavior are true or false?
true
false
Extended Problem solving most likely occurs for products like cars, audio
equipment, housing, expensive clothing,..
Habitual Problem Solving requires the manufacturer to provide large amounts of
information.
Habitual Problem Solving most likely occurs for products like toilet paper,
toothpaste, that are frequently bought.
Thepotentialforpostpurchasedissatisfactionisgreatestforextendedproblem
solving.
For low involvement products Variety Seeking Behavior or Habitual Problem
Solving is the common decision making approach of customers.
15. When SEBO promotes their Felix vacuum cleaner for being, fast, light, and reliable they are
focusing on
a. A) Technical choice criteria
b. B) Economic choice criteria
c. C) Social choice criteria
d. D) Personal choice criteria
e. E) Structural choice criteria
16. Please complete the missing word in the statement below about Consumer Behavior.
Lifestyle refers to the pattern of living and can be expressed by the AIO dimension which stands
for A______________I____________________O________________________.
Open Questions
17. Outline the consumer decision making process and describe on each step how that is by which
means, a company can support the decision-making process.
Review Questions
Introduction to Marketing
Market
intelligence
Marketing
research
Review Questions
Introduction to Marketing
false
Review Questions
Introduction to Marketing
Open Questions
15. What are the differences between qualitative and descriptive research? Explain the roles played by
each.
16. Outline the main stages in the marketing research process, identifying particularly the kinds of
difficulties that might be faced at each stage.
Review Questions
Introduction to Marketing
Chapter 4: Segmentation
1. When Burger King targets children, teens, adults, and seniors with different ads and media, it is
practicing ________ segmentation.
o A) geographic
o B) age and life cycle
o C) psychographic
o D) behavioral
o E) usage rate
o
2. What statements about segmentation are true?
true
false
3. Please complete the missing words in the statement below about Market Segmentation.
Market segmentation is defined as the _______________________ ?communication to
?identification of individuals or organizations with___________________________________ ?
sufficient spending power ?similar characteristics that have significant implications for the
determination of marketing strategy.
4. Market segmentation offers a number of benefits to marketers. Which are none of them, if any?
a. enhanced profitability
b. enhanced opportunities for growth
c. more effective targeting of communications
d. opportunities of segment dominance
e. opportunities to charge higher prices
f. improved customer retention
g.
5. Colgate toothpaste offers a number of sub-brands such as Colgate Max Fresh, Cavity Protection,
and Sparkling white. What type of segmentation criteria does Colgate use to come up with their
branding strategy?
a. Lifestyle segmentation
b. Benefit segmentation
c. Usage segmentation
d. Purchase behavior segmentation
e.
6. Explain the five criteria for proper market segmentation
a. _______: customer needs to be homogenous within a segment, but different from others
b. ___________: must be possible to identify customers by specific criteria or characteristics
Prof. Dr. Erika Graf
Review Questions
Introduction to Marketing
c. ___________: must be able to formulate effective marketing programs for the segment
d. ___________: must have the resources to exploit the segments opportunities
e. ___________: must be large enough to profitable to serve
7. Please complete the missing word in the statement below about the Marketing Research.
Targeting refers to the _______________ ?selection ?training of target markets.
8. The perils of a differentiated marketing strategy might be
a. creating confusion among customers
b. spreading available resources to thinly
c. reputational damage
d. misunderstanding or mismanagement of different segments
9. What statements about target marketing strategies are true?
true
false
Open Questions
12. You have been asked by a client company to segment the ice cream market. Use at least three
different bases for segmentation and describe the segments that emerge.
13. A friend of yours wants to launch a new breakfast cereal on the market but is unsure how to
position the product. Develop a perceptual map of the breakfast cereal market identifying brand
that compete in the same space and also if there are any gaps where there are currently no major
brands. (Please note: perceptual maps based on hi/lo price and hi/lo quality do not make sense!)
Prof. Dr. Erika Graf
Review Questions
Introduction to Marketing
false
A product can be anything that that has the capacity to satisfy a customer need by
providing some form of benefit or value.
Brands fulfill the function of distinguishing the offering of one company from
others.
Brands are losing importance in modern marketing.
An mp3 player is a product, while the iPod is a brand.
For a brand the brand associations about the brand are more important than
technical features.
2. Please complete the missing word in the statement below about Products and Branding.
The three levels of a product are the _________ ?core ?main product, the ? design ?actual
product and the ? sought of ?augmented product.
3. Firms can reach differentiation at any of the three product levels. In recent years Toyota was
suffering from a number of quality problems and product recalls. Which level(s) of the product
was (were) affected?
a. the core product
b. the main product
c. the augmented product
d. the actual product
e. the sought of product
4. Packaging is an element of
a. the core product
b. the main product
c. the augmented product
d. the actual product
e. the sought of product
5. Please complete the missing word in the statement below about Products and Branding.
Developing a brand is ___________?difficult, expensive and takes time ? easy, economical and
effective. Building brands involves decisions about the brand ________? name ?character ?and
how the brand is ___________________? developed and positioned ? marketed and advertised.
6. Branding is the process by which companies
a. plan marketing communication strategies.
b. all of the mentioned.
c. select product ranges.
d. distinguishes their product offerings from the competition.
e. satisfy the customer through product offerings.
7. List three benefits of brands to organizations.
i. ______________________________ company value
Prof. Dr. Erika Graf
Review Questions
Introduction to Marketing
false
Parallel co-branding occurs when two independent brands join forces to from a
combined brand.
Intel, Teflon, and Gore-Tex are examples of ingredient brands.
Sony Ericsson mobile phones are examples of communications based ingredient
co-branding.
Whirlpools endorsement of Ariel washing powder is an example of
communications based co-branding.
Co-branding can increase awareness but also increases the cost of product
introduction.
13. Which of the following are not benefits of branding?
a. Sustaining high and stable sales and profits through brand loyalty
b. Expendability of market research
c. Consumers find it easier to recognize
d. Ability to charge price premiums
e. Global success guarantee
f. Achieving distribution more readily
Review Questions
Introduction to Marketing
of the following is NOT a challenge presented to marketers by the product life cycle?
All products eventually decline.
A firm must be good at developing new products to replace aging ones.
A firm must be good at adapting its marketing strategies.
It is difficult to plot the stages as a product goes through them.
Changing tastes, technologies, and competition affect the marketing of the product as it
passes through lifecycle stages.
3. Which of the following is NOT a recommended method for companies to tap into their customers
as sources for new-product ideas?
a. analyzing customer complaints and questions
b. relying heavily on customers to know what types of technical products they need
c. working alongside customers to get ideas and suggestions
d. turning customers into co-creators
e. putting products created by their customers on the market
4. Please complete the missing word in the statement below about New Product Development.
An attractive idea must be developed into a product ________?concept ?image ?strategy.
5. During which stage of new-product development will management most likely estimate minimum
and maximum sales to assess the range of risk in launching a new product?
a. concept testing
b. marketing strategy development
c. business analysis
d. product development
e. test marketing
6. Under
a.
b.
c.
d.
e.
f.
7. Please decide which of the following statements are correct about New Product Development.
The PLC concept can be applied by marketers as a useful framework for describing how
________.
a. to forecast product performance
b. to develop marketing strategies
c. products and markets work
d. concept testing is conducted
e. product ideas are developed
Review Questions
Introduction to Marketing
8. Please complete the missing words in the statement below about New Product Development.
Mattel's Barbie is an example of an age-defying product. Barbie, simultaneously timeless and
trendy, is in the ________ ?growth ?maturity ?decline stage of the PLC.
9. If a new product is sold in a limited but representative geographical area which part of the new
product development process is the company engaged in?
a. Commercialization
b. Simulated market testing
c. Test marketing
d. Concept testing
e. Business analysis
10. Which of the following is the correct order for the seven-step new product development process?
a. Business analysis, idea generation, screening, concept testing, product development,
market testing, and commercialisation
b. Business analysis, idea generation, concept testing, screening, market testing, product
development, and commercialisation
c. Screening, idea generation, concept testing, product development, market testing,
business analysis, and commercialisation
d. Idea generation, screening, concept testing, business analysis, product development,
market testing, and commercialisation
e. Idea generation, business analysis, concept testing, screening, product development,
market testing, and commercialisation
11. Please complete the missing words in the statement below about New Product Development.
The diffusion of innovation theory explains how a product spreads throughout the market over
time. Important is the notion that not all _________________________?people or organizations ?
products or services that comprise a market will be in the same state of readiness to
___________? launch ?buy a new product when it is _______________? launched ?discovered.
12. Which of the following is the correct order of the product life cycle?
a. Expansion, Introduction, Maturity, Decline
b. Introduction, Growth, Decline, Maturity
c. Growth, Expansion, Maturity, Decline
d. Introduction, Growth, Maturity, Decline
e. Growth, Expansion, Decline, Maturity
Open Questions
13. Examine a product like bottled water though the lens of the core, actual and augmented product.
What types of differentiation strategies are being used by brands in this sector? Can you suggest
any new sources of differentiation?
14. The product lifecycle is more likely to mislead marketing management than to provide useful
insights. Discuss.
Review Questions
Introduction to Marketing
Chapter 8: Services
1. Please complete the missing word in the statement below about Services.
Services cannot be touched, gripped, handled, looked at, smelled, tasted. These characteristics
are referred to as the _______________ ?intangibility ?inseparability of services.
2. Please complete the missing word in the statement below about Services.
There is no potential for storage or stocking of services. This is known as the_________________
?perishability ?variability of services.
3. If two Caf Nero restaurants provide different levels of service encounters due to one
establishment having a very good local management team and the other having a bad local
management team, which of the characteristics of services marketing best helps define what is
happening?
a. Inseparability
b. Perishability
c. Intangibility
d. Variability
e. All of the mentioned
4. A challenge for service companies is to provide tangible cues about their product to prospective
customers. What might be tangible cues for a hotel?
a. show pictures of the hotel on the website
b. pricingnot too high
c. display testimonials form satisfied hotel guests
d. bonus programs for the employees
e. offering early booking discounts
5. Failure to select, train and motivate employees contributes to which of the following barriers to
service quality:
a. a. inadequate resources
b. b. inadequate delivery
c. c.misconceptions
d. e. exaggerated promises
6. Staff appearance, dcor and layout refer to which of the following dimensions of service quality?
a. a. access
b. b. credibility
c. c. tangibles
d. d. courtesy
e. e. competence
7. Research on service organizations has identified four characteristics of successful brand names,
which of the following is not one of the characteristics of a successful brand name?
a. Distinctiveness
b. Flexibility
c. Relevance
d. Variability
e. Memorability
Prof. Dr. Erika Graf
Review Questions
Introduction to Marketing
8. Which of the following are key characteristics of the extended service marketing mix?
a. Physical evidence, process and people
b. People, process and promotion
c. Physical evidence, price and people
d. Product, people and price
e. Promotion, product and place
9. Which of the following are key dimensions of service quality?
a. Reputation, responsiveness, intangibles, durability and reliability
b. Assurance, reliability, responsiveness, reputation and flexibility
c. Reliability, responsiveness, assurance, empathy and tangibles
d. Trustworthiness, reliability, reciprocity, reputation and flexibility
e. None of the mentioned
10. Please complete the missing word in the statement below about Services.
Service __________________? recovery ?standardization ?mapping is a method of tackling the
variability problem.
11. Which of the following statement about the use of the marketing mix in relation to services is not
true?
true
false
Price is a key service marketing tool.
The brand name of a service influences the perceptions of that service.
Word of mouth is irrelevant to the success of services because of their experiential
nature.
Distribution channels for services are usually more direct than for many physical
goods.
Service quality is inseparable from the quality of the service provider.
Open Questions
12. The marketing of services is no different to the marketing of physical goods. Discuss.
13. What are the barriers that can separate expected from perceived service? What must service
providers do to eliminate these barriers?
Review Questions
Introduction to Marketing
Chapter 9: Pricing
1. Please complete the missing words about pricing in the statement below.
There are three bases upon which prices are set, namely _____________________________
?cost, competition and customer value ? circumstances, cost and competition, ? customer value,
cost and company objectives.
2. Cost-based pricing reflect a strong ____________? internal ?profit orientation.
3. Which of the following statements about setting prices is true or false?
true
false
6. A combination of high price and high promotion expenditure is called which of the following?
a. Rapid penetration strategy
b. Slow skimming strategy
c. Rapid skimming strategy
d. Slow penetration strategy
Review Questions
b.
c.
d.
e.
Introduction to Marketing
9. The New Age Gallery has different admission prices for students, adults, and seniors. All three
groups are entitled to the same services. This form of pricing is called ________.
a. time-based pricing
b. location pricing
c. customer-segment pricing
d. revenue management pricing
e. generational pricing
10. The Internet offers ________, where the price can easily be adjusted to meet changes in
demand.
A. captive pricing
B. dynamic pricing
C. basing-point pricing
D. price bundling
E. cost-plus pricing
11. Which of the following statements about price changes is true or false?
true
false
In the circumstances of higher cost higher discounts is a suggested tactical price
change.
If market research indicates that the values is less than the price the company
may consider price bundling.
Yield management is popular in service industries like aviation and hospitality.
When competition cuts prices in a situation of fallings costs a company most liekly
will follow.
An agreement between competitors on a price level that allows them a decent
profit margin and is fair for consumers is legal.
12. 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
13. If Canon Camera Company follows a high-price, high-margin strategy, what will competitors most
likely do?
A. They will go out of business.
B. They will want to compete by undercutting Canon's price.
C. They will advertise less.
D. They will unbundle their products.
E. They will use market-skimming pricing.
Open Questions
14. Why is value to the customer a more logical approach to setting prices than cost of production?
What role can costs play in the setting of prices?
15. How would you justify the price differences for a cup of coffee that you might encounter if you
purchase it in a local coffee shop versus a top-class hotel?
Prof. Dr. Erika Graf
Review Questions
Introduction to Marketing
false
3. The distribution of products, information and promotional benefits to target consumers through
interactive communication in a way, which allows response to be measured, is called which of the
following?
a. Interactive Marketing
b. Channel Management
c. Direct Marketing
d. Indirect Marketing
e. Targeted Marketing
4. If a complex technical argument were required, which of the following promotional methods
would be the most suitable?
a. A) Personal selling
b. B) Advertising
c. C) Public Relations
d. D) Online Marketing
e. E) Direct Marketing
5. Please complete the missing words in the statement below about the traditional communication
process.
In the traditional communication process model the ________________ ?source ?company
encodes a message by translating the idea to be communicated into a symbol costing of words or
pictures. The message is transmitted through the media which are selected for their ability to
reach the desired target audience in the desired way. ______________? Breaks ?Noise, such as
distraction and distortions during the communication process may prevent ?recall ?transmission to
some of the target audience. The objective of the initiator of the process is to obtain a
_____________? sales call ? feedback from the __________________? receiver ?customer.
Review Questions
Introduction to Marketing
1.
2.
3.
1.
2.
3.
1.
2.
3.
1.
2.
3.
1.
2.
3.
7. Which of the statements about setting the advertising budget are true/false?
true
false
decide which considerations will have an impact on the choice of promotional tools
Resource availability and the cost of promotional tools
The position of the product in the product life cycle
Market size and concentration
Customer information needs
The age of the company
Product characteristics
push versus pull strategies
11. Which class of media is most suited to providing detailed factual information? (Just 1 answer is
correct)
Prof. Dr. Erika Graf
Review Questions
Introduction to Marketing
a. A) Cinema
b. B) Radio
c. C) Television
d. D) Billboards
e. E) Print
12. If the effectiveness of an advertising campaign is measured using marketing research and
subsequent payment to the advertising agency is based on how well communications objectives
have been met, the method of payment is called: (Just 1 answer is correct)
a. A) Commission
b. B) Fees
c. C) Payment by results
d. D) Objective and task
e. E) Affordability
13. Which of the following is a type of trade promotion? (Just 1 answer is correct)
a. A) Allowances
b. B) Coupons
c. C) Loyalty Cards
d. D) Bonus packs
e. E) Prize promotions
14. Publicity is seen to be:
a. A) More costly than advertising
b. B) More credible than advertising
c. C) Less targeted than advertising
d. D) Less organized than advertising
e. E) Less influential than advertising
15. Which of the following describes a companying engaging in a number of activities in order to try
and associate itself with an event without paying any fee to the event owner? (Just 1 answer is
correct)
a. Personal selling
b. Sales promotion
c. Internet marketing
d. Ambush marketing
e. Direct marketing
16. Which of the following are possible objectives of exhibitions?
a. A) Gathering competitive intelligence
b. B) Fostering the image of the company
c. C) Identifying prospects
d. D) Making sales
e. E) All of the above are possible objectives of exhibitions
17. If a company is targeting a clearly defined but small market segment, which of the following
communication tools is most appropriate? (Just 1 answer is correct)
A) Advertising in TV
B) Sponsoring the Olympic Games
C) Direct marketing using the companys database
D) Buzz Marketing
E) Outdoor posters
Open Questions
18. What is meant by integrated marketing communications? Explain the advantage of taking an
integrated approach to marketing communications.
19. Select three recent advertising campaigns with which you are familiar. Discuss the target
audience, objectives and message executions adopted in each case.
Prof. Dr. Erika Graf
Review Questions
Introduction to Marketing
Review Questions
Introduction to Marketing
B) Lower prices
C) Security
D) Information resource
E) Instant digital downloads
8. Asking for an order, summarizing the key points for the order, or offering a special deal for
placing an order are all examples of techniques which might be used at the _________ stage of
the selling process.
A) Opening
B) Closing
C) Follow-up
D) Demonstration
E) Presentation
9. Please complete the missing words in the statement below about the direct promotional methods.
_______ ?Direct Response ?Mobile ?Catalogue ?Buzz marketing is the passing of information
about products and services by verbal or electronic means in an informal person-to person
manner.
10. The effectiveness of Internet advertising can be measured through
a. click-through rates
b. purchase rates
c. conversion rates
d. online surveys
e. cookies
11. Where publicity is generated from word of mouth recommendations on the Internet or email, this
is referred to as which of the following?
A) Spam mail
B) E-mail publicity marketing
C) Viral marketing
D) Review marketing
E) Direct marketing
12. Which of the statements are true/false?
true
false
Paid search advertising commands the biggest share of online advertising spend.
Proximity marketing is essentially electronic word-of-mouth communication.
Click trough rates of banner ads are estimated to be as low as 0.002 per cent.
Permission marketing means that consumer disagree to receive email
communications from organizations.
Email marketing is easy to use and costs little to produce but suffers from junk
and spam.
Facebook can be narrowly targeted on criteria like age, gender, marital status,
education, location and interests.
Advertisers can choose to pay per 1000 impressions or per click through.
Review Questions
Introduction to Marketing
13. Please decide which of the following statements are true about the advantages of Mobile
Marketing.
The advantages of Mobile marketing are
a. it is time-flexible and cost effective
b. can be targeted and personalized
c. it is interactive, that is the receiver can respond
d. allows for sending messages depending on the current location of the user, e.g. cooking
recipes while in grocery shop
e. is well-received by mobile phone users
f. is immediate and measureable
g. can assist in database development
14. Key Account Management is likely to be used when a company has:
A) A large number of small volume buyers
B) A small number of small volume buyers
C) A small number of large volume buyers
D) All the buyers are concentrated in one geographical area
E) All the buyers are concentrated in one market segment
Open Questions
1. Companies now have a variety of direct marketing media that they can consider when planning a
direct marketing campaign. Compare and contrast any two direct marketing media. In your
answer, give examples of the kinds of markets in which the media you have chosen might be
useful.
2. Discuss the impact of the Internet on each aspect of the marketing mix.
Review Questions
Introduction to Marketing
false
Large malls, like the Mall of the Emirates in Dubai, or MyZeil in Frankfurt show the
growing link between shopping and leisure.
Manufacturers exercise considerable power over supermarket chains because of
their enormous production capacity.
The producer direct to consumer channel or direct selling is losing of importance
due to concerns about quality and the fact that more women are working.
The use of wholesalers makes economic sense for small retailers (e.g. Kiosks) with
limited order quantities.
Selling over agents typically takes place when companies enter foreign markets.
3. What might be reasons that companies like Procter & Gamble decide to use channel
intermediaries like supermarkets instead of direct selling to the customer?
a. Customers are geographically dispersed and to buy products locally
b. producers are lacking financial and managerial resources to take on channel operations
c. producers want control over prices and stocks
d. There is a need of close contact between producer and customer
4. Intensive distribution is a practice which involves:
A) Using all available outlets to provide saturation of the marketplace
B) Using a number of outlets in a specific location
C) Using only one wholesaler
D) Using only one retailer
E) Using only one Business-to-business distributor
5. Avon Cosmetics and Tupperware are examples of companies which have only two types of
organizations in the distribution channel. These organizations are:
A) Producer and Agent
B) Producer and wholesaler
C) Retailer and consumer
D) Producer and consumer
E) Agent and consumer
6. A legal contract in which a producer and a channel member agree each members rights and
obligations is called a:
A) Vertical arrangement
B) Franchise agreement
C) Selective distribution
D) Multichannel agreement
E) Contract arrangement
Prof. Dr. Erika Graf
Review Questions
Introduction to Marketing
A key success factor for Mller yoghurt was that they convinced Tesco to stock the brand. In
this case what role in distribution management was Tesco playing?
A) Channel integrators
B) Channel mediators
C) Channel distributors
D) Channel intermediaries
E) Channel administrators
Review Questions
13.
Introduction to Marketing
A manufacturer, through its size and strong brands, dominates a market and may exercise
considerable power over intermediaries even though they are independent. This power may
result in:
A) A company in administration
B) An administered vertical marketing system
C) A corporate marketing system
D) A category killer
E) A Retail Chain
14. Store location is critically important to retailer success. When Starbucks considered where to
locate its coffee shops they looked carefully at behavior patterns of the commuters who were the
key target market and decided to locate the stores:
A) on the side of the street most favored by the commuters
B) next to the nearest tube station
C) near to convenient parking
D) on the opposite side of the street where commuters walk so they were likely to see the
store.
E) anywhere as the Starbucks brand is so strong commuters will find the store.
15.
The process of bypassing traditional intermediaries such as travel agents is known as which of
the following?
A) Intermediation
B) Disintermediation
C) Cross intermediation
D) By intermediation
E) Reintermediation
When a company determines the number of channel members to use at each level, three
strategies are available: intensive, exclusive, and ________ distribution.
A. multichannel
B. selective
C. international
D. direct
E. extensive
Open Questions
18.
19.
Distribution intensity decisions should be integrated with all other marketing mix decisions.
Discuss.
Describe situations which can lead to conflict between channel members. What can be done
to avoid and resolve conflict?
Review Questions
Introduction to Marketing
3. P&Gs vision statement Touching and Improving More Consumers Lives in More Parts of the
World...More completely is designed to
a. inspire employees
b. demonstrate what the business should aim to become
c. inspire customers
d. explain where the business stands
e. communicate business strategies
4. Marketing planning is part of a broader concept known as:
A) Business strategy
B) Business planning
C) Strategic planning
D) Tactical planning
E) Mission marketing
5.
A broadly defined, enduring statement of purpose that distinguishes a business from others of
its type is referred to as which of the following?
A) A purpose statement
B) A focus statement
C) A tactical plan
D) A business mission
E) A strategic statement
6. Please decide which of the statements about the BCG matrix below are true or false.
true
false
Stars are products which are absorbing large amounts of advertising cash due to
stagnant growth
Stars are products with a high market in high growth markets
Poor Dogs which have absorbed large amounts of cash in their launch, however
little or no gains have been made in terms of market share
Cash Cows are products with a high market share in low growth markets
Question Marks are weak products that compete in low growth markets
Review Questions
7.
Introduction to Marketing
The marketing audit is a systematic examination of the marketing environment. Please decide,
which of the following is not considered as part of the macroenvironment audit.
A) Inflation
B) New Laws
C) Supplier competencies
D) Conservation
E) Pollution
i.
ii.
iii.
iv.
v.
______________________
____________________
____________________
____________________
_____________________
9. Please decide which of the following statements may represent an entry barrier.
Which of the following may represent an entry barrier?
a. Switching cost
b. Access to distribution
c. Price
d. Transaction Costs
e. Economies of scale
f. Expected retaliation
10. Please decide which of the following statements are correct about the bargaining power of the
suppliers.
The bargaining power of suppliers will be high when:
A) Suppliers threaten to integrate forward into the industry
B) The industry is a key customer group to the suppliers
C) There are few buyers and many dominant suppliers
D) Switching cost of suppliers and firms are high
E) There are undifferentiated products
11. Please decide which of the following statements is correct for the below described statement.
The intensity of rivalry between competitors in an industry will depend on which of the following?
A) Degree of differentiation
B) Structure of costs
C) Structure of competition
D) Switching costs
E) All of the above determine the intensity of rivalry
12. Please decide which of the following analysis is correct for the below described statement.
The examination of the suitability of marketing objectives and segmentation bases in the light of
changes in the marketplace is investigated by which of the following?
A) SWOT analysis
B) External analysis
C) Macroenvironment analysis
D) Strategic issue analysis
E) Market viability analysis
Review Questions
Introduction to Marketing
13. Please decide which of the following strategies are Product Growth Strategies according to the
Ansoff Matrix.
a.
b.
c.
d.
e.
Diversification
Product expansion
Innovation
Market development
Product development
14. Please decide which of the following market entry strategies is correct.
When a company decides to enter new markets with new products this is
a. Diversification
b. Product expansion
c. Market expansion
d. Market development
e. Global strategy
15. When Nestl sells products like Kitkat and Nescaf in emerging markets this is
a. Diversification
b. Product expansion
c. the most riskiest alternative
d. Market development
e. Product development
16. Which products to be sold in which markets are described by the _______________? strategic
thrust ? marketing objectives ? SWOT analysis.
17. What are the four alternative strategic objectives?
i. ______________________
ii. ____________________
iii. ____________________
iv. ____________________
18.
For new products the strategic objective will be most likely _____________________ ?build sales
and market share ? heavily advertise and promote.
Review Questions
Introduction to Marketing
21. List the six tests for an effective core marketing strategy.
i. ____________________
ii. ____________________
iii. ____________________
iv. ____________________
v. ____________________
vi. ____________________
22. List at least four marketing metrics that are frequently used in UK firms and elsewhere.
i. ____________________
ii. ____________________
iii. ____________________
iv. ____________________
Open Questions
23.
24.
Discuss some of the difficulties that can be encountered in making marketing planning work in
an organisation. How can these difficulties be overcome?
Compare and contrast a cost leadership strategy with a differentiation strategy. Is it possible to
pursue both strategies simultaneously?