Q&A Hero

Q: (p.92)_____ is the product's ability to satisfy both functional needs and symbolic wants. A.Market position B.Product satisfaction C.Product equity D.Product utility E.Market satisfaction

Q: (p.93)According to the text, market segmentation is a two-step strategic process. The first step is to: A.conduct advertising research that determines consumers' reactions to various ad campaigns. B.identify groups of people with certain shared characteristics within the broad product market. C.locate as many market niches as possible. D.develop place, time and possession utility. E.determine which personal influences will have the appropriate effect on consumers.

Q: (p.93)People who might buy Muir Glen brand organic soups are vegetarians, people who want to try something different, people who like soup, people who don't have time to cook and people who worry about putting chemicals in their bodies. These various groups who may be in the market for Muir Glen soups are all examples of: A.innovators. B.market segments. C.market aggregations. D.diffusers. E.buying centers.

Q: (p.94)Gary Silva, senior vice president of sales, U.S. Auto Parts Group at Genuine Parts, says NAPA doesn't have a cookie-cutter layout but builds stores based on market need, with each designed independently. "It would be easier if all the stores had the exact same layout, but it's not the right thing to do for independent owners because some areas have more professional customers and others have more do-it-yourselfers", he explained. From this information, you know that NAPA targets both _____ markets. A.domestic and international B.internal and external C.demographic and psychographic D.business and consumer E.non-controllable and controllable

Q: (p.94-96)Through marketing research, Prudential Insurance discovered that about 40 percent of its sales were initiated by current customers rather than company insurance agents. With this knowledge it used what kind of behavioristic segmentation variable to segment its market into Prudential policy holders and non-policy holders? A.User status B.Usage rate C.Volume D.Purchase occasion E.Demographic

Q: (p.118)What is marcom? What are the tools used in marketing communications?

Q: (p.92)What do you understand by utility' of a product?

Q: (p.94)There is an ad for the Braun Oral-B Plaque Remover (an electric toothbrush) in an issue of Dentistry Today, the nation's leading clinical news magazine for dentists. The full-page ad encourages dentists to try out the system themselves and to recommend it to their patients. To which type of market is the advertisement targeted? Briefly explain your answer.

Q: (p.95)List the four variables used in behavioristic segmentation.

Q: (p.103)What are business markets?

Q: (p.104)What is purpose does North American Industry Classification System (NAICS) codes serve?

Q: (p.106)What is the second step in the market segmentation process? Discuss briefly.

Q: (p.113)Distinguish between an individual brand, a family brand, a national brand and private labels.

Q: (p.112-113)Discuss importance of product differentiation with respect to perceptible differences, hidden differences, and induced differences.

Q: (p.117-118)Once a company decides to use indirect rather than direct distribution, it must choose one of the three strategies of distribution. Discuss what each choice means in terms of product availability to final consumers.

Q: (p.111)A marketer of Kikkoman brand soy sauce would need to stimulate selective demand for its new line of low-sodium sauces.

Q: (p.112)Differences between products that are readily apparent are called visible differences.

Q: (p.113)When the manufacturer of Kikkoman brand soy sauce introduced Kikkoman brand low-sodium soy sauce, it used private labeling.

Q: (p.114)Brand equity is the totality of what consumers, distributors, deals and competitors feel and think about a brand over an extended period of time.

Q: (p.115)Consumers are immune to psychological pricing.

Q: (p.116)Network marketing is also called pyramid marketing.

Q: (p.117)The distribution and promotion cost in selective distribution tend to increase as the number of outlets gets limited.

Q: (p.93)What are the two steps that make up the market segmentation process?

Q: (p.94-95)Explain how the concept of shared characteristics relates to the marketing segmentation process.

Q: (p.107)Explain the target marketing process.

Q: (p.109-110)What are the stages in a product life cycle? Discuss each stage in brief.

Q: (p.110)Discuss the push and the pull strategy with respect to the product life cycle.

Q: (p.104)Advertisers can use NAICS codes to obtain lists of companies in particular businesses for direct mailings.

Q: (p.110-111)Distinguish between primary demand and selective demand.

Q: (p.106)The first step in market aggregation is to determine the primary demand trend within the targeted market.

Q: (p.107)The target market for Fulla, a doll designed to embody the image of a proper Muslim woman is Arab parents.

Q: (p.110-111)A marketer of Muir Glen brand organic soups would want to stimulate primary demand for its brand of soups.

Q: (p.61)Recently, BP, the petroleum company, ran a series of commercials in which they asked consumers how they would improve and preserve the natural environment. After each individual's responses, an announcer explained how BP was doing more than its share to protect our environment. These commercials were examples of _____ advertising. A.organizational B.generic C.product D.institutional E.agency

Q: (p.61)_____ advertising attempts to create a favorable long-term perception of the business as a whole, not just of a particular good or service. A.Institutional B.Interactive C.Organizational D.Product E.Relationship

Q: (p.61)Which of the following is an example of institutional advertising? A.A magazine ad containing recipes using Swanson's chicken broth. B.An ad announcing a sale at Macy's department store. C.An ad sponsored by Avon promoting breast cancer prevention. D.A radio ad for Linda's Restaurant. E.A coupon to save $1 on the price of a box of Pampers disposable diapers.

Q: (p.92)One of the primary roles of advertising is to communicate product utility.

Q: (p.93)Exchange is the traditional trading of values between two entities facilitated by marketing.

Q: (p.93)The process of market segmentation is a three-step process that begins with planning, then goes to product definition and ends with market identification.

Q: (p.94)A target market can be classified into two types, namely, consumer markets and business markets.

Q: (p.95-96)Purchase occasion is one way marketers create benefit segmentation.

Q: (p.97)Advertising for a movie that tells you the movie is a "family-filled riot of fun" is using benefit segmentation.

Q: (p.98)Demographic segmentation would most likely be used to sell Fulla, a doll designed to embody the image of a proper Muslim woman.

Q: (p.100-101)To reach people who love to hunt, markets would use psychographic segmentation.

Q: (p.102-103)Psychographics are useful in the marketing of all products.

Q: (p.61)_____ advertising promotes a specific good or service and stimulates short-term action while building awareness of the business. A.Interactive B.For-profit C.Product D.Institutional E.Agency

Q: (p.61)Which of the following is an example of product advertising? A.An ad for Circuit City explaining how to help the environment by recycling printer cartridges. B.An ad for American Express explaining how important small businesses are to national economic health. C.An ad describing why you should buy Glen Muir organic coups. D.An ad announcing Westinghouse provides appliances for homes built by Habitat for Humanity. E.An ad for Avon cosmetics announcing that it will donate $100,000 to breast cancer research.

Q: (p.61)Walgreen pharmacy ran an ad to announce it was selling all of its Easter candy and decorations at half their original prices. How should you classify this ad? A.As a regular price-line ad B.As an institutional ad C.As an ad of enticement D.As a clearance ad E.As a sale ad

Q: (p.69)What is the difference between international media and foreign media?

Q: (p.71)On what bases are advertising agencies normally classified?

Q: (p.71)How would you classify most full-service ad agencies?

Q: (p.72)What is the function of creative boutiques?

Q: (p.73)Define account planning.

Q: (p.76)What is the departmental system in an agency structure?

Q: (p.77-78)What are the various pricing methods the agencies and the clients use in a fee system?

Q: (p.58-59)Advertising is organized around four distinct groups. One of these groups is the advertisers. This group is often referred to as the: A.senders. B.encoders. C.clients. D.customers. E.suppliers.

Q: (p.59)Advertising is organized around four distinct groups. The _____ group includes the photographers, the illustrators, video production houses and digital service bureaus. A.encoders B.support staff C.account personnel D.suppliers E.creators

Q: (p.59)Retailers like The Home Depot use television, catalogs, the Internet and magazines to transmit its advertising message to consumers. In terms of the four distinct groups around which advertising is organized, The Home Depot uses: A.message channels. B.media. C.message handlers. D.transmission channels. E.communication channels.

Q: (p.77-78)Why are many influential advertisers demanding that agencies replace commissions with a payment-for-performance approach?

Q: (p.59-60)When the Ace Hardware Store located in Franklin mails an advertising flyer to all the residents in the community, it is an example of _____ advertising. A.local B.institutional C.interactive D.interregional E.dealer

Q: (p.79)What are the disadvantages inherent in establishing an in-house ad agency?

Q: (p.60)Which of the following statements about local advertising is true? A.Retail advertising is always local. B.Local advertising refers to advertising done by stores like Pets Mart, J C Penney and Dollar General. C.Because most consumer sales are made or lost locally, local advertising is critically important. D.There are only two categories of local advertisers. E.Ninety percent of the money advertisers spend each year is spent on local advertising.

Q: (p.80)What are the various ways that the advertising agencies adopt to get new clients?

Q: (p.60)The three primary types of ads placed in local media are product, classified, and: A.service. B.retail. C.governmental. D.corrective. E.institutional.

Q: (p.58-59)The advertising business has evolved into four distinct groups. List them.

Q: (p.62)What do you understand by cooperative advertising?

Q: (p.77)The retainer method of pricing the services of an ad agency is also called the negotiated commission method.

Q: (p.80)A speculative presentation is typically a waste of an agency's resources.

Q: (p.81)Dissatisfaction with agency conduct is the most commonly cited reason for agency switches.

Q: (p.59)Distinguish between the suppliers and the media. Suppliers: People and organizations that assist both advertisers and agencies in the preparation of advertising materials, such as photography, illustration, printing, and production.

Q: (p.60)List with examples the four types of local advertisers targeting customers in their geographic area. There are four main types of local advertisers.

Q: (p.60)Examine the validity of the following sentence: "Local advertising is synonymous with retail advertising".

Q: (p.64-65)List the three basic ways that national advertising differs from local. (Do not include the area coverage of the advertising).

Q: (p.67)How can a large multidivisional company benefit from the use of a decentralized advertising department?

Q: (p.71-72)What are the two most common client based classification of the full service agency? Discuss in brief, the characteristics of such agencies.

Q: (p.73)Explain how the account planner acts as a "surrogate for the consumer."

Q: (p.71)Some of the non-advertising services performed by full-service agencies are performing research, selecting media, designing packages and producing sales promotions.

Q: (p.72)Creative boutiques work for advertisers and occasionally subcontract to ad agencies.

Q: (p.73)The account planner defends the consumer's point of view and the creative strategy in the debate between the agency's creative team and the client.

Q: (p.74)A good copy should contain all the information intended to be communicated in a few pertinent, succinct points.

Q: (p.74)The traffic department coordinates all phases of production and makes sure everything is completed before their deadlines.