ABDT2043 FUNDAMENTALS OF MARKETING

TUTORIAL 1

MARKETING: CREATING AND CAPTURING CUSTOMER VALUE

Multiple-choice questions
1) Which of the following is most essential to any definition of marketing?
A) Demand management
B) The production concept
C) Customer relationships
D) Making a sale
E) Making a profit

2) Greg Williams now has the buying power to purchase the computer system he has
wanted for the last six months. Greg's want now has become a ________.
A) need
B) necessity
C) demand
D) satisfier
E) transaction

3) The two major citizen action movements to keep businesses in line are ________.
A) consumerism and environmentalism
B) protectionism and materialism
C) consumerism and protectionism
D) liberalism and monetarism
E) innovation and predatory pricing

4) ________ is an organized movement of concerned citizens, businesses, and

government agencies designed to protect and improve people's current and future
living environment
A) Socialism
B) Consumerism
C) Environmentalism
D) Consumption
E) Reduction

5) ________ refers to sellers being preoccupied with their own products and losing
sight of underlying consumer needs.
A) Selling myopia
B) Marketing management
C) Value proposition
D) Marketing myopia
E) The product concept

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6) In addition to attracting new customers and creating transactions, the goal of
marketing is to ________ customers and grow the company's business.
A) encourage
B) entertain
C) retain
D) recognize
E) educate

7) The art and science of choosing target markets and building profitable relationships
with them is called ________.
A) marketing management
B) positioning
C) segmentation
D) selling
E) societal marketing

8) Selecting which segments of a population of customers to serve is called ________.

A) market segmentation
B) positioning
C) customization
D) target marketing
E) choosing a value proposition

9) The set of marketing tools a firm uses to implement its marketing strategy is called
the ________.
A) promotion mix
B) product mix
C) marketing mix
D) TQM
E) marketing effort

10) Which of the following marketing management orientations focuses primarily on

improving efficiencies along the supply chain?
A) production concept
B) product concept
C) selling concept
D) marketing concept
E) societal marketing concept

11) The ________ concept holds that firms must strive to deliver value to customers in
a way that maintains or improves both the consumer's and society's well being.
A) marketing
B) selling
C) product
D) societal marketing
E) equity

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12) The three areas of consideration that should be balanced in the societal marketing
concept are consumer wants, society's interests, and ________.
A) human welfare
B) want satisfaction
C) company profits
D) short-run wants
E) long-term needs

13) Building and maintaining profitable value-laden relationships with customers of a

company is called ________.
A) customer lifetime value
B) customer perceived value
C) customer relationship management
D) database marketing
E) societal marketing

14) Which of the following is determined by a customer's personal evaluation of the

benefits and costs of a market offering relative to those of competing offers?
A) Customer-perceived value
B) Customer satisfaction
C) Customer-perceived performance
D) Customer relationship management
E) Market segmentation

15) The marketing world is embracing ________ because consumers can wield greater
power and control in the marketplace through communication technologies.
A) partner relationship management
B) supply chain management
C) customer-managed relationships
D) market segmentation
E) target marketing

16) Sally purchased a newly introduced moisturizing lotion. By attempting to find out if
the lotion's perceived performance matched her expectations, Sally was measuring
her level of customer ________.
A) loyalty
B) satisfaction
C) equity
D) engagement
E) lifetime value

17) Which of the following has NOT contributed to the deeper, more interactive nature
of today's customer relationships?
A) e-mail
B) Web sites
C) online social networks

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 D) traditional advertising
E) video sharing

18) To capture the full essence of customer relationship management, which of the
following should a marketing manager take into consideration?
A) owning customers for life
B) capturing a customer's lifetime value
C) building overall customer equity
D) creating a sense of community surrounding a brand
E) all of the above

19) The social-responsibility and environmental movements are expected to ________

in the future.
A) demand more from companies
B) demand less from companies
C) move away from sustainable marketing
D) move toward partner relationship management
E) move away from using social networking

20) ________ marketing calls for socially and environmentally responsible actions that
meet the present needs of consumers and businesses while also preserving or
enhancing the ability of future generations to meet their needs.
A) Sustainable
B) Customer driving
C) Mass
D) Customer-driven
E) Differential

21) Which of these actions is NOT a specific approach a company can take to reduce
environmental harm?
A) Source materials from sustainable suppliers.
B) Reimagine material choices.
C) Simplify product design.
D) Construct closed-loop value chains.
E) Offer more product options.

Essay questions
22) Examine the types of marketing management orientation.
23) Describe marketing and the marketing goals.
24) What is marketing myopia and how can it be avoided?

Briefing on Course Plan, Coursework and Examination formats.

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 ABDT2043 FUNDAMENTALS OF MARKETING

TUTORIAL 2

COMPANY & MARKETING STRATEGY:

PARTNERING TO BUILD CUSTOMER RELATIONSHIPS

Multiple-choice questions

1) Which of the following is true of strategic planning in a firm?

A) It deals with maintaining the company's current business ventures.
B) It focuses on the firm's internal environment rather than the external
environment.
C) It occurs at the business-unit, product, and market levels rather than at the
corporate level.
D) It deals with adapting the firm to take advantage of changing marketing
opportunities.
E) It involves preparing short-term investment objectives at the product level.

2) The first step in strategic planning is to ________.

A) set objectives and goals
B) develop the business portfolio
C) define the company mission
D) plan marketing strategies
E) identify a problem

3) Paul Pierce is busy working with other managers evaluating the products and
businesses making up their company. Paul is engaged in ________.
A) defining the company's mission statement
B) preparing a business portfolio
C) portfolio analysis
D) marketing planning
E) marketing control

4) Most portfolio analysis methods evaluate SBUs on two dimensions, namely

________ and ________.
A) market share; strength of the SBU's position
B) market or industry growth rate; market or industry attractiveness
C) market or industry attractiveness; strength of the SBU's position
D) market growth rate; profits
E) market penetration; market development

5) In the BCG approach, ________ are high-share, high-growth businesses or

products. They need heavy investment to finance rapid growth. When their growth
slows down, they turn into ________.
A) cash cows; stars

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 B) question marks; dogs
C) stars; question marks
D) stars; cash cows
E) dogs; cash cows

6) Which of the following products would the electronics company CypressSound

classify as a cash cow in its BCG matrix?
A) Cyan — a cell phone that is designed for music lovers and has a very low market
share in a market that is growing steadily
B) Boosh — a home entertainment system that has a strong market share in a
market that is likely to expand in the future
C) Xpress — an MP3 player that has a high market share in a market that is not
expected to grow significantly
D) AutoPlay — a car audio system that has a high market share in a market that has
been growing constantly
E) Unipress — a CD player that has a very low market share in a market that is

7) A firm's decision to identify and develop new markets for new products is a
________ strategy.
A) market development
B) market differentiation
C) market penetration
D) product development
E) diversification

8) Disney is identifying and developing new markets for its theme parks. Disney is
exploring possibilities for ________.
A) market penetration
B) market development
C) downsizing
D) diversification
E) product development

9) For Hyundai Corporation, customers who care primarily about the price of a car and
its operating economy make up one ________.
A) market position
B) value network
C) market segment
D) customer extension
E) value chain

10) Multinationals like Honda Motor Co. and Wal-Mart stores have designed programs
to work closely with their suppliers to help them reduce their costs and improve
quality. This illustrates the importance of an efficient ________.
A) business model
B) low-cost operator

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 C) product mix
D) value-delivery network
E) problem-solver

11) ________ is the marketing logic by which a company hopes to achieve profitable
customer relationships.
A) Price
B) Being a low-cost operator
C) A consistent product mix
D) Marketing strategy
E) Implementing a differentiation strategy

12) The process of customer-driven marketing involves ________, ________,

________, and ________.
A) product; price; promotion; adaptation
B) market segmentation; market targeting; differentiation; positioning
C) marketing analysis; planning; implementation; feedback
D) analysis; targeting; implementation; control
E) problem identification; information search; decision; implementation

13) Most companies today enter a new market by serving a ________; if this proves
successful, they ________.
A) single market segment; add segments
B) multitude of segments; add more segments
C) few segments; add more segments
D) niche; differentiate
E) target market; reposition

14) Jill Reno has researched new markets and has decided which segments to enter.
Next she should decide what ________ her company should occupy in those
segments.
A) position
B) place
C) rank
D) rating
E) percentage of space

15) Effective positioning begins with ________ the company's marketing offer in order
to give consumers more perceived value.
A) pricing
B) aligning
C) differentiating
D) promoting
E) placing

16) In the four Ps of the marketing mix, design, packaging, services, and variety all fall

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 under the category of ________.
A) product
B) price
C) promotion
D) place
E) position

17) In a SWOT analysis, which of the following would be considered a strength?

A) internal limitations
B) trends in the market
C) favorable factors in the environment
D) factors that challenge the company's performance
E) internal resources

18) Under the ________ organizational format of marketing departments, different

marketing activities are headed by a specialist such as a sales manager, advertising
manager, marketing research manager, or customer-service manager.
A) geographic
B) product management
C) market management
D) customer-centered
E) functional

19) Modern marketing departments are arranged in all of the following ways, EXCEPT
which one?
A) functional organization
B) market management organization
C) product management organization
D) geographic organization
E) strategic management organization

20) Evaluating the results of marketing strategies and plans and taking corrective action
to ensure that objectives are attained is called ________.
A) marketing control
B) strategic control
C) operating control
D) developmental control
E) efficiency

Essay questions

21) Describe a device that a firm could use to identify future growth opportunities.

22) According to the Boston Consulting Group approach, how can a company classify
its SBUs on a growth-share matrix? Support the explanation with a relevant
diagram.

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23) Outline the marketing management functions.
Group Discussion

Rolex: Building Brand Equity through a Customer-driven Marketing Mix

Refer to http://www.rolex.com and

https://www.youtube.com/user/WorldOfRolex/featured

1) How Rolex has set and maintained its position in the market through the marketing
strategies?

1) What is Rolex really selling? What are customers really buying?

2) If you worked as Rolex’s operations manager, financial analyst, IT specialist, or

human resources manager, why would it be important for you to understand Rolex’s
marketing strategy?

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 ABDT2043 FUNDAMENTALS OF MARKETING

TUTORIAL 3

ANALYZING THE MARKETING ENVIRONMENT

Multiple-choice questions

1) All of the groups within a company are called the ________.

A) culture
B) diversity
C) internal environment
D) climate
E) range

2) Which type of organization helps companies to stock and move goods from their
points of origin to their destination?
A) financial intermediary
B) physical distribution firm
C) marketing service firm
D) reseller
E) supplier

3) Which of the following is NOT an example of a major type of public that is part of
a company's marketing environment?
A) financial
B) media
C) government
D) citizen-action
E) marketing department

4) Which type of market buys goods and services to produce public services or to
transfer them to others who need them?
A) government
B) reseller
C) wholesale
D) consumer
E) retail

5) Your marketing department is currently researching the size, density, location, age,
and occupations of your target market. Which environment is being researched?
A) demographic
B) psychographic
C) economic

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 D) geographic
E) cultural
6) Young people born after 2012 referring to ________.
A) Generation Alpha
B) Millennials
C) Generation Y
D) baby boomers
E) Generation Z

7) The number of ________ households is now growing faster than the number of
________ households.
A) traditional; nontraditional
B) large; traditional
C) nontraditional; smaller
D) nontraditional; traditional
E) male-dominant; female-dominant

8) Marketers can take a(n) ________ by taking aggressive action to affect the publics
and forces in their marketing environments.
A) environmental perspective
B) proactive stance
C) natural perspective
D) natural management perspective
E) relationship building perspective

9) Echo boomers also called ________.

A) Baby boomers
B) Millennials
C) Generation Z
D) Zoomers
E) Generation X

10) With an expected increase in ethnic diversity, marketers are likely to place a greater
emphasis on ________.
A) geographic segmentation
B) differing advertising messages
C) mass marketing
D) "us and them" paradigms
E) tiered markets

11) A marketer of pesticides should be the least concerned about which of the
following?
A) shortages of raw materials
B) increased pollution
C) increased government intervention
D) persistence of cultural values

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 E) chemical pollutants in the food supply

12) Business legislation has been created for three basic reasons: to protect companies
from each other, to protect consumers, and to ________.
A) protect the interests of society
B) regulate prices
C) increase world trade
D) regulate monopolies
E) promote environmental sustainability

13) The primary concern for consumers with the boom in Internet marketing is
________.
A) pornography
B) false advertising
C) privacy
D) sustainability
E) social responsibility

14) Trends in people's views of organizations indicate that which of the following has
increased in the past twenty years?
A) employees' loyalty to their employers
B) confidence in American political organizations
C) distrust in big American businesses
D) distrust in small, local businesses
E) employees' view of work as a source of satisfaction

15) Cause-related marketing is ________.

A) a response to customer needs
B) a primary form of environmental awareness
C) a primary form of corporate giving
D) a response to corporate political problems
E) an attempt to influence customers' core beliefs

True/False questions

16) The macroenvironment consists of the factors close to the company that affect its
ability to service its customers, such as suppliers, customer markets, competitors,
and publics.
(T/F)

17) Trudie Jones works for a distribution channel firm that helps several electronics
companies find customers or make sales to them. Trudie works for a reseller.
(T/F)

18) Consumer organizations such as environmental and minority groups that may

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 question a company's marketing decisions are referred to as local publics.
(T/F)

19) Many companies have started to target the LGBT market segment which has
significant buying power.
(T/F)

20) In the cultural environment, core values and beliefs and secondary values and
beliefs differ in that core values and beliefs are more open to change.
(T/F)

Essay questions

21) Who are the major players in a company's microenvironment? What roles do they
play?

22) Why is monitoring the technological environment crucial for marketing

professionals?

23) Discuss trends in the natural environment of which marketers must be aware, and
provide examples of companies’ responses to them.

24) Briefly describe the seven main types of publics faced by marketers.

25) Differentiate between the basic marketing intermediaries.

26) Describe the macroenvironmental forces that influence the marketing activities of
an organisation.

27) AZiz (AZ) is an Indonesian automotive manufacturer launched in December 2017.

The launch of AZ was successful with sales of 5000 units of vehicles for the first
month. The sales figure continues to raise, especially the availability of 50% sales
tax exemption for the locally assembled vehicle to boost the demand of local
brands. In the second quarter of 2019, the sales have fallen by 20% due to the
launching of a new car model by the competitor and the drop continues because of
COVID-19. Even though the sales have impacted AZ, this company believed new
technology will remain the focus of the automotive industry. Therefore, AZ will
continue to develop eco-cars that will generate return but also satisfy customer
wants and help society to become a low carbon society.

Based on the above, explain the macroenvironmental forces that influence AZ and
support each with the relevant example.

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 ABDT2043 FUNDAMENTALS OF MARKETING

TUTORIAL 4

MANAGING MARKETING INFORMATION TO GAIN CUSTOMER INSIGHTS

Multiple-choice questions

1) A marketing information system (MIS) consists of people and procedures to assess

information needs, ________, and help decision makers analyze and use the
information.
A) experiment to develop information
B) test market the information
C) develop the needed information
D) critique the needed information
E) compare the needed information

2) Four common sources of internal data supplied to internal databases include the
accounting department, operations, the sales force, and the ________.
A) owners
B) stockholders
C) marketing department
D) competition
E) Web

3) ________ is the systematic collection and analysis of publicly available information

about consumers, competitors, and developments in the marketing environment.
A) Marketing data
B) Competitive Marketing intelligence
C) Sales management
D) Customer intelligence
E) Market intelligence

4) Which of the following is NOT considered a source of marketing intelligence?

A) suppliers
B) resellers
C) key customers
D) causal research
E) activities of competitors

5) ________ is the systematic design, collection, analysis, and reporting of data

relevant to a specific marketing situation facing an organization.

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 A) The marketing information system
B) Marketing research
C) Exploratory research
D) Observational research
E) Causal research

6) Your colleague is confused about using the marketing research process, as he

knows that something is wrong but is not sure of the specific causes to investigate.
He seems to be having problems with ________, which is often the hardest step to
take.
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) C and D

7) You want to observe how often consumers listen to music throughout their day and
what different audio devices they use. You are also interested in how consumers
store and access their own music collections. You should conduct ________
research.
A) causal
B) experimental
C) secondary
D) survey
E) exploratory

8) Secondary data consists of information ________.

A) that already exists somewhere but is outdated
B) that does not currently exist in an organized form
C) that already exists somewhere but was collected for another purpose
D) that is used by competitors
E) that the researcher can only obtain through surveys and observation

9) After a research instrument is selected, the next step in the marketing research
process is ________.
A) selecting a sampling method
B) interpreting the findings
C) implementing the research plan
D) collecting secondary data
E) selecting a research approach

10) Marketing information is only valuable when it is used to ________.

A) simplify management's job
B) identify a target market
C) please shareholders
D) increase efficiencies in the supply chain

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 E) make better marketing decisions

11) Which of the following demonstrates the real value of a company's marketing
research and information system?
A) the amount of data it generates
B) the variety of contact methods it uses
C) the tools it uses to gather information
D) the quality of customer insights it provides
E) the type of sampling plan it follows

12) The initial function of a marketing information system is ________.

A) generating insights from market consumption patterns
B) analyzing the results of marketing research studies
C) evaluating information from internal and external sources
D) assessing the information needs of a company
E) hiring research firms to conduct market research

13) Which of the following is true of a good marketing information system?

A) It focuses solely on maximizing the amount of data generated irrespective of
relevance.
B) It typically uses only external sources of data in marketing research.
C) It balances the information that a firm would like to have against what they
really need.
D) It develops a way of offering information about future plans of action that might
not be very feasible or cost-effective.
E) It eliminates the time-consuming task of assessing the information needs of a
firm.

14) Susan Hart, the manager of a children's boutique, collects data from her monthly
records of sales, costs, and cash flow. In this case, Susan is making use of
________ databases.
A) external
B) secondary
C) historical
D) internal
E) dialog

15) Although internal databases can be accessed more quickly and cheaply than other
information sources, one of the challenges of internal databases is ________.
A) the inability to access
B) maintaining the current database
C) the lack of sophisticated equipment and technologies
D) decision making about data collection software
E) putting the customer at the center of all decisions

16) Hammond Corp. operates in the highly aggressive electronics market. The firm

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 aims to obtain early warnings of opportunities and threats caused by the actions of
other firms that are doing well in the industry. Which of the following sources
would best serve Hammond's purpose?
A) sales data from exclusive Hammond retailers
B) archival data on company performance
C) competitive marketing intelligence
D) research on demographics of its existing customers
E) internal survey on employee performance

17) ________ is often the most difficult but most critical step in the research process.
A) Developing the research plan
B) Collecting and analyzing the data
C) Defining the problem and research objectives
D) Interpreting the findings
E) Gathering secondary data

True/False questions

18) After conducting formal marketing research for your department, you summarize
the data in an oral presentation to management. You are following normal
marketing research steps.
(T/F)

19) An effective MIS assesses information needs, develops needed information, and
distributes the information to help managers with decision making.
(T/F)

20) The information collected for an internal database is typically complete and in the
proper form.
(T/F)

21) Secondary data consist of information collected for the specific purpose at hand.
(T/F)

Essay questions

22) Describe the basic marketing research process.

23) Differentiate between the three types of marketing research objectives: exploratory
research, descriptive research, and causal research.

24) Discuss several ways in which small organizations can conduct marketing research
at little or no expense.

25) What is secondary data? List the advantages and disadvantages of using secondary
data for marketing research.

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 ABDT2043 FUNDAMENTALS OF MARKETING

TUTORIAL 5

UNDERSTANDING CONSUMER BEHAVIOR

Multiple-choice questions

1) Which of the following is a social factor that influences consumer buying behavior?
A) family
B) life-cycle stage
C) economic situation
D) personality
E) occupation

2) ________ involves enlisting or even creating opinion leaders to serve as brand

ambassadors who spread the word about a company's products.
A) Social marketing
B) Traditional marketing
C) Buzz marketing
D) Direct marketing
E) Values marketing

3) A marketing firm has been assigned the task of watching trends in spending,
personal income, savings, and interest rates. The marketing firm is most likely
gathering information about consumers' ________.
A) social network usage rates
B) economic situations
C) occupational needs
D) purchasing perceptions
E) brand affiliations

4) ________ refers to the unique psychological characteristics that distinguish a

person or group.
A) Personality
B) Lifestyle
C) Status
D) Attitude
E) Role

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5) A baby boomer decides to purchase a BMW to impress others with her success.
This illustrates the importance of understanding the role of ________ in the
marketing process.
A) personality
B) motive
C) attitude
D) learning
E) perception

6) Marketing stimuli consist of the four Ps. Which is NOT one of these Ps?
A) product
B) politics
C) price
D) promotion
E) place

7) What is one way that social class is NOT measured?

A) occupation
B) education
C) income
D) number of children in the family
E) house type

8) A shoe company uses ads featuring the members of a country music band with the
hope that the band's fans will see them wearing the company's shoes and want to
wear the same shoes. The shoe company is hoping that fans of the band view the
band as a ________.
A) membership group
B) reference group
C) brand personality
D) subculture
E) lifestyle

9) Many companies, such as JetBlue and Sony, enlist everyday consumers who are
enthusiastic about their brands to become ________ who share their passion for a
company's products with large circles of friends and acquaintances in return for
insider knowledge and other rewards.
A) early adopters
B) brand ambassadors
C) direct marketers
D) direct sellers
E) aspirational consumers

10) Family is one of the ________ factors that influence consumer behavior.
A) cultural

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 B) social
C) personal
D) psychological
E) business

11) A ________ consists of the activities people are expected to perform according to
the persons around them.
A) motive
B) role
C) lifestyle
D) life-cycle
E) tradition

12) People change the goods and services they buy over time because of the two
changing factors of ________.
A) belief and attitude
B) perception and personality
C) age and life-cycle stage
D) groups and learning
E) family and tradition

13) A customer's lifestyle can be measured using the AIO dimensions. What does AIO
stand for?
A) Activities, Interests, Opinions
B) Achievement, Involvement, Organizations
C) Accommodation, Investment, Orientation
D) Acknowledgement, Interests, Observations
E) Adoptions, Interests, Occupations

14) ________ refers to the unique psychological characteristics that lead to relatively
consistent and lasting responses to one's own environment. It is usually described in
traits such as self-confidence, dominance, sociability, autonomy, defensiveness,
adaptability, and aggressiveness.
A) Alternative evaluations
B) Belief
C) Culture
D) Personality
E) Self-awareness

15) 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 attitude
D) selective attention

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 E) selective perception

16) ________ describes changes in an individual's behavior arising from experience.

A) Lifestyle
B) Learning
C) Perception
D) Cognitive dissonance
E) Aggressiveness

17) Blake is in the process of buying a new car. He is highly involved in the purchase
and perceives significant differences among his three favorite models. Blake's next
step is most likely to be ________.
A) postpurchase behavior
B) evaluation of alternatives
C) opinion leadership
D) cognitive dissonance
E) purchase decision

18) Consumers learn about new products for the first time and make the decision to buy
them during the ________.
A) new product recognition
B) adoption process
C) evaluation process
D) information search
E) quality assessment

Essay questions

19) Appraise the stages in the buyer decision process for existing products.

20) Outline the buyer decision process for new products.

21) Discuss any FOUR (4) personal factors that influence consumer behaviour.

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 ABDT2043 FUNDAMENTALS OF MARKETING

TUTORIAL 6

UNDERSTANDING BUSINESS BUYER BEHAVIOR

Multiple-choice questions

1) Corning produces Gorilla Glass screens that are used in the production of laptops,
tablets, and smartphones. Corning promotes its product to final consumers to
increase business demand for digital devices made with the specialized, toughened
glass. This illustrates ________.
A) types of decisions
B) derived demand
C) market structure
D) the decision process
E) nature of the buying unit

2) In a straight rebuy, a buyer ________.

A) wants to obtain the same product from a lower-priced supplier
B) reorders something without any modifications
C) considers a product or service for the first time
D) needs a modified product to suit new requirements
E) finds new ways to add value to the same product

3) ________ is defined as a business strategy where business buyers prefer to buy a

complete solution to a problem from a single seller rather than buying and
consolidating separate products and services from several suppliers.
A) Modified rebuy
B) Straight rebuy
C) New task buying
D) Systems selling
E) Supplier development

4) A business buyer is considering a change in product specifications, terms, and

possibly suppliers. This buying situation is referred to as a(n) ________.
A) modified rebuy
B) new-task situation
C) straight rebuy

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 D) dual distribution channel
E) exclusive distribution channel

5) When Goodyear sells replacement tires to final consumers, its potential market
includes millions of car owners around the world. But its fate in business markets
depends on getting orders from only a handful of large automakers. This represents
the difference in ________ between business and consumer markets.
A) types of decisions
B) derived demand
C) market structure
D) the decision process
E) nature of the buying unit

6) A company regularly purchases cleaning supplies from a vendor and orders

relatively consistent amounts of the same products on each purchase from the same
vendor. This is an example of a(n) ________.
A) modified rebuy
B) new task situation
C) straight rebuy
D) dual distribution system
E) exclusive distribution system

7) Harper Farms raises chickens. For years, it has used wooden coops for hauling its
poultry to market. When the owner, Jane Harper, went to reuse some of her coops,
she noticed many of them could not be sufficiently cleaned for reuse and needed to
be replaced. Which stage of the business buying decision process was Harper in
when she decided to replace her old coops?
A) problem recognition
B) general need description
C) product specification
D) product value analysis
E) performance review

8) Which of the following is most likely the final stage of the business buying
decision process?
A) problem recognition
B) product specification
C) proposal solicitation
D) order-routine specification
E) supplier performance review

9) Which of the following is the means by which companies post purchase requests
online and invite suppliers to bid for their business?
A) extranet links
B) intranet connections
C) trading exchanges

23
 D) traditional procurement
E) reverse auctions

True/False questions

10) The main differences between the business market and the consumer market are
found in market structure and demand, the nature of the buying unit, and the types
of decisions and the decision process involved.
(T/F)

11) A business marketer normally deals with far fewer buyers than the consumer
marketer does.
(T/F)

12) The total demand for many business products is not much affected by price changes,
especially in the short run.
(T/F)

13) In a straight rebuy, a buyer reorders something with some modifications.

(T/F)

14) Business buying is done by newly trained purchasing agents who are learning how
to buy better.
(T/F)

15) Purchasing, often called e-procurement, has grown rapidly in recent years.
(T/F)

16) Digital and social media play an important role in engaging always-connected
business buyers in a way that face-to-face personal selling alone cannot.
(T/F)

17) The business buying process tends to be shorter and less formal than the consumer
buying process.
(T/F)

18) A company buying a product with modified specifications faces a new-task

situation.
(T/F)

Essay questions

19) Explain why business demand is considered a derived demand.

20) Briefly explain the types of business buying situations.

24
21) Differentiate business markets from consumer markets.

ABDT2043 FUNDAMENTALS OF MARKETING

TUTORIAL 7

CUSTOMER-DRIVEN MARKETING STRATEGY:

CREATING VALUE FOR TARGET CUSTOMERS

Multiple-choice questions

1) 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

2) Your firm has decided to localize its products and services to meet local market
demands. A good approach to use would be ________ segmentation.
A) geographic
B) benefit
C) end-use
D) customer
E) image

3) When Burger King targets children, teens, adults, and seniors with different ads and
media, it is practicing ________ segmentation.
A) geographic
B) age and life cycle
C) psychographic
D) behavioral
E) usage rate

4) Marketers of automobiles, financial services, and travel are most likely to use which
of the following types of segmentation?
A) gender
B) income

25
 C) occasion
D) usage rate
E) benefits sought

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) demographic
B) psychographic
C) occasion
D) impulse
E) emergency

6) Markets can be segmented into groups of nonusers, ex-users, potential users, first-
time users, and regular users of a product. This method of segmentation is called
________.
A) user status
B) usage rate
C) benefit
D) behavior
E) loyalty status

7) Consumer and business marketers use many of the same variables to segment
markets. Business marketers use all of the following EXCEPT which one?
A) operating characteristics
B) purchasing approaches
C) situational factors
D) personal characteristics
E) brand personalities

8) International Drilling Company segments its foreign markets by the income levels
of a country's population. This firm segments on what basis?
A) political factors
B) legal factors
C) geographic factors
D) economic factors
E) cultural factors

9) If men and women respond dissimilarly to the marketing efforts for a root beer-
flavored malt beverage, they are considered ________ market segments.
A) measurable
B) accessible
C) substantial
D) actionable
E) differentiable

26
10) 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

11) When New Port Shipping uses segmented marketing, it targets several segments
and designs separate offers for each one. This approach is called ________
marketing.
A) undifferentiated
B) differentiated
C) individual
D) mass
E) niche

12) Using concentrated marketing, the marketer goes after a ________ share of
________.
A) small; a small market
B) small; a large market
C) large; one or a few niches
D) large; the mass market
E) moderate; the local market

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

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

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) What competitive positioning strategy can attack a more-for-more strategy by

introducing a brand offering with comparable quality at a lower price?
A) more-for-the-same
B) more-for-less
C) same-for-less

27
 D) less-for-much-less
E) all-or-nothing

True/False questions

16) Your company wants to move away from mass marketing and engage in customer-
driven marketing. The four steps to take, in order, are market segmentation,
marketing positioning, differentiation, and targeting.
(T/F)
17) Because there is such variation among the economies of countries around the world,
it is not practical to segment international markets on the basis of economic factors.
(T/F)

18) Research about and planning for loyalty status as a segmentation approach is
generally not useful or practical for most firms.
(T/F)

19) At a recent marketing seminar, the featured speaker stated that a target market
consists of a set of buyers who share common needs or characteristics that the
company decides to serve. This is a correct definition.
(T/F)

20) A product's position is the way the product is defined by the retailers who sell it to
target markets. It is how it is defined on important attributes–the place the product
occupies in the retailers' minds relative to competing products.
(T/F)

Essay questions

21) Briefly explain the four major steps in designing a customer-driven marketing
strategy.

22) Explain the four major segmenting variables for consumer markets.

23) How can marketers use behavioral segmentation in consumer markets? Discuss,
using an example for each method of behavioral segmentation.

24) Contrast the four major market targeting strategies.

Group Discussion

Form students into groups of three to five. Each group was given a list - Segmentation
Variables in Different Industries. This exercise is designed to get students to think in
terms of segmentation variables discussed in the chapter and link it with the list given.

Segmentation Variables in Different Industries.

28
1. Recreational vehicles (RVs):
2. Baby food:
3. Rolls Royce automobiles:
4. Shampoo:
5. Hotel rooms:
6. Magazines:
7. Soft drinks:
8. Movies:
9. Shoes:
10. Bicycles:
11. Toothpaste:
12. Cameras:
13. Swimsuits:
14. Restaurants:
15. Snowboards:

29
 ABDT2043 FUNDAMENTALS OF MARKETING

TUTORIAL 8

PRODUCTS, SERVICES AND BRANDS: BUILDING CUSTOMER VALUE,

NEW PRODUCT DEVELOPMENT AND PRODUCT LIFE-CYCLE
STRATEGIES

Multiple-choice questions

1) Product is a key element in a company's ________, which may, at one extreme,

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) core customer value

2) ________ are consumer products and services with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special
purchase effort.
A) Shopping products
B) Unsought products
C) Specialty products
D) Industrial products
E) Line extensions

3) ________ are industrial products that aid in the buyer's production or operations,
including installations and accessory equipment.
A) Materials
B) Parts
C) Capital items
D) Specialty items
E) Supplies

4) ________ contributes to a product's usefulness as well as to its looks.

A) Style

30
 B) Design
C) Package
D) Brand
E) Functionality

5) ________ has been affected by the need to include unit pricing, open dating, and
nutritional information.
A) Branding
B) Packaging
C) Labeling
D) Product line filling
E) Product mixing

6) A company can increase its business in four ways. Which is NOT one of these
ways?
A) It can add new product lines, thus widening its product mix.
B) It can lengthen its existing product lines.
C) It can add more versions of each product and thus deepen its product mix.
D) It can discontinue some of its lines.
E) It can increase the consistency of its product mix.

7) Which of the following statements is most likely true about the new product
development process?
A) The first step in developing a new product involves determining any budgetary
or distribution limitations.
B) Most firms discourage employees from contributing new product ideas because
of legal concerns.
C) In most cases, concept testing is followed by concept development.
D) A product concept should be developed for each idea before it goes through idea
screening.
E) Customers, competitors, distributors, and suppliers are major sources of new
product ideas.

8) Safari Unlimited recently conducted national research to generate ideas for a new
line of fatigues geared to women. The company uncovered a number of ideas about
clothing and accessory preferences as well as important benefits such as built-in
sunblock and durability. The Safari Unlimited product development team will most
likely use ________ next to arrive at a realistic number of products for the new
fatigues line.
A) crowdsourcing
B) idea screening
C) concept testing
D) concept development
E) business analysis

9) A detailed version of a product idea stated in meaningful consumer terms is a

31
 ________.
A) product feature
B) product concept
C) product idea
D) product image
E) product framework

10) Which of the following is NOT a desirable quality for a brand name?
A) It should suggest something about the product's benefits and qualities.
B) It should be easy to pronounce, recognize, and remember.
C) The name should be a long word to get attention.
D) The name should translate easily into foreign languages.
E) It should be distinctive.

11) 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.
A) national; manufacturer's
B) store; private
C) national; private
D) store; licensed
E) private; distributor

12) ________ occurs when a company introduces additional items in a given product
category under the same brand name, such as new flavors, forms, colors,
ingredients, or package sizes.
A) A line extension
B) A product mix
C) A brand marketing
D) A brand extension
E) A line marketing

13) Which of the following is true about the introduction stage of a new product?
A) Profits are typically high.
B) Promotion spending is relatively low.
C) Less money is needed to attract distributors.
D) Companies tend to avoid basic versions of the product.
E) Sales growth tends to be slow.

14) Under what circumstances might it be wise for a company to do little or no test
marketing?
A) when a new product requires a major investment
B) when management is not sure of the product
C) when management is not sure of the marketing program
D) when the product has no substitutes and is new in its category

32
 E) when the costs of developing and introducing the product are low

15) In which stage of the PLC would promotional expenditures most likely increase as a
company attempts to react to increasing competition?
A) product development
B) introduction
C) growth
D) maturity
E) decline

True/False questions

16) During the decline stage of the product life cycle, product sales may plunge to zero,
or they may drop to a low level where they continue for many years.
(T/F)

17) Style is a larger concept than design. Design describes the appearance of a product.
(T/F)

18) Most major new innovations are unsought until consumers become aware of them
through advertising.
(T/F)

19) Co-branding is a form of product sponsorship that consists of activities, benefits, or

satisfactions offered for sale that are essentially intangible and do not result in the
ownership of anything.
(T/F)

20) Blair Housewares wants to add new lines of products to its 46-store chain.
Managers are correct in believing that the purpose of idea generation is to create a
few ideas, and the purpose of succeeding stages is to increase that number.
(T/F)

Essay questions

21) What is a brand? What are the advantages of branding?

22) Name and describe three decisions that companies make regarding their individual
products and services.

23) Describe the various categories of consumer products with examples.

24) Briefly describe the steps in the new-product development process.

25) Baba Pot (BP) is a premium restaurant specialised in serving Sichuan styled hot pot
since May 2016. To date, BP has only 1 restaurant in Malaysia and there is no

33
 future plan to open more stores to expand its business. Examine the Product Life
Cycle (PLC). Identify which stage of the PLC BP is categorised under in May
2016.

26) TBZ is a fruit juice brand owned by the Aroma Group (Aroma). This company is one
of the largest confectionery manufacturers in Malaysia which started its business
manufacturing candy. TBZ began in 2018 by just producing orange juice. Currently,
TBZ is not just an orange juice brand as it offers different flavours of juices from
apple, strawberry, mango and others. Recently, TBZ announced that the company is
going to launch TBZ instant coffee. While Aroma sees potential in the European
market and will officially launch Aroma products to the European market.

Examine the types of brand development strategies. Based on the above

information, identify with example the brand development strategies used by TBZ.

34
 ABDT2043 FUNDAMENTALS OF MARKETING

TUTORIAL 9

PRICING: UNDERSTANDING AND CAPTURING CUSTOMER VALUE

Multiple-choice questions

1) ________ is the amount of money charged for a product or service.

A) Experience curve
B) Demand curve
C) Price
D) Wage
E) Salary

2) ________ uses buyers' perceptions of what a product is worth, not the seller's cost,
as the key to pricing.
A) Value-based pricing
B) Target return pricing
C) Variable costs
D) Price elasticity
E) Product image

3) When there is price competition, many companies adopt ________ rather than
cutting prices to match competitors.
A) pricing power
B) value-added pricing strategies
C) fixed costs
D) price elasticity
E) image pricing

4) Product costs set a(n) ________ to a product's price.

A) demand curve
B) experience curve
C) floor

35
 D) ceiling
E) break-even cost

5) Which of the following presents the strongest reason that markup pricing generally
does NOT make sense?
A) Sellers earn a fair return on their investment.
B) By tying the price to cost, sellers simplify pricing.
C) When all firms in the industry use this pricing method, prices tend to be similar.
D) This method ignores demand.
E) With a standard markup, consumers know when they are being overcharged.

6) 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

7) Each of the following economic factors can have a strong impact on a firm's pricing
strategy EXCEPT ________.
A) an economic boom
B) the reseller's reaction to price changes
C) an economic recession
D) inflation
E) interest rates

8) When companies set prices, the government and social concerns are two ________
affecting pricing decisions.
A) external factors
B) internal factors
C) economic conditions
D) demand curves
E) temporary influences

9) Which of the following would NOT support a market-skimming policy for a new
product?
A) The product's quality and image must support its higher price.
B) Enough buyers must want the products at that price.
C) Competitors are not able to undercut the high price.
D) Competitors can enter the market easily.
E) The cost of producing a smaller volume is not so high that it negates the
advantage of charging more per unit.

10) 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

36
 B) optional-product
C) captive-product
D) by-product
E) skimming

11) It is most typical for producers who use captive-product pricing to set the price of
the main product ________ and set ________ on the supplies necessary to use the
product.
A) low; low markups
B) high; low markups
C) low; high markups
D) high; high markups
E) moderately; moderate markups

12) 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

13) What type of pricing is being used when a company temporarily prices its product
below the list price or even below cost to create buying excitement and urgency?
A) segmented pricing
B) psychological pricing
C) referent pricing
D) promotional pricing
E) dynamic pricing

14) 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

15) Rent, electricity, and executive salaries are examples of ________ costs.
A) fixed
B) variable
C) total
D) accumulated
E) marketing

37
Essay questions

16) What is customer value-based pricing? Describe the two types of value-based
pricing.

17) Discuss the three major pricing strategies.

18) Appraise the different types of product mix pricing strategies.

19) Compare the geographic pricing strategies companies use for customers located in
different parts of the country or world.

20) Define segmented pricing and outline the types of segmented pricing strategies.

21) Baba Chocolate (BC) is a newly launched chocolate brand in Malaysia. Currently, it
offers different varieties of chocolate from milk chocolate, dark chocolate, white
chocolate and many more which are priced affordably under the name BC.

(a) Identify the types of segmented pricing strategies. Based on the case above,
assess the type of segmented pricing strategy likely used by BC chocolate.

(b) Briefly explain the types of new product pricing strategies. Based on the
above, assess the type of new product pricing strategy likely used for BC.

38
 ABDT2043 FUNDAMENTALS OF MARKETING

TUTORIAL 10

MARKETING CHANNELS: DELIVERING CUSTOMER VALUE

Multiple-choice questions

1) When suppliers, distributors, and customers partner with each other to improve the
performance of the entire system, they are participating in a ________.
A) value delivery network
B) channel of distribution
C) supply chain
D) demand chain
E) supply and demand chain

2) Producers benefit from using intermediaries because they ________.

A) offer greater efficiency in making goods available to target markets
B) bring a fresh point of view to strategy development
C) eliminate risk
D) are generally backlogged with orders
E) refuse to store products for longer than a few days

3) Which of the following is NOT a key function that intermediaries play in

completing transactions?
A) promotion
B) information
C) negotiation
D) financing
E) matching

4) In marketing terms, we say that the number of intermediary levels indicates the
________ of a channel.
A) depth

39
 B) complexity
C) involvement
D) length
E) width

5) One advantage of using 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

6) An advantage of a vertical marketing system (VMS) over a conventional

distribution channel is that it acts as a ________ system.
A) unified
B) democratic
C) socially responsible
D) customer-driven
E) task-driven

7) As marketing manager for Globe Imports and Exports, you want to start reaping the
benefits of a multichannel distribution system. You will likely enjoy all of the
following EXCEPT which one?
A) expanded sales
B) expanded market coverage
C) selling at a higher gross margin
D) opportunities to tailor products and services to the needs of diverse segments
E) A and D

8) Due in a large part to advances in technology, ________ is a major trend whereby

product and service producers are bypassing intermediaries and going directly to
final buyers, or radically new types of channel intermediaries are emerging to
displace traditional ones.
A) the vertical marketing system
B) the corporate marketing system
C) disintermediation
D) the corporate merger
E) the hostile takeover

9) Sometimes a producer chooses only a few dealers in a territory to distribute its

products or services. Generally these dealers are given a right to ________
distribution.
A) exclusive
B) selected
C) intensive

40
 D) administered
E) corporate

10) 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) planning the flow of logistics information to meet customer requirements at a
profit

11) Which of the following would be considered an upstream partner in a company's

supply chain?
A) a firm that resells a finished product and shares the net sales with the producer
B) a firm that provides technical expertise in the production of a product
C) a firm that markets a product to consumers through social media
D) a firm that buys products at wholesale cost from the company
E) a firm that exclusively markets a product to other businesses

12) ________ are sets of interdependent organizations that help make the product or
service of a company available for use by consumers or business users.
A) Research and development channels
B) Upstream channels
C) Marketing channels
D) Raw materials suppliers
E) Backward integration chains

13) Mary Kay Cosmetics and Amway sell their products through home and office sales
parties, online Web sites, and social media. Both companies use a(n) ________
channel to distribute their offerings.
A) functional
B) indirect
C) direct
D) layered
E) behavioral

14) A firm that uses direct marketing would most likely sell its products through
________.
A) one marketing intermediary
B) big box retailers
C) large wholesalers
D) multiple intermediaries

41
 E) the company Web site

15) Vertical conflicts in distribution channels are conflicts that occur between
________.
A) same levels in the same channel
B) different levels of the same channel
C) same levels of different channels
D) different levels of different channels
E) retailers and customers

True/False questions

16) After setting channel objectives, a company should determine the type and number
of intermediaries it needs to use.
(T/F)

17) Judy Smith is the manager of the local McDonald's franchise in Carterville.
Recently the home office did not let her participate in co-op advertising like the
other McDonald's in her district. Now she is irritated and demands fairness. This is
an example of horizontal conflict.
(T/F)

18) Disintermediation has occurred when an online marketer takes business away from
traditional brick-and-mortar retailers.
(T/F)

19) Wholesaling includes all the activities involved in selling products or services
directly to final consumers for their personal, nonbusiness use.
(T/F)

20) Intensive distribution seeks many outlets in a market, while selective distribution
seeks only one outlet in a given market area.
(T/F)

21) An administered vertical marketing system integrates successive stages of

production and distribution under single ownership.
(T/F)

Essay questions

22) What are the different functions of the members of a marketing channel?

23) Compare and contrast a conventional distribution channel with a vertical marketing
system (VMS).

24) Why are multichannel distribution systems gaining popularity today? Example?

42
25) Compare the strategies used by companies to determine the number of marketing
intermediaries.

26) What is disintermediation? With a suitable example, explain the opportunities and
problems that disintermediation presents for producers and resellers.

ABDT2043 FUNDAMENTALS OF MARKETING

TUTORIAL 11

ENGAGING CONSUMERS & COMMUNICATING CUSTOMER VALUE:

ADVERTISING AND PUBLIC RELATIONS

Multiple-choice questions

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

advertising, sales promotion, public relations and personal selling 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) Which of the four major promotion tools includes building up a positive corporate
image and handling unfavorable stories and events?
A) sales promotion
B) personal selling
C) direct marketing
D) public relations
E) online marketing

3) Which of the following is NOT a factor in the changes occurring in today's

marketing communications?
A) Mass markets have fragmented, and marketers are shifting away from mass
marketing.
B) Improvements in communication technologies are changing how companies and
customers communicate with each other.

43
 C) Companies routinely invest millions of dollars in the mass media.
D) Mass media no longer capture the majority of promotional budgets.
E) Consumers are better informed about products and services.

4) Power Pro, a leading manufacturer of lawn and garden equipment, releases a new
line of cordless, lightweight, electric weed trimmers. To boost sales, Power Pro
issues a 50 percent off coupon to the first 100 buyers at all Home Depot stores in
the Northeast. Which element of the promotion mix has Power Pro used in this
scenario?
A) public relations
B) crowdsourcing
C) advertising
D) sales promotion
E) personal selling
5) To produce better communications consistency, a unified company image, and
greater sales impact, some companies employ a(n) ________.
A) advertising agency
B) marketing communications director
C) public relations specialist
D) personal sales force
E) media buyer

6) Which promotional tool is most effective in building up buyers' preferences,

convictions, and, most importantly, actions?
A) mass-market advertising
B) segmented advertising
C) sales promotion
D) public relations
E) personal selling

7) 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.
A) pull; push
B) push; pull
C) pulse; pull
D) continuity; pulse
E) pulse; continuity

8) All of the following are important decisions during the process of developing an
advertising program EXCEPT which one?
A) setting advertising objectives
B) setting the advertising budget
C) developing advertising strategy
D) selecting a target market
E) evaluating advertising campaigns

44
9) ________ becomes more important as competition increases. The company's
objective is to build selective demand.
A) Persuasive advertising
B) Informative advertising
C) POP promotion advertising
D) Patronage advertising
E) Reminder-oriented advertising

10) A company decides on its promotion budget by using four common methods to set
the total budget for advertising. What is NOT one of these methods?
A) the affordable method
B) the percentage-of-sales method
C) the integrated method
D) the competitive-parity method
E) the objective-and-task method

11) A product in the maturity stage will often require ________ advertising.
A) informative
B) comparative
C) persuasive
D) reminder
E) cooperative

12) Soaring media costs, focused target marketing strategies, and the growing array of
new media have increased the importance of ________.
A) the affordable method of setting a promotion budget
B) the competitive-parity method of setting a promotion budget
C) using humor to capture audience attention and interest
D) implementing branded entertainment
E) media planning

13) Product placement in television programs and movies is an example of ________.

A) branded entertainment
B) advertainment
C) lifestyle execution
D) mood execution
E) consumer generated content

14) Jakarta Tankers Inc. transports fossil fuels all over the United States. Recently one
of Jarkarta's trucks wrecked and released thousands of gallons of oil into a
freshwater stream near a housing development. Which of these components of the
promotion mix should the firm use to handle this problem?
A) sales promotion
B) advertising
C) public relations

45
 D) predictive analytics
E) personal selling

True/False questions

15) A company's Web site can be an important public relations vehicle.

(T/F)

16) If the pull strategy is effective, consumers will then demand the product from
channel members, who will in turn demand it from producers.
(T/F)

17) Integrated marketing communications encourages brand messages to be developed

by different departments within an organization.
(T/F)

18) Reminder advertising is ideal for maintaining customer relationships with mature
products.
(T/F)

19) New communications technologies such as cell phones and the Internet give
companies new media for interacting with targeted consumers, but these new
technologies also give consumers more control of the advertising messages they
receive.
(T/F)

20) Recently, the increased use of online social networks and video sharing has reduced
the need for advertising standardization for global brands.
(T/F)

21) In the context of execution styles in advertising, using an animated character that
represents a product in an advertisement is an example of an endorsement.
(T/F)

Essay questions

22) What is a promotion mix? Define the major tools used in a promotion mix.

23) Marketers can choose from two basic promotion mix strategies–push promotion or
pull promotion. Compare these two strategies.

24) Marketing management must make four important decisions when developing an
advertising program. Name and describe these four decisions.

25) Describe public relations and its main functions.

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26) The creative team must find the best way to execute an advertising message. Name
and describe these styles of execution.

ABDT2043 FUNDAMENTALS OF MARKETING

TUTORIAL 12

PERSONAL SELLING AND SALES PROMOTION

Multiple-choice questions

1) Which of the following promotion tools involves interpersonal interactions with

customers and prospects to make sales and maintain customer relationships?
A) personal selling
B) advertising
C) E-commerce
D) publicity
E) public relations

2) Of the following, which is the LEAST creative sales position?

A) order taker
B) order getter
C) account executive
D) account development rep
E) outside salesperson

3) ________ involves two-way, personal communication between salespeople and

individual customers–whether face-to-face, by telephone, through video or Web
conferences, or by other means.
A) Advertising
B) Public relations
C) Personal selling
D) Mass marketing
E) Direct marketing

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4) Whom do members of a sales force typically represent?
A) They represent the company to customers.
B) They represent the company to investors.
C) They represent the customer to the company.
D) A and C
E) all of the above

5) The selling process consists of several steps that the salesperson must master,
focusing on the goals of ________ and ________ from them.
A) closing sales; getting orders
B) getting new customers; obtaining service ideas
C) getting new customers; obtaining orders
D) overcoming objections; developing relationships
E) managing old customers; following up
6) Prospecting is the step in the selling process in which the salesperson ________.
A) meets the customer for the first time
B) learns as much as possible about a prospective customer before making a sales
call
C) identifies qualified potential customers
D) tells the product's "value story" to the customer
E) clarifies and overcomes customer objections to buying

7) The step that follows approach in the selling process is ________.

A) presentation and demonstration
B) closing
C) handling objections
D) prospecting
E) qualifying

8) Which of the following is the LEAST relevant characteristic that a salesperson

should consider when qualifying a prospect?
A) financial ability
B) longevity in the market
C) special needs
D) location
E) volume of business

9) A salesperson who researches a company's buying styles and product line is most
likely in the ________ stage of the selling process.
A) prospecting
B) preapproach
C) approach
D) presentation
E) closing

10) Marlene Arau is a member of the sales force at Urban Fashions, a clothing

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 manufacturer. Marlene is preparing for a first meeting with a wholesaler who is a
potential customer, and she is preparing herself by learning as much as she can
about the wholesaler's organization. Marlene is in the ________ step of the personal
selling process.
A) prospecting
B) qualifying
C) preapproach
D) approach
E) handling objections

11) ________ consists of short-term incentives to encourage the purchase or sale of a

product or service. This offers reasons to buy it now.
A) A patronage reward
B) A segmented promotion
C) Advertising
D) Sales promotion
E) Publicity

12) Kirk Wilkins renewed his cell phone contract with Zip Wireless and purchased a
new cell phone through the Zip Web site. If Kirk mails Zip his phone receipt, proof
of purchase, and a completed form, he will receive $50 in the mail. What type of
sales promotion is being used by Zip?
A) point of purchase
B) advertising specialty
C) premium
D) price pack
E) rebate

13) Which consumer promotion tool requires consumers to send a proof of purchase to
the manufacturer?
A) cents-off deals
B) coupons
C) samples
D) cash refunds
E) promotional products

14) Manufacturers direct more sales promotion dollars toward ________ than to
________.
A) consumers; retailers
B) customers; wholesalers
C) retailers and wholesalers; consumers
D) mature consumers; teenagers
E) retailers; wholesalers

15) Manufacturers may offer a(n) ________ in return for the retailer's agreement to
feature the manufacturer's products in advertising or display.

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 A) POP promotion
B) allowance
C) incentive promotion
D) price pack
E) premium

True/False questions

16) During the presentation step of the selling process, the salesperson tells the product
"story" and explains the product benefits to the customer.
(T/F)

17) Sales promotion consists of long-term incentives to encourage purchases or sales of

a product or service.
(T/F)

18) Price packs are goods offered either free or at low cost as an incentive to buy a
product, such as toys included with Disney DVDs.
(T/F)

19) POP promotions include displays and demonstrations that take place at the point of
sale.
(T/F)

20) Training online instead of on-site can cut travel and other training costs, and it takes
up less of a salesperson's selling time.
(T/F)

Essay questions

21) Describe the seven steps in the selling process. What is often the most difficult step
for most salespeople? Why?

22) Give examples of consumer sales promotions.

23) What is sales promotion? What are the various factors that have contributed to the
rapid growth of sales promotion in consumer markets?

24) What are the different ways of finding sales prospects?

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 ABDT2043 FUNDAMENTALS OF MARKETING

TUTORIAL 13

DIRECT AND ONLINE MARKETING: BUILDING DIRECT CUSTOMER

RELATIONSHIPS
REACHING GLOBAL CONSUMERS AND MARKETS

Multiple-choice questions

1) ________ marketing involve engaging directly with carefully targeted individual

consumers and customer communities to both obtain an immediate response and
build lasting customer relationships.
A) Undifferentiated and differentiated
B) Mass and targeted
C) Direct and digital
D) Internal and external
E) Standardized and customized

2) Which of the following statements is most likely true about direct and digital
marketing?
A) They are used to sell goods to an undifferentiated market segment.
B) They are inconvenient and lengthen the process for most buyers.
C) They remain unaffected by the rapid growth of technologies.
D) They build customer engagement and constitute a complete model for doing
business.
E) They are rarely used by companies as supplementary channels.

3) How has the Internet most likely affected direct and digital marketing?
A) The time taken by marketers to reach customer segments has increased.
B) The role of technology has become less intense.

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 C) The expenditures on direct and digital marketing have increased.
D) The growth of digital sales has seen a significant downturn.
E) The number of mass marketing forms has expanded.

4) A comprehensive database is a tremendous tool for the direct marketer. It should

contain geographic, demographic, psychographic, and ________ data.
A) ethical
B) cultural
C) medical
D) behavioral
E) sociological

5) Catalogs, brochures, samples, and DVDs are all examples of which type of
marketing?
A) direct-response marketing
B) direct-mail marketing
C) digital direct marketing
D) kiosk marketing
E) online marketing

6) Fiona Lambrech is the marketing director of a charity that raises funds to help
provide educational services to children and families in developing countries. Fiona
wants to reach a selective market of individuals who have recently donated to
international charities. Which of the following types of direct marketing is Fiona
most likely to use?
A) direct-mail marketing
B) catalog marketing
C) telephone marketing
D) direct-response television marketing
E) kiosk marketing

7) Organic Designs is a small, successful chain of stores offering stylish clothes made
of all-organic materials for infants, toddlers, and young children. Most of the
Organic Designs stores are located in urban areas. Now Organic Designs is
considering using direct marketing to reach potential customers who live outside of
the company's existing markets, with the goal of creating emotional connections
and long-term relationships with a new group of customers. Which of the following
methods of direct marketing would likely be most effective in accomplishing this
goal?
A) direct-mail marketing
B) telephone marketing
C) catalog marketing
D) direct-response television marketing
E) podcast marketing

8) Marketers use ________ telephone marketing to receive orders from television ads

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 and catalogs.
A) inbound
B) outbound
C) interactive
D) direct-response
E) business-to-business

9) What are two major forms of direct-response television marketing?

A) direct-response television advertising and infomercials
B) home-selling and toll-free response
C) home television response and attention commercials
D) call-in response and Web-site response
E) home shopping channels and vodcasts

10) Green Gardens is a click-and-mortar seller of gardening and landscaping goods and
equipment. The marketing department wants to encourage shoppers at the physical
stores to use the company's online catalog to order items that are not available at a
given retail location. Which of the following marketing devices is the best match
for this goal?
A) kiosks
B) e-mail
C) mobile phones
D) telemarketing
E) podcasts

11) What is the fastest growing form of direct marketing?

A) mobile-phone marketing
B) online marketing
C) interactive TV
D) direct-response television
E) podcasts

12) The growth of the Internet caused many brick-and-mortar companies to ________
in response to customer demands and a changing marketplace.
A) become click-only companies
B) become content sites
C) become click-and-mortar companies
D) develop more infomercials
E) expand their outside sales forces

13) Online communities where people socialize or exchange information and opinions
are called ________.
A) corporate Web sites
B) marketing Web sites
C) online social networks
D) interactive Web sites

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 E) affiliate programs

14) Which of the following is not the plus side of using social media?
A) Social media are targeted and personal.
B) Social media are interactive.
C) Social media are not immediate.
D) Social media can be very cost effective.
E) Social media are engaging.

15) Unsolicited and unwanted commercial e-mail is known as ________.

A) viral e-mail
B) e-tailing
C) pop-up advertising
D) pop-under advertising
E) spam
16) Oscar Aviation has a corporate Web site. Prospective customers are likely able to
do all of the following on the site EXCEPT ________.
A) learn about Oscar's philosophy
B) ask online questions
C) enjoy entertainment features on the site
D) purchase products
E) register to receive more information from the company

17) Your Cleaning Team is a company that provides house cleaning services in major
urban and suburban areas. Marketers at Your Cleaning Team developed a short,
humorous video promoting the company's services and hope that customers who
see the video will be so entertained that they will pass it on to their friends and
colleagues. The marketers at Your Cleaning Team are using ________.
A) content sponsorship
B) viral marketing
C) C2B marketing
D) rich media ads
E) a marketing Web site

18) A(n) ________operates in more than one country and gains marketing, production,
research and development, and financial advantages that are not available to purely
domestic competitors.
A) segmented firm
B) importer
C) exporter
D) global company
E) international competitor

19) Which of these steps in NOT one involved in the global marketing process?
A) deciding on the global marketing organization
B) deciding on the global marketing program

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 C) deciding how to produce salable goods
D) understanding the global marketing context
E) deciding how to enter global markets

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

A) joint ownership
B) exporting
C) direct investment
D) joint venture
E) contract manufacturing

True/False questions

21) Digital marketing through online, mobile, and social media provides a sense of
brand engagement and community.
(T/F)

22) Though direct mail permits high target-market selectivity and can be personalized,
it does not allow easy measurement of results.
(T/F)

23) A catalog is currently defined as a printed, bound piece of at least eight pages that
sells multiple products and offers a direct ordering mechanism.
(T/F)

24) Mobile marketing is an unsuitable tool for triggering an immediate purchase from a
consumer.
(T/F)

Essay questions

25) Explain the major benefits of direct and digital marketing for both customers and
sellers.

26) What are the main forms of direct and digital marketing?

27) Briefly explain the three basic market entry strategies of entering a foreign market.

28) Differentiate between standardized global marketing and adapted global marketing.

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