IMANET IMANET Certifications IMANET-CMA Questions & Answers

• Question 1121:

  Service marketing uses the traditional categories of marketing tools (the 4Ps) as well as which additional methods?

  A. Price, place, and promotion

  B. Price, place, and physical evidence

  C. Process, promotion, and people

  D. People, physical evidence, and process

  Correct Answer: D

  The traditional 4Ps are product, price, promotion, and place . The three additional Ps used in service marketing are people, physical evidence and presentation, and process. The right employees, if well trained and motivated, enhance customer satisfaction because many services require substantial customer-employee interaction. Physical evidence and presentation are what the customer perceives, such as the decorative features of a restaurant. A process is how the service is performed, for example, delivery of health care in a doctor's office, outpatient clinic, or hospital.

• Question 1122:

  A brand may be developed in many ways. Which brand development strategy introduces new products in the same category under the same brand?

  A. Brand extension

  B. Line extension

  C. Flanker branding

  D. Co-branding

  Correct Answer: B

  One effective means of developing and marketing new products is the use of line extensions (new products in an already served category) and brand extensions. The concept behind extension is that consumers are already familiar with the firm's major brand names. Thus, if a new product carries the same brand name, it will be more likely to succeed. Carrying an established brand name enables a new product to more easily fill a niche in the marketplace. Furthermore, extensions make efficient use of promotional costs because customers are already familiar with the quality of the products created and manufactured under the brand. Most new products are line extensions.

• Question 1123:

  The positive incremental effect that the brand name has on customer purchasing behavior is brand

  A. Valuation

  B. Equity

  C. Bonding

  D. Identify

  Correct Answer: B

  According to Kotler (Marketing Management), brand equity is "the positive differential effect that knowing the brand name has on customer response to the product or service." It may be measure by the incremental price a customer will pay for the product. An effect of brand equity is customer preference for the brand when another product is essentially identical

• Question 1124:

  The length of a product line should be structured to maximize profits and meet other objectives of the firm. Accordingly, the line may be structured to allow

  A. Upselling of a related product

  B. Cross-selling of a more expensive product

  C. Filling to reach an upmarket

  D. Stretching to reach th downmarket

  Correct Answer: D

  Line stretching may be downmarket to provide lower-priced products. The purpose may be to exploit a growth opportunity, to move against a low-price competitor that has invaded the firm's markets, or to shift out of a declining market. Upmarket stretching may reflect a search for growth, greater profit margins, or positioning as a full-product- line seller. Two-way stretching is a middle market firm's move into the upmarket and downmarket

• Question 1125:

  Products may be classified in a hierarchy according to ascending levels of customer value. At which level of this customer value hierarchy does most competition occur in developed countries?

  A. Potential product

  B. Augmented product

  C. Expected product

  D. Basic product

  Correct Answer: B

  An augmented product exceeds expectations. In industrialized nations, product augmentation through customer service, delivery options, packaging, financing, etc, is the basis for competition. Hence, the customer's consumption system must be understood, that is , how the customer acquires, uses, pays for, and maintains the product.

• Question 1126:

  Which attribute of the product mix corresponds to the number of product lines?

  A. Depth

  B. Consistency

  C. Width

  D. Length

  Correct Answer: C

  The product mix is the product assortment (everything the firm sells). A firm may grow by adding to any attribute of its product mix. The width attribute is the number of product lines

• Question 1127:

  In marketing toothbrushes as its single product, Hollow Company uses one marketing mix, believing all toothbrush users have similar needs. Such an approach to target marketing is called

  A. Mass marketing

  B. Niche marketing.

  C. Micromarketing.

  D. Concentrated marketing.

  Correct Answer: A

  When the needs of all customers are considered to be the same, the product and the customers do not need to be differentiated, and the appropriate strategy is mass marketing.

• Question 1128:

  The process of dividing all potential consumers into smaller groups of buyers with distinct needs, characteristics, or behaviors, who might require a similar product of service mix, is called

  A. Strategic planning.

  B. Market segmentation.

  C. Product positioning.

  D. Objective setting.

  Correct Answer: B

  Market segmentation is the process of dividing all potential consumers into smaller groups of buyers with distinct needs, characteristics, or behaviors, who might require a similar product or service mix.

• Question 1129:

  Under which one of the following targeting strategies does a firm attempt to serve all customer groups with all the products they might need?

  A. Single-segment concentration.

  B. Market specialization.

  C. Pull market coverage.

  D. Product specialization

  Correct Answer: C

  Pull market coverage provides all the products wanted by all customer groups. This approach is possible only for a very large firm.

• Question 1130:

  Which of the following is not a risk of double-benefit positioning?

  A. The brand image may become too narrow.

  B. Customers may not believe the firm's claims.

  C. The brand image may become indistinct.

  D. Customers may perceive that competitors also offer one of the benefits.

  Correct Answer: D

  Some market researchers argue that double-benefit market positioning is preferable, especially if customers perceive that competitors also provide a particular benefit. Thus, offering multiple benefits may be advantageous if the result is a more distinctive position for the product. The following are risks of this approach: (1) the brand image lacks charily in the minds of customers (under positioning), (2) the brand image is too narrow (over positioning), (3) the brand image may be confused in customers' perceptions because the value proposition has too many benefits (confused positioning), and (4) customers may not believe the firm's claims (doubtful positioning).