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Part 2 Critical Thinking Case—Mary Kay Inc. Taps into a Changing Demographic TRUE/FALSE 1. Mary Kay relies on consultants and direct-selling, which is essentially one-to-one marketing. ANS: T PTS: 1 KEY: CB&E Model Strategy

OBJ: 8-8 TOP: AACSB Reflective Thinking MSC: BLOOMS Level I Knowledge

2. The marketing that exists between Mary Kay and its consultants is not B2B. ANS: F Mary Kay, vis-à-vis its independent beauty consultants, who are small business, is the producer and distributor in this B2B role. PTS: 1 OBJ: 7-2 KEY: CB&E Model Distribution

TOP: AACSB Reflective Thinking MSC: BLOOMS Level I Knowledge

3. Mary Kay’s seeking consultants who fit the segmentation of the target market is a form of product user positioning. ANS: T PTS: 1 KEY: CB&E Model Strategy

OBJ: 8-9 TOP: AACSB Reflective Thinking MSC: BLOOMS Level I Knowledge

4. Mary Kay is not only vulnerable to losing a younger generation of consultants to direct-sellers like itself. ANS: T PTS: 1 KEY: CB&E Model Strategy

OBJ: 7-3 TOP: AACSB Reflective Thinking MSC: BLOOMS Level I Knowledge

MULTIPLE CHOICE 1. Which of the following segmentations are probably least important to Mary Kay? a. ethnic b. gender c. age d. family life cycle e. none of the above ANS: E All of these demographic segmentation basses are important to Mary Kay, which is an ethnically oriented global company that sells to females and males clients, seeks to broaden its target market in a younger clientele that tends to marry later and delay having children. PTS: 1

OBJ: 8-8

TOP: AACSB Reflective Thinking


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KEY: CB&E Model Strategy

MSC: BLOOMS Level II Comprehension

2. By designing its products to vary, to seem “new” in shade, scent, forms, even packaging, Mary Kay is counteracting which aspect of a younger generation of users? a. skepticism b. disloyalty to brands c. less income d. the desire for an “experience” e. all of the above ANS: B Those generations after the baby boomers, such as Generation X tend to be disloyal to brands. Mary Kay now markets its products to foil that tendency. PTS: 1 OBJ: 8-3 KEY: CB&E Model Customer

TOP: AACSB Reflective Thinking MSC: BLOOMS Level II Comprehension

3. Mary Kay recognizes geographic and ethnic segmentation. It also sees most women as having similar preferences. These would probably lead to what strategy? a. Continue to create product lines specifically for each target market. b. Produce makeup and the like in the most uniform way possible because women tend not to recognize cultural differences when it comes to beauty care projects. c. Treating customers in different countries as reference groups. d. Pursue a geodemographic segments to target women in even smaller, more diverse markets. e. Produce products with the same formulations yet intensify marketing to individual cultures and the like. ANS: E Even though the trend in global business is toward less variation, firms have little chance of selling products in a culture that they do not understand. PTS: 1 OBJ: 6-5 TOP: AACSB Diversity KEY: CB&E Model International Perspective MSC: BLOOMS Level IV Analysis 4. Unlike other companies, Mary Kay must compete with other direct-selling firms for ____________ from a business-to-business perspective. a. beauty care product customers b. the same demographic segments c. a largely female demographic d. its beauty consultants e. none of the above ANS: D Mary Kay recognizes that other direct selling companies want to harness the power and dynamic of consultants in the younger age group. PTS: 1

OBJ: 7-1

TOP: AACSB Reflective Thinking


Full file at http://testbank360.eu/test-bank-mktg-7-7th-edition-lamb

KEY: CB&E Model Strategy

MSC: BLOOMS Level II Comprehension

5. When a Mary Kay identifies and focuses on the younger age of its largely female clientele, their unlimited earning power, their preferences for certain product lines, and the like, it is looking at __________. a. segmentation descriptors b. target market variables c. evoked sets d. consideration sets e. optimizers ANS: A Segmentation descriptors identify the specific segmentation variables. PTS: 1 OBJ: 8-6 KEY: CB&E Model Customer

TOP: AACSB Reflective Thinking MSC: BLOOMS Level II Comprehension

6. From reading the Mary Kay case, which of the following would be the least important in its approach to one-to-one marketing? a. loyalty b. technology c. personalization d. time-savings e. none of the above ANS: B For direct selling, technology (in the form of m-commerce mass marketing apps, mobile sites, Web sites, and the like) is typically the least important marketing tool when it comes to a individualized face-to-face sale. PTS: 1 OBJ: 8-8 KEY: CB&E Model Strategy

TOP: AACSB Reflective Thinking MSC: BLOOMS Level II Comprehension


Test bank mktg 7 7th edition lamb