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Marketing, 14e (Kerin)
1) To overcome the problem that occurs during product development when consumers say one
thing in a market research study and do another when facing a supermarket shelf, the Warm
Delights team ran marketing experiments that involved all of the following except which?
A) measuring the results of the Warm Delights experiments
B) repeating the Warm Delights marketing experimentation process
C) testing colorful microwaveable trays for heating
D) putting a Warm Delights prototype dessert in a store
E) improving the Warm Delights prototype
2) The launch of a new cereal typically costs up to $30 million and usually involves
A) replacing one of more than 300 competing breakfast cereals already on store shelves.
B) a minimum of three attempts before it is successfully launched.
C) a tie-in promotion with a major motion picture or toy.
D) steps to counteract the promotional efforts of a competitor's new cereal.
E) obtaining FDA approval for its convenience claims.
3) Recently, General Mills launched all of the following products except which?
A) Nature Valley Granola Cups
B) Very Berry Cheerios
C) Yoplait Dippers.
D) Fiber One Gluten-free Bars.
E) Annie's Popcorn
4) In a five-year study, researchers conducted in-depth analysis of 160 companies and more than
200 management tools and techniques. What was their principal finding?
A) Supply chain management was the most critical element in stellar business performance.
B) Customer relationship management was more effective than product development.
C) The Internet was more effective in terms of long-term sales success than the use of retail
outlets or direct marketing tactics such as catalogs.
D) Three major management tools—supply chain management, customer relationship
management, and the use of an intranet—were equally beneficial in terms of business
performance.
E) Individual management tools and techniques had no direct relationship to superior business
performance in the companies that were studied.
5) Four basic business and management practices are what matter—"what really works," to use
the phrase of the researchers who studied more than 200 management tools and techniques.
Which of the following is one of these?
A) ethics
B) charismatic leadership
C) quality
D) culture
E) sustainability
6) Four basic business and management practices are what matter—"what really works," to use
the phrase of the researchers who studied more than 200 management tools and techniques. All
of the following are included except which?
A) structure
B) culture
C) execution
D) strategy
E) ethics
7) Which of the following statements about the four basic business and management practices
that researchers identified is most accurate?
A) Strategy and structure are more important for success than culture and execution.
B) Culture and execution are more important for success than strategy and structure.
C) In order for a company to be successful, it must use all four strategies.
D) In terms of the basic business and management practices, the practice itself is less important
than flawless execution of the one(s) the company does use.
E) No strategy can work unless every stakeholder buys into it 100 percent.
8) Reflecting on the research study of over 200 management tools and techniques, which of the
following companies is an example of a firm that excels based on a devising and maintaining a
"clearly stated, focused strategy"?
A) Costco
B) Sears
C) Lululemon
D) Smucker's
E) Groupon
9) Reflecting on the research study of over 200 management tools and techniques, which of the
following companies is an example of a firm that excels in terms of operational execution?
A) Costco
B) Smucker's
C) Sears
D) Groupon
E) Toyota
10) Toyota is generally acknowledged as the best in the world in revolutionizing the design and
manufacture of autos. Toyota managers created the doctrine of kaizen, or
A) continuous improvement.
B) multilevel input.
C) make haste, not waste.
D) continuous production.
E) continuous communication.
11) Toyota is generally acknowledged as the best in the world in revolutionizing the design and
manufacture of autos. Toyota managers created the doctrine of ________, or continuous
improvement.
A) keiretsu
B) kaizen
C) kanban
D) meishi
E) zaibatsu
12) Reflecting on the research study of over 200 management tools and techniques, which of the
following companies is an example of a firm that excels based on a performance-oriented
culture?
A) Costco
B) Google
C) Coca-Cola
D) Sears
E) Toyota
13) Reflecting on the research study of over 200 management tools and techniques, which of the
following companies is an example of a firm that excels based on its organizational structure?
A) Costco
B) Home Depot
C) Lockheed Martin's Skunk Works
D) Coca-Cola
E) IBM
14) Lockheed Martin's Skunk Works is a leader in delivering world-class aircraft. About 50
engineers and designers and 100 expert machinists closely follow this guideline for
organizational structure and implementation: Use a small number of good people who
A) implement the idea that "it is better to ask forgiveness than permission."
B) know their jobs, as well as the ones around them.
C) can talk to anyone in the organization to solve a problem.
D) recognize that everyone should have a voice in decision making.
E) never offer excuses, only explanations.
15) The mathematical function that relates the expense of marketing effort to the marketing
results obtained is referred to as
A) marketing ROI.
B) market share profitability.
C) share point analysis.
D) synergy analysis.
E) a sales response function.
16) Economists would most likely recommend that marketing managers allocate the firm's
marketing resources to the markets and products where
A) the firm has its greatest sales.
B) an SBU is considered a cash cow.
C) there is the greatest current market share and the fastest industry growth rate.
D) the excess of incremental revenues over incremental costs is greatest.
E) total revenue equals total cost.
17) What is the assumed shape of the graph of the sales response function?
A) U-shaped
B) S-shaped
C) a straight, downward-sloping line, starting in the upper left and extending to the lower right of
the graph
D) a straight, upward-sloping line, starting in the lower left and extending to the upper right of
the graph
E) W-shaped
18) The relationship of annual marketing effort to annual sales revenue is assumed to be
________ of the sales response function.
A) a horizontal straight line, where sales revenues stay the same regardless of the marketing
effort
B) a U-shaped curve, where sales revenues are at a maximum at either end
C) an upside-down U-shaped curve, where sales revenues are at a maximum in the middle
D) an S-shaped curve, which shows that an additional marketing effort in the midrange of the
curve results in far greater increases of sales revenue than at either end of the curve
E) a rising straight line, where sales revenue continuously rises as the marketing effort rises
19) The firm's annual marketing effort, such as advertising, personal selling, sales promotion,
direct marketing, and public relations expenses is ________ in a sales response function graph.
A) plotted on the vertical (Y) axis
B) plotted on the horizontal (S) axis
C) plotted on the vertical (Z) axis
D) the center point
E) plotted on the horizontal (X) axis
20) As the annual marketing effort increases in a sales response function graph, so does the
resulting annual sales revenue, which is
A) plotted on the vertical (Y) axis.
B) plotted on the horizontal (S) axis.
C) plotted on the vertical (Z) axis.
D) the center point.
E) plotted on the horizontal (X) axis.
21) According to Figure 22-1 above, an additional annual marketing effort of $1 million is best
spent after having already spent how much in marketing effort to date?
A) $1 million
B) $2 million
C) $3 million
D) $5 million
E) $6 million
22) According to Figure 22-1 above, the result of spending an additional $1 million in annual
marketing effort from $3 million to $4 million resulted in increased revenues of
A) $20 million
B) $40 million
C) $50 million
D) $70 million
E) $80 million
23) You have been told that a company increased its marketing effort from $2 million to $5
million, resulting in increased sales revenue from $12 million to $21 million. Calculate the
company's ratio of incremental sales revenue to incremental marketing effort.
A) 3:1
B) 1:3
C) 8:5
D) 5:2
E) 21:12
24) You have been told that a company increased its marketing effort from $3 million to $5
million, resulting in increased sales revenue from $10 million to $20 million. Calculate the
company's ratio of incremental sales revenue to incremental marketing effort.
A) 4:1
B) 1:5
C) 5:1
D) 1:4
E) 5:1.5
25) The essence of resource allocation is that
A) company resources are allocated effectively in the strategic marketing process by converting
marketing actions into marketing information.
B) individual management tools and techniques that a firm chooses to use are less important than
flawless execution of the ones it does use.
C) sometimes you have to break the rules to spend every dollar in a budget.
D) incremental resources should be put where the incremental returns are greatest over the
foreseeable future.
E) individual management tools and techniques have no direct relationship to superior business
performance in the companies.
26) Share points are
A) the ratio of sales revenue of the firm to the total sales costs.
B) the percentage points of market share used as the common basis of comparison.
C) the sales revenue generated by different products within the firm expressed as a percentage.
D) a measure of the quantitative value or trend of a marketing activity or result divided by the
total marketing effort of the firm.
E) the total number of a product sold in one year compared to the cumulative total sold since its
introduction, expressed as a percentage.
27) Percentage points of market share used as the common basis of comparison in an analysis to
allocate marketing resources effectively for different product lines within the same firm are
referred to as
A) market shares.
B) ratings.
C) marketing ROIs.
D) S-curve points.
E) share points.
28) New Balance has no celebrity endorsers and does minimal advertising, yet the athletic shoe
brand has about 10 percent of the sales in the athletic footwear market. The marketing team at
New Balance estimates that to increase sales to 11 percent of the market will require an increase
of $25 million in marketing effort and will result in an increase of its footwear sales of an
additional $15 million. This 1 percent incremental increase from 10 to 11 percent is referred to as
A) a rating.
B) marginal market share.
C) a sales response margin.
D) a share point.
E) a direct response rate.
29) When using share points to make marketing resource allocation decisions, marketing
managers must estimate which of the following?
A) total production costs
B) number of market segments
C) stage of the product in its product life cycle
D) the total financial resources available for a sustained marketing effort
E) the revenues associated with each point of market share
30) During the planning phase of the strategic marketing process, the marketing manager will
A) design the marketing organization.
B) obtain resources.
C) develop marketing schedules.
D) construct managerial bonus plans.
E) set market and product goals.
31) Which of the following pieces of information is used in a SWOT analysis, the first step of
the planning phase of the strategic marketing process?
A) marketing return on investment
B) market share for the product
C) trends for industry and competitors
D) revenues associated with each point of market share
E) possible cannibalization effects on other products in the line
32) Which of the following pieces of information is used in market-product focus and goal
setting, the second step of the planning phase of the strategic marketing process?
A) marketing return on investment
B) perceptual maps and positioning statements
C) revenues associated with each point of market share
D) possible cannibalization effects on other products in the line
E) trends for industry and competitors
33) Which of the following information is used in the development of the marketing program,
the third step of the planning phase of the strategic marketing process?
A) marketing return on investment
B) market-product grids with target segments and product groupings
C) trends for industry and competitors
D) marketing mix actions
E) market potential studies
34) The actions taken in a situation (SWOT) analysis or Step 1 of the planning phase include
which of the following?
A) set market and product goals
B) select target markets
C) find points of difference
D) position the product
E) assess your own company
35) The information needed in a situation (SWOT) analysis or Step 1 of the planning phase
includes
A) project future sales, expenses, and profits.
B) segmentation methods
C) positioning studies
D) market-product grids with target segments and product groupings
E) marketing mix actions
36) The actions taken during market product focus and goal setting, Step 2 of the planning phase,
include
A) identifying industry trends.
B) researching customers.
C) setting market and product goals.
D) developing the program's marketing mix.
E) developing the budget by estimating revenues, expenses, and profits.
37) The information needed in market product focus and goal setting, Step 2 of the planning
phase, includes
A) creating market-product grids with targets.
B) identifying trends for industry and competitors.
C) defining marketing mix actions.
D) creating detailed plans to execute the marketing program.
E) projecting future sales, expenses, and profits.
