In a territorial sales force structure, as each salesperson travels within a limited
geographic area, travel expenses are relatively small.
Companies frequently try to offer the highest possible performance quality level.
The aim of the entire value delivery network is to serve target customers and create
strong relationships with them.
The percentage-of-sales method wrongly views sales as the cause of promotion rather
than as the result.
Salespeople do not represent customers to the company.
Though marketers may make long-term gains with high-pressure selling tactics, this
approach can do serious damage to short-term customer relationships.
Training online instead of on-site can cut travel and other training costs, and it takes up
less of a salesperson’s selling time.
Intermarket segmentation refers to forming segments of consumers who have different
needs and buying behaviors in a given geographical region.
PR can have a strong impact on public awareness at a much higher cost than advertising
can.
One of the traditional buyer’s rights is the right not to buy a product that is offered for
sale.
At a hotel renowned for its superior service, one registration-desk employee may be
cheerful and efficient, whereas another may be irritable and slow. This exemplifies
service consistency.
Benchmarking involves comparing the firm’s products and processes to those of the
competitors to identify best practices to improve quality and performance.
Personal interviews can be used to collect large amounts of information at a low cost
per respondent.
As a part of intensive distribution, dealers are expected to refrain from selling the
products of the producers’ competitors.
Services are growing more slowly in the world economy as a percentage of gross world
product than in the U.S. economy, as a percentage of gross domestic product.
The widespread use of scanner-based computer checkouts has eradicated complaints of
retailers overcharging their customers.
The popularity of cause-related marketing as a form of corporate giving is rapidly
declining.
The “bottom of the economic pyramid” has become an attractive target for many
companies.
Buzz marketing involves cultivating opinion leaders and getting them to spread
information about a product or service to others in their communities.
Good-value pricing usually is used by premium brands, and rarely by less-expensive
brands.
To succeed in today’s competitive marketplace, companies must be product-centered.
Customers see competitive advantages as customer advantages.
Sales assistants confirm appointments, follow up on deliveries, and answer customers’
questions when outside salespeople cannot be reached.
Ed purchased electronic devices such as a smartphone, and tablet after many people he
knew already owned the devices. Ed belongs to the adopter group called lagging
adopters.
Influencers often help define specifications and also provide information for evaluating
alternatives.
Gary Hirshberg started the Stonyfield Farm yogurt company. His marketing strategy:
building a casual bond with customers using guerilla marketing. This is an example of
formulated marketing.
Poor or emerging economies are unattractive markets for many kinds of goods.
Personal selling involves interpersonal interactions between salespeople and individual
customers.
The technological environment is predominantly static.
Average cost tends to increase with accumulated production experience.
The marketing mix consists of people, property, planning, and position.
Refer to the scenario below to answer the following question(s).
Kimberly’s Crown sells and designs jewelry. Despite the jewelry’s popularity, products
are available only through a few shopping stores across the country.
What mode of transport should Kimberly use to ship its goods over long distances as
quickly as possible?
A) flatcars
B) water transport
C) air transport
D) trucks
E) railroads
Which of the following is a risk associated with international trade?
A) technological obsolescence
B) highly unstable governments
C) market monopolization
D) lack of trade barriers
E) currency stagnation
The ________ refer(s) to all the individuals and units that play a role in the purchase
decision-making process.
A) users
B) influencers
C) buying center
D) gatekeepers
E) systems sellers
When a firm varies its price by the season, it is using ________ pricing.
A) product form
B) customer-segment
C) location-based
D) time-based
E) value-added
To plan effective marketing strategies, a company needs to find out all it can about its
competitors. It must constantly compare its marketing strategies, products, prices,
channels, and promotions with those of close competitors. This is an example of
________.
A) blue ocean strategy
B) competitor analysis
C) organizational evaluation
D) perfect competition
E) quantitative analysis
A person’s buying choices are influenced by four major psychological factors. Which of
the following is NOT one of these factors?
A) motivation
B) perception
C) association
D) learning
E) beliefs
A firm dumping chemical wastes in the local lake is ________.
A) actively resisting social change
B) contributing to organizational anarchy
C) engaging in a “do well by doing good” mission
D) adopting a proactive stance toward the marketing environment
E) contributing to increased pollution
What is included in the first part of a marketing strategy statement?
A) distribution strategy
B) product longevity
C) long-run sales goals
D) promotional mixes
E) target market description
________ allowances are payments or price reductions that reward dealers for
participating in advertising and sales support programs.
A) Promotional
B) Trade-in
C) Segmented
D) Functional
E) Dynamic
Nintendo, producer of the Wii video game console, might define its competitors as
other makers of physically interactive video games. But from a(n) ________ point of
view, it would include all firms making physically interactive recreational products.
A) industry
B) market
C) segment
D) niche
E) interdependent
The PLC concept can be applied by marketers as a useful framework for describing
how ________.
A) competitors’ moves are predicted
B) marketing strategies are developed
C) products and markets work
D) concept testing is conducted
E) product ideas are developed
________ involves setting prices based on the costs for producing, distributing, and
selling the product plus a fair rate of return for effort and risk.
A) Value-based pricing
B) Competition-based pricing
C) Cost-based pricing
D) Penetration pricing
E) Break-even pricing
While blogs are a fundamentally a consumer-controlled medium, marketers can
________.
A) directly contact customers through them
B) use insights from them to improve their marketing programs
C) offer special promotions to new customers
D) retrieve research data from clicks in them
E) provide content
Sales executives at Keiron Air Conditioners use phone directories to call customers and
convince them to buy their air conditioners. Which form of direct marketing is used
here?
A) telemarketing
B) direct-mail marketing
C) catalog marketing
D) direct-response television marketing
E) kiosk marketing
In Japan, Budweiser beer flows from Kirin breweries, and Moringa Milk Company
produces Sunkist fruit juice. These are examples of ________.
A) contract manufacturing
B) management contracting
C) licensing
D) joint venturing
E) direct investment
Which of the following is true of public policies and pricing?
A) The government imposes no limits on intrastate pricing issues.
B) The Robinson-Patman Act governs interstate commerce.
C) Companies have free rein when it comes to setting prices.
D) The Sherman Act governs intrastate commerce.
E) The Clayton Act encourages the formation of monopolies.
According to the PLC, the ________ stage is reached when sales plunge to zero, or
when they drop to a low level where they continue for many years.
A) laggard
B) decline
C) maturity
D) growth
E) incubation
Leicestershire Renovations has a history of problems with customers who do not pay
their bills on time. Leicestershire Renovations wants to improve its cash situation,
reduce bad debts, and reduce credit-collection costs. Which of the following forms of
pricing would most likely help the firm achieve its goal?
A) by-product pricing
B) zone pricing
C) cash discounts
D) product bundling
E) quantity discounts
While Jenkins Stationeries was selling branded stationery at premium prices, Pembroke
Stationeries, a store across the street, was selling the same branded stationery at
discount prices. Which of the following value propositions best describes Pembroke’s
product positioning?
A) more for less
B) more for the same
C) same for less
D) less for much less
E) more for more
Kinger Auto specializes in selling low-quality used vehicles that are priced a good deal
lower than other used cars. Which of the following value propositions is evident here?
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more
Which of the following marketing strategies should marketing managers focus on to
manage detailed information about individual customers and carefully manage
customer touchpoints to maximize customer loyalty?
A) customer divestment
B) customer-managed relationships
C) the societal marketing concept
D) partner relationship management
E) customer relationship management
Product planners need to consider products and services on three levels. At the second
level, product planners must ________.
A) offer additional product support and after-sale services
B) identify the core customer value that consumers seek from the product
C) turn the core benefit into an actual product
D) find out how they can create the most satisfying brand experience
E) define the problem-solving benefits or services that consumers seek
In new product buying, the users are often the ________.
A) monitors
B) influencers
C) gatekeepers
D) deciders
E) primary advertisers
Kinger Burgers came out with a new hamburger and, before including it on its main
menu, released it in two different cities with two different prices. The marketers at
Kinger Burgers then analyzed the different levels of purchase made at these two
different places, planning to use the information to help them set a nationwide price for
the new offering. This is an example of ________.
A) ethnographic research
B) descriptive research
C) DIY research
D) experimental research
E) survey research
An appeal that attempts to stir up either negative or positive sentiments that can
motivate purchase is called a(n) ________ appeal.
A) rational
B) structural
C) emotional
D) moral
E) standard
________ are the major marketing factors in the sale of most manufactured materials
and parts.
A) Branding and advertising
B) Price and service
C) Sales promotion and advertising
D) Branding and packaging
E) Public relations and brand management
Market leaders can expand the market by ________ and more usage of the product.
A) identifying competitors
B) initiating monopolistic practices
C) developing new users
D) ensuring users adhere to higher standards
E) initiating new rules for product users
Using ________, retailers can share real-time data on sales and current inventory levels
with suppliers.
A) automated storage and retrieval systems (ASRS)
B) vendor-managed inventory (VMI) systems
C) transportation management systems (TMS)
D) warehouse management systems (WMS)
E) distribution center management systems (DCMS)
Growing Green, a U.S. company that markets organic and environmentally friendly
gardening and landscaping supplies and equipment, wants to expand the business
internationally. Growing Green managers are currently examining the rules imposed by
the WTO and the agreements made by NAFTA and the EU. In which stage of the
international marketing process is Growing Green?
A) deciding on the global pricing strategies
B) deciding which markets to enter
C) deciding how to enter the market
D) deciding on the global marketing program
E) looking at the global marketing environment
The marketing concept is a philosophy of ________.
A) sales and profit maximization
B) customer value and mutual gain
C) serving short-term interests over long-term gains
D) serving the company’s interests over the consumers’
E) promotion value and company gain
Eric Brown is a human resource manager in a company selling and manufacturing
personal computers. Who among the following is Eric most likely to hire as a
salesperson if his objective is to minimize training costs post recruitment?
A) Samantha, a fresh college graduate
B) Richard, a product developer from a competing firm
C) Nancy, an experienced engineer with no prior experience in personal selling
D) Melissa, a proven salesperson from a competing firm
E) Henry, a young salesperson with a few months’ experience in a large MNC
A company should consider political and legal factors such as monetary regulations,
political stability, the country’s attitudes toward international buying, and ________
when determining whether to enter a specific country.
A) size of population
B) government bureaucracy
C) natural resources
D) income distribution
E) cultural norms
Nike inadvertently offended Chinese officials when it ran an ad featuring LeBron James
crushing a number of revered Chinese figures in a kung fu-themed television ad. As a
result, Nike had to release a formal apology. This is an example of the impact of
________ on marketing strategy.
A) culture
B) political stability
C) level of industrialization
D) income distribution
E) monetary regulations
Briefly describe the steps in the new product development process.
What is the follow-up step of the selling process? Why is it important?
Define strategic planning. Discuss the steps involved.
Explain how marketers and marketing critics disagree about the psychological value of
advertising.
Define interactive marketing. Why is it considered an important skill for service
marketers?
Explain how a firm benefits from using sense-of-mission marketing.
What is a private brand?
What are the major structural factors affecting long-run segment attractiveness?
What are the primary requirements for effective market segmentation?
Why are competitors considered a good external idea source?
How are the personal selling process and customer relationship management
interrelated? What are the primary requirements of value selling?
Briefly describe the process of value-based pricing.
What are two possible reasons that management contracting is prevalent in the hotel
industry?
Identify and describe the different types of retailers, based on their product lines.
Provide an example of each type of retailer.
Give an example of testimonial evidence and explain the importance of the source.