You were hired by an office design firm largely on the strength of your success in
relationship marketing. To make sure customers are satisfied and make repeat
purchases, which of the following relationships will be important?
a. Relationships with vendors, like fabric suppliers
b. Relationships with customers’ purchase decision makers
c. Relationships with distributors of items like lamps and silk plants
d. Relationships with contractual partners
e. Relationships with government officials
Buyers rarely play any role in the creation and distribution of services.
a. True
b. False
Bailee is an account executive with an advertising agency and specializes in helping
clients utilize and leverage a variety of media options to persuasively communicate
with their target audiences. As part of her work with one of her accounts, she crafts a
document to identify and describe the goals and strategies, target audience, budget and
the implementation tactics for using Facebook, Twitter, and Instagram. The document
also includes how the agency will monitor, measure and determine the success of the
campaign. What is this document called?
a. social media marketing plan
b. social media implementation report
c. creative social media engagement plan
d. detailed social media accountability report
In a(n) _____, firms evaluate their products and divisions to determine the strongest and
weakest.
a. organizational appraisal
b. market analysis
c. utilization analysis
d. portfolio analysis
A buying center is a basic component of a firm’s formal organizational structure.
a. True
b. False
Komatsu is a global firm known for its earth moving equipment utilized in construction.
Since its products are sold around the globe, Komatsu has developed a unique approach
to pricing where prices are set according to the market conditions within each
geographic region. For example, an excavator might be significantly less expensive in
India than in the United States in order to reflect the local marketplace conditions. What
type of pricing strategy is Komatsu utilizing?
a. market-differentiated pricing
b. standard worldwide pricing
c. dual pricing
d. competitive pricing
The U.S. Supreme Court has ruled that horizontal territorial restrictions may meet legal
criteria in certain cases but it has consistently declared vertical territorial restrictions to
be illegal.
a. True
b. False
Using the consumer products classification system, which of the following is true of the
marketing mix factors for a convenience product?
a. It is generally high priced.
b. The seller’s image is very important.
c. It has a long distribution channel.
d. Its number of sales outlets tends to be very few.
You are the head of sales training for a major financial services firm in New York City.
You are conducting a sales training class for a group of new trainees. You are a strong
believer in using a structured approach to personal selling.
Based on this information, which of the following personal selling process steps are you
going to tell the trainees to perform first?
a. develop a database of potential customers
b. develop an engaging sales presentation
c. practice closing the sale
d. develop a prospect follow-up checklist
e. analyze information about potential customers’ needs
Which of the following methods of promotion is most likely to be used for promoting a
consumer product targeted at a geographically dispersed market if the audiences are
likely to respond to the same promotional messages?
a. Trade promotion
b. Advertising
c. Trade shows
d. Personal selling
A(n) _____ is a nonprobability sample selected from among readily available
respondents.
a. big data
b. exploratory research
c. secondary data
d. primary data
e. sampling
f. hypothesis
g. simple random sample
h. interpretative research
i. focus group
j. marketing decision support system
k. key performance indicator
l. predictive analytics
m. metrics
n. marketing research
o. quota sample
p. test marketing
q. cluster sample
r. data mining
s. convenience sample
t. controlled experiment
A marketing campaign for a vegetarian restaurant in China uncovers two facts: 1) eating
meat is seen as a sign of prosperity in China; 2) only an estimated 5 percent of the
Chinese are vegetarians. Which interpretation of these facts should be incorporated into
the marketing campaign?
a. Cook vegetarian food to look like meat so that customers feel prosperous.
b. Calculate that China has over 1.2 billion citizens, so the vegetarian 5 percent yields
60 million potential customers.
c. Recognize that vegetarian customers will not be considered as prosperous as their
neighbors.
d. Price vegetarian restaurant food at a discount so that customers feel prosperous.
e. Identify which Chinese communities already have successful vegetarian restaurants.
The business market features a limited number of buyers compared to consumer
markets.
a. True
b. False
The cost of acquiring a new customer is equivalent to that of retaining a loyal customer.
a. True
b. False
Volkswagen recently launched an ad campaign designed to market its Crafter model
vans to wholesalers. In the televised version of the ad, viewers see a giant QR code
being constructed out of packing crates. A passing individual with a smart phone scans
the “code” from a distance and is taken to a video which shows the same QR code
being disassembled and all of the packing crates being placed inside a Volkswagen
Crafter van. The final seconds of the ad reemphasize the carrying capacity of the van
and how ideal it is for businesses that need delivery vehicles.
Which of the following concepts does the ad campaign demonstrate?
a. Business-to-business (B2B) marketing is currently the fastest-growing marketing
segment.
b. Newer forms of advertisement and marketing can now be used to target the
wholesale market.
c. The Internet and associated technologies are used to support new and innovative
marketing strategies.
d. The Internet allows manufacturers to advertise directly to regular consumers,
reducing the importance of the wholesale sector.
e. Businesses that specialize in the development of marketing strategies face increased
competition from the free marketing provided by social media users.
Discuss the major types of advertising media.
Which of the following has led to the success of Toyota, Honda and Kia Motors in the
United States?
a. production facilities in the United States
b. limited access to distribution
c. continued ability to import products
d. low ocean shipping costs
Which of the following statements is true of tactical planning?
a. It is conducted exclusively by the supervisory personnel.
b. It is used to generate weekly plans, unit budgets, departmental rules and procedures.
c. It is designed to determine annual budgets and longrange strategic goals.
d. It is performed to substitute the strategic planning process in large organizations.
Which of the following internationally recognized standards sets requirements for
operations that minimize harm to the environment?
a. ISO 9000 series
b. ISO 8000 series
c. ISO 10000 series
d. ISO 14000 series
Noe’s Gifts is a gift and accessories retail chain. The company has a website that allows
customers not only to buy products online, but also provides information regarding the
various offers available, gifting ideas and other information related to the products. The
website also provides an opportunity to the consumers to provide feedback on the
products and services the company offers. This type of website used by a company to
sell its products to consumers is called a(n):
a. extranet.
b. private exchange.
c. electronic storefront.
d. electronic exchange.
_____ are state laws requiring sellers to maintain minimum prices for comparable
merchandise.
a. breakeven analysis
b. tariffs
c. unfair-trade laws
d. incremental-cost pricing
e. profit maximization
f. demand
g. value pricing
h. monopoly
i. elasticity
j. marginal
k. fair-trade laws
l. yield management
m. oligopoly
n. cost-plus pricing
o. full-cost pricing
p. supply
q. marginal analysis
r. target-return objectives
s. market-share objectives
t. pure competition
Some of the largest direct investments by foreign companies in the United States have
occurred in the automobile industry.
a. True
b. False
Decisions relating to the product strategy primarily revolve around _____.
a. the promotional offers that would increase the visibility of the product in the market
b. the features of the products being released in the market
c. the choice of high/low or everyday low pricing by the company
d. the selection of wholesalers and retailers to transport the stock to the market
Generation X is very family-oriented, well educated, and optimistic.
a. True
b. False
The NAICS classification system is a useful tool for segmenting business markets by
demographic characteristics.
a. True
b. False
Modified breakeven analysis combines the traditional breakeven analysis model with an
evaluation of:
a. consumer demand.
b. marginal cost curves.
c. supply cost.
d. target return objectives.
A product strategy includes decisions about customer service, package design, brand
names, trademarks, patents, and warranties.
a. True
b. False
Chris works for Aon, a large commercial brokerage company who serves as the
intermediary between customers who need risk or insurance coverage and firms who
provide the coverage – insurance carriers. Since Aon is one of the largest brokerage
firms in the world, they utilize ______ segmentation where they divide the business
buyers into groups according to their needs. For example, manufacturing firms would
have specific requirements for insurance that might be distinct from a public school or
university. A municipality such as the city of Chicago would also have a different set of
needs that would result in a different mix of insurance coverage.
a. customer-based
b. demographic
c. end-use application
d. purchasing function
Marketers must understand a target group’s culture if they hope to construct an effective
marketing mix for the target group. Culture is the accumulation of values, beliefs,
preferences, and tastes that the target group possesses. Culture includes such tangible
items as _____________. Culture also includes such intangible items as
________________.
a. education; food
b. social customs; artwork
c. artwork; food
d. education; clothing
e. clothing; principles
The success of any IMC program depends on identifying the members of an audience
and understanding what they want.
a. True
b. False