Which of the following is true of services?
a. Services are tangible.
b. Services are inseparable from service providers.
c. Companies can easily standardize services.
d. Services are nonperishable.
Zone pricing completely eliminates phantom freight.
a. True
b. False
The steps in a sales process follow the AIDA (attention, interest, desire, action) concept.
a. True
b. False
A huge database that contains information used to detect patterns is called a _____.
a. Data cloud
b. Big data
c. Data storage
d. Data warehouse
One of the motives that prompt firms to enter into partnerships is:
a. creating longer distribution channels.
b. raising barriers to entry.
c. promoting the use of technology to facilitate customer orientation.
d. avoiding vertical and horizontal integration.
The division of the total market into smaller, relatively homogeneous groups is called
_____.
a. target market
b. market segmentation
c. cohort effect
d. primary metropolitan statistical area
e. differentiated marketing
f. concentrated marketing
g. micromarketing
h. positioning map
i. VALS
j. AIO statement
k. core region
l. consumer product
m. demographic segmentation
n. Pareto’s law
o. psychographic segmentation
p. geographic information systems
q. positioning
r. geographic segmentation
s. business product
t. mass marketing
Transfer pricing typically is a simple and standardized process in most organizations.
a. True
b. False
A VMS that coordinates channel activities through formal agreements among
participants is called a(n) _____.
a. distribution channel
b. forward integration
c. logistics
d. dual distribution
e. direct selling
f. intensive distribution
g. selective distribution
h. exclusive distribution
i. tying agreement
j. backward integration
k. administered marketing system
l. corporate marketing system
m. contractual marketing system
n. private carriers
o. materials handling system
p. franchise
q. common carriers
r. upstream management
s. suboptimization
t. downstream management
Tactical planning usually involves the production of quarterly and semiannual plans,
along with divisional budgets, policies, and procedures.
a. True
b. False
Markup can be expressed as a percentage of the total cost of the product or the selling
price.
a. True
b. False
Cultural differences are particularly important for:
a. firms marketing internationally.
b. local not-for-profit organizations.
c. firms marketing to a specific target market in a single city.
d. firms that are marketing to the same segment of consumers for years.
Microblogging allows people to communicate extensively through lengthy blog
postings.
a. True
b. False
Which of the following organizations was established as an outcome of GATT?
a. NAFTA
b. EU
c. WTO
d. FTAA
The physical distribution functions of marketing are related to advertising, personal
selling, and sales promotion in the attempt to match products and services to consumer
needs.
a. True
b. False
As the marketing and sales manager, you are in charge of setting the selling prices of
prize-winning music boxes with changeable songs. After you explained two cost-plus
approaches to price setting, the CEO chose the straightforward approach of full-cost
pricing. The next day, you received an unexpected order for 10,000 units from a Swiss
contact with a tight deadline.
Required:
What information do you need immediately to arrive at a selling price that you can
justify to the CEO?
a. value of resources consumed in the production of the music boxes
b. overhead expenses, profit margin, and direct cost per music box
c. fixed costs of production, variable costs, and revenue
d. manufacturing capacity and customer’s price point of willingness to pay
e. acceptable loss-leader pricing, prescribed rate of return, and financing
A corporate recruiter called you recently about a great marketing opportunity with a
company headquartered in Miami, Florida. He did not give you the name of the
company, but he described it as follows:
1. Contributors of financial resources to the company sometimes try to influence the
company’s marketing to promote their own agenda.
2. More than 25% of the U.S. adult population works in one or more of these types of
companies.
3. Earningspershare is not a major focus for this type of company.
4. Marketing is very important to the success of this type of company.
Which one of the following types of companies is the recruiter describing?
a. A Fortune 500 company
b. A special interest company
c. A notforprofit company
d. A joint venture company
e. A forprofit company
Many grocery chains require customers to have a membership card in order to receive
sale prices or other discounts. These grocery chains are practicing database marketing.
a. True
b. False
Compared to other organization personnel, more time is devoted to longrange strategic
planning by the:
a. middle management.
b. manufacturing labor.
c. top management.
d. supervisory management.
A store’s exterior appearance, including architectural design, window displays, signs,
and entryways:
a. exerts no influence on the retailer’s image.
b. exerts a major influence on the pricing of the goods sold by the store.
c. helps identify the retailer and attract its target market.
d. indicates the range and assortment of product lines it offers.
You have been assigned the overwhelming task of managing all your firm’s products in
the decline stage. Which of the following steps are you least likely to take?
a. develop strategies to increase how frequently the product is used
b. develop strategies to identify a new target market and/or new customers
c. develop an aggressive, resource-intensive marketing mix for products in the decline
stage
d. develop rebranding strategies and identify new ways to make the products more
appealing
e. develop a social media campaign that will excite current customers and induce them
to buy more of these products
One-price policies are more likely to be applied in marketing programs based on
individual bargaining.
a. True
b. False
A _____ brand refers to a brand name owned by a manufacturer or a producer.
a. private
b. generic
c. national
d. captive
Procter & Gamble manufactures laundry detergents under the brand names of Tide,
Cheer, and Gain. These brands represent the width of the product mix that Procter &
Gamble offers.
a. True
b. False
A stratified sample is a type of nonprobability sample.
a. True
b. False
Girl Scouts selling cookies door-to-door exemplify cold-call selling.
a. True
b. False
A dentist provides pure service.
a. True
b. False
Promotional technique in which marketing partners share the cost of a promotional
campaign that meets their mutual needs is known as _____.
a. noise
b. advertising
c. promotion
d. publicity
e. sales promotion
f. guerrilla marketing
g. posttesting
h. split runs
i. cooperative advertising
j. marketing public relations
k. media scheduling
l. pretesting
m. informative advertising
n. persuasive advertising
o. retail advertising
p. missiles
q. cross-promotion
r. interactive advertising
s. sponsorship
t. institutional marketing
You are pleased to learn that the firm you’ve just joined has begun a sustainability
initiative. In fact, one of your first assignments is to write a memo describing the key
dimensions of such an effort. But when you submit a draft of the memo to your
supervisor, she points out at least one significant error. Identify the sentence(s) with a
mistake.
a. Sustainability must permeate a firm’s corporate strategy from the bottom up.
b. Sustainability must permeate a firm’s corporate strategy from the top down.
c. In order to minimize environmental impacts, successful sustainability efforts usually
allow for some performance reductions.
d. Successful sustainability efforts minimize environmental impacts while maximizing
performance.
e. Sustainability is basically a cost containment strategy.
In terms of the BCG Matrix, which of the following SBUs are characterized by earning
only low market shares in lowgrowth markets?
a. Stars
b. Question marks
c. Dogs
d. Cash cows
A multimodal firm provides intermodal service through external transportation
resources.
a. True
b. False
A meat packing unit’s downstream management would oversee storage and
warehousing of meat as well as the transportation of the meat to its plant where it is
processed and packed.
a. True
b. False
Successful implementation of IMC requires that everyone involved in every aspect of
promotion function as a team, presenting a consistent, coordinated effort at every point
of customer contact.
a. True
b. False
Wholesaling intermediaries create place utility by:
a. extending credit to product manufacturers.
b. helping deliver goods and services for purchase at convenient locations.
c. providing a sales force to call upon potential suppliers.
d. offering a round-the-clock customer helpline.
What are the different ways to achieve multinational economic integration? Why are
some nations not keen on entering into free trade?
Describe the influence of organizational factors on business buying behavior.
What are the basic functions of a sales manager?
List and describe the major types of posttests used to evaluate advertising effectiveness.
Differentiate between a global marketing strategy and a multidomestic marketing
strategy. Give examples for each.
How are retailers classified on the basis of services provided? Give an example for each
group.
State Engel’s laws. How have these laws changed in the recent years?
Discuss the three classes of freight carriers.
Describe the NAICS system. Bring out the differences between the older SIC system
and the NAICS system.
Describe the factors that influence a firm’s choice of a marketing channel strategy.
What are the different services provided by wholesaling intermediaries?
What is the importance of transfer pricing? How does it relate to an organization’s
profit center?
Define consumer behavior. Describe Kurt Lewin’s proposition and how it has been
adapted for consumer behavior.
Define service quality. Describe its five variables.
Differentiate between a wholesaler and a wholesaling intermediary.
What is internal marketing? Why is internal marketing important for a firm?
