Mansfield Pharmaceuticals markets Zipro, an antibiotic. The firm has fixed costs of
$1,000,000 and variable costs of $2 per bottle of 50 tablets priced at $10 per bottle.
What is the break-even volume?
A) 25,000
B) 55,000
C) 100,000
D) 115,000
E) 125,000
At Gina’s retail stores, the posted policy reads, “Without our customers, we don’t exist.”
Gina and her staff aim to delight each customer, and they are quick to offer discounts or
extra services whenever a customer is anything less than satisfied. Gina and her staff
strive to make every customer a repeat customer. It is most accurate to say that instead
of focusing on each individual transaction, Gina and her staff put a priority on
________.
A) managing partner relationships
B) selling new products
C) attracting “butterflies”
D) converting “barnacles” to “strangers”
E) capturing customer lifetime value
The online and mobile equivalent of a pop-up store is ________.
A) door buster deals
B) Black Friday specials
C) high-low pricing
D) flash sales sites
E) everyday low pricing
Which of these is NOT a way in which pricing can accomplish company objectives?
A) set prices to attract new customers and retain existing customers
B) raise prices to create excitement for a brand
C) set prices low to hinder competition from entering the market
D) price one product to help sales of other products in the company’s line
E) set price to keep the loyalty of resellers
Which of the following is the first step of business portfolio planning?
A) shaping the future portfolio by developing strategies for growth and downsizing
B) determining which businesses should receive more, less, or no investment
C) identifying internal strengths and weaknesses
D) identifying future opportunities
E) determining short-term goals
Why are customers often considered the most important sources of new product ideas?
A) Customers are close to the market and can pass along information about problems
and new product possibilities.
B) The company can analyze customer questions and complaints to find new products
that better solve consumer problems.
C) Customers buy competing new products, take them apart to see how they work,
analyze sales, and then decide to purchase.
D) Customers review the sales, costs, and profit projections for a new product to find
out whether the product satisfies the company’s objectives.
E) Customers estimate the minimum and maximum sales to assess the range of risk.
Lubricants, coal, paper, and pencils are examples of ________.
A) operating supplies
B) capital items
C) raw materials
D) specialty products
E) installations
Rather than measuring click-through rates, companies now want to track ________ as a
more accurate measure of the engagement of the consumers in the message.
A) ratings
B) consumer expressions
C) listenership
D) consumer impressions
E) readership
According to Maslow’s hierarchy of needs, which of the following is the LEAST
pressing need?
A) physiological needs
B) social needs
C) esteem needs
D) self-actualization needs
E) safety needs
In a company, the job of a chief privacy officer is to ________.
A) ensure timely product deliveries
B) detect patent infringements and copyright violations
C) safeguard the privacy of a firm’s customers
D) engage in niche marketing
E) safeguard the privacy of senior executives
Target return pricing uses the concept of a(n) ________, which shows the total cost and
total revenue expected at different sales volume levels.
A) BCG matrix
B) break-even chart
C) SWOT analysis
D) demand curve
E) experience curve
While developing an effective integrated communication, once the target audience has
been defined, marketers must do all these steps EXCEPT ________.
A) determine the desired response
B) collect feedback
C) choose the media through which to send a message
D) identify potential distractions
E) design a message
Public health campaigns designed to reduce alcoholism, drug abuse, smoking, and
obesity are all examples of ________ marketing.
A) internal
B) social
C) organization
D) person
E) place
The goal of ________ research is to describe things, such as the market potential for a
product or the demographics and attitudes of consumers who buy the product.
A) exploratory
B) statistical
C) causal
D) analytic
E) descriptive
________ refers to activities that communicate the merits of the product and persuade
target customers to buy it.
A) Position
B) Promotion
C) Pricing
D) Segmentation
E) Prospecting
Which of the following would most likely be included in the written materials prepared
by PR professionals to reach and influence target markets?
A) employee code of conduct
B) annual reports
C) memorandum of association
D) advertisement jingles
E) white papers
________ logistics refers to moving products and materials from the suppliers to the
factory.
A) Outbound
B) Diverse
C) Inbound
D) Reverse
E) Customer-centered
Which of the following price adjustment strategies offers a price reduction to buyers
who pay their bills promptly?
A) cash discount
B) season discount
C) quantity discount
D) trade discount
E) functional discount
Which of the following is a consequence of standardizing an international product?
A) image consistency
B) regional design flexibility
C) decreased product demand
D) increased manufacturing costs
E) higher marketing costs
A company faces fixed costs of $100,000 and variable costs of $8 per unit. It plans to
directly sell its product in the market for $12. How many units must it produce and sell
to break even?
A) 20,000
B) 25,000
C) 30,000
D) 35,000
E) 40,000
Kathy Champe, a public relations specialist for a regional chain of pharmacies,
regularly contacts members of the local and statewide media with information about
community events and charity fundraisers sponsored by her company. This is an
example of the ________ function of public relations.
A) press relations
B) product publicity
C) investor relations
D) lobbying
E) development
Which of the following is NOT a reason that companies use social media?
A) cost effectiveness
B) engagement and social sharing capabilities
C) ease of creating content
D) immediacy and timeliness
E) interactiveness
________ involves designing and producing the container or wrapper for a product.
A) Packaging
B) Patenting
C) Servicing
D) Co-branding
E) Labeling
Business marketers use geographic, demographic, benefit, user status, usage rate, and
loyalty status to segment their markets. They also use ________, customer operating
characteristics, purchasing approaches, and situational factors.
A) weather patterns
B) psychographics
C) ethical traits
D) budgets and financial status
E) personal characteristics
Which of the following is an advantage of using a sales force automation system?
A) lowers sales team training costs
B) records major competitor’s sales
C) eliminates the need for an inside sales force
D) eliminates employee attrition
E) improves customer service
Which of the following product mix pricing strategies involves setting prices across an
entire product range based on cost differences between the products, customer
evaluations of different features, and competitors’ prices?
A) by-product pricing
B) product bundle pricing
C) optional product pricing
D) captive product pricing
E) product line pricing
________ segmentation assumes that nations close to one another will have many
common traits and behaviors.
A) Geographic
B) Occasion
C) Psychographic
D) Benefit
E) Demographic
Which of the following statements characterizes the introduction stage of the PLC?
A) There are increased marketing outlays.
B) Profits are nonexistent.
C) The company incurs minimal expenses.
D) The product achieves acceptance by most potential buyers.
E) Promotional expenditures are zero.
Which of the following marketing orientations holds that achieving organizational goals
depends on knowing the needs and wants of target markets and delivering the desired
satisfactions better than competitors do?
A) the product concept
B) the production concept
C) the selling concept
D) the marketing concept
E) the societal marketing concept
The ________ market consists of schools, hospitals, nursing homes, prisons, and the
like that provide goods and services to people in their care.
A) government
B) consumer
C) wholesale
D) for-profit
E) institutional
The art and science of choosing target markets and building profitable relationships
with them is called ________.
A) marketing management
B) positioning
C) marketing mix
D) market offering
E) differentiation
In Via del Mar, Chile, a large number of shops specialize in selling the same quality of
seafood products along the beach frequented by tourists. No individual shop dares
charge more than the going price without fearing loss of business to other shops. This
exemplifies ________.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) pure monopoly
E) the dominant firm model
Seagull Terrace offers its customers good accommodations, local delicacies, and
amazing seaside views. The overall experience provided at the motel is a part of its
________.
A) market offering
B) target market
C) market segment
D) product positioning
E) marketing mix
According to the five-step model of the marketing process, a company should
________ before designing a customer-driven marketing strategy.
A) determine how to deliver superior value to customers
B) build profitable relationships with customers
C) use customer relationship management to create full partnerships with key customers
D) understand the marketplace and customer needs and wants
E) construct an integrated marketing program
Which of the following statements is most likely true regarding the competitive-parity
method?
A) This method involves starting with total revenues, deducting operating expenses and
capital outlays, and then devoting some portion of the remaining funds to advertising.
B) It is based on the availability of funds rather than on opportunities.
C) It wrongly views sales as the cause of promotion rather than as the result.
D) In this method, promotion budgets are set to match competitors’ outlays.
E) This method involves setting the promotion budget at a certain percentage of current
or forecasted sales.