Target marketing, in contrast to mass marketing:
A. Assumes all customers have the same needs.
B. Assumes everyone is a potential customer.
C. Focuses only on small market segments.
D. Tailors a marketing mix to fit some specific group of customers.
E. Makes it more likely that a firm will face direct competition.
Compared with other promotion methods, PERSONAL SELLING:
A. is less expensive when the target customers are numerous and widespread.
B. is less effective in overcoming sales resistance.
C. is less flexible in adapting to customers’ needs and attitudes.
D. provides more immediate feedback.
E. All of these alternatives are correct.
“Prospecting:”
A. involves following a few leads in the target market.
B. should require a sales rep to spend the same amount of time with each prospect.
C. refers to selection of the firm’s target market.
D. should use a system for allocating time to potential customers based on their
potential.
E. None of these alternatives is correct.
Which of the following is LEAST likely to be sold by a supercenter?
A. Trash compactor
B. Photo finishing
C. Lawn care materials
D. Aspirin
E. Milk
A supply chain:
A. is part of a broader network of relationships called a channel of distribution.
B. is most effective when the objectives of the manufacturer at the beginning of the
chain guide the activities of all other firms in the chain.
C. requires skill in coordinating activities among different firms, and this has prompted
many firms to seek help from outside experts.
D. focuses on procuring materials needed for production, so its main weakness is that it
ignores customer needs.
E. concerns only direct relationships between producers, but a channel of distribution
may involve intermediaries.
Luke Flaherty wants to buy an electric drill for some jobs around his home. Deciding
that all such drills are similar, he reads all the advertisements in his Sunday paper in
search of the best price. For Luke, these drills are:
A. a heterogeneous shopping product.
B. a staple product.
C. a specialty product.
D. a homogeneous shopping product.
E. an emergency product.
The EARLY MAJORITY have a lot of contact with:
A. innovators.
B. the mass media only.
C. the mass media, salespeople, and early adopter opinion leaders.
D. impersonal and scientific information sources.
E. salespeople only.
Which item would likely possess the highest customer value for a person who makes
scrapbooks?
A. The lowest price glue
B. The highest price glue
C. The glue that does the best job
D. The glue that does the best job at the most affordable price
E. All glues have the same customer value
Which of the following would be considered a retailing “category killer”?
A. Petsmart (pet supplies)
B. Best Buy (electronics)
C. Home Depot (home improvements)
D. IKEA (furniture)
E. All of these are “category killers.”
________ are the firms that are considered to be the organization’s closest challengers.
A. Aggressive rivals
B. Competitive rivals
C. Direct rivals
D. Indirect rivals
E. Passive rivals
Which of the following statements about the marketing research process is NOT
TRUE?
A. Defining the problem is important because this decision will remain unchanged
throughout the process.
B. The situation analysis step helps educate a researcher.
C. Researchers and marketing managers need to work together.
D. The situation analysis includes looking at secondary data.
E. Marketing managers often have to explain problems to researchers.
The national law which is primarily concerned with regulating product warranties is
A. the Lanham Act.
B. the Magnuson-Moss Act.
C. the Uniform Product Code Act.
D. the Federal Fair Packaging and Labeling Act.
E. None of these is a good answer.
Which of the following would be a convenience product for most consumers?
A. Gold jewelry
B. Butter
C. Stereo TVs
D. Dress shoes
E. Bicycles
Regarding the current legal environment facing U.S. marketing managers:
A. state and local laws vary but contain important regulations.
B. food and drugs are now controlled.
C. product safety is now controlled.
D. businesses and individual managers are subject to both criminal and civil laws.
E. All of these statements about the legal environment are correct.
Which of the following is NOT true regarding organizational buyers?
A. Buyers for all kinds of organizations (governments, nonprofit groups,
intermediaries) tend to buy in much the same way as do manufacturers.
B. The basic aspects of business customer buying behavior tend to be quite similar in
the U.S. and in international markets.
C. Marketing strategies aimed at them are often tailored to each individual customer.
D. Their purchases are made to help their organizations meet the demands for their
products.
E. Their needs are usually harder to define than for final consumers.
Given the following data, determine the break-even point in units:
Total fixed cost = $120,000
Variable cost per unit = $0.60
Selling price per unit = $1.10
A. 100,000
B. 240,000
C. 200,000
D. 218,182
E. 50,000
Which of the following is not a basic kind of market (competitive) situation?
A. Pure competition
B. Oligopoly
C. Capitalistic competition
D. Monopolistic competition
E. Monopoly
Regarding our MACRO-marketing system:
A. marketing makes people materialistic by creating “false values.”
B. advertising generally raises prices and wastes resources.
C. marketing tries to satisfy “unwanted demand” rather than “genuine wants.”
D. satisfying consumer needs and wants is a dynamic, on-going process.
E. None of these alternatives is correct.
Compared to conventional retailers, which of the following types of retailers added
more convenient service while reducing product assortment?
A. specialty shops
B. category killers
C. vending machines
D. mass-merchandisers
E. super warehouses
In the _____ stage of the product life cycle, organizations focus on building primary
demand.
A. market decline
B. market maturity
C. sales decline
D. market growth
E. market introduction
The text’s business product classes are based on:
A. how buyers think about products and how they will be used.
B. how consumers think about and shop for products.
C. a buyer’s price sensitivity.
D. a buyer’s willingness to search.
E. None of these alternatives is a good answer.
Which of the following is the easiest way for a firm to enter foreign markets?
A. joint ventures
B. licensing
C. multinational bargaining
D. direct investment
E. management contracting
The basic objective of the U.S. market-directed economic system is to:
A. minimize inflation.
B. satisfy consumer needs as theythe consumerssee them.
C. provide each person with an equal share of the economic output.
D. achieve an annual growth rate of at least 10 percent.
E. make the most efficient use of the country’s resources.
Which of the following is NOT a reason the marketing program should build customer
equity?
A. Marketing strategies do not contribute to customer equity.
B. Expected profits depend on customer equity.
C. Firms expect financial returns.
D. Profit growth comes from customers.
E. Customers are the source of revenue.
_____ refers to the difference between the benefits a customer sees from a market
offering and the costs of obtaining those benefits.
A. Operating cost
B. Profit margin
C. Customer value
D. Net value
E. Satisfaction
A marketing manager developing a marketing mix to sell ______ probably needs to be
concerned with grading, transportation, and storing because of seasonal production
and/or perishable products.
A. component parts
B. accessories
C. impulse
D. supplies
E. raw materials
A professional salesperson:
A. may negotiate prices or diagnose technical problems when a product doesn’t work
well.
B. doesn’t try to ‘sell” customers, but rather tries to help them satisfy their needs.
C. is a representative of the whole company.
D. is responsible for feeding back information about customers and competitors.
E. All of these alternatives are correct.
Which of the following statements about a salesperson’s role is TRUE?
A. The salesperson rarely serves as a link between the firm and its customers.
B. The salesperson represents the customer back inside the selling firm.
C. The salesperson also holds titles such as management specialist and chief engineer.
D. The salesperson only aims to sell the customer.
E. A salesperson is seldom responsible for negotiating prices or diagnosing technical
problems.
Which of the following is NOT part of a product-market definition?
A. information about consumer needs
B. information about the final customer (or user) of the product
C. information about which specific retailers will sell the product
D. a description of the type of product
E. All of these should be included in a product-market definition.
The _____ refers to how much one country’s money is worth in another country’s
money.
A. monetary value
B. exchange rate
C. dollar value
D. net worth
E. purchasing power
One of the major disadvantages of the focus group interview approach is that
A. ideas generated by the group can’t be tested later with other research.
B. it is difficult to measure the results objectively.
C. it is difficult to get in-depth information about the research topic.
D. there is no interviewer, so the research questions may not be answered.
E. once the interview is over there is no way for a marketing manager who was not
there to evaluate what went on.
When a marketing manager has phone conversations with key wholesalers of the firm’s
products to try to obtain information about why the firm’s product sales are down, this
is an example of a(n):
A. hypothesis testing.
B. situation analysis.
C. data warehouse.
D. intranet.
E. experiment.
Lipton has increased sales by developing ads that encourage it current customers to
drink Lipton tea instead of coffee at morning “coffee breaks.” This effort focuses on
A. diversification.
B. market penetration.
C. product development.
D. mass marketing.
E. market development.
When Colgate encourages its current customers to brush more often by taking their
toothbrush and toothpaste to work with them, which market opportunity is Colgate
pursuing?
A. Market development
B. Product development
C. Diversification
D. Market penetration