A marketing audit is similar to an accounting audit or a personnel audit, which
businesses have used for some time.
A requisition is a request to buy something.
Examples of functional accounts include taxes, supplies, and wages.
Blending the four Ps is easy since fully understanding the needs and attitudes of a target
market is a straightforward process.
Capital is the money needed to pay the personnel expenses required during the period
of a marketing plan.
A combination export manager is a blend of manufacturers’ agent and selling agent.
Motor vehicles producers spend a higher percentage of their sales on advertising than
do perfumes and cosmetics producers.
Attractive opportunities for a particular firm are those that the firm has some chance of
doing something about–given its resources and objectives.
In oligopoly situations, the only sensible policy is meeting competition.
Early adopters are respected by their peersand often are opinion leadersso what they
think about a product is especially important for reaching later adopter groups.
Professional services are usually expense items which support the operation of a firm.
During the market growth stage of the product life cycle, industry profits usually reach
their peak and begin to decline.
Comparative advertising makes specific brand comparisons using actual product names.
The Internet is making it possible for firms to reach customers that were impossible to
reach before.
Average-cost pricing guarantees that the firm will earn enough to at least cover its costs.
The best way to do a sales analysis is to first break down sales by customer type, and
then geographic region.
While there are real human resources challenges in dealing with rapidly expanding
marketing efforts, there are also challenges in dealing with decisions to drop products,
channels of distribution, or even certain types of customers.
In general, no single element of the “four Ps” is more important than the others.
A firm that makes products which are easy to produce and then tries to sell them has a
production orientation.
Much of the secondary data on the Internet is stored in database formats that standard
website search engines cannot find.
Retailing on the Internet already accounts for about 25 percent of all retail sales.
According to the text, micro-marketing does NOT cost too much in the United Statesbut
macro-marketing often DOES cost too much.
Reminder advertising is likely to be most useful in the market growth stage of the
product life cycle.
Low price and high customer value is one and the same thing.
J.D. Power’s surveys of customer satisfaction are a popular example of syndicated
research.
The term “NAICS” stands for New Auto Industry Classification Survey.
One way for a producer to reduce conflict with channel partners is to offer different
products in each different channel.
When a large firm has several different kinds of products, product managers or brand
managers may be put in charge of each one.
High markups always mean big profits.
A marketing plan is more likely to be funded if the marketing manager has included
financial measures as quantitative criteria when screening possible opportunities.
A new-product idea moves through the early stages of the life cycle more quickly when
it has all the following characteristics EXCEPT:
A. the product is easy to use.
B. the product can be tried on a limited basis, without a lot of risk to the customer.
C. the product has no competitive advantage over those already in the market.
D. the product is compatible with the values and experiences of target customers.
E. the product’s advantages are easy to communicate.
Which of the following best describes the Product decisions used by Zappos.com?
A. Carries well-known brands
B. Frequent discounting
C. Limited shoe product line
D. Large advertising budget
E. Offers high levels of customer service
Product class is based on the type of ____________.
A. customer
B. manufacturing process
C. marketing mix
D. marketing strategy
E. shopping strategy
Which of the following is commonly used to integrate internal and external information
management across an entire organization?
A. Enterprise resource planning system
B. Customer relationship management system
C. Human resource planning system
D. Enterprise performance management system
E. Corporate decision support system
Kelly Drake, marketing manager for Find-Ur-Way global positioning systems, is testing
the marketing mix for one of her company’s new products. The product was introduced
in two different markets with different prices and packages. This suggests the new
product was in the _____ step of the new-product development process.
A. commercialization
B. idea evaluation
C. screening
D. development
E. idea generation
The contribution-margin approach focuses attention on _____ rather than on ______.
A. fixed costs; variable costs
B. gross margins; net margins
C. total costs; fixed costs
D. overheads; fixed costs
E. variable costs; total costs
A national restaurant chain encourages its customers to use its website as a means of
providing comments about their experiences at the chain’s locations. This website is one
way of measuring:
A. Macro-marketing effectiveness.
B. The effectiveness of competition.
C. Employee empowerment.
D. Micro-marketing effectiveness.
E. All of these alternatives are correct.
Production flexibility should help a supplier support its business customers with:
A. just-in-time delivery
B. EDI.
C. rapid response replenishment of inventories.
D. computerized reorder capabilities.
E. Any of these.
Genetech Corp. has invested heavily to develop a patented new product. Genetech
wants to achieve a rapid return on its investment. It probably should set a
______________ pricing objective.
A. profit maximization
B. target return
C. sales-oriented
D. status quo
E. None of these is a good answer
Which of the following statements best describes the modern view of marketing?
A. The job of marketing is to get rid of whatever the company is producing.
B. Marketing should take over production, accounting, and financial services within a
firm.
C. Marketing is concerned with generating a single exchange between a firm and a
customer.
D. Marketing begins with anticipating potential customer needs.
E. Production, not marketing, should determine what goods and services are to be
developed.
When a restaurant manager offers a dissatisfied customer a discount and a coupon for
the customer’s next visit, the manager is thinking about:
A. customer value.
B. customer lifetime value.
C. cost management.
D. marketing plans.
E. differentiation.
Which of the following are large, self-service stores with many departments that
emphasize ‘soft goods” and staples but still follow the discount house’s emphasis on
lower margins to get faster turnover?
A. Supermarkets
B. Discount houses
C. Supercenters
D. Mass-merchandisers
E. Direct-mail retailers
Qualitative research, compared to quantitative research:
A. Asks closed-ended questions.
B. Asks yes or no type questions.
C. Provides more representative samples of consumers.
D. Relies on open-ended questioning.
E. Uses statistics to analyze data.
Which of the following trends creates difficult challenges for marketing managers?
A. Market data can now be gathered from social media websites.
B. Market data may be gathered from internal sources and external sources.
C. IT managers have become an important part of the marketing research process.
D. Data warehouses have become a central part of most marketing information systems.
E. Today’s businesses process 1000 times as much data as they did in the year 2000.
Which of the following is LEAST LIKELY to compete in the same generic market as
the others?
A. Ice cream.
B. Apple pie.
C. Fruit salad.
D. Chocolate chip cookie.
E. Pretzel.
From a marketing perspective, product quality primarily depends on,
A. the price of a product.
B. a product working as it is supposed to work.
C. quality control procedures used during manufacturing.
D. the customer’s specific requirements and needs.
E. the features of products offered by competitors.
Regarding buying by intermediaries,
A. computer-controlled inventory systems make buyers more dependent on sales reps.
B. buying committees are a way for supermarkets to handle the flood of new products.
C. buyers are seldom influenced by their salespeople.
D. wholesalers and retailers typically only carry products which they have judged
‘socially desirable.”
E. None of these alternatives is correct.
Which of the following is LEAST likely to be an example of routinized response
behavior?
A. Buying a Coke.
B. Purchasing a new pair of shoes.
C. Buying soap at a convenient supercenter.
D. Buying a burrito at Taco Bell.
E. Filling the car with gasoline.
As with sales analysis, performance analysis is limited to sales data.
Which of the following is not within the power of the Consumer Product Safety
Commission?
A. It can set safety standards for products.
B. It can order repairs of unsafe products.
C. It can order returns of unsafe products.
D. It can back up its orders with fines and jail sentences.
E. It can conduct random searches for unsafe products in consumers’ homes.
When building quality into services, managers should:
A. Not worry about training because people will learn by experience.
B. Spend all of their time watching employees to make sure that they do things right
every time.
C. Require employees to check with managers before attempting to correct any
problem.
D. Empower employees by giving them the authority to satisfy customers’ needs
without always checking with a supervisor.
E. None of these alternatives is correct.
The biggest advantage of this limited-function wholesaler is that they promptly deliver
perishable products that regular wholesalers prefer not to carry.
A. Catalog wholesalers
B. Rack jobbers
C. Truck wholesalers
D. Drop-shippers
E. Specialty wholesalers
Meg O’Brien is just starting as a rack jobber. She will:
A. do what a lot of grocery store managers don’t want to do.
B. need a lot of money to get started, since all her customers will expect 30 days to pay
their bills.
C. not have to know very much about the preferences of the consumers who buy the
products she handles.
D. never actually handle or deliver the products in her line.
E. probably get tired of visiting farmers’ markets.
Working capital would not be used to pay for:
A. advertising expense.
B. what it costs to store inventory.
C. what a firm owes suppliers.
D. employee salaries.
E. the cost of new facilities.
If the family units on a South Pacific-island nation made all the products they consume,
it would be a good example of:
A. a pure subsistence economy.
B. a market-directed economy.
C. a micro-marketing system.
D. a command economy.
E. None of these is a correct answer.
Sumitomo Bank, a large bank in southern California, has just purchased 120 high-speed
telephone fax machines (costing about $1,300 each) to speed communications among
its many offices. The purchase was made by the purchasing manager, who expects the
machines to last about five years. In this case, the fax machines are:
A. accessory equipment.
B. MRO items.
C. installations.
D. component parts.
E. professional services.
Competition is toughest in which of the following product life cycle stages?
A. Market introduction.
B. Market growth.
C. Market maturity.
D. Market development.
E. Market hold.
Which of the following adopter groups is described correctly?
A. Laggardsrespectable
B. Innovatorswilling to take risks
C. The late majorityfollow the innovators
D. The early majorityopinion leaders
E. Early adopterstraditional
According to the text, marketing means:
A. much more than selling and advertising.
B. selling.
C. producing and selling.
D. advertising.
E. selling and advertising.
The AIDA model consists of
A. Awareness, Influence, Decoding, and Advertising.
B. Attention, Interest, Desire, and Action.
C. Appraisal, Insight, Discernment, and Action.
D. Advertise, Influence, Desire, and Attention.
E. Awareness, Information, Design, and Attention.
In this step of the adoption process, the adopter continues to rethink the decision and
searches for support for the decision.
A. Interest
B. Evaluation
C. Trial
D. Confirmation
E. Awareness
The desirability of a common “product-market commitment” is based on the idea that:
A. each member of the channel should focus on a different target market.
B. the whole channel is competing with other channel systems.
C. the producer should always be the “channel captain.”
D. a channel can eliminate the marketing functions.
E. All of these ideas are relevant.
The scientific method
A. rejects the idea that marketing managers can make “educated guesses” about
marketing relationships.
B. shows that every marketing research project should have five steps.
C. is an orderly and objective approach to judging how good an idea really is.
D. recognizes that statistical analysis provides the only basis for rejecting an
hypothesis.
E. None of these alternatives is true.