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Considering that only a small percentage of cell phone users in many developed
countries have smartphones, advertisers are wary about the effectiveness of delivering
online ads on smartphones.
Answer:
GE's strategic planning grid considers two dimensions-industry attractiveness and
business strengths-to identify opportunities that may be growth, borderline, or no
growth.
Answer:
The Clayton Act focuses on practices which may substantially lessen competition-such
as tying contracts, exclusive dealing contracts and price discrimination by
manufacturers.
Answer:
Empowerment means giving employees the authority to correct a problem on their own.
Answer:
Publicity is the nonpersonal presentation of ideas, goods, or services, which are paid for
by an identified sponsor.
Answer:
A consumer who went to shop at a 'supercenter" would probably expect not only to be
able to buy food and health care products, but also to leave dry-cleaning or have shoes
repaired.
Answer:
To fully understand the nature of competition and the speed of the relevant product life
cycle, it is important not to define a market too narrowly.
Answer:
The legal environment sets the maximum standards of ethical behavior in a society.
Answer:
It is the job of the MIS specialist to ask for the right information in the right form.
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Direct marketing is primarily concerned with Promotion, not Place.
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A skimming price policy usually involves a slow reduction in price over time.
Answer:
A "channel captain" is a manager who helps direct the activities of a whole channel.
Answer:
Syndicated research is an economical approach for collecting specific research needed
by one firm for a specific problem.
Answer:
A drive is a strong stimulus that encourages action to reduce a need.
Answer:
The changing roles of women have created opportunities for marketing, but these
changes come with complications.
Answer:
Prestige pricing is most common for luxury products such as furs, jewelry, and
perfume.
Answer:
By definition, a markup of $1 on a cost of $2 translates to a markup of 40 percent.
Answer:
Truck wholesalers may provide almost the same services as full service wholesalers,
but they usually specialize in perishable products that regular wholesalers prefer not to
carry.
Answer:
In general, most sales presentations follow the sequence of stages in the AIDA model.
Answer:
In monopolistic competition, managers sometimes try to differentiate very similar
products by relying on promotion or other elements of the marketing mix.
Answer:
The letters in "S.W.O.T. analysis" are an abbreviation for the first letters of the words
'special weapons or tactics."
Answer:
Cooperative advertising involves intermediaries and producers sharing in the cost of
ads.
Answer:
A salesperson's main task might be order-getting, order-taking, or supporting, but
sometimes one salesperson does all three tasks.
Answer:
The Sherman Act deals with tying contracts, exclusive dealing contracts, and price
discrimination by manufacturers.
Answer:
Macro-marketing is a set of activities that direct an economy's flow of goods and
services from producers to consumers in a way that effectively matches supply and
demand and accomplishes the objectives of society.
Answer:
Games and toys producers spend a higher percentage of their sales on advertising than
do footwear producers.
Answer:
Changes in total cost depend on variations in total variable cost, since total fixed cost
stays the same.
Answer:
The goal of vendor analysis is to maximize the total costs associated with purchases in
order to ensure maximum product quality.
Answer:
Variations on an existing product idea can make a product new.
Answer:
A high percentage of new-product ideas survive to the commercialization step in the
new-product development process.
Answer:
The strategies for all stages of the product life cycle should be growth strategies.
Answer:
The three basic sales tasks are order-getting, order-taking, and sales prospecting.
Answer:
At one time most firms assumed defects were an inevitable part of mass production.
_____ firms showed that this assumption was not valid.
A. Chinese
B. American
C. European
D. Japanese
E. Latin American
Answer:
Wholesalers spend the largest share of their promotion money on:
A. personal selling.
B. direct-mail advertising.
C. advertising.
D. sales promotion.
E. publicity.
Answer:
Which of the following statements is true regarding the length of product life cycles?
A. Product life cycles last 5 years for each product idea.
B. Product life cycles average 90 days.
C. Movies have very long product life cycles.
D. Product life cycles vary in length but are generally getting shorter.
E. Product life cycles will be identical in length across every geographic region since
the cycle applies to one product idea or category.
Answer:
Use this information for question that refer to the United Tools case.
Terry Harter is marketing manager for United Tools and Mike O'Reilly is the firm's
logistics manager. They work together to make decisions about how to get United's
hand and power tools to its customers-a mix of manufacturing plants and final
consumers (who buy United tools at a hardware store). United Tools does not own its
own transport facilities and it works with wholesalers to reach its business customers.
Together, Harter and O'Reilly try to coordinate transporting, storing, and product
handling activities to minimize cost while still achieving the customer service level
their customers and intermediaries want. This usually requires that United keep an
inventory of most of its products on hand, but demand for its products is fairly
consistent over time so inventory is easy to manage.
Harter has identified four options for physical distribution systems she could use to
reach two of her key wholesalers, Ralston Supply and Ricotta Tool Co. The total cost
for each option-and the distribution service levels that can be achieved-are as follows:
Ralston Supply expects a very high level (90 percent) of distribution customer service.
Ricotta Tool Co. is willing to settle for a 70 percent customer service level, even if that
means some products will occasionally be out of stock, if it gets products at a lower
price.
For its large retail hardware customers (like Home Depot), United regularly ships
smaller orders directly to individual stores or in some cases to the retail chain's
warehouses. Cross-country shipments usually go by rail while regional shipments
usually go by truck.
When United Tools considers its total inventory cost, which of the following would
NOT be included?
A. Costs of damage to products while in inventory
B. Costs of inventory becoming obsolete
C. Cost of a storage facility
D. Cost of capital invested in the inventory
E. All of these should be included in total inventory cost
Answer:
Macro-marketing
A. emphasizes building a long-term relationship that benefits both the firm and the
customer.
B. considers the marketing activities of corporations rather than individuals.
C. emphasizes how the whole marketing system works.
D. systems are only relevant to advanced economies.
E. addresses discrepancies that emerge from homogeneous consumer demand.
Answer:
A retail store that averages about $20 million in sales annually and specializes in
groceries-with self-service and large assortments is a:
A. mass-merchandiser.
B. specialty shop.
C. convenience food store.
D. discount house.
E. supermarket.
Answer:
Each of the following has contributed to the success of Payless ShoeSource EXCEPT:
A. Styles for men, women, and children
B. A very broad product line
C. Local advertising emphasizing value
D. Customer experience is self-service
E. Newspaper ads promoting low prices
Answer:
Which of the following is NOT a key dimension of buyer-seller relationships in
business markets?
A. information sharing
B. legal bonds
C. cooperation
D. operational linkages
E. all of these are key dimensions
Answer:
With the ___________ method of payment, some salary and some commission are
included.
A. Commission
B. Bonus
C. Combination
D. Straight salary
E. Stock
Answer:
A marketing model is a
A. procedure that develops and analyzes new information about a market.
B. detailed breakdown of a company's sales records.
C. plan that specifies what information will be obtained and how.
D. statement of relationships among marketing variables.
E. software that organizes incoming information into a data warehouse.
Answer:
A firm's "relevant market for finding opportunities" should:
A. have no geographic boundaries.
B. be bigger than the firm's present product-market-but not so big that the firm couldn't
be an important competitor.
C. be no larger than the firm's present product-market.
D. usually be named in product-related terms.
E. have no strong competitors.
Answer:
Personal selling techniques include all of the following EXCEPT:
A. searching for prospects.
B. making sales presentations.
C. planning sales presentations.
D. preparing job descriptions.
E. following up after the sale.
Answer:
When a large wholesaler or retailer uses a buying committee,
A. the buyer still makes the final purchase decision.
B. the sales rep may not be able to make a sales presentation to the committee.
C. the impact of persuasive salespeople is increased.
D. the intermediary is more likely to take a chance on a really new product that hasn't
yet proved itself.
E. none of these alternatives is correct.
Answer:
Which of the following would have the least influence on a consumer purchase of a
5-gallon waterproof sealant for wood decks and fences?
A. The purchase situation
B. Social influences
C. Economic needs
D. Psychological variables
E. Opinion leader
Answer:
If a producer's marketing manager wants intermediaries to take over all responsibility
for promoting his product he probably should use
A. exclusive distribution.
B. selective distribution.
C. intensive distribution.
D. a vertically integrated distribution system.
E. any of these, since every channel member must support a product with promotion.
Answer:
Sam's Club purchases a 24-pack of bottled water from a wholesaler for $3.85 and wants
a markup of 25 percent. What is the price that Sam's Club charges its customers?
A. $4.25
B. $4.75
C. $4.95
D. $5.13
E. $5.75
Answer:
Which of the following statements about the legal environment in the United States is
not true?
A. Individual managers are not subject to criminal penalties-only their employer can be
punished.
B. Consumer protection laws are not new.
C. Many laws try to promote competition among firms.
D. A commission has authority to oversee product safety.
E. The Food and Drug Administration controls manufacturers of these products.
Answer:
Regarding the five stages in marketing evolution:
A. Few firms have graduated to the marketing company era.
B. For most firms, the sales era continued until at least 1950.
C. In the marketing department era, firms began to do long-run planning.
D. The production era was the first era to evolve.
Answer:
Fidelity Corp. earned a 6 percent return on investment last year and wants to increase it
to 10 percent this year. Which of the following pricing objectives is Fidelity seeking?
A. Target return
B. Growth in sales
C. Growth in market share
D. Maximize profits
E. Nonprice competition
Answer:
The basic promotion objective of informing consumers corresponds to which stage(s) of
the AIDA model?
A. Getting attention.
B. Holding interest.
C. Getting attention and holding interest.
D. Getting attention and arousing desire.
E. Obtaining action.
Answer:
An Australian wine producer, facing declining sales at home, set up a new channel of
distribution to sell wine in the United States. This seems to be an effort at
A. market development.
B. diversification.
C. market penetration.
D. product development.
Answer:
Which of the following retailers was the first to adopt the mass-merchandising concept?
A. Department stores
B. Discount houses
C. Supermarkets
D. General stores
E. Supercenters
Answer:
Avon, which in the past relied on door-to-door personal selling, is trying to reach new
customers by distributing mail-order catalogs, adding toll-free telephone ordering, and
opening online retail sites. Avon is pursuing a ______________ opportunity.
A. market development
B. market penetration
C. target marketing
D. product development
E. mass marketing
Answer:
Which of the following statements about close buyer-seller relationships in business
markets is False?
A. In close relationships, buyers and suppliers can share tasks at a lower total cost of
doing business.
B. The buyer can gain a more dependable source of supply.
C. Buyers and suppliers can engage in joint problem solving.
D. Long-term commitments on larger order quantities often cause the supplier to raise
its selling price.
E. None of these statements is False.
Answer:
Multichannel distribution:
A. may involve using both direct and indirect channels simultaneously.
B. may offer producers a way to reach customers they would not be able to reach with a
single channel.
C. is becoming more common.
D. may create channel conflict.
E. All of these alternatives are correct.
Answer:
Given the following data, compute the BEP in DOLLARS:
Selling price = $2.00
Variable cost = $1.00
Fixed cost = $150,000
A. $300,000
B. $400,000
C. $100,000
D. $200,000
E. $50,000
Answer:
What is the first step in the marketing research process?
A. Analyzing the situation
B. Interpreting the data
C. Defining the problem
D. Getting problem-specific data
E. Solving the problem
Answer:
A macro-marketing system should:
A. provide everyone with the same goods and services.
B. be part of a market-directed economy, not a command economy.
C. accomplish a particular society's objectives, whatever they are.
D. depend solely on a society's political institutions.
Answer:
Converse started selling its "high-top" canvas basketball shoes in colors such as hot
pink, lime green, and purple, to accompany their traditional colors of black and white.
Converse seems to be pursuing a _____________ opportunity.
A. market penetration
B. market development
C. product development
D. diversification
E. breakthrough
Answer:
Which of the following statements about communication processes is(are) true?
A. Targeting is important in both traditional and customer-initiated interactive
communication.
B. The seller starts the communication in the traditional communication process.
C. Noise can distract the process in traditional and customer-initiated interactive
communication.
D. The buyer starts the communication in the customer-initiated interactive
communication process.
E. All of these statements about communication processes are true.
Answer:
