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Regarding bid pricing:
A. the same overhead charges and profit rates should apply to all bids-to avoid legal
problems.
B. most firms should try to bid for as many jobs as possible-to spread risk.
C. all business buyers are legally required to accept the lowest bid-if they ask for bids.
D. the big problem for sellers is estimating all the costs-including the variable and fixed
costs-that apply to a particular job.
E. All of these alternatives are correct.
Answer:
Which of the following newspaper headlines would be LEAST likely to involve the
political environment?
A. U.S.-Vietnamese Joint Ventures in the Future.
B. Egg Sales Fall as Consumers Switch to Low Cholesterol Diets.
C. U.S. Signs Trade Agreement with Venezuela.
D. FDA Adopts New Regulations for Generic Drugs.
E. Consumers Urged to "Buy American."
Answer:
The ______________ concept says that all transporting, storing, and product-handling
activities of a business and a channel system should be thought of as part of one system
which should seek to minimize the cost of distribution for a given customer service
level.
A. PERT
B. product-market
C. distribution center
D. physical distribution
E. marketing
Answer:
Use the following information to answer question that refer to the Jewel Craft case.
Jewel Craft, Inc. is a leading producer in the United States' women's costume jewelry
and accessories market. Its brands are well known and are sold by department stores
and better women's stores. Several stores in a city may carry Jewel Craft's brands
because most of Jewel Craft's customers will not consider any other brand.
Jewel Craft's sales force calls on one wholesaler in each state. Gemco, Inc., of Boston,
Massachusetts, is the Jewel Craft distributor in that state. Gemco stocks and sells
women's accessories (noncompeting lines) for several manufacturers like Jewel Craft.
Wholesalers are allowed a 20 percent markup by Jewel Craft-but pay the freight
charges to their warehouses. Jewel Craft's policy of using one wholesaler per state
comes from its desire to control its distribution. Jewel Craft uses national magazine
advertising and also supports a cooperative ad program with retailers.
Jewel Craft's prices allow for a 40 percent retail markup-an attractive percent when one
considers that Jewel Craft's products require little in-store selling because of their
well-established reputation.
Recently, Jewel Craft was approached by a watch producer with the idea of expanding
to watches under the Jewel Craft name. It was argued that although national watch sales
have leveled off, Jewel Craft could enjoy growing sales for several years because of the
fine reputation the company has achieved. If watches are added, Jewel Craft will use its
present policies regarding distribution, pricing, and advertising. Further, it will offer the
wholesalers and retailers an attractive "package" deal as an incentive to carry Jewel
Craft watches. Intermediaries will be required to carry the watches if they wish to
handle the jewelry and accessories.
Jewel Craft's distribution policy-at the wholesale level-is:
A. selective distribution.
B. direct distribution.
C. exclusive distribution.
D. intensive distribution.
E. for the wholesaler to be the channel captain.
Answer:
Setting up a marketing information system can be valuable to marketing managers
because
A. most companies have much useful information, but it often isn't available or
accessible when the manager needs it.
B. most market-oriented companies only need a certain type of information once or
twice.
C. marketing research data is rarely as accurate as data from a marketing information
system.
D. market-oriented managers can always use more data.
E. a company that can't afford marketing research should at least have a marketing
information system.
Answer:
As the owner of a women's clothing store, Caroline Lipscomb has an income of
$75,000. She pays $30,000 per year in taxes and another $17,000 per year in grocery
bills, house mortgage, and car payment. Last year she went to Italy and spent an
additional $4,000. What was Caroline's discretionary income last year?
A. $45,000.
B. $75,000.
C. $26,000.
D. $28,000.
E. $24,000.
Answer:
Which of the following countries has the highest population density?
A. Switzerland
B. United States
C. Australia
D. Singapore
E. Bangladesh
Answer:
"NAICS" means:
A. North American Initiative for Competitive Structure.
B. North American Industry Classification System.
C. New Auto Industry Classification System.
D. National Automakers Industry Classification System.
E. National Apparel Industry Classification System.
Answer:
Use this information for question that refer to the Yummy Ice Cream case.
Kelly Stich, marketing manager for Yummy Ice Cream Products, is thinking about some
of her products and her promotion plans for the coming year.
Yummy Ice Cream Products is introducing a new ice cream treat called PlanetSavers.
This treat uses ice cream produced with environmentally friendly processes that save
energy and protect the ozone. Yummy plans to send articles to magazines, local
newspapers, and environmental groups that explain the environmentally safer treat. The
product also has a unique texture and different flavor.
Stich wants to use counter cards and in-store signs to let people know about Cherry
Walrus, the company's new flavor. She is also developing sales training materials that
will teach ice cream scoopers in Yummy's ice cream stores to promote the product.
Right after Cherry Walrus is introduced each store will also hand out coupons that are
good for one day only.
Yummy Mondaes is a product that has been around for 25 years. It is Yummy's take on
the classic ice cream sundae, but white-brownie and coffee-flavored crumbles are added
to make it extra special. The company sells this product in one and two quart containers
through major grocery store chains. It relies on personal selling and price discounts to
retailers to move more of the product. The company does very little consumer
promotion for this product.
Yummy Fudge on a Stick is a new product of fudge-flavored ice cream on a stick.
Yummy plans to sell it through retail grocery stores and is launching an aggressive
advertising program that will use television, radio, newspaper, magazines, and the
Internet. Most of its promotion will be directed at consumers.
Two years ago, the company introduced Yummy Fruit on a Stick, an all-natural frozen
fruit product on a stick. The product category has been popular, continues to grow, and
is in the market growth stage of the product life cycle.
The plan for PlanetSavers emphasizes which element of the promotion blend?
A. Advertising
B. Publicity
C. Personal selling
D. Sales promotion
E. Direct-response promotion
Answer:
Clairol Corp. is introducing a new brand of shampoo in a highly competitive market.
Wholesalers might be willing to handle the new product, except that retailers are
already complaining about overcrowded shelf space. Therefore, Clairol has decided to
spend $10 million on TV advertising and send free samples to 3,000,000 households to
convince consumers of the new product's superiority-and to get them to ask for it at
their retail store. Clairol is using:
A. dual distribution.
B. a "pulling" policy.
C. direct marketing.
D. a "pushing" policy.
E. a sampling distribution.
Answer:
The Foreign Corrupt Practices Act:
A. allows small grease money payments if they are customary in the foreign country in
which a firm is operating.
B. applies to foreign firms or individuals who accept payments while in the U.S.
C. prohibits U.S. firms from paying bribes to foreign officials.
D. all of these alternatives about the Foreign Corrupt Practices Act are correct.
Answer:
Sales promotion can be aimed at:
A. intermediaries.
B. a company's own sales force.
C. final consumers or users.
D. Any or all of these is correct.
Answer:
Marketing research that seeks structured responses that can be summarized is called:
A. focus group research.
B. quantitative research.
C. qualitative research.
D. situation analysis research.
E. open-ended research.
Answer:
Which of the following geographic pricing policies would probably handicap a
producer wanting to compete with other producers who are closer to a potential buyer?
A. F.O.B. mill
B. F.O.B. delivered
C. Zone pricing
D. Freight absorption
E. All of these would probably handicap a producer.
Answer:
Logistics decisions include all of the following except:
A. distribution service level.
B. transporting of goods.
C. handling of goods.
D. prices to charge for delivery.
E. storage of goods.
Answer:
Compared to qualifying dimensions, determining dimensions
A. are more likely to be related to whether a customer will make a purchase in the
product-market at all.
B. help identify the "core benefits" offered to everyone in the product market.
C. are usually much more specific.
D. are relevant to including a customer type.
E. None of these is true.
Answer:
Using temporary price cuts to speed a producer's new product into a market is known
as:
A. a skimming pricing policy.
B. introductory price dealing.
C. a flexible-price policy.
D. a penetration pricing policy.
E. a meeting competition pricing policy.
Answer:
The Wall Street Journal has been trying to attract new customers by promoting its
newspaper for student use in business courses. This is an example of
A. product development.
B. diversification.
C. market penetration.
D. market development.
Answer:
Target marketers create marketing mixes for:
A. all customer needs.
B. some generic market.
C. multiple generic markets.
D. one broad product market.
E. homogeneous product-market segments.
Answer:
Psychographics may also be called
A. personality analytics.
B. social group dynamics.
C. lifestyle analysis.
D. opinion insight.
E. attitude measures.
Answer:
When Fresh Produce Wholesaler Inc. buys fruits and vegetables from a variety of
different farmers, and then takes large bushels and breaks them into smaller package
sizes, Fresh Produce is addressing
A. discrepancies of time.
B. discrepancies of quantity.
C. discrepancies of assortment.
D. discrepancies of place.
E. discrepancies of need.
Answer:
Roberto, the marketing manager of Absola Foods Co., a food processing company,
reduces the prices of the firm's line of breakfast cereals in an attempt to increase the
number of products sold. However, contrary to Roberto's prediction, sales of the
breakfast cereals drop, and upon further investigation, Roberto discovers that the
company's target consumers are buying more expensive competitor brands instead of
Absola food products. Which of the following could be a possible explanation for this?
A. The consumers perceived the higher priced products as having better quality.
B. Most of the consumers were repeat customers.
C. Most of the customers were bargain seekers.
D. The company didn't cut the prices low enough.
E. Customers that went to the competition were price sensitive.
Answer:
______________ means potential customers remember a particular brand.
A. Brand preference
B. Brand nonrecognition
C. Brand insistence
D. Brand recognition
E. Brand rejection
Answer:
When a supermarket manager decides to set up an end-of-aisle display for 12-pack
containers of Coke Zero, this is a decision about:
A. Product
B. Place
C. Promotion
D. Price
Answer:
Quantitative research:
A. Involves structured responses that can be summarized.
B. Is not a good method for measuring consumer attitudes and opinions.
C. Mainly uses small samples of respondents.
D. Is only possible by using a mail survey.
E. Relies on open-ended responses to survey questions instead of multiple-choice
responses.
Answer:
What basic promotion objective can be sought by a producer who has won brand
insistence among its target customers?
A. Persuading
B. Reminding
C. Informing
D. Communicating
E. Promoting
Answer:
_____ can be used as a rough measure of a firm's efficiency in satisfying customers.
A. Production
B. The marketing mix
C. Profits
D. Macro-marketing
E. Returns
Answer:
U.S. manufacturers:
A. all employ many workers.
B. are evenly spread throughout the country.
C. tend to concentrate by industry.
D. do not locate close to competitors.
E. None of these alternatives is correct.
Answer:
A marketing plan that included sections on transportation requirements, inventory
product-handling requirements, and facility requirements would include those sections
under the area of ___________.
A. Promotion
B. Price
C. Place
D. Product
E. Personnel
Answer:
Regarding consumer products,
A. All unsought products remain unsought forever.
B. Convenience products are products which customers want to buy at the lowest
possible price.
C. Price is not important at all for heterogeneous shopping products.
D. Supermarkets may carry homogeneous shopping products.
E. Specialty products must be searched for.
Answer:
Which of the following statements about purchasing by small service firms is NOT
TRUE?
A. Purchases by small service firms are often handled by whoever is in charge or their
administrative assistant.
B. Purchases by small service firms can add up and these smaller firms are now an
important target market.
C. Purchases by small service firms are usually handled by a person with full-time
responsibility for purchasing.
D. Small service firms may need much more help in buying than large corporations.
E. Small service companies often rely on e-commerce for purchases.
Answer:
Which of the following statements by a sales manager suggests a problem?
A. "Taking a successful sales rep out of a territory for sales training is like spending
money to teach a fish to swim."
B. "I was a sales rep before becoming manager, so I don't need a job description to help
me look for new salespeople."
C. "I select new salespeople all by myself, because I am the one responsible for the
performance of the sales force."
D. Each of these statements indicates a problem.
Answer:
Use this information for question that refer to the "Salespeople" case.
Wilson Alvaro graduated with a marketing degree almost a year ago. Like many of his
friends, he took a job in sales and really enjoys it. A description of Wilson's job and
those of some of his friends are noted below.
Wilson Alvaro loves biking and has his dream job. He works for a wholesale company
that sells mountain bikes for a manufacturer. He works with a small group of people
who call on the buying offices for two large retail chains, Wal-Mart and Toys R Us. The
group includes a finance person and a production person, and they all work together to
meet the specific needs of these two big accounts; for example, sometimes they
recommend a model of bike that will be available from only that retailer's stores.
However, Wilson's main job focuses on building relationships and solving customer
problems. Only occasionally is he expected to try to persuade the retailers to buy more
bikes.
Amy Bowden sells life insurance. She calls on new parents and persuades them to buy
insurance products. It is difficult for a manager to control Amy's work, but she has
incentive to work hard because her job security and income depend on getting sales.
She is a confident self-starter, so she likes it that way.
Ben Peterson works for a fashionable men's clothing store. He enjoys spending time
with customers who come in, learning about their fashion needs, and helping them pick
clothes that really work for them. While the store manager can easily observe and direct
Ben's activities, the manager wants Ben to have the incentive to increase customer
purchases and satisfaction.
Emily Winters handles inside sales for a major industrial distributor. She deals with a
regular set of established customers, most of whom know what they want. Emily talks
to them on the phone and answers questions about products, delivery time, and pricing.
She sometimes works with outside sales reps who visit customers and help introduce
new products. Emily is the first person her customers call when there's a problem with a
purchase, so she spends a lot of time dealing with customer problems. As an inside
salesperson, Emily's work is easily supervised by a sales manager - and she has little
influence on how much her customers buy.
Melissa Tran works for a company that sells paper products (like napkins, paper towels,
and paper plates) primarily through small independent grocers. Most of the grocers are
regular customers, but sometimes she makes cold calls to new grocery stores. Melissa's
job is to develop goodwill and try to increase sales. For example, she often sets up
special promotional displays in stores. Her compensation plan gives her income
security, but she also can receive a bonus for sales growth in her territory.
Charlie Riggs is a telemarketer for an Internet service provider. He calls people on a list
provided by his firm and tries to sign them up for Internet service. Charlie relies heavily
on a presentation he learned during his training. Charlie is very good at what he does
and loves that the more success he has the more he earns.
What type of sales presentation approach does Ben Peterson use?
A. Consultative selling approach
B. Prepared sales presentation
C. Missionary selling
D. Selling formula approach
E. Sales quota approach
Answer:
