Most Western economies are completely market-directed.
Answer:
Despite the functions they provide, the number of wholesalers in the United States has
decreased 16 percent in the last 15 years.
Answer:
Monopolistic competition is the result of control of markets by business, not consumer
demands.
Answer:
The “Product” that brokers sell is information about what buyers need and what
supplies are available.
Answer:
Which of the following statements about ‘segmenting” and “combining” is True?
A. Combiners usually have more sales potential than segmenters.
B. A combiner tries to meet the demand in several segments.
C. Segmenters try to develop a marketing mix that will have general appeal for several
market segments-to obtain economies of scale.
D. A segmenter assumes that a broad product-market consists of a fairly homogeneous
group of customers.
E. Both segmenters and combiners try to satisfy some people very well rather than a lot
of people fairly well.
Answer:
Marketing is the performance of activities that seek to accomplish an organization’s
objectives by anticipating customer or client needs and directing a flow of
need-satisfying goods and services from producer to customer or client.
Answer:
Discount stores offer ‘soft goods” at substantial price cuts to customers.
Answer:
The basic idea behind integrated marketing communications is that all firms in a
channel of distribution have input in developing the advertising campaign for the
product.
Answer:
Sysco is a good example of a company that uses technology to make its distribution
centers more efficient.
Answer:
A supply chain includes all the activities involved in procuring materials, transforming
them into products, and distributing them to customers.
Answer:
Since marketing managers have to be able to evaluate research results, they should be
involved in the design of research projects-even though they may not be research
specialists.
Answer:
Objectives should set the firm’s course.
Answer:
The major advantage of vending machine retailing is that the costs are low relative to
the volume they sell.
Answer:
A company’s salespeople are usually paid more than its office help or production
workers, but less than top management.
Answer:
When trying to build relationships with customers, salespeople must be particularly
well-trained because they are usually the only employees whose actions influence
customers directly.
Answer:
Sales reps often must plan whole marketing strategies for their own geographic
territories.
Answer:
The first step in new-product development is evaluating ideas.
Answer:
Although telephone selling by an inside sales group can save time and money in
business markets, it has been declining in recent years.
Answer:
If the price per unit is $1.00 and the average variable cost per unit is 60 cents, the fixed
cost contribution per unit is $1.40.
Answer:
Because the advertising, sales, and sales promotion managers all have similar outlooks
and experiences, they usually work together very well to develop the right promotion
blend.
Answer:
Pricing to achieve profit maximization always leads to high prices.
Answer:
Nationalism may affect marketing strategy planning by determining to whom and how
much a firm may sell.
Answer:
Sales growth is faster when a new product is easy to use and its advantages are easy to
communicate.
Answer:
Purchase specifications for services are usually very simple because services tend to be
very standardized.
Answer:
Specialty products are usually only purchased once-in-a-lifetime, so the customer must
search extensively before buying.
Answer:
Many Internet users in the U.S. spend more time surfing the Web than they do watching
television, listening to radio, or reading newspapers and magazines.
Answer:
Moen, a maker of plumbing fixtures, employs a major accounts sales force and gives
special attention and support to the firm’s largest accounts such as Home Depot and
Lowe’s.
Answer:
Most marketing functions can be shared in a channel, but the storing function is almost
always handled by the producer.
Answer:
When a firm sells through intermediaries, there is little reason to try to administer the
price intermediaries charge final consumers.
Answer:
There are many reasons for business failures including products that do not create value
in the eyes of the customer, improperly identifying the target market, or lack of
innovative thinking.
Answer:
The text credits L.L. Bean’s marketing success to its great location.
Answer:
Penetration pricing may be wise if the firm expects strong competition very soon after
introduction.
Answer:
In the traditional communication process, a receiver tries to deliver a message to a
source through a message channel.
Answer:
A consumer panel is a group of consumers who provide information on a continuing
basis.
Answer:
“Pushing” a product through a channel relies on very aggressive promotion to final
consumers to try to get them to ask intermediaries for the product.
Answer:
The new-product development process
A. should have ongoing support from top management.
B. should avoid applying quantitative screening criteria-since applying such criteria
tends to eliminate most of the “really new” ideas.
C. should be informal-to encourage creativity.
D. should start whenever the majority of current products are in the market maturity
stage of the product life cycle.
E. All of these alternatives are correct.
Answer:
Regarding transportation modes, which of the following statements is NOT true?
A. The majority of the pipelines in the U.S. are in the Southwest.
B. Airfreight costs about the same as trucks for long distances, not counting the cost of
transporting to and from the airport.
C. Water transportation is the slowest shipping mode.
D. Most cities in the United States are less than 200 miles from a major petroleum
pipeline.
Answer:
Business products tend to be sold direct to customers because compared to consumer
products:
A. business markets have more transactions.
B. orders are smaller in size.
C. e-commerce systems can efficiently handle orders once relationships are established.
D. customers are usually widely dispersed across geographic areas.
E. business products always use direct distribution.
Answer:
A local theater group that has adopted the marketing concept would be MOST likely to:
A. Promote the sale of subscriptions so that patrons can buy tickets at a reduced price
for several plays at one time.
B. Use publicity to announce upcoming plays.
C. Do a survey to find out what new shows patrons would like to see.
D. Sell tickets via the Internet.
Answer:
The federal Magnuson-Moss Act:
A. says that producers must provide a clearly written warranty if they choose to offer a
warranty.
B. requires that consumer goods be clearly labeled to give consumers more information.
C. spells out what kinds of marks (including brand names) can be protected and the
exact method of protecting them.
D. requires food manufacturers to use a labeling format that allows consumers to
compare the nutritional value of different products.
E. ensures that all labels list the “green benefits” of using the product.
Answer:
Godiva, a maker of expensive European chocolates, does not mention price in its
magazine advertising. Instead, the ad copy mentions the quality of the ingredients, the
fine packaging, and the luxurious boutiques where Godiva chocolates are sold. Godiva
seems to be pursuing a pricing objective of:
A. Meeting competition.
B. Nonprice competition.
C. Target return.
D. Growth in market share.
E. None of these is a good answer.
Answer:
Henry Ford told prospective customers of his Model T car, “You can have any color as
long as it is black.” Which aspect of the marketing mix was he stressing?
A. Promotion
B. Product
C. Place
D. Price
Answer:
A product-market is one in which
A. products from different industries compete for customers by trying to satisfy the
same basic need.
B. price is the determining factor in deciding which brand to buy.
C. all of the customers want the exact same product but will consider a substitute if
their preferred brand is not available.
D. one seller has a monopoly and there is no competition.
E. None of these alternatives is true.
Answer:
Many important changes are affecting marketing strategy planning. For example,
product placements in movies and online games are illustrative of changes in the area
of:
A. Channel and logistics
B. Personal selling
C. Demographic patterns
D. Sales promotion
E. Communication technologies
Answer:
Use this information for question that refer to the Sporting Products, Inc. (SPI) case.
Randy Todd, marketing manager for Sporting Products, Inc. (SPI), is thinking about
how changes taking place among retailers in his channel might impact his strategy.
SPI sells the products it produces through wholesalers and retailers. For example, SPI
sells basketballs to Wholesale Supply for $8.00. Wholesale Supply uses a 20 percent
markup and most of its ‘sport shop” retailer customers, like Robinson’s Sporting Goods,
use a 33 percent markup to arrive at the price they charge final consumers. However,
one fast growing retail chain, Sports Depot, only uses a 20 percent markup for
basketballs, even though it pays Wholesale Supply the same price as other retailers.
Furthermore, Sports Depot occasionally lowers the price of basketballs and sells them
at cost-to draw customers into its stores and stimulate sales of its pricey basketball
shoes.
Sports Depot is also using other pricing approaches that are different from the sports
shops that usually handle SPI products. For example, Sports Depot prices all of its
baseball gloves at $20, $40, or $60-with no prices in between. There are three big bins –
one for each price point.
Todd is also curious about how Sports Depot’s new strategy to increase sales of tennis
balls will work out. The basic idea is to sell tennis balls in large quantities to nonprofit
groups who resell the balls to raise money. For example, a service organization at a
local college bought 2,000 tennis balls printed with the college logo. Sports Depot
charged $.50 each for the tennis balls-plus a $500 one-time charge for the stamp to print
the logo. The service group plans to resell the tennis balls for $2.50 each and contribute
the profits to a shelter for the homeless.
Todd is not certain if Sports Depot ideas will affect SPI’s plans. For example, SPI is
considering adding tennis racquets to the lines it produces. This would require a
$500,000 addition to its factory as well as the purchase of new equipment that costs
$1,000,000. The variable cost to produce a tennis racquet would be $20, but Todd
thinks that SPI could sell the racquet at a wholesale price of $40 each. That would allow
most retailers to add their normal markup and make a profit. However, if Sports Depot
sells the racquet at a lower than normal price other retailers might decide to carry it.
The pricing approach Sports Depot uses to price its baseball gloves is called:
A. odd-even pricing.
B. value in use pricing.
C. prestige pricing.
D. bait pricing.
E. price lining.
Answer:
Intensive distribution is
A. selling through only those wholesalers or retailers who will give the product special
attention.
B. selling a product through all responsible and suitable wholesalers or retailers who
will stock or sell the product.
C. selling through only one wholesaler or retailer in a particular geographic area.
D. making a product available widely enough to satisfy target customers’ needs but not
exceed them.
E. used to gain some of the advantages of exclusive distribution-while still achieving
fairly widespread market coverage.
Answer:
For which of the following goods would air be the least useful mode of transportation?
A. High-fashion clothing
B. Oil
C. Flower and bulbs from Holland
D. Emergency delivery of repair parts
E. Parts for the electronic industry
Answer:
A market-oriented strategy planner applies the ______________ target market
approach.
A. combined
B. multiple
C. single
D. Any of these could be true.
Answer:
A marketing manager should realize that the adoption curve concept implies
A. the firm’s promotion target should always be the innovators.
B. the laggards are cautious, but that they are willing to adopt a new product quickly if
advertising gets their attention.
C. using different promotional mixes for different adopter groups.
D. the firm’s promotion target should always be the opinion leaders.
E. None of these is a good answer.
Answer:
Which of the following would be the most difficult task facing a marketing manager?
A. Discover the attitudes of the firm’s target market.
B. Change existing negative attitudes.
C. Create new attitudes toward his or her brand.
D. Promote existing attitudes.
E. Strengthen existing positive attitudes.
Answer:
Which of the following is NOT relevant regarding why some consumers prefer one
retailer over another?
A. Convenience
B. Shopping atmosphere
C. Assortment carried
D. Service
E. All of these choices can be relevant.
Answer:
Regarding retailer size and sales volume in the U.S.:
A. Approximately 15% of retail stores account for 50% of all retail sales.
B. Approximately 15% of retail stores account for 75% of all retail sales.
C. Approximately 15% of retail stores account for 95% of all retail sales.
D. Approximately 20% of retail stores account for 80% of all retail sales.
E. Approximately 30% of retail stores account for 70% of all retail sales.
Answer:
Which of the following statements about the transporting function is TRUE?
A. Among transportation modes, an advantage of air transport is its ability to handle a
variety of goods.
B. Because transportation costs are less than 1 percent of costs for most products,
marketing managers do not need to consider them when making strategy decisions.
C. Pipelines are generally one of the fastest modes of transportation.
D. In most countries, government plays little role in transportation.
E. Transporting costs can be a large part of the total cost for heavy products that are low
in value.
Answer:
Use this information for question that refer to the Wire Products Inc. (WPI) case.
Rob Rose sat back to review the portfolio of products his company, Wire Products Inc.
(WPI), has in its product line. The company specializes in making various products for
consumer and industrial uses from hard laminated wire-coated with special paints.
1) WPI’s “Wire Closet” products have been on the market for 10 years. Consumers
install the wire shelves and closet rods themselves. The market leader, Closetmaid, has
been selling similar products for more than 20 years, but so far the sales volume and
profits for the market continue to grow. Recently, several new competitors have come
into the market.
2) Three months ago, WPI entered the lawn and garden market with folding fences
made with laminated wire and branded as “Wire Fold-Fence.” Previously, WPI had
never made fences or been a player in the lawn and garden market-although other
companies have been making products in this market for years. However, Rob Rose has
discovered that recent sales of wire garden fencing have leveled off and profits are
declining overall. Still, WPI thinks it has some cost advantages and can grow its own
sales and profits in this market.
3) WPI has just developed “Oil Wire,” a new concept for the environmental cleanup
market. Oil Wire is coated with a special material that cleans up oil spills. There has
never been a product like this and WPI wants to quickly get the word out about its
benefits. The product is now being rolled out in selective markets.
4) Another business product is “Wire Locker” used for secure storage by gymnasiums
or companies. This style of locker has now gone out of fashion and most customers are
finding better materials to use for lockers. Aggressive selling has helped Wire Locker’s
sales stay flat, but the total market for wire style lockers is only half of what it was 10
years ago.
5) WPI’s “Wire Window” product is used as a security product to protect glass
windows. It sells to homeowners and retailers looking for additional safety. WPI’s sales
of this product have dropped in recent years because competitors have introduced
maintenance-free products. However, the overall market for this type of product
continues to show good growth.
6) WPI is running concept tests of a new wire car-top carrier called “Wire Car Top.”
There are other car-top carrier products on the market, but WPI plans to include options
in its carrier that will make it easier to load bikes, skis, and suitcases. “Wire Car Top” is
also very easy to put on and take off of the car because of its light weight and
ease-of-use features. The concept tests are helping WPI analysts develop rough
estimates of costs, sales, and profits.
7) Another new product idea, tentatively called “Wire Tent,” is being considered. It
would use laminated wires to create a portable tent frame. This product is currently
being evaluated to determine its fit with the company’s objectives and external market
trends.
Rob is thinking about the product life cycle, where each product fits, and what he
should be doing as part of his marketing plan for each of these products.
For which product does WPI need to build primary demand?
A. Wire Closet
B. Wire Fold-Fence
C. Oil Wire
D. Wire Window
E. Wire Locker
Answer:
Vision Co. manufactures and sells tea, coffee, desserts, shoes, and sporting goods. All
of these products are its
A. product line.
B. equity products.
C. complementary goods.
D. product assortment.
E. brand family.
Answer:
In the market introduction stage of the product life cycle
A. sales are the highest.
B. most companies experience losses.
C. industry profits rise.
D. industry sales level off.
E. total industry profit is highest.
Answer:
Average-cost pricing:
A. May be very profitable if actual sales are higher than expected.
B. May lose money for the firm if actual sales are less than expected.
C. Does not take demand into account in setting prices.
D. Is simple in theory but often fails in practice.
E. All of these alternatives are correct.
Answer:
When looking for new product ideas, which of the following would be good sources?
A. Your salespeople.
B. Your intermediaries.
C. Your competitors.
D. Your production people.
E. All of these would be good sources for new product ideas.
Answer:
The text discusses the evolution of business through five “eras.” Which of the following
is NOT one of these eras?
A. Diversification era
B. Sales era
C. Production era
D. Marketing company era
E. Simple trade era
Answer:
“Product” means:
A. all the services needed with a physical good.
B. a physical good with all its related services.
C. the need-satisfying offering of a firm.
D. all of a firm’s producing and distribution activities.
E. a well-packaged item with a well-advertised brand name.
Answer:
General Electric’s ‘strategic planning grid”:
A. focuses on market share and market growth rate.
B. requires subjective judgments about business strengths and industry attractiveness.
C. requires that all opportunities be judged either “High” or “Low.”
D. substitutes quantitative estimates for management judgment.
E. All of these alternatives about GE’s strategic planning grid are true.
Answer:
Which of the following pricing approaches specifically considers the concept of
elasticity of demand?
A. break-even pricing.
B. average-cost pricing.
C. markup pricing.
D. markdown pricing.
E. None of these considers the concept of elasticity of demand.
Answer:
Natasha Talbott was interested in a new set of golf clubs. She discussed the various
types with some knowledgeable friends and relied on their advice. Natasha’s friends
were acting as:
A. an economic influence.
B. routinized decision-makers.
C. a social class.
D. a lifestyle group.
E. a reference group.
Answer:
The basic objective of the U.S. market-directed economic system is to:
A. minimize inflation.
B. satisfy consumer needs as they-the consumers-see 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.
Answer:
When AT&T advertises in THE WALL STREET JOURNAL that smartphones using its
technology can make calls from more than 200 countries in the world, which market
opportunity is AT&T pursuing?
A. Market penetration
B. Product development
C. Diversification
D. Market development
Answer:
______________ is direct spoken communication between sellers and potential
customers.
A. Personal selling
B. Sales promotion
C. Advertising
D. Publicity
E. Mass selling
Answer: