Which of the following is an advantage of using an industrial distributor?
a. These firms are easy to control because they work directly for the producers.
b. Inventory holding costs are minimized because they can store inventory very
cheaply.
c. They are closer geographically to all of the producers’ customers.
d. They possess a high level of technical knowledge about their products.
e. They help reduce a producer’s financial burdens by extending credit to customers.
A major benefit of using event sponsorship is that it:
a. enhances personal selling efforts.
b. provides excellent support for advertisements.
c. can provide large amounts of free media coverage.
d. is cost-free.
e. neutralizes the effects of unfavorable public relations.
As digital communication technologies have advanced, marketers tend to:
a. have less control over their product’s positioning.
b. have more control over the processing of information.
c. have less control over people’s perceptions of their business.
d. be more selective on news releases regarding their company.
e. reach markets that were previously inaccessible.
Surveys are sometimes used to forecast sales.
a. True
b. False
The most important reason that a firm might use a sales force forecasting survey to
determine its sales forecast is:
a. salespeople are generally optimistic about the future and will provide excellent
forecast targets.
b. most salespeople tend to have a pessimistic outlook, which is more likely to result in
an achievable sales forecast.
c. this tends to be the fastest way to determine a good sales forecast for the upcoming
period.
d. the averaging and other statistical techniques applied to these forecasts result in
extremely accurate numbers.
e. the sales staff is closer to the actual customers on a regular basis than anyone else in
the organization.
A research technique is said to be reliable if it produces almost identical results in
successive repeated trials.
a. True
b. False
Brunswick’s bowling balls, bowling bags, and shoes are individual product
manufacturer.
a. menus
b. mixes
c. lines
d. life cycles
e. ensembles
Training of employees is more important in low-contact services than in high-contact
services.
a. True
b. False
When Jiffy-Pop packaged its popcorn in an aluminum skillet, complete with attachable
handle, it designed the package to become the cooking utensil. After cooking, the
handle was removed and the package became the popcorn bowl. JiffyÂPop’s popcorn in
this case is an example of packaging.
a. secondary-use
b. multiple
c. innovative
d. category-consistent
e. ‘œgreen’
Katelyn understands that even small businesses like her local catering business have
certain responsibilities to society. She knows that she must abide by the laws that apply
to her business and try to make a profit. What are the other obligations that Katelyn
should be aware of?
a. Ethical and moral
b. Economic and ethical
c. Philanthropic and legal
d. Environmental and ethical
e. Ethical and philanthropic
Lucas is planning a distribution strategy for his business. He is considering using direct
marketing, direct selling, and automatic vending which are all examples
of__________retailing.
a. off-premise
b. portfolio
c. nonstore
d. off-price
e. direct
The Coca Cola Company has recognized the significant increase in population diversity
within the U.S. soft-drink market. Which one of the following bestillustrates the
company’s integration of this knowledge into its marketing strategy?
a. Ads featuring nostalgic Americana
b. Bonus coupons in Cola twelve-packs
c. Ads featuring Hispanic actors and Tejano music d. Ads in TheNewYorkeand
Reader’Digest
e. Ads aimed at children
When Minute Maid mailed out free samples of its new instant drink mix, it was trying
to move prospective customers into the stage of the product adoption process.
a. awareness
b. interest
c. evaluation
d. trial
e. adoption
Lighter colors may be used to make a package appear larger to consumers.
a. True
b. False
Scenario 8.2
Use the following to answer the questions.
KFC opened its first franchised restaurant outside of North America in England in
1964. Now, over a billion KFC chicken dinners are sold annually at more than 80
countries and territories around the world. KFC has established its own processing
plants in these countries to ensure the quality of its chicken and other food items. In the
U.S., the menu at KFC is usually the same in all restaurants, with only a very few
additional items available in different regions. However, when KFC first franchised into
Asian countries, it added many unusual local delicacies to the menu, such as fried
octopus and squid. Additionally, the franchised stores in Asian countries display cooked
food in “plates” near windows at the front of the store. This is a tradition for many
restaurants in these countries to offer the customer passing by a preliminary view of
their product. Suppose that KFC’s parent company experienced difficulty in opening its
restaurants in China unless KFC was willing to pay the government a “bribe” and KFC
were to resort to paying this bribe in China saying that “it’s different doing business
there” this would be an example of :
a. a licensing arrangement.
b. the self-reference criterion.
c. cultural relativism.
d. balance of trade.
e. exchange controls.
Scenario 18.2
Use the following to answer the questions.
The State Farm Group includes several companies. Probably the most well-known
company in the group is the State Farm Insurance Company, the largest auto and home
insurer in the United States. State Farm Insurance provides protection for
approximately 78 million policies on auto, fire, life, and health services. It is also a
leading insurer of homes and autos in Canada. Another company in the State Farm
group is the State Farm Bank, which was opened in 2000, beginning State Farm’s entry
into the financial services field. However, the State Farm Bank is not a traditional bank
in that it has no branch offices and its services are provided through State Farm agents,
a call center, the mail, and on the Internet. It currently serves over 1.9 million bank
accounts. In 2008, Cal Ripken, Jr. and State Farm teamed up to promote State Farm’s
national teen driver safety program. The marketing division at State Farm produced a
one-page document that described the partnership, which was then published in several
national newspapers and on the Internet. The document from State Farm is an example
of______ , while the publication in the newspapers is an example of______ .
a. public relations; publicity
b. public relations; a news release
c. publicity; advocacy advertising
d. a news release; publicity
e. publicity; a news release
“The people to check with” are the early adopters.
a. True
b. False
The term market density refers to the number of potential customers per unit of land
area, such as per square mile.
a. True
b. False
Ben Davideau is assigned by his sales manager to come up with the names and
addresses of twenty firms in his territory that have potential for using sizable quantities
of his firm’s products. Which of the following should Ben approach if he wants his
search to be efficient?
a. Sales & Marketing Management
b. An SIC listing
c. The Census of Business
d. The Census of Manufacturers
e. Standard & Poor’s Register
The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic
promotional tool is discount. These discounts offered to middlemen for performing
certain channel activities are referred to as discounts.
a. trade
b. cumulative
c. noncumulative
d. quantity
e. intermediary