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Actually making goods or performing services is called marketing.
During the 'sales era," the firm tries to improve short-run marketing policy planning to
tie together its activities.
Just-in-time relationships between buyers and sellers usually require operational
linkages and information sharing.
With roots in biology, ethnographic research studies different cultures by examining
their physiology.
African Americans have the highest median family income of the major ethnic groups.
In customer-initiated communication, the source decides how much information to
send.
A channel of distribution must include an intermediary.
Low transporting cost is not the only criterion for selecting the best mode of
transportation.
Secondary data is information which is already published or collected.
Airfreight generally increases both transporting cost and the total cost of distribution
because it tends to add to inventory costs, spoilage, theft, and damage.
Private warehouses (compared to public warehouses) are most appropriate when a firm
has a regular need to store a large quantity of goods.
Response rate is the percentage of people contacted who complete a given
questionnaire.
Marketing audits consider future marketing plans, so they are not concerned with a
company's current marketing strategies.
The Internet has expanded the number of auction companies in lines of business where
auctions have previously not been common.
To be called "new" according to the FTC, a product must be entirely new or changed in
a functionally significant or substantial respect.
Controlling the marketing plan is the first step of the marketing management process.
Market introduction, market growth, market maturity, and sales decline are the four
stages of the product life cycle.
Competitor analysis is an organized approach for evaluating the strengths and
weaknesses of current or potential competitors' marketing strategies.
If a company borrows money via debt financing, the people or institutions that loan the
money get an ownership share in the company.
The Federal Trade Commission encourages bait pricing because it reduces the prices
that consumers pay for products.
Customer service reps are usually specialists who are involved in helping potential
customers before a purchase is made.
A market is a group of competitors selling similar products.
The first step in new-product development is evaluating ideas.
Retailing includes all of the activities involved in reselling goods to final consumers,
but it does not include the sale of services to final consumers since services must be
produced in the presence of the consumer.
For different people, the same product might be a convenience product, a shopping
product, or a specialty product.
The major shortcoming of competitor analysis is that it focuses on the weaknesses of
competitorsbut ignores their strengths.
Customer service is needed when a customer wants the seller to resolve a problem with
a purchase.
Job descriptions are not necessary for personal selling because all salespeople are
expected to do the same tasksell products.
The customer is a part of the marketing mix and should be the target of all marketing
efforts.
Marketing only applies to for-profit organizations.
The five-step marketing research process ends at which step?
A. Defining the problem
B. Analyzing the situation
C. Getting problem-specific data
D. Interpreting the data
E. Any step at which the problem is solved
Which of the following statements about the communication process is True?
A. The source is the sender of the message.
B. The receiver is the potential customer.
C. Encoding is done by the source.
D. The receiver does decoding.
E. All of these statements about the communication process are True.
Manufacturers' agents:
A. are frequently used by manufacturers to help introduce a new product.
B. typically have a temporary relationship with a manufacturer, until a specific item is
sold.
C. usually handle products for only a few companies since the cost of adding additional
lines is quite high.
D. usually handle a full assortment of products from competing manufacturers.
E. buy large inventories from small manufacturershelping them acquire working capital.
In the United States, warehouse clubs such as Sam's and Costco serve business
customers as:
A. Rack jobbers.
B. Cash-and-carry wholesalers.
C. Truck wholesalers.
D. Specialty wholesalers.
E. Manufacturers' agents.
_____ can help create brand recognition, but only _____ can create brand insistence.
A. Design; price
B. Advertising; satisfying experiences
C. Quality; distribution
D. Brand names; endorsements
E. Publicity; product trials
The main advantage that marginal analysis has over most other popular pricing methods
is that it:
A. Considers both fixed and variable costs.
B. Takes into account the break-even point.
C. Allows managers to evaluate pricing alternatives.
D. Takes into account both costs and demand.
E. Incorporates the markup chain.
AT&T reacted to the popularity of the cellular phone by adding several cellular models
to its line of regular phones. Availability and popularity of cellular phones is most likely
due to changes in the ____________ environments.
A. political and cultural
B. technological and legal
C. legal and economic
D. social and technological
If a consumer purchases a new watch, the watch is:
A. a specialty product.
B. a heterogeneous shopping product.
C. a homogeneous shopping product.
D. a convenience product.
E. it is not obvious-the watch could be any of these choices.
A situation analysis is highly beneficial to marketers for all the following reasons
except:
A. it is very informative.
B. it requires little time.
C. it is inexpensive compared to formal research efforts.
D. it requires only a phone or Internet access.
E. it yields relevant primary data.
When McDonald's corporate headquarters offers a local McDonald's franchise to a
franchisee on Bourbon Street in New Orleans, this is an example of ___________
distribution.
A. intensive
B. operational
C. selective
D. exclusive
E. administered
Micro-marketing:
A. tries to accomplish a company's objectives by anticipating customers' needs and
trying to satisfy them.
B. begins with the production process.
C. involves persuading customers to buy your product.
D. is a social process involving all producers, intermediaries, and consumers.
E. tries to make the whole economic system fair and effective.
As a project for her marketing class, Emily Washington is researching how five local
businesses price their products. The following are brief sketches of what she has learned
about each company.
At Bella Computers, Emily has discovered that the company earned a 6 percent return
on investment this year and wants to increase it to 9 percent next year. To its retailer
customers, Bella Computers gives cash discount terms of 2/10, net 30. It also gives
retailers a 3% reduction on the invoice amount for advertising Bella products locally.
Bella gives retailers' salespeople 2% of the sale price for each Bella Computer they sell.
At Ross Pharmaceuticals, she learned that the company has invested heavily in
developing a new product that recently received a patent. Because cash is tight, the
company wants to achieve a rapid return on its investment. The new patented product is
badly needed in the market, so a very inelastic demand curve is expected.
Digital Imaging makes photographic prints for wedding photographers. It is very
concerned about competitor reactions to its pricing, so it has selected prices that will not
draw the attention of the competition and not start a price war. Digital Imaging offers
customers an 8% discount if their purchases exceed $20,000 a year.
Jack's One Hour Cleaners recently opened for business. The company invested a lot of
money in new equipment, and feels that it has to quickly get "at least 10% market share
to stay in the game." This need obviously influences the company's pricing decisions.
Jack's also plans to offer customers 20% discounts on any order over $20.
National Printing Equipment (NPE) produces equipment that helps to print newspapers
and magazines. The company sells directly to printers and through wholesalers. Its
salespeople negotiate prices with individual customers and often have to match
competitors' prices. NPE has a new product, the Gutenberg NP201, with some
competitive advantages now, but competitors are expected to follow quickly with
similar products. The new product is being introduced into a market with elastic
demand. In regard to freight charges for its equipment, NPE's invoice reads, "Seller
pays the cost of loading equipment onto a common carrier. At the point of loading, title
to such products passes to the buyer, who assumes responsibility for damage in transit,
except as covered by the transportation agency."
Which business offers a NONCUMULATIVE quantity discount?
A. Jack's One Hour Cleaners
B. Digital Imaging
C. National Printing Equipment
D. Ross Pharmaceuticals
E. Bella Computers
The text stresses that:
A. advertising and selling are not really part of marketing.
B. marketing is nothing more than a set of business activities performed by individual
firms.
C. marketing techniques have no application for nonprofit organizations.
D. marketing is a social process and a set of activities performed by organizations.
E. a good product usually sells itself.
Which of the following is NOT an example of sales promotion?
A. A small toy in a "kid's pack" at a Wendy's fast-food restaurant.
B. A half-page ad in the telephone Yellow Pages for a security service.
C. An auto bumper sticker that says "Buy American."
D. Samples of a new brand of cheese given away at a supermarket.
E. A display of fishing equipment by a sporting goods store in a shopping mall.
Coca-Cola is taking advantage of the new willingness of Chinese leaders to engage in
international trade by marketing its soft drinks in China. What type of opportunity is
Coke pursuing?
A. Market development
B. Diversification
C. Product development
D. Market penetration
______________ means selling a product only through those intermediaries who will
give the product special attention.
A. Multichannel distribution
B. Selective distribution
C. Administered distribution
D. Exclusive distribution
E. Intensive distribution
Best Buy sets its prices below other electronics stores in its service area and generally
attracts more customers than the others. Best Buy apparently hopes to earn a profit by
A. achieving status quo pricing objectives.
B. setting prices based on "value in use."
C. relying on a high margin percent.
D. setting prices based on a cost-oriented approach.
E. achieving a high stockturn rate.
When a company includes 'stories" and/or videos on its website of how it has helped
individual customers solve an important problem, this is an example of a:
A. branded service.
B. blog.
C. Facebook page.
D. case study.
E. microblog.
Which of the following is a profit-oriented pricing objective?
A. Meeting competition
B. Sales growth
C. Target return
D. Nonprice competition
E. Growth in market share
Marketing strategies
A. enable marketing managers to be satisfied just planning present activities.
B. ensure that every opportunity is good for every company.
C. do not specify target markets and related marketing mixes.
D. provide a limited picture of what a firm will do in some market.
E. are not whole-company plans.
Which of the following statements about the Lanham Act is TRUE?
A. It spells out what kinds of brand names can be protected.
B. Registration under the Lanham Act only applies to licensed brands.
C. The Lanham Act makes registration of a brand name mandatory.
D. Registering under the Lanham Act does not help protect a trademark to be used in
foreign markets.
E. All of these statements about the Lanham Act are TRUE.
Building quality into services:
A. can be easily accomplished by spending more.
B. can be accomplished without top-level support because it is such a simple idea.
C. is not necessary unless the service is guaranteed.
D. can be easily accomplished with surprise quality inspections.
E. can be improved by giving employees the authority to correct a problem on their
own.
The _____ environment sets the basic rules for how a business can operate in society.
A. legal
B. social
C. economic
D. technical
E. cultural
Which of the following is NOT a business raw material?
A. Coal.
B. Grease.
C. Sugar cane.
D. Iron ore.
E. Logs.
The Federal Fair Packaging and Labeling 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.
Which of the following is NOT one of the levels of consumer problem solving
discussed in the text?
A. Dissonance problem solving
B. Routinized response behavior
C. Extensive problem solving
D. Limited problem solving
E. None of these, i.e. all four are discussed.
Applying the text's list of characteristics of a good brand name, which of the following
would be the poorest example of a good brand name?
A. Pizza Hut.
B. King Kong Chewing Gum.
C. DieHard flashlights.
D. General Electric TVs.
E. L'eggs hosiery.
The government, advertising agencies, newspapers, trade associations, and research
subscription services are all major sources of primary data.
Administrators at a university noted that they were 200 students short of their
enrollment projection as the start of the school year approached. The president of the
university, fearing a revenue shortage, told the director of admissions, "You need to use
whatever means necessary to get enough students to meet the projection before classes
start. Run ads in the newspaper, call high school guidance counselors, recruit from our
pool of rejected applicantswhatever it takes." The university president is operating as
though he was in the:
A. Simple trade era.
B. Production era.
C. Sales era.
D. Marketing department era.
E. Marketing company era.
______________ is the words and illustrations of an ad message that actually
communicate information to the target customer.
A. Copy text
B. Copy thrust
C. Copy edits
D. Copy proof
E. Copy objective
Regarding sales analysis:
A. Sales data should be broken down according to customer characteristics such as
demographics, because those are the only relevant dimensions.
B. There is only one best way for analyzing sales data.
C. Sales analysis is difficult and expensive because the data are difficult to obtain.
D. Sales analysis can highlight important trends and help managers develop more
accurate sales forecasts.
E. A detailed sales analysis is most effectively presented with tables containing rows
and columns of numbers as opposed to charts and graphs.
Which country limits the use of political ads on TV?
A. USA
B. Canada
C. New Zealand
D. Japan
E. Australia
Of the following products, which of the producers spends the greatest percent of sales
on advertising?
A. Malt beverages
B. Cable and other pay TV services
C. Motor vehicles and car bodies
D. Soap and detergent
E. Computers and office equipment
