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The majority of all retailers in the U.S. have annual average sales of less than $1
million.
Answer:
Marketing only applies to profit organizations.
Answer:
Marketing activities should begin with potential customer needs, not with the
production process.
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The power of negative purchase experiences is greater than that of positive experiences.
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Personal selling, mass selling, and sales promotion are all included in the Promotion
area of the marketing mix.
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"Mass marketers" like Target usually try to aim at clearly defined target markets.
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Team selling might involve a technical specialist, an order getter, and a customer
service rep all working together on a specific account.
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Blending the four Ps is easy since fully understanding the needs and attitudes of a target
market is a straightforward process.
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A consumer's belief about a product may have a positive or negative effect on his or her
attitude about the product.
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Internet tools used in the B2B market that focus primarily on lowering price do not
always lower TOTAL purchasing costs.
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Product-bundle pricing may encourage customers to spend more and buy products that
they would not buy otherwise.
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When the competitive environment moves toward pure competition, producers offer
very different products that consumers do not perceive as substitutes for each other.
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The break-even point is the intersection of the total cost curve and the total profit curve.
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When a variety of information sources are readily available in new-task buying, a buyer
is much less likely to use a trusted source.
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When customers have to pay the bill themselves, they are likely to be more price
sensitive.
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Competitive rivals are always easy to identify.
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The main difference between installations and accessory equipment is that accessories
are capital items while installations are expense items.
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Motor vehicles producers spend a higher percentage of their sales on advertising than
do perfumes and cosmetics producers.
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According to the text, Promotion is the most important of the "four Ps."
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Limited problem solving is used when the consumer has a lot of experience in meeting
a need and has no need for additional information.
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Marketing managers usually find that opportunities in international markets are less
profitable than in domestic markets.
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Each possible price has its own break-even point.
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In the United States, the aim of the economic system has been to satisfy consumers'
needs as they-the consumers-see them.
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Promotion is communicating information between the seller and the potential buyer or
others in the channel to influence attitudes and behavior.
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Vertical agreements to limit sales by customer or territory are always illegal, while
horizontal agreements may be legal sometimes.
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Accumulating involves dividing larger quantities into smaller quantities as products get
closer to the final market.
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The Place decisions are concerned with getting the right product to the target market at
the right time.
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It is useful to think of the marketing strategy planning process as a process that begins
with a narrow focus but then broadens to embrace unlimited opportunities and options.
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Many countries forbid comparative advertising, but it is now legal in the U.S.
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Industry profits usually decline steadily during the market maturity stage of the product
life cycle.
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Early adopters tend to rely on impersonal and scientific information sources, or other
innovators, rather than salespeople.
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When comparing two similar products, the product with the most features is the higher
quality product.
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White papers, case studies, blogs, and videos are all ways for a seller's website to
provide a buyer with useful content.
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A firm should not simply assume that its profits will grow if its sales grow.
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Shopping products that a customer sees as basically the same and wants at the lowest
price are heterogeneous shopping products.
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Customer value is just another term for customer satisfaction.
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A research proposal involves interviewing 6 to 10 people in an informal group setting.
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The promotion part of the marketing mix involves telling target customers that the right
product is available at the right place at the right price.
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In selective exposure we screen out or modify ideas, messages, and information that
conflict with previously learned attitudes and beliefs.
Answer:
Communication with noncustomers, including labor, public interest groups,
stockholders, and the government is generally referred to as
A. public relations.
B. sales promotion.
C. advertising.
D. branding.
E. publicity.
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.
SPI pays its salespeople a commission on each product they sell. The commission is:
A. part of the total cost - but not specifically a fixed or a variable cost.
B. part of the total fixed cost.
C. not included in figuring average cost.
D. a variable cost.
E. none of these alternatives is correct.
Answer:
When companies in a market-directed economy try to find "little monopolies" for
themselves,
A. success is likely to attract more competitors-and squeezing of the innovators' profits.
B. they will fail.
C. this reduces innovation, new investment, and economic growth.
D. the allocation of resources will be the same as in a purely competitive economy.
E. this forces consumers to buy new-possibly more expensive-products that they do not
want.
Answer:
Marketing departments are usually formed when firms go from the "production era" to
the 'sales era."
Answer:
Regarding product classes,
A. Business product classes are based on how buyers think about products and how the
products will be used.
B. Consumer product classes are based on how consumers think about and shop for
products.
C. The same product may be a consumer product and a business product.
D. Products are classified by what type of customer will use them.
E. All of these statements about product classes are true.
Answer:
Which of the following buying methods would a supermarket buyer be MOST LIKELY
to use in the purchase of grade A large eggs?
A. Purchasing specifications
B. Competitive bidding
C. Negotiated contract
D. Complex buying
Answer:
American Airlines maintains a frequent flier loyalty program that allows members to
accumulate 25,000 miles and then redeem these miles for a free round-trip ticket. This
is a(n):
A. Introductory price deal
B. F.O.B. discount
C. Cash discount
D. Cumulative quantity discount
E. Bundle price discount
Answer:
If a cola producer bought out a Mango juice producer in an attempt to appeal to
health-conscious consumers who do not drink soft drinks, it would be pursuing a
______________ opportunity.
A. market development
B. diversification
C. market penetration
D. product development
Answer:
An online retailer that examines what customers enter into the search bar at its site, is
examining the customers' _____ for new product ideas.
A. data mines
B. record clusters
C. data exhaust
D. warehouse data
E. search engine optimizers
Answer:
American Tourister, Inc.-a producer of luggage-is planning to introduce a new product
line. The marketing manager is having her sales force call on retailers to explain
American Tourister's consumer advertising plans, the unique features of the new
luggage, how the distributors can best promote it, and what sales volume and profit
margins they can reasonably expect. This is an example of:
A. a "pulling" policy.
B. intensive distribution.
C. selective distribution.
D. a "pushing" policy.
E. exclusive distribution.
Answer:
Complete acceptance of the "marketing concept" would require:
A. making sure that all departments focus their efforts on satisfying customer needs.
B. having all production, finance, accounting, and personnel managers report directly to
the marketing manager.
C. placing less emphasis on profit as the objective of the firm.
D. trying to satisfy the needs of each and every customer.
Answer:
Mass-merchandisers:
A. face a bright future and increasing profits-because of decreasing competition.
B. usually operate with low margins on individual items.
C. operate on the "buy low, sell high" philosophy.
D. try to reduce costs by reducing inventory turnover.
E. None of these alternatives is correct for mass-merchandisers.
Answer:
______________ means potential customers insist on a firm's branded product and are
willing to search for it.
A. Brand insistence
B. Brand preference
C. Brand nonrecognition
D. Brand rejection
E. Brand recognition
Answer:
A corporate chain:
A. Is formed by independent retailers that work together.
B. Is sponsored by a wholesaler.
C. Is formed when a firm owns and manages more than one store.
D. Involves franchisees that pay commissions and fees to the parent company.
E. None of these alternatives is correct for a corporate chain.
Answer:
Pfizer Corp. is introducing a truly new product idea. Pfizer is spending a lot of money
to inform potential customers and intermediaries about the availability and advantages
of the new product. Although sales are rising slowly, Pfizer doesn't expect the product
to become profitable for at least another year. Pfizer's new product is in which stage of
the product life cycle?
A. Market introduction
B. Sales decline
C. Market development
D. Market growth
E. Market maturity
Answer:
Which of the following refers to a marketer countering negative publicity to save a
product's image?
A. Perceptual mapping
B. Dissonance process
C. Adoption process
D. Information filtering
E. Damage control
Answer:
Which of the following does NOT support the idea that MICRO-marketing often DOES
cost too much?
A. Product planners frequently develop me-too products.
B. Many firms focus exclusively on their own internal problems.
C. Many firms try to maximize profits.
D. Managers routinely seize on whatever strategy seems easiest.
E. None of these, i.e. all of these do support the idea that MICRO-marketing often
DOES cost too much.
Answer:
Order takers are concerned with:
A. establishing relationships with new customers and developing new business.
B. selling to regular customers, completing most sales transactions, and maintaining
relationships with their established customers.
C. seeking possible buyers with a well-organized sales presentation designed to sell a
good, service, or idea.
D. selling unsought and heterogeneous shopping products.
E. working with customers to resolve problems that arise with a purchase, usually after
the purchase has been made.
Answer:
Going global has become easier than ever for marketers due to:
A. language differences between nations.
B. cultural differences among ethnic groups around the world.
C. advances in e-commerce, transportation, and communication.
D. political and social unrest in various parts of the world.
E. worldwide economic recession.
Answer:
Which of the following is NOT a key dimension of buyer-seller relationships in
business markets?
A. Competition
B. Information sharing
C. Relationship-specific adaptations
D. Operational linkages
E. Legal bonds
Answer:
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
Answer:
PepsiCo is evaluating an idea for a new "clear cola" by using focus groups made up of
young adults to suggest brand names for the proposed product. This is an example of:
A. empowerment.
B. concept testing.
C. market testing.
D. TQM.
E. EDI.
Answer:
Positioning maps are based on:
A. the actual objective characteristics of products.
B. the opinions of the marketing managers.
C. the potential places where a product may be sold and purchased.
D. the prices of competing products.
E. customers' perceptions of products.
Answer:
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.
Answer:
A _____ price policy tries to sell the top of the demand curve at a high price before
aiming at more price-sensitive customers.
A. meet competition
B. status quo
C. penetration
D. skimming
E. panning
Answer:
______ refers to personal communication between a seller and a customer who wants
the seller to resolve a problem with a purchase.
A. Advertising
B. Sales promotion
C. Publicity
D. Personal selling
E. Customer service
Answer:
____ refers to a commitment to constantly make things better one step at a time.
A. Just-In-Time
B. Ladder approach
C. Continuous improvement
D. Production focus
E. Sales orientation
Answer:
A straight rebuy is MOST likely to occur for:
A. a new computer network.
B. a pension plan which meets the new government regulations.
C. paper supplies for the copy equipment.
D. electronic components for a new product.
E. executive chairs for a new office building.
Answer:
When looking at NAICS codes:
A. The fewer numbers in the code, the more general the industry classification is.
B. The more numbers in the code, the more general the industry classification is.
C. The fewer numbers in the code, the more specific the industry classification is.
D. The United States is the only country to collect data that groups firms in similar lines
of business.
E. None of these alternatives is correct.
Answer:
When a firm spends its resources on advertising, publicity, and sales promotion, _____.
A. the results that are actually achieved through these activities are easy to measure
B. half of the money spent on these activities is wasted
C. the results achieved are even and highly predictable
D. only the channel members are motivated and not the final consumers
E. rarely fail to achieve objectives
Answer:
When planning for the different stages of the product life cycle, managers should
remember that:
A. Sometimes, competitors can help to build customer interest in a new product idea.
B. The correct strategy depends on how quickly the new idea will be accepted by
consumers.
C. A firm that can change its strategy quickly may have an advantage over less flexible
competitors.
D. Not all new product ideas catch on with consumers or intermediaries.
E. All of these alternatives are true.
Answer:
