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Business professional services:
A. may not be purchased outside the firm if they are needed regularly.
B. support a firm's operations.
C. are offered by a growing number of specialists.
D. are generally treated as expense items.
E. All of these alternatives are correct.
Answer:
"Target marketing," in contrast to "mass marketing,"
A. is limited to small market segments.
B. assumes that all customers are basically the same.
C. ignores markets that are large and spread out.
D. focuses on fairly homogeneous market segments.
Answer:
Regarding the demand for business products,
A. Demand for business products is derived from the demand for final consumer
products.
B. The demand facing most individual firms is fairly inelastic.
C. Industry demand is generally highly elastic.
D. All of these alternatives are correct.
Answer:
Deciding whether a group of customers should be included in a target market is the
purpose of _____ dimensions.
A. behavioral
B. demographic
C. determining
D. qualifying
E. geographic
Answer:
Which of the following is MOST LIKELY to be found in a production-oriented firm?
A. Agreements among departments about how to improve customer satisfaction.
B. Making products that are easy to produce.
C. Producing goods that exactly meet the customer's needs.
D. A focus on profit rather than sales.
E. None of these is likely to be found in a production-oriented firm.
Answer:
A ________ is an organized table that compares the strengths and weaknesses of a
company with those of its competitive rivals.
A. competitive advantage
B. competitor matrix
C. insight table
D. positioning graph
E. competitor analysis
Answer:
Regarding our MACRO-marketing system:
A. marketing makes people materialistic by creating "false values."
B. advertising generally raises prices and wastes resources.
C. marketing tries to satisfy "unwanted demand" rather than "genuine wants."
D. satisfying consumer needs and wants is a dynamic, on-going process.
E. none of these alternatives is correct.
Answer:
Which of the following is likely to be part of a situation analysis?
A. A marketing analyst looks up data in Advertising Age magazine about expenditures
in the firm's market
B. A marketing researcher asks a trade association for one of its reports
C. A marketing manager searches data.gov
D. All of these are good choices
Answer:
Which of the following U.S. marketing managers is about to make a serious mistake?
A. "We are targeting 50-59 year olds because we see this group as the fastest growing
age group over the next decade."
B. "We are refocusing on senior citizens, since they will be a growing market for many
years."
C. "We are developing special swimsuit designs for older women as that market is very
large and growing."
D. "Our company is shifting to international markets, where the population will
continue to grow at a more rapid rate."
E. None of these marketing managers seems headed for a mistake.
Answer:
An automobile manufacturer charges a higher price for its "hybrid" car that runs on
both electricity and gasoline than it charges for a car that runs on only gasoline. The
manufacturer contends that the consumer will save money with the hybrid car in the
long run because the money saved on gasoline will more than cover the price
differential between the hybrid car and a regular car. This manufacturer is using:
A. price leadership.
B. price lining.
C. value in use pricing.
D. psychological pricing.
E. reference pricing.
Answer:
Vendor analysis
A. ensures objectivity by disregarding whether a supplier has been used in the past.
B. emphasizes the emotional factors in a purchase decision.
C. is used less now that multiple buying influence is more common.
D. None of these alternatives is true.
Answer:
Emergency products:
A. need adequate representation in major shopping areas.
B. need widespread distribution but with assurance of preferred display.
C. can have limited availability as long as display is good.
D. need widespread distribution near probable points of use.
E. need widespread distribution at low cost.
Answer:
In a market-directed economy:
A. marketing managers make all the important economic decisions.
B. government planners make all the important economic decisions.
C. all the important economic decisions are made by voters in political elections.
D. consumers make all the important economic decisions.
E. the individual decisions of the many producers and consumers make the macro-level
decisions for the whole economy.
Answer:
All of the following are part of the direct market environment EXCEPT:
A. customers.
B. competitors.
C. the company itself.
D. the technological environment.
Answer:
A sales presentation in which the sales rep does most of the talking, using a "canned"
presentation to obtain a "yes" answer to a "trial close" is a:
A. prepared sales presentation.
B. target market presentation.
C. consultative selling presentation.
D. selling formula presentation.
E. None of these is a good answer.
Answer:
Regarding adoption curve groups, which of the following is TRUE?
A. By the time the early majority buy a product it is usually in the market maturity
stage of the product life cycle.
B. The early adopters have many contacts outside their own social group, and are
important in spreading information to laggards.
C. Business firms in the late majority group tend to be conservative, smaller-sized firms
with little specialization.
D. The laggard group may be slow to adopt, but it is so large that it is very important to
reach them.
E. None of these alternatives is true.
Answer:
The LATE MAJORITY:
A. make a lot of use of mass media.
B. respond more to social pressure from other late adopters than to salespeople.
C. make a lot of use of salespeople.
D. use salespeople and have much contact with the early majority.
E. have a lot of contact with early adopters.
Answer:
Use this information for question that refer to the Pricing 1 case. (WPI) case.
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. Regarding 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 company uses administered prices?
A. Bella Computers
B. Ross Pharmaceuticals
C. Digital Imaging
D. Jack's One Hour Cleaners
E. All of the companies use administered prices
Answer:
Which of the following statements is MOST characteristic of the "production era"?
A. "If we sell harder, we will sell more."
B. "We need to cater to the diverse needs of consumers."
C. "There is no limit on what we can sell if we produce efficiently."
D. "The more options we offer consumers, the better."
E. "Advertising is the key to our success."
Answer:
Exclusive distribution
A. should generally be used only if it is not possible to generate intermediary interest in
intensive distribution.
B. is legal as long as it does not involve vertical channel arrangements.
C. arrangements between a producer and intermediary are illegal for most types of
products, and thus they are not very common in the U.S.
D. usually involves intermediaries who are willing to take over all responsibility for
promoting the producer's product.
E. None of these alternatives are correct.
Answer:
Kraft Foods recently increased its advertising and couponing to its present cheese
customers. It appears that Kraft is pursuing what kind of opportunity?
A. Market penetration
B. Product development
C. Market development
D. Mass marketing
E. Diversification
Answer:
Use this information for question that refer to the Super Gaming Company and
Accessories (SGCA) case.
Kayla Jurgenson, marketing manager for Super Gaming Computers and Accessories
(SGCA), is reviewing her company's plans for the coming year.
SGCA sells its products through retail computer dealers and some specialty gaming
stores. Currently, SGCA is carried in 25 percent of all retail computer stores nationwide,
but in California is carried in only 10 percent of stores. So, Kayla has set an objective of
being in 25% of all retail computer stores in California within one year.
SGCA plans to introduce a new SuperDuperGamer model with special features that fits
its target market of teen and young adult gamers. The SuperDuperGamer uses a new
technology and is expected to be a breakthrough product, but it will be important to
build awareness for it to succeed. So, the advertising objective is for 40% of SGCA's
target market to be aware of the new SuperDuperGamer model within 3 months. SGCA
also wants to help its retailers reduce their current stock of SuperGamer computers
before the new model comes out in a month. The SuperGamer has been on the market
for two years and has been a top seller in the category. SGCA's advertising objective for
the SuperGamer computer is to reduce current dealer stock by 80% within the next
month.
SGCA is also introducing a SuperEnhancer sound card, which is designed to
significantly enhance the game-playing experience with older computers. Research with
gamers show that it is very well received, so the advertising objective for the
SuperEnhancer sound card is to gain 40% market share among all gaming-specific
sound cards in the next year. To help achieve that objective, Jurgenson is planning to
use an ad that shows the sound card and a game player being knocked off his chair by
the sound. The headline on the ad reads, "9 Out of 10 Gamers Say that the
SuperEnhancer Sound Beats All Others!"
The copy thrust of the ad for the SuperEnhancer sound card is an example of what kind
of advertising?
A. Pioneering advertising
B. Indirect competitive advertising
C. Direct competitive advertising
D. Reminder advertising
E. Institutional advertising
Answer:
What does the AIDA concept stand for?
A. Attention, Interest, Desire, Action
B. Alertness, Interest, Develop, Appeal
C. Attention, Involvement, Desire, Action
D. Alertness, Involvement, Desire, Appeal
E. Action, Involvement, Desire, Attention
Answer:
A leading hard-disk manufacturer introduces a new line of high-capacity disk drivers.
After selling to elite customers at a high price point, the company slowly reduces its
prices over a period of time. The company is engaging in
A. single pricing.
B. introductory price dealing.
C. price skimming.
D. penetration pricing.
E. predatory pricing.
Answer:
A marketing manager should
A. know that most consumer complaints do not require a response because the
consumer's dissatisfaction is beyond the control of the firm.
B. recognize that many consumers who complain are trouble makers and that not much
can or should be done about their complaints.
C. assume that most customers who are dissatisfied will complain, but that people who
are satisfied will be silent.
D. be concerned that many of the complaints that are reported are never resolved.
E. recognize that a "complaint" box isn't needed if the firm is really market-oriented in
the first place.
Answer:
Chelsea is buying her first flat panel television. She wants to make the right decision, so
she consults several websites for product reviews, talks to friends and salespeople at
electronics stores, determines several key criteria, and evaluates six different sets. For
her flat panel purchase, Chelsea used
A. extensive problem solving.
B. focused information search.
C. routinized response behavior.
D. limited problem solving.
E. low involvement buying.
Answer:
Which of the following statements about ISO 9000 is FALSE?
A. ISO 9000 is a way for government suppliers to document their quality procedures,
but it does not apply to other organizational suppliers.
B. A supplier that has met the ISO 9000 standard is always better than one that has not.
C. ISO 9000 applies to international suppliers only.
D. All of these statements are FALSE.
Answer:
A typical retailer's newspaper ad stressing "today's" sale prices on "regular" stock is an
example of ______________ advertising.
A. reminder
B. direct competitive
C. pioneering
D. institutional
E. indirect competitive
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.
According to the definition in your text, which of WPI's products can be called a new
product?
A. Wire Closet
B. Wire Locker
C. Wire Fold-Fence
D. Wire Window
E. None of these products fits the definition of a new product
Answer:
In a grocery store's "valued customer" program, every shopper gets a card that he/she
presents to the clerk in the checkout aisle. The card is scanned along with the customer's
groceries. The store's computer system tracks each shopper's purchases and
automatically provides special valued customer discounts. Every month, the customers
in the program receive a newsletter containing coupons that are based on the customer's
purchase history. For example, someone purchasing a lot of baby formula and
disposable diapers might get a coupon for a free box of baby wipes. This valued
customer program is based on which of the following types of research?
A. Questioning
B. Experimentation
C. Observation
D. Online surveys
E. Personal interviews
Answer:
The disaggregating step in market segmentation involves
A. brainstorming about very different solutions to various generic needs.
B. looking for similarities in needs.
C. selecting target markets.
D. developing suitable marketing mixes.
E. selecting a target marketing approach.
Answer:
