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When consumers use a problem-solving process to make purchase decisions, what is
the next step after they become aware of a problem?
A. Evaluating alternative solutions.
B. Gathering information about possible solutions.
C. Deciding on the appropriate solution.
D. Evaluating the decision.
E. Making the commitment to purchase a particular product or service.
Which of the following is NOT true of a product-market?
A. Competing suppliers offer close substitutes to satisfy needs.
B. Customers in a product-market have very similar needs.
C. Very different types of products may compete for consumer dollars.
D. Naming product-markets includes consideration of where the customers are.
E. None of these alternatives is true.
A breakdown in any element of the marketing mix can result in a requirement for
A. customer service.
B. additional sales promotion.
C. reimbursement.
D. replacing the salesperson.
E. technical specialists.
Large wholesale and retail buyers typically:
A. pay close attention to each of the products they buy.
B. don't trust automatic inventory control methods.
C. see themselves as selling agents for manufacturers.
D. buy most of their products as straight rebuys.
E. None of these alternatives is correct.
Which of the following statements by a sales manager best reflects an understanding of
the iceberg principle?
A. "Detailed cost analysis gets you focused on small parts of the problem, whereas
general summaries make it easier to see the really big problems."
B. "Most costs that look like they're fixed are actually changing all of the time."
C. "Don't tell me that you're certain we're going to increase sales. They were certain that
an iceberg couldn't sink the Titanic!"
D. "Let's not dwell on sales data summarieslet's get below the surface and study the
details."
E. "Cost problems always show up firstbut controlling expenses doesn't mean that you
won't run into revenue problems."
A type of vertical integration system that develops by acquiring firms at different levels
of channel activity is called:
A. Corporate.
B. Traditional.
C. Administered.
D. Contractual.
E. Technical.
If Walmart purchases a manufacturing plant to produce nothing but Walmart's dealer
brand of laundry detergent, Walmart is engaging in:
A. Monopoly.
B. Vertical integration.
C. Intertype competition.
D. A contractual channel system.
E. An administered channel system.
James is a prospective car buyer. In his context, which of the following statements
would reflect a determining dimension?
A. He must have enough money, or credit, to buy a car and insure it.
B. He needs to have a valid driver's license.
C. He has kids who have to be carpooled.
D. He needs a safe car.
E. His office is 2.5 miles from home.
Sandi Barefoot sells the entire output of several small companies based in Silicon
Valley. Each of the companies designs and produces remote control devices. Sandi has
almost complete control of pricing and sellingbecause the engineers who started the
companies are mainly interested in inventing things. In addition, Sandi often provides
working capital to the producers, who have very limited financial resources. Sandi is
paid a substantial commission on all sales. Sandi is a:
A. broker.
B. selling agent.
C. field warehouser.
D. manufacturers' agent.
E. factor.
The text's discussion of Ford's marketing strategy highlights the fact that:
A. it's not wise for managers to just define a business in terms of the products they
currently produce or sell.
B. there is little alternative but to stick with the traditional promotion channels for a
product.
C. most consumers see basic products--like cars--as close substitutes for each other.
D. once a firm establishes a position as the market leader, competitors are not likely to
be a big problem.
The advantages of working with an intermediary usually increase when there is
A. excellent communication with customers.
B. a greater number of customers.
C. little distance between customers.
D. a smaller number of competing products.
With regard to government buying:
A. One of the primary concerns of government buyers is finding the lowest price.
B. A government buyer may be forced to accept the lowest bid whether he wants the
goods or not.
C. A government buyer can accept a higher bid when lower bids don't meet the required
specifications.
D. Purchases by government buyers in the United States are usually subject to much
public review.
E. All of these alternatives are correct.
For an intermediary, a sales promotion would mean all of the following except
A. deciding to stock a product.
B. providing a special display space.
C. expecting the promotion to go on forever.
D. giving the product extra sales emphasis.
E. assigning a larger budget to the product.
A set of ________________ contains a written or electronic description of what a firm
wants to buy.
A. requirements
B. purchasing specifications
C. blueprints
D. quality certifications
E. request forms
In customer-initiated interactive communication:
A. the message channel has no impact.
B. noise is no longer a factor.
C. the source initiates the communication.
D. interactive technology plays a big role.
E. action is less immediate.
Marketing research is concerned with developing and analyzing new information to
help marketing managers do a better job of:
A. executing marketing strategies.
B. planning marketing strategies.
C. making operational decisions.
D. controlling marketing strategies.
E. All of these alternatives are correct.
A job description for a sales position
A. should be detailed enough that it lists the specific tasks to be performed.
B. should be in writing, but should be quite general so that it doesn't reduce the sales
manager's flexibility in assigning jobs.
C. should look pretty much the same from one company to another.
D. is not very useful, since the job is always changing.
E. All of these alternatives are true.
To encourage potential buyers to take its new Model 3 sedan for a test drive, BMW
posts a video on its website of the Model 3 speeding down a winding mountain road.
This is an example of:
A. single-customer marketing.
B. advertising.
C. publicity.
D. personal selling.
E. sales promotion.
An advertising manager's job is to:
A. manage the firm's advertising effort.
B. plan creative marketing strategies.
C. develop the firm's marketing mix.
D. develop the firm's promotion blend.
E. all of these are included in an advertising manager's job.
As macro-marketing systems improve worldwide:
A. there will be greater monopolization.
B. poverty in industrialized nation will increase.
C. there will be fewer competitors worldwide.
D. the price of products will rise steeply.
E. more consumers will have income to buy products.
The regrouping activity which involves collecting products from many small producers
so that the products can be handled more economically further along in the channel is
called:
A. sorting.
B. wholesaling.
C. accumulating.
D. assorting.
E. bulk-breaking.
A customer who searches the Yellow Pages for information regarding a business is
taking which of the following dual roles in the communication process?
A. Feedback and encoder
B. Receiver and message channel
C. Receiver and initiator
D. Source and initiator
E. Encoder and decoder
Marketing:
A. applies to both profit and nonprofit organizations.
B. says that marketing should take over all production, accounting, and financial
activities.
C. should begin as soon as goods are produced.
D. does away with the need for advertising.
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 wirecoated 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.
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!"
Given the advertising objective for the SuperDuperGamer, which of the following types
of advertising would be most appropriate?
A. informative "why" ads
B. point-of-purchase advertising
C. viral advertising
D. reminder ads
E. None of these would be appropriate.
Branding is good for some CONSUMERS because it:
A. makes shopping easier.
B. provides dependable guides to product quality.
C. helps assure regular satisfaction.
D. connects the product with the benefits the consumer expects.
E. All of these alternatives are correct.
The use of temporary price cuts to speed new products into a market and encourage trial
by customers is:
A. A penetration pricing policy.
B. Introductory price dealing.
C. Pricing for dollar or unit sales growth.
D. A skimming price policy.
E. A flexible-price policy.
Along with studying trends in the environment, a first step in looking for attractive
opportunities is to:
A. understand the resources and objectives of the firm.
B. decide which product-markets the firm will enter.
C. find new markets for present products.
D. estimate product-market potentials.
E. hire a marketing strategy planner.
Which of the following types of advertising is most associated with the confirmation
stage of the adoption process?
A. Reminder ads
B. Teaser campaigns
C. Persuasive copy
D. Competitive ads
E. Search ads
When consumers do not know where to buy a product or what it costs and the product's
producer does not know where its target market is located, this is an example of:
A. separation of information.
B. discrepancy of quantity.
C. separation of ownership.
D. discrepancy of assortment.
E. separation in time.
