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If a firm has excess production capacity, it
A. can serve as a safety net if demand suddenly picks up.
B. may be a sign that there's too much competition.
C. may make sense for the marketing manager to try to find new markets for current
products.
D. can be costly.
E. All of these.
In the development of a marketing plan, blending the marketing mix would not
generally involve
A. predicting future behavior.
B. product classes.
C. strategy planning process.
D. product life cycle.
E. understanding the target market.
A rebate is:
A. a temporary discount from the price list.
B. a reduction in price to encourage buyers to pay their bills quickly.
C. a temporary price cut to attract customers.
D. a refund paid to consumers after a purchase.
E. a document detailing pricing changes.
A marketing plan:
A. is a combination of several marketing strategies.
B. must cover a one-year period.
C. consists of a target market and an appropriate marketing mix.
D. includes the time-related details for implementing a marketing strategy.
E. All of these alternatives are correct.
Which of the following statements does not describe a command economy?
A. Government bureaucrats decide what and how much is to be produced.
B. A command economy is sometimes called a "planned economy."
C. Prices are set by the law of supply and demand.
D. Producers offer a highly limited assortment of goods and services.
E. The economy is found in countries like Iran and North Korea.
____ conflict occurs between firms at the same level in the channel of distribution.
A. Vertical
B. Diagonal
C. Horizontal
D. Parallel
E. Cyclical
Which of the following research methods can not be employed in a market research
online community?
A. brainstorming sessions
B. focus groups
C. surveys
D. personal interviews
E. All of these methods can be used with a market research online community.
In which of the following situations is the cross-functional challenge likely to be the
greatest?
A. A firm selecting employees for Six Sigma quality Training
B. An advertising campaign that has been developed based on another successful
advertising campaign and is targeting a similar audience
C. A quality control department that has been formed by selecting the most experienced
employees of a division
D. A company's plan to diversify operations by entering a new industry
E. A firm's decision to obtain its raw materials from a new supplier
Henry Ford told prospective customers of his Model T car, "You can have any color as
long as it is black." Which aspect of the marketing mix was he stressing?
A. Promotion
B. Product
C. Place
D. Price
Which of the following is probably NOT a part of a situation analysis?
A. A marketing manager asks a radio station for a copy of an audience study.
B. A marketing analyst determines from a Census publication how many manufacturers
are in the Portland area.
C. A marketing analyst looks in the Index of Business Periodicals for articles about a
large retail chain.
D. A computer company asks ten lawyers to participate in a focus group on how they
use the internet.
E. All of these alternatives seem to be part of a situation analysis.
Deciding on the appropriate promotion blend is a job for the firm's:
A. advertising agency.
B. marketing manager.
C. advertising manager.
D. sales manager.
E. sales promotion manager.
A young working couple earned $50,000 last year. Of that, they paid $16,000 in taxes
and $15,000 in rent, food, insurance and other necessities. Their discretionary income
for the year was:
A. $35,000.
B. $50,000.
C. $19,000.
D. $34,000.
E. $15,000.
Segmenting dimensions
A. are useful for segmenting consumer markets, but not business markets.
B. help guide marketing mix planning.
C. are always demographic or geographic.
D. fall into two general categories: qualifying and purchasing.
E. may be called qualifying or non-qualifying.
Which of the following observations is false?
A. Competition needs to be considered when adding in overhead and profit for a bid
price.
B. Some sellers fake their records to make costs seem higher than they really are.
C. Negotiated price is a price set based on bargaining between the buyer and seller.
D. Negotiated pricing is rare in situations where the marketing mix is adjusted for each
customer.
E. Negotiated pricing is a demand-oriented approach.
Which of the following statements about just-in-time delivery is FALSE?
A. Just-in-time shifts greater responsibility for physical distribution backward in the
channel.
B. Just-in-time reduces storing and handling costs for everyone in the channel.
C. Just-in-time increases the coordination needed among channel members.
D. Just-in-time reduces storing and handling costs for business customers.
E. None of these statements about JIT delivery is FALSE.
A wholesaler-sponsored retail chain is called a:
A. consumer cooperative.
B. corporate chain.
C. franchise chain.
D. voluntary chain.
E. cooperative chain.
Which of the following would NOT be favorable for successful branding?
A. The product is hard to identify by brand or trademark.
B. The product has widespread availability in the market.
C. The product has economies of scale in production and distribution.
D. The product offers the best value for the price.
E. Product quality is easy to maintain.
Trying to sell a firm's new product to a large market at one low price is known as:
A. a skimming pricing policy.
B. introductory price dealing.
C. nonprice competition.
D. a penetration pricing policy.
E. a flexible-pricing policy.
Business firms in the late majority group
A. are willing to take the risk of doing something new.
B. tend to be older and less well educated.
C. are the smallest businesses with the least specialization.
D. tend to be highly specialized.
E. tend to be conservative, smaller-sized firms with little specialization.
Which of the following statements concerning secondary data is correct?
A. Secondary data usually takes longer to obtain than primary data.
B. Secondary data is only available within the firm.
C. Secondary data was originally collected for some other purpose.
D. Secondary data may provide some background, but never provides the answer.
E. None of these statements is correct.
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.
For which product is it most critical for WPI to build brand familiarity?
A. Wire Closet
B. Wire Window
C. Wire Locker
D. Wire Tent
E. It is equally important for each of these products.
Regarding organizational buying, the people who have the power to select or approve
the supplierespecially for larger purchasesare called:
A. influencers.
B. deciders.
C. buyers.
D. gatekeepers.
E. users.
Which of the following is NOT a key dimension of buyer-seller relationships in
business markets?
A. Information sharing
B. Legal bonds
C. Cooperation
D. Operational linkages
E. All of these are key dimensions
Attitudes are:
A. things we believe strongly enough to be willing to take some action.
B. more action-oriented than beliefs.
C. reasonably enduring points of view about something.
D. usually thought of as involving liking or disliking.
E. All of these alternatives are correct.
"Fashion" is the currently accepted or popular ______________
A. trend.
B. idea.
C. fad.
D. assortment.
E. style.
The government market
A. often relies on an "approved supplier list" for routine items that are bought
frequently.
B. is the largest customer group in the United States, accounting for about 30 percent of
the gross domestic product.
C. usually buys from the lowest price supplier that can meet the written specifications.
D. normally uses a mandatory bidding procedure.
E. All of these alternatives are true.
Marketing cost analysis starts with the assumption that:
A. "natural accounts" are more useful than "functional accounts."
B. marketing expenditures are made for a specific purposeand so it makes sense to
allocate costs to different market segments, customers, or products.
C. all marketing expenditures should be treated as overhead expenses.
D. overall profit is what countsso it isn't critical if some market segments, products, or
customers are unprofitable.
E. All of these.
Total variable cost:
A. is zero when the quantity produced is zero.
B. is the sum of those changing expenses that are closely related to output.
C. may increase as the quantity produced is increased.
D. All of these alternatives are correct.
Warehouse clubs such as Sam's Club and Costco
A. usually operate in large, no-frills facilities.
B. have been successful targeting small-business customers.
C. emphasize homogeneous shopping products.
D. usually charge consumers an annual membership fee.
E. All of these alternatives are true for warehouse clubs.
One way marketers can screen for opportunities that are good for society is to screen
based on the criteria of:
A. growth.
B. profitability.
C. sustainability.
D. return on investment.
E. business strengths.
In marketing cost analysis, all of the following are considered functional accounts
EXCEPT:
A. rent.
B. billing.
C. order assembly.
D. storing.
E. transporting.
Which of the following is not a variable associated with the cultural and social
environment?
A. Technological innovation
B. The role of women in society
C. Language
D. Attitudes on environmental issues
E. Education level
