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Worldwide Applicance Co. put together data to measure sales performance by region of
the United States. The Western region included 30% of the U.S. population and was
expected to deliver a similar share of Worldwide's sales. This region ended up
delivering 30% of the company's overall sales. The performance index for the Western
region would be:
A. .90.
B. 1.30.
C. 130.
D. 100.
E. 90.
The idea that new types of retailers begin as low-status, low-margin, low-price
operators and thenif successfulevolve into more conventional retailers offering more
services is called the:
A. wheel of retailing theory.
B. pyramid concept.
C. scrambled merchandising concept.
D. superstore concept.
E. mass-merchandising concept.
______________ is the process of naming broad product-markets and then segmenting
these broad product-markets in order to select target markets and develop suitable
marketing mixes.
A. Market segmentation
B. Strategic planning
C. Mass marketing
D. Market positioning
E. Implementation
Which of the following is NOT a trend affecting marketing planning strategy in the area
of Business and Organizational Customers?
A. Shift to NAICS.
B. Closer relationships and single sourcing.
C. ISO 9000.
D. Less e-commerce and supply chain management.
E. More use of JIT and EDI.
______________ is the process of naming broad product-markets and then segmenting
these broad product-markets in order to select target markets and develop suitable
marketing mixes.
A. Market positioning
B. Market segmentation
C. Mass marketing
D. Diversification
E. Strategic planning
"Sales promotion":
A. can complement a firm's personal selling and mass selling efforts.
B. involves direct spoken communication between sellers and potential customers.
C. is any paid form of nonpersonal presentation of goods or services by an identified
sponsor.
D. is "free" like publicity.
E. consists of personal selling and mass selling.
A young working couple earned $55,000 last year. They paid $16,000 in taxes and
$20,000 in rent, food, insurance and other necessities. What was their discretionary
income for the year?
A. $39,000.
B. $55,000.
C. $30,000.
D. $35,000.
E. $19,000.
______ needs are concerned with things that involve a person's interaction with others.
A. Physiological
B. Safety
C. Biological
D. Personal
E. Social
Despite the Antimerger Act, there has been some leniency in allowing mergers between
firms that have been competitors. When considering a merger, companies should take
this aspect of the _____________ environments into consideration.
A. legal and political
B. cultural and economic
C. technological and legal
D. social and cultural
E. political and economic
In the U.S., producers of soap and detergent spend about _____ percent of their sales
dollars on advertising.
A. 1
B. 4
C. 7
D. 10
E. 14
A producer sells an item to a wholesaler for $4.00, and the wholesaler uses a markup of
25 percent on its selling price. What will be the cost to the retailer?
A. $4.75
B. $4.87
C. $5.03
D. $5.33
E. $5.45
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 costto 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 $60with 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.
What is the final selling price Robinson's Sporting Goods charges for a SPI basketball?
A. $10.00
B. $15.00
C. $15.75
D. $20.80
E. None of these alternatives is correct.
A systematic, critical, and unbiased review and appraisal of the basic objectives and
policies of the marketing functionand of the organization, methods, procedures, and
people employed to implement the policiesis called a:
A. MIS report.
B. marketing audit.
C. management review.
D. marketing information system.
E. marketing analysis survey.
Carmela Sanchez is planning to buy a pair of running shoes. Recently, she has been
noticing more Adidas advertising in magazines. This is an example of:
A. a physiological need.
B. dissonance.
C. need satisfaction.
D. selective exposure.
E. a consumer expectation.
Skimming may maximize profits in the market introduction stage for an innovation,
especially if
A. there are few substitutes.
B. all customers are price sensitive.
C. competition is intense.
D. a price reduction will reduce goodwill.
E. demand is perfectly elastic.
The different rates of population growth are important to marketers for all of the
following reasons except
A. sudden growth in one area may create a demand for many new shopping centers.
B. retailers in growing areas face tougher competition for a smaller number of
customers.
C. marketers always look for fast-growing markets.
D. in growing areas, demand may increase so rapidly that profits may be good even in
poorly planned facilities.
According to the "hierarchy of needs" model, the first needs most people try to satisfy
are their ______________ needs.
A. safety
B. personal
C. physiological
D. social
E. any of these are correct.
Which of the following statements about ethnic dimensions of the U. S. market is True?
A. Ethnic groups buy differently and have different needs.
B. Many firms make the mistake of treating all consumers in an ethnic group as
homogeneous.
C. The number of ethnic consumers is growing at a faster rate than the overall society.
D. The buying power of ethnic submarkets is increasing rapidly.
E. All of these statements about ethnic dimensions are True.
According to the "continuum of environmental sensitivity," which of the following
types of products would be most sensitive to environmental changes?
A. Consumer products that are basically a commoditylike gasoline
B. Industrial products
C. Consumer products that are tied to cultural differenceslike diet colas
D. Manufacturing products
E. Engineering products
India has more people than the United States, and China has more people than India.
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
What medium is appropriate for integrated direct-response promotion?
A. Telephone
B. Interactive video
C. Print
D. E-mail
E. Any of these media might be appropriate for integrated direct-response promotion.
A mission statement
A. should never be revised.
B. sets out the organization's basic purpose for being.
C. should embrace everything rather than focus on a few key goals.
D. substitutes for more specific objectives.
E. supplies guidelines for general situations but not for situations where managers face
difficult decisions.
More freight is carried more miles _____ than any other mode of transportation.
A. by railroads
B. by air
C. by pipeline
D. by trucks
E. over water
Product recalls, returns, and recycling plans require some firms to use:
A. vertical integration.
B. contractual channel systems.
C. exclusive distribution.
D. selective distribution.
E. reverse channels.
An order-taking sales rep would be MOST appropriate for a producer of:
A. cleaning materials for maintenancecalling on regular customers.
B. designer clothingcalling on possible new retailers.
C. laptop computersselling to manufacturers who don't yet have any computers.
D. airplanescalling on possible corporate jet customers.
E. a new brand of DVD systemcalling on wholesalers.
Which of the following statements about intranets is NOT TRUE?
A. Intranets are a system for linking computers within a company.
B. Information is available on demand.
C. An intranet is easy to update.
D. Access to websites on an intranet is unrestricted.
E. Even very small firms may have their own intranet.
A corporate chain is defined as
A. a firm that owns and manages more than one store.
B. retailer-sponsored groups formed by independent retailers that run their own buying
organizations and conduct joint promotion efforts.
C. wholesaler-sponsored groups that work with "independent" retailers.
D. franchisors who develop good marketing strategies, and who carry out the strategy in
their own units.
E. a firm that owns a single-store but operates through multiple franchisors.
For six months Kim Wu has been working for Sunny Day Foods (SDF), a fast-growing
manufacturer of organic foods. After graduating college, she worked for four years as a
sales rep for a nationally known food company. But, she jumped at the chance when
SDF contacted her about becoming marketing manager for its breakfast foods division,
which sells dry cereals and a pancake mix.
Kim spent the first few months on the job trying to better understand SDF, its product
line, and marketing strategy. She reviewed the company's past marketing research,
commissioned new research, and talked to both consumers and retailers. Now, the CEO
of the company wants her thoughts on what the company's marketing strategy should be
for the next few years.
Her research indicates that among cereal customers there are at least five segments of
customers who use SDF products.
a) One segment, the loyalists, has a strong preference for one or two of the SDF cereals.
These customers often go out of their way to visit a store with their favorite SDF cereal
and buy only that product at the store.
b) Another segment, the regulars, buys SDF cereals without much thought. For them it
is just part of their routine and, if you ask them why they pick the cereal, they'd say it's
just a habit.
c) A third segment, the deal prone, sees SDF cereals as just another organic cereal. They
view all organic cereals as pretty much the same and buy whichever brand seems to
offer the best deal that week.
d) A fourth segment, the politicos, consists of former buyers of SDF cereals. A few
years ago the company took a strong stand in a presidential race-and these customers
resented it. Now, they boycott all SDF foods because of that incident.
e) A fifth segment, SDF who?, is made up of consumers who buy organic cereals but
who don't have much awareness of particular organic brand names.
In reviewing how SDF currently brands its products, Kim sees that it is using several
different approaches. The Sunny Day Foods brand is used on most products the
company sells. But a few years ago the company brought out an instant organic oatmeal
with the Hot n Healthy name. SDF also makes cereal sold by a health food chain; the
package for that chain uses the store's own name, Nature's Foods, as the brand name for
the cereal.
For which market segment would widespread distribution NOT be as important?
A. Politicos
B. SDF who?
C. Loyalists
D. Deal prone
E. Regulars
Which of the following statements about a flexible-price policy is True?
A. Flexible pricing means offering the same price to all customers who purchase under
essentially the same conditions and in the same quantities.
B. The availability of computer pricing databases has had no effect on the popularity of
flexible-price policies.
C. Flexible pricing often involves price negotiation between the buyer and seller.
D. Flexible pricing does not cause channel conflict.
E. None of these statements about a flexible-price policy is true.
The best way to ship a heavy product like iron ore from St. Louis, Missouri, to New
Orleans, Louisiana, in the Spring season with no arrival deadline is to use:
A. Air.
B. Truck.
C. Pipeline.
D. Rail.
E. Water.
By computing confidence intervals a researcher can:
A. have just as much confidence in an estimate from a small sample.
B. offset some of the problems of having a nonrepresentative sample.
C. estimate how precise her research results are likely to be.
D. None of these alternatives is a good answer.
In this method of budgeting, the spending level might be based on the number of new
customers desired and the percentage of current customers that the firm must retain to
leverage investments in already established relationships.
A. Basing the budget on the job to be done.
B. Basing the budget on any uncommitted revenue.
C. Setting the budget as a certain number of cents or dollars per sales unit.
D. Matching expenditures with competitors.
E. Setting the budget based as a certain number of dollars per person.
Staple products:
A. need maximum exposure and widespread distribution at low cost.
B. need adequate representation in major shopping areas.
C. need widespread distribution but with assurance of preferred display.
D. need widespread distribution near probable points of use.
E. can have limited availability as long as display is good.
Combiners
A. look at various submarkets for differences rather than similarities.
B. try to increase the size of their target markets by merging two or more segments.
C. aim at one or more market segments and offer each different marketing mixes.
D. have decided to sacrifice profits for sales volume.
E. aim at one submarket with a specialized marketing mix.
