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Evergreen Lighting, a manufacturer of decorative, energy-efficient lighting products,
requires its buyers to pay for the cost of transportation from the manufacturing site to
their place of businesses. Evergreen Lighting uses FOB origin pricing.
a. True
b. False
Answer:
Novartis
Novartis, a Swiss drug maker, is planning to purchase a majority stake in Zhejiang
Tianyuan Bio-Pharmaceutical Company, a Chinese vaccine maker. Novartis has agreed
to pay $125 million for the company, which holds a 3 percent share of China's $1
billion vaccines market. The market for vaccines is growing 20 percent or more in the
developing nations of Asia, Africa, and Australasia. In the past, vaccine use has been
limited to basic shots against diseases such as polio, tuberculosis, and measles, but as
the economies of these countries grow, government and private healthcare spending
focuses on preventing diseases such as hepatitis B, cholera and rotavirus, tetanus, and
others. Some critics are against the acquisition, claiming that prices will increase.
Novartis claims it is not interested in raising prices but rather in expanding Tianyuan's
product offerings.
Refer to Novartis. One thing Novartis plans to do is increase sales to governments and
to the United Nations agencies since these are the typical buyers of vaccines to
distribute in poor countries. Thus, the company is willing to give up short-term profits
to increase market share for this company. In terms of the portfolio matrix, which basic
strategy will Novartis be implementing?
a. Holding
b. Harvesting
c. Divesting
d. Building
e. Diverting
Answer:
Candace Popwell makes and markets Festive Holiday Truffles candy. The confectionary
company owner views the world as one big market with no individual segments and
tries to reach it with only one marketing mix. Her essentially mass-market philosophy
indicates she probably uses a(n) _____ strategy.
a. multisegment targeting
b. universal product
c. concentrated targeting
d. undifferentiated targeting
e. product differentiation
Answer:
Unlike advertising that establishes or maintains a company's identity, ____ advertising
touts the benefits of a specific good or service.
a. selective
b. cooperative
c. advocacy
d. image
e. product
Answer:
The _______ orientation assumes people will buy more if aggressive selling techniques
are used.
a. market
b. sales
c. customer
d. production
e. exchange
Answer:
Heinz is introducing 400 new products in the next two years. To know which markets to
reach, Heinz should first perform a:
a. market diversification analysis
b. market audit
c. social audit
d. market opportunity analysis
e. niche analysis
Answer:
As a result of hearing the adventures of returning soldiers, Monroe decided to enlist in
the U.S. Army. These stories he heard from the soldiers acted as:
a. affective states
b. external stimuli
c. internal stimuli
d. purchase outcomes
e. a dissonance creator
Answer:
First Southern Community Bank has long tried to differentiate itself as "your friendly,
hometown bank." However, the bank president has been concerned about a number of
recent customer service complaints. Which of the following approaches would probably
be best to get a feel for how friendly her employees really are to customers?
a. Employee focus group interview
b. Mail questionnaire of a sample of current customers
c. Mystery shopper
d. Experiential research
e. An Internet-based community study
Answer:
___ is the managerial process of creating and maintaining a fit between the
organization's objectives and resources and the evolving market opportunities.
a. Tactical management
b. The market audit
c. Functional planning
d. Environmental scanning
e. Strategic planning
Answer:
Mosaic Labs has developed a chemical compound that prevents mildew in even the
most humid climates. The week after the compound was invented, a group of the firm's
employees got together and listed ways the product might be used. This is an example
of:
a. quality control
b. brainstorming
c. concept testing
d. venture group activities
e. screening
Answer:
All of the following are factors in creating a store's atmosphere EXCEPT:
a. employee type and density.
b. fixture type and density.
c. sound.
d. price.
e. odors.
Answer:
When Microsoft introduced its now-discontinued Zune MP3 player, many people
thought it would capture the MP3 player market by pricing its product so low that a
smaller competitor, like the Apple iPod, would be unable to compete. If Microsoft had
used this approach, it would have been would be guilty of:
a. predatory pricing.
b. unfair trade practices.
c. channel manipulation pricing.
d. price fixing.
e. price discrimination.
Answer:
TurkeyHuntingEquipment
Around the beginning of fall each year, about 2.7 million turkey hunters all over the
United States start looking at catalogs for the perfect item to guarantee that this year
they will kill a wild turkey, the most elusive game bird in North America. The devoted
turkey stalker can stock up on everything from camouflaged turkey hunting socks,
turkey license plate holders, vests with huge pockets for toting dead birds, and hunting
videos to turkey decoys, turkey earrings, and turkey callers. Neil Cost is considered the
best manufacturer of turkey callers in the world. It is his only product, and each is
highly prized by turkey hunters. It is not unusual for a turkey hunter to pay $5,000 for
one of Cost's callers.
Refer to Turkey Hunting Equipment. Wild turkey hunters would be defined as a:
a. market segment
b. market position
c. segmentation base
d. retail position
e. consumer position
Answer:
MethodistChurch
In 2001, the United Methodist Church, the second-largest Protestant denomination in
the United States, launched a four-year, $20 million national ad campaign. The
theologically gentle but culturally edgy ads are aimed at Americans who are
unchurched""people who know the name "Methodist" but don"t know anything else
about it. The "Igniting Ministries" ads have appeared on CBS and cable television. The
purpose of the ads is to draw more people through Methodist Church doors in a time
when mainline Protestant denominations are struggling.
Refer to Methodist Church. According to the AIDA concept, the ads must first:
a. create interest in the Methodist Church.
b. draw attention to the Methodist Church.
c. act on unfulfilled needs of the unchurched.
d. augment current knowledge.
e. create a desire to attend the Methodist Church.
Answer:
Of the eight critical business processes on which supply chain managers must focus, the
____ process presents a multi-company, unified response system to the customer
whenever complaints, concerns, questions, or comments are voiced.
a. manufacturing flow management
b. customer service management
c. product development and commercialization
d. order fulfillment
e. demand management
Answer:
____ is the retailing strategy of offering consumers very limited service and carrying a
broad assortment of well-known, nationally branded "hard goods."
a. Specialty store positioning
b. Merchandise positioning
c. M-store retailing
d. The wheel of retailing
e. Full-line discounting
Answer:
Meek's Hunting Emporium is a retail store that carries all the products hunters need or
think they need. It has set up an advertising plan that allows it to advertise every day
prior to the opening of quail-, deer-, and turkey-hunting seasons on four local radio
stations, as well as in the local newspapers. This is an example of a:
a. message execution plan.
b. media profile.
c. reach program.
d. media schedule.
e. frequency timetable.
Answer:
The first step in creating the global marketing mix is to:
a. create a new product.
b. select the method of promotion.
c. develop a thorough understanding of the global target market.
d. set pricing policies.
e. decide whether product modification is necessary.
Answer:
At the Greenville Florist, there are four different prices for funeral bouquets. The
smallest bouquet sells for $30; there is also a $40 version and a $75 version. For those
who want to express their grief through the purchase of a dramatic floral arrangement,
the florist also offers a $150 version. The owner of the florist shop has chosen price
lining because it will:
a. enable the shop to carry a larger total inventory.
b. maintain all of the product line at the same stage in the product life cycle.
c. confuse customers and allow salespeople to sell more of the expensive models.
d. reach several different target market segments.
e. thwart competitors that are trying to sell similar products.
Answer:
Aldi is a no-frills grocery chain. It sells grocery staples right out of crates and boxes
with emphasis on low-priced, private label brands. Aldi stores are typically about
one-third the size of the traditional supermarket. By controlling expenses, Aldi enables
its customers to save 30 to 50 percent compared to Kroger customers. The chain targets
bargain hunters who are willing to rent a cart and bag their own groceries. Aldi has a:
a. market-homogeneous focus
b. cost competitive advantage
c. product aggregation strategy
d. revenue-based competitive advantage
e. profit-enhanced advantage
Answer:
TheRitzyCanine
The Ritzy Canine Carriage House looks like several other Manhattan boutique hotels.
The lobby features a crystal chandelier, brocade-patterned wallpaper, gold-framed
mirrors, and antique chairs. Room service and salon service are available as well as
exercise facilities. There is also a masseuse on staff. The Ritzy Canine is a high-end
doggy "hotel" and 'spa" where dogs are the only guests, and they are lavishly cared for.
The $175anight Windsor Suite even has a DVD player. Without such extras, a one-day
visit will cost $40 to $50, depending on the size of the dog.
Refer to The Ritzy Canine. Supervised doggy care is the ____ service product, and dog
massages would be ____ service products.
a. central; peripheral
b. primary; secondary
c. core; supplementary
d. essential; superfluous
e. supplementary, core
Answer:
A small police department wants to buy a machine with which it can perform alcohol
breath tests. It has never had this capability before but feels it is an essential tool as the
community grows. The machine costs about $5,000, which is almost 75 percent of the
department's entire supply budget. This purchase would be an example of a(n) ______
situation.
a. extensive buying
b. low-involvement buying
c. new buy
d. modified rebuy
e. straight rebuy
Answer:
DeFeet International
DeFeet International started as a cyclist sock company. The founder, Shane Cooper, said
that the existing socks for cyclists were just not of great quality, so he made socks for
his cycling team by knitting them inside out. The socks were of special materials aimed
at giving the cyclist the most comfortable fit. These socks were not the traditional white
socks but were bright, bold, and flashy colored socks with cool graphics. These
high-tech socks were priced around $10 a pair. Their Web site says "DeFeet Is Made for
Driven Soles." Soon, cycling elites like Lance Armstrong and Greg LeMond were
sporting the DeFeet brand. The company branched into running, hiking, and snow gear.
Products include socks, armskins, calfskins, boxer briefs, gloves, and shirts for the
serious athlete. DeFeet has a custom department where socks, armskins, and gloves can
be personalized with any motif, including sponsor types of logos like Michelin, Pabst
Blue Ribbon, or BP. Even kids can enjoy DeFeet's highquality socks. DeFeet's products
can be found in retailers across the world""in more than 20 countries like Israel,
Australia, Belgium, and the United States. More than two dozen online retailers also
carry DeFeet products.
Refer to DeFeet International. DeFeet's ____ includes advertising, public relations,
sales promotion, and personal selling.
a. product
b. place
c. price
d. promotion
e. position
Answer:
What is the fundamental objective of most businesses?
a. employee empowerment, teamwork, and relationship marketing
b. satisfied stakeholders
c. low costs and high quality
d. customer loyalty and retention
e. survival, profits, and growth
Answer:
___ refers to the techniques used to get consumers to buy from their home. Those
techniques include direct mail, catalogs and mail-order, telemarketing, and electronic
retailing.
a. Nonstore vending
b. In-home retailing
c. Franchising
d. Direct marketing
e. Direct retailing
Answer:
Life is goodno longer encloses its apparel in individual poly bags when shipping to
customers because the management feels it harms the environment. This is an example
of a orientation.
a. societal marketing
b. sales
c. reciprocal exchange
d. production
e. product
Answer:
The practice of charging a very low price for a product with the intent of driving
competitors out of business or out of a market is called:
a. price discrimination.
b. predatory pricing.
c. price fixing.
d. price manipulation.
e. anti-competitive pricing.
Answer:
The value of company and brand names is referred to as:
a. brand equity.
b. brand loyalty.
c. brand power.
d. brand equivalency.
e. brand strength.
Answer:
The MOST important factor in successful new-product introduction is:
a. a good match between the product and market needs.
b. strong company leadership.
c. an obsession with quantity rather than quality
d. project-based team approach to new-product development.
e. history of carefully listening to customers.
Answer:
Nature Valley uses popular magazines, radio, and cable television to promote its brand
of trail mix. Nature Valley uses mass communication.
a. True
b. False
Answer:
Redbook magazine targets what it calls "Redbookjugglers," defined as 25 to 44yearold
women who must juggle family, husband, and job. According to a Redbookad, "She's
the product of the me generation," the thirty something woman who balances home,
family, and careermore than any generation before her, she refuses to put her pleasures
aside. She's old enough to know what she wants, and young enough to get it." This is an
example of ______segmentation.
a. demographic and psychographic
b. benefit desired and usage rate
c. geodemographic and benefit desired
d. demographic and usage rate
e. benefit desired and demographic
Answer:
Shelby is a salesperson for Kohler, a company that sells plumbing fixtures. He has a
prospect who is showing interest in learning more about his company's products, so
now he must qualify this sales lead. What will Shelby do?
Answer:
What is environmental scanning? Name four environmental forces that affect marketing
decision making.
Answer:
There are five categories of adopters participating in the diffusion process. Name and
briefly describe each of these five categories in the correct order from first adopter to
last adopter.
Answer:
Discuss the advantages of Internet surveys.
Answer:
Name and describe the three basic strategies for setting a price on a new good or
service. Under what conditions is each of the three basic pricing methods successful?
Answer:
Compare and contrast search quality, experience quality, and credence quality. Describe
their significance for the marketing of services.
Answer:
What is value-based pricing? What is the basic assumption marketers must make about
their markets before implementing a value-based pricing strategy?
Answer:
What is an SBU? If properly created, what characteristics should an SBU have?
Answer:
Define cannibalization. Is it always bad? Explain.
Answer:
Some pricing decisions are subject to government regulation. Name and define three
pricing practices that are illegal.
Answer:
Draw the sales line and the profit line of the product life cycle in the following diagram,
and label each line. Then indicate the names of the four stages of the product life cycle
in the blanks provided.
Answer:
What is sales promotion? What are the objectives of sales promotion?
Answer:
According to the text, the 45-year-old magazine, Essence Magazine, reaches ____ of all
black females aged 18 to 49.
a. 50 percent
b. roughly one-quarter
c. almost one-third
d. one third
e. over 75 percent
Answer:
Name and briefly describe the six categories of social media users identified by
Charlene Li and Josh Bernoff of
Forrester Research.
Answer:
Name and describe at least five approaches companies are now using to keep
innovation strong.
Answer:
A retail clothing store in a small northwest Georgia community is the sole distributor of
Spanx brand hosiery in the region. How does this form of market coverage benefit the
retailer? How does it benefit the manufacturer?
Answer:
Tremaine Hughes is a salesperson for Allied Pets, a company that sells veterinarian
supplies. He is working on a needs assessment for East Athens Veterinary Clinic. What
information will he need to find out about East Athens?
Answer:
What is psychographic segmentation? Discuss why marketers use the basis for
segmenting markets.
Answer:
List five factors that affect elasticity of demand and briefly describe how each affects
demand.
Answer:
