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Which is the first step in market segmentation?
A. Finding one or two demographic characteristics to divide up the whole mass market.
B. Clustering people with similar needs into a market segment.
C. Naming a broad product-market of interest to the firm.
D. Evaluating market segments to determine if they are large enough.
E. None of these alternatives is the first step in market segmentation.
A large supermarket chain purchases a box of cereal from a food wholesaler. If the
supermarket chain uses a markup of 20 percent on its selling price of $2.85, what is the
price the supermarket chain paid the food wholesaler?
A. $2.12
B. $2.28
C. $2.45
D. $2.55
E. $2.67
A cheese processor having regular need for regional storage of a large quantity of
cheese probably should use ______________ warehouses.
A. public
B. private
C. general merchandise
D. commodity
About ______________ percent of marketing research spending is for syndicated
research.
A. 10
B. 25
C. 40
D. 60
E. 75
Wilson Alvaro graduated with a marketing degree almost a year ago. Like many of his
friends, he took a job in sales and really enjoys it. A description of Wilson's job and
those of some of his friends are noted below.
Wilson Alvaro loves biking and has his dream job. He works for a wholesale company
that sells mountain bikes for a manufacturer. He works with a small group of people
who call on the buying offices for two large retail chains, Wal-Mart and Toys R Us. The
group includes a finance person and a production person, and they all work together to
meet the specific needs of these two big accounts; for example, sometimes they
recommend a model of bike that will be available from only that retailer's stores.
However, Wilson's main job focuses on building relationships and solving customer
problems. Only occasionally is he expected to try to persuade the retailers to buy more
bikes.
Amy Bowden sells life insurance. She calls on new parents and persuades them to buy
insurance products. It is difficult for a manager to control Amy's work, but she has
incentive to work hard because her job security and income depend on getting sales.
She is a confident self-starter, so she likes it that way.
Ben Peterson works for a fashionable men's clothing store. He enjoys spending time
with customers who come in, learning about their fashion needs, and helping them pick
clothes that really work for them. While the store manager can easily observe and direct
Ben's activities, the manager wants Ben to have the incentive to increase customer
purchases and satisfaction.
Emily Winters handles inside sales for a major industrial distributor. She deals with a
regular set of established customers, most of whom know what they want. Emily talks
to them on the phone and answers questions about products, delivery time, and pricing.
She sometimes works with outside sales reps who visit customers and help introduce
new products. Emily is the first person her customers call when there's a problem with a
purchase, so she spends a lot of time dealing with customer problems. As an inside
salesperson, Emily's work is easily supervised by a sales manager-and she has little
influence on how much her customers buy.
Melissa Tran works for a company that sells paper products (like napkins, paper towels,
and paper plates) primarily through small independent grocers. Most of the grocers are
regular customers, but sometimes she makes cold calls to new grocery stores. Melissa's
job is to develop goodwill and try to increase sales. For example, she often sets up
special promotional displays in stores. Her compensation plan gives her income
security, but she also can receive a bonus for sales growth in her territory.
Charlie Riggs is a telemarketer for an Internet service provider. He calls people on a list
provided by his firm and tries to sign them up for Internet service. Charlie relies heavily
on a presentation he learned during his training. Charlie is very good at what he does
and loves that the more success he has the more he earns.
Wilson Alvaro's sales position involves:
A. providing customer service.
B. team selling.
C. major account management.
D. All of these are included in Wilson's sales position.
This advertising type may be useful when the product has achieved brand preference or
insistence, perhaps in the market maturity or sales decline stages.
A. Comparative advertising
B. Pioneering advertising
C. Competitive advertising
D. Reminder advertising
E. Institutional advertising
In selling to government units, a supplier should do each of the following EXCEPT:
A. Learn the bidding methods of government units it is targeting.
B. Match marketing mixes to bid procedures.
C. Read about potential government target markets from various government
publications.
D. Get permission from the government in a particular country to sell to that country.
E. All of these should be done by suppliers.
When segmenting broad product-markets, cost considerations tend
A. to encourage managers to disregard the criterion that a product-market segment
should be substantial.
B. to lead to more aggregating.
C. to be unimportant as long as the segmenting dimensions are operational.
D. to lead to a large number of small, but very homogeneous, product-market segments.
E. All of these are true.
Channel specialists use the regrouping activities of sorting and assorting to resolve:
A. discrepancies of time.
B. discrepancies of quantity.
C. discrepancies of assortment.
D. discrepancies of place.
E. discrepancies of need.
A manufacturer that transports products to retail outlets directly instead of using a
distribution center is most likely to encounter which of the following?
A. Equivalent delivery speed at lower cost
B. Faster delivery speed at higher cost
C. Slower delivery speed at equivalent cost
D. Faster delivery speed at equivalent cost
E. Slower delivery speed at lower cost
The segmenting step of the segmentation process
A. brainstorms possible marketing mixes.
B. fits potential customers neatly into market segments.
C. disaggregates all possible needs.
D. involves selecting a target marketing approach.
E. looks for similarities in needs.
Marketing research:
A. is an organized way of gathering and analyzing information marketing managers
need.
B. involves a wide range of techniques including internet search, customer surveys, and
more.
C. is a department in most small companies.
D. is only needed by producers who have long channels of distribution.
E. is an alternative to a marketing information system.
Which of the following business products are usually treated as expense items?
A. component parts and materials
B. raw materials
C. professional services
D. supplies
E. All of these products are expense items.
Generation Y refers to:
A. those born from 19781994.
B. those born since 1994.
C. those born from 19651997.
D. those born from 19451964.
E. those born before 1945.
The CBS network offers consumers hundreds of hours of television viewing each
month, but the typical consumer wants to watch only a few programs. What type of
discrepancy does this create?
A. Discrepancy of assortment
B. Discrepancy of quality
C. Discrepancy of image
D. Discrepancy of variety
E. Discrepancy of quantity
Sales promotion:
A. usually lasts for only a limited time period.
B. spending has grown rapidly in mature markets.
C. involves a wide variety of activities which often require the use of specialists.
D. can make the personal selling job easier.
E. All of these alternatives are correct.
Wilson Alvaro graduated with a marketing degree almost a year ago. Like many of his
friends, he took a job in sales and really enjoys it. A description of Wilson's job and
those of some of his friends are noted below.
Wilson Alvaro loves biking and has his dream job. He works for a wholesale company
that sells mountain bikes for a manufacturer. He works with a small group of people
who call on the buying offices for two large retail chains, Wal-Mart and Toys R Us. The
group includes a finance person and a production person, and they all work together to
meet the specific needs of these two big accounts; for example, sometimes they
recommend a model of bike that will be available from only that retailer's stores.
However, Wilson's main job focuses on building relationships and solving customer
problems. Only occasionally is he expected to try to persuade the retailers to buy more
bikes.
Amy Bowden sells life insurance. She calls on new parents and persuades them to buy
insurance products. It is difficult for a manager to control Amy's work, but she has
incentive to work hard because her job security and income depend on getting sales.
She is a confident self-starter, so she likes it that way.
Ben Peterson works for a fashionable men's clothing store. He enjoys spending time
with customers who come in, learning about their fashion needs, and helping them pick
clothes that really work for them. While the store manager can easily observe and direct
Ben's activities, the manager wants Ben to have the incentive to increase customer
purchases and satisfaction.
Emily Winters handles inside sales for a major industrial distributor. She deals with a
regular set of established customers, most of whom know what they want. Emily talks
to them on the phone and answers questions about products, delivery time, and pricing.
She sometimes works with outside sales reps who visit customers and help introduce
new products. Emily is the first person her customers call when there's a problem with a
purchase, so she spends a lot of time dealing with customer problems. As an inside
salesperson, Emily's work is easily supervised by a sales manager-and she has little
influence on how much her customers buy.
Melissa Tran works for a company that sells paper products (like napkins, paper towels,
and paper plates) primarily through small independent grocers. Most of the grocers are
regular customers, but sometimes she makes cold calls to new grocery stores. Melissa's
job is to develop goodwill and try to increase sales. For example, she often sets up
special promotional displays in stores. Her compensation plan gives her income
security, but she also can receive a bonus for sales growth in her territory.
Charlie Riggs is a telemarketer for an Internet service provider. He calls people on a list
provided by his firm and tries to sign them up for Internet service. Charlie relies heavily
on a presentation he learned during his training. Charlie is very good at what he does
and loves that the more success he has the more he earns.
Which salesperson's primary task is order taking?
A. Emily Winters
B. Melissa Tran
C. Amy Bowden
D. Wilson Alvaro
E. Charlie Riggs
Which of the following observations concerning introductory price dealing is true?
A. Established competitors usually choose to meet introductory price dealing.
B. They are temporary price cuts to speed new products into a market.
C. They have the same effect as price skimming.
D. They are the same as low penetration prices.
E. The plan is to sustain the price cut for an extended period of time.
Which of the following is a consumer market demographic dimension?
A. Sex.
B. Age.
C. Occupation.
D. Education.
E. All of these are examples of a consumer market demographic dimension.
In the promotion blend during the market maturity stage of the product life cycle:
A. The total amount spent on promotion usually decreases.
B. The total amount spent on promotion may rise as competition increases.
C. The basic promotion objective is informing.
D. The promotion emphasis starts to shift from building primary demand to building
selective demand.
E. None of these is a good answer.
A generic market definition includes all of the following terms EXCEPT:
A. customer needs.
B. product type.
C. geographic area.
D. customer type.
Which of the following is the BEST example of a "generic market?"
A. the meat market.
B. the minivan market.
C. the e-commerce market.
D. the beer market.
E. the 'singles" entertaining market.
_____ aim at one or more homogeneous segments and try to develop a different
marketing mix for each segment.
A. Combiners
B. Segmenters
C. Segment aggregators
D. Segment combiners
E. Multipliers
Sales-oriented pricing objectives include:
A. Growth in unit sales, dollar sales, or share of market.
B. Meeting competition.
C. Target return.
D. Profit maximization.
E. None of these alternatives is correct.
The law which focuses on the protection of trademarks and brand names is
A. the Lanham Act.
B. the Magnuson-Moss Act.
C. the Uniform Product Code Act.
D. the Federal Fair Packaging and Labeling Act.
E. None of these is a good answer.
Research to evaluate advertising effectiveness:
A. should focus primarily on the judgment of advertising experts.
B. should focus primarily on measuring increases in sales.
C. includes experiments conducted using split runs on cable TV systems.
D. is a problem because nothing can be done until after the ad has actually run.
E. None of these alternatives is correct.
The whole set of beliefs, attitudes, and ways of doing things of a reasonably
homogeneous set of people is a(n):
A. tradition.
B. class.
C. society.
D. culture.
E. ethnicity.
All of the following are true of a job description except
A. provides a basis for how salespeople should be paid.
B. lists routine prospecting and sales report writing tasks.
C. provides clear guidelines about what selling tasks the job involves.
D. lists general tasks to be performed but doesn't get too specific.
E. provides a basis for seeing how salespeople should be trained.
Good media buyers know that:
A. many consumer and trade magazines serve only special-interest groups.
B. the most targeted medium is newspapers.
C. media costs generally have little relation to audience size or circulation.
D. television is superior to newspapers or radio.
E. All of these alternatives are correct.
Alberto Romez earned $100,000 last year as a Mercedes sales rep. He paid $10,000 in
taxes, and another $25,000 on food, housing and other necessities. Alberto's
discretionary income was _________________.
A. $75,000
B. $65,000
C. $55,000
D. $45,000
E. $35,000
In the American Marketing Association's Statement of Ethics, which ethical value
stresses a firm's attempts to balance the needs of its buyers with the interests of sellers?
A. Honesty
B. Fairness
C. Responsibility
D. Citizenship
E. Openness
Hannah Spiritway works for a cable TV company in a large city. She handles telephone
calls from customers who are having problems with their cable service. Hannah is
A. a technical specialist.
B. a sales promotion specialist.
C. an order taker.
D. an order getter.
E. a customer service rep.
When developing marketing mixes for international markets, it is detrimental for
managers to predict consumer behavior based on:
A. economic needs.
B. culture.
C. personal intuition.
D. physiological needs.
E. input from locals in overseas markets.
