David Wilson is an avid collector of Major League Baseball memorabilia. He greatly
desires to own the ‘special”
bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal
contents. This is an example of a(n)
product.
a. shopping
b. unique
c. specialty
d. historical
e. unsought
Apple makes its computers available through its own stores, its website, and some
major retailers. This is an example of:
a. dual distribution.
b. vertical integration.
c. horizontal integration.
d. tying agreements.
e. exclusive dealing.
A channel member that markets all of a manufacturer’s goods, has authority over price,
promotion, and distribution, but does not take title to a product is known as
a_________.
a. general-line wholesaler
b. selling agent
c. commission merchant
d. manufacturers’ agent
e. broker
A straight commission compensation program ensures that selling costs will be
predictable.
a. True
b. False
In addition to revising their organization’s mission and goals, the managers at Orion Co.
have to develop a corporate strategy, marketing objectives, and a marketing strategy for
their firm. These managers are engaged in the process of _____.
a. benchmarking
b. strategic planning
c. marketing planning
d. marketing implementation
e. strategic outsourcing
Off-price retailers and category killers are both:
a. specialty retailers.
b. discount stores.
c. showrooms.
d. general merchandisers.
e. department stores.
Telluride Ski Resort in Telluride, Colorado is a world-class ski destination. Taylor is a
newly-hired manager of digital media and electronic marketing for Telluride. Taylor
remembers reading about a new trend in video marketing using to engage and create a
community of customers.
a. blogs
b. amateur filmmakers
c. Twitter announcements
d. advertising firms to develop videos
e. virtual realities
The test marketing stage of the new-product development process is an extension of the
product development stage.
a. True
b. False
A trading company provides a link between buyers and sellers in different countries.
a. True
b. False
The Evergreen Corporation conducts a SWOT analysis of its competition, and sees a
marketing opportunity for its new Evergreen restaurant. It develops its marketing plan
to include the type of products it will sell, the location for the restaurant, and the pricing
it will use. Evergreen’s plan includes a marketing objective to make a profit of 5% in
the first year of operation. So far, the owners of the Evergreen restaurant have
eliminated a key piece of the marketing plan, which is .
a. specifying how they will achieve their marketing objective
b. how they will address their competitors’ prices
c. coming up with a quantitative measure for their objective
d. developing a qualitative measure for their objective
e. assessing their weaknesses
With respect to the components of the communication process, the fax machines used
by OES Office Systems to carry its advertising messages to its business customers is an
example of a (n):
a. communication channel.
b. field of reference.
c. decoder.
d. encoder.
e. noise minimizer.
Marketers are usually in a better position to establish prices when they know the prices
charged for competing brands.
a. True
b. False
When a push policy is used in promotion of a particular product, the producer promotes
the product only to the next channel member.
a. True
b. False
Grocery stores that position their less expensive, private brands next to more expensive,
well-known manufacturer brands on the shelf are using the concept of reference pricing.
a. True
b. False
Scenario 18.2
Use the following to answer the questions.
The State Farm Group includes several companies. Probably the most well-known
company in the group is the State Farm Insurance Company, the largest auto and home
insurer in the United States. State Farm Insurance provides protection for
approximately 78 million policies on auto, fire, life, and health services. It is also a
leading insurer of homes and autos in Canada. Another company in the State Farm
group is the State Farm Bank, which was opened in 2000, beginning State Farm’s entry
into the financial services field. However, the State Farm Bank is not a traditional bank
in that it has no branch offices and its services are provided through State Farm agents,
a call center, the mail, and on the Internet. It currently serves over 1.9 million bank
accounts. If State Farm Bank decided that it wanted to increase its number of bank
customers by 10% in the coming year, it would most likely use the approach to
advertising allocation.
a. arbitrary
b. competition-matching
c. objective-and-task
d. percent-of-sales
e. percent-of-customer