Pop-up ads are small rectangular boxes that usually include text, graphics, and
sometimes video to create interest.
Because almost all of the world’s population can read and write, international marketers
have no problems in communicating with potential customers no matter where they
live.
There is only one price that will be profitable for firms with down-sloping demand
curves.
Most M and M’s are sold as consumer products, but M and M’s printed with special
messages or brand logos have become an effective (and sweet) sales promotion tool for
business customers.
Strategic planning is a top management job that includes planning only for marketing.
Brand insistence means that target customers usually choose one brand over other
brands, perhaps because of habit or favorable past experience.
Homogeneous shopping products are basically the same in the eyes of the customer and
purchase decisions are often based on price.
Agent wholesalers typically provide even more functions than full service merchant
wholesalers.
In the U.S., trucks carry more freight over more miles than any other mode of
transportation.
Institutional advertising is advertising aimed at business customers and intermediaries.
The two keys to improving how people implement quality service are: (1) training and
(2) more inspectors.
With personal selling, the company’s marketing mix can be adapted to the needs of each
target market, but personal selling is usually quite expensive.
Automatic vending accounts for 15 percent of total U.S. retail sales.
A product assortment is the set of all product lines and individual products that a firm
sells.
Specialized search engines can help a business buyer search for products using
purchase specifications.
Advertising in Europe accounts for roughly half of worldwide ad spending.
If the objective of an ad is to inform, telling a detailed story and using precise pictures,
then print advertising is right.
It is the responsibility of the chief executivenot the marketing managerto make the
strategic planning decisions that concern how a firm is going to use its overall
resourcesfrom marketing, production, finance and other areas.
By 2010, after taking inflation into account, the median income in the U.S. declined by
7 percent in the previous decade.
One of the important differences between raw materials and other business products is
that raw materials usually have to be graded.
Consumers may evaluate a product not just on how well it performs but on how it
performs relative to their expectations.
A personality trait like moodiness is a good example of an “operational” segmenting
dimension.
Sales reps calling on large food retailers often must make their sales presentations to a
buyer who doesn’t have the final decision responsibility.
A profit maximization pricing objective may lead to relatively low prices, especially if
demand is very elastic.
The U.S. does not have the largest population of any country in the world, but it does
have the largest population growth rate.
Before the Pure Food and Drug Act was passed, it was assumed that the common law
and the warning “let the buyer beware” would take care of consumers.
Reinforcement of a response decreases the likelihood of the same response the next
time the drive occurs.
The selling formula approach starts with a prepared presentation outline.
The sole objective of leader pricing is to sell large quantities of the leader items.
Monopolistic competition is caused by customer preferences, not business manipulation
of markets.
The main difference between a “product-market” and a “generic market” is whether
customer needs are similar or different.
The smaller the comparative advantage of a new product over those already on the
market, the faster its sales will grow.
Producers of business products generally spend a larger percent on advertising than do
producers of consumer products.
Efforts to reduce the environmental effects of transporting usually increase the firm’s
distribution costs.
Target marketing aims a marketing mix at some specific target customers.
Without promotion, unsought products will probably stay unsold.
Of all the major ethnic groups in the U.S., Asian Americans have the highest median
family income.
Limited problem solving is used by consumers when some effort is required in deciding
the best way to satisfy a need.
The economic-buyer theory assumes that consumers know all the facts and logically
compare choices.
Step 2 in the 7-step approach to market segmentation asks you to identify all the
potential customers’ needs for the broad product-market you named in Step 1.
The main difference between agent wholesalers and merchant wholesalers is:
A. the kind of selling they do.
B. that agent wholesalers do not own the products they sellwhile merchant wholesalers
do.
C. that no agent wholesalers physically handle productswhile all merchant wholesalers
do.
D. their attitudes regarding the marketing concept.
E. There is no differencean agent wholesaler IS a merchant wholesaler.
It is usually the _________ job, perhaps with help from specialists in technology, to
decide what types of sales technology tools are needed and how they will be used.
A. sales manager’s
B. procurement manager’s
C. marketing executive’s
D. purchasing manager’s
E. product manager’s
The advertising medium of __________ has a wide reach, is good for getting attention
and for demonstrations, but it is expensive, has a lot of clutter, and in many cases has a
less selective audience.
A. Direct mail
B. Yellow Pages
C. Television
D. Internet
E. Outdoor
A mail-order marketer of flower bulbs to gardening hobbyists decides to sell the bulbs
in grocery stores–to reach non-hobbyists who might be interested in pretty flowers.
This is an example of:
A. market development.
B. diversification.
C. market penetration.
D. product development.
Which of the following statements about market-oriented strategy planning is true?
A. Segmenters aim at more heterogeneous markets than combiners.
B. Both ‘segmenters” and “combiners” can be target marketers.
C. All segmenters follow the single target market approach.
D. Combiners follow a mass marketing strategy.
E. None of these statements is true.
Which of the following statements is NOT TRUE?
A. Storing is a marketing function.
B. Storing allows producers and intermediaries to keep stocks at convenient locations.
C. Storing allows the producer to achieve economies of scale in production.
D. Storing is necessary when production of goods doesn’t match consumption.
E. Storing can increase the value of goods, but does not involve costs.
In the customer-initiated interactive communication process:
A. the message channel is no longer a factor.
B. noise is no longer a factor.
C. messages typically must be very short and simple.
D. the buyer starts the process.
E. None of these alternatives is correct.
A supermarket manager should use ______________ advertising to increase store
traffic during the middle of the week.
A. institutional
B. indirect competitive
C. pioneering
D. reminder
E. direct competitive
On the price sticker placed on the window of a new vehicle by the manufacturer, the
manufacturer’s suggested retail price is listed, followed by a “destination charge” for
shipping the vehicle to the dealership. The destination charge is the same everywhere in
the country, no matter whether the dealership is close to or far away from the
manufacturing plant. This pricing practice is called:
A. F.O.B. pricing.
B. Zone pricing.
C. Uniform delivered pricing.
D. Freight absorption pricing.
E. None of these is a good answer.
Consumers in a market-directed economy
A. enjoy limited freedom of choice.
B. are taxed to provide for goods and services that benefit society, such as public health,
national defense, highways, police and fire protection.
C. do not decide what is to be produced and by whom.
D. have to buy what is being produced.
E. do not have to buy any goods or services.
When a college student receives e-mail messages that are a ‘sales pitch” for a product
that she is not interested in purchasing, this is an example of:
A. spam.
B. AIDA.
C. pulling.
D. publicity.
E. decoding.
Advertising which tries to develop primary demand for a product category rather than a
specific brand is called ______________ advertising.
A. comparative
B. institutional
C. competitive
D. pioneering
E. persuading
______________ involve(s) sorting products according to size and quality.
A. Transporting and storing
B. Financing
C. Standardization and grading
D. Marketing
E. Buying
When an online intermediary like Hulu scans all of the episodes of NCIS and then
offers them to its customers one episode at a time, this is an example of:
A. Sorting.
B. Assorting.
C. Vertical integration.
D. Bulk-breaking.
E. Horizontal integration.
Product warranties are the focus of the ______________ Act.
A. Lemon
B. Magnuson-Moss
C. Sherman
D. Federal Trade Commission
E. Robinson-Patman
The problem with sales-oriented pricing objectives is that:
A. many managers are evaluated by their level of sales.
B. larger sales don’t necessarily lead to higher profits.
C. the number of units sold does not consider possible growth in the market.
D. sales growth usually leads to declining profits.
E. None of these alternatives is correct.
The “adoption curve” shows that:
A. most new products are introduced too slowly.
B. the marketing plan for a new product should schedule most of the promotion
spending right when the product is first introduced.
C. some groups accept a new idea before others.
D. a firm should stick to the same promotion effort as time passes.
E. All of these alternatives are correct.
The Ivory Islands Resort offers a forty percent discount on lodging from September
through December every year due the dramatic fall in the number of visitors during the
period, largely because of unfavorable weather conditions. This type of price reduction
is called _____.
A. cumulative quantity discounts
B. noncumulative quantity discounts
C. seasonal discounts
D. trade discounts
E. functional discounts
When planning channels of distribution, a marketing manager should know that
A. vertically integrated systems are seldom usedbecause of the difficulty of maintaining
control.
B. a contractual system offers both flexibility and stability for its members.
C. the disadvantage of a corporate channel system is reduced control over distribution
activities.
D. the disadvantage of an administered system is that it is a very formal arrangement.
E. None of these alternatives is correct.
If many individuals are involved in a buying decision, this is:
A. a multiple input situation.
B. a selective rebuy.
C. a modified rebuy.
D. a multiple buying influence situation.
E. a straight rebuy.
All of the following are true of government markets except
A. the government is the largest customer group in all countries.
B. most government customers buy by specification using a mandatory bidding
procedure.
C. the government buyer must often accept the lowest bid that meets the specifications.
D. by law, a government unit might have to accept the lowest bid even for an unwanted
product.
E. government purchases are usually subject to much public review.
Which of the following statements about advertising objectives is FALSE?
A. They should be as specific as possible.
B. They should be more specific than personal selling objectives.
C. They should be left to creative ad agencies, not the marketing manager.
D. They should flow from the overall marketing strategy.
E. They should set the framework for an advertising campaign.
Break-even analysis can be useful for:
A. estimating future sales.
B. setting the most profitable price.
C. comparing pricing alternatives.
D. relating assumed prices to demand estimates.
E. All of these alternatives are correct.
Offering a NONCUMULATIVE quantity discount seeks to:
A. reduce the seller’s shipping costs.
B. encourage bigger orders.
C. discourage small orders.
D. shift some of the storing function to the buyer.
E. All of these alternatives are correct.
When a local bank in Kansas City makes loans to its small business customers, it
charges them an interest rate for borrowing money. Interest rates are part of the
____________ environment.
A. cultural and social
B. economic
C. legal
D. political
E. competitive
Which of the following is NOT a trend affecting marketing strategy planning in the area
of Demographic Patterns?
A. Explosion in senior and ethnic submarkets.
B. Higher real income growth in U.S.
C. Geographic shifts in population.
D. Aging of the baby boomers.
E. Population growth slowdown in U.S.
John Deere is considered which type of organizational customer?
A. Producer.
B. Intermediary.
C. Government.
D. Nonprofit.
According to the “80/20 rule”:
A. marketing accounts for 80 percent of the consumer’s dollar.
B. only 20 out of every 100 firms use formal marketing control programs.
C. about 20 percent of a typical firm’s customers are unprofitable to serve.
D. even though a firm might be showing a profit, 80 percent of its business might be
coming from only 20 percent of its products or customers.
E. None of these is correct.
VALS and GeoVALS are examples of services offered by research firms to assist in:
A. Learning analysis.
B. Lifestyle analysis.
C. Reinforcement analysis.
D. Belief analysis.
E. Expectation analysis.
Logistics, or physical distribution, is the ________________ part of the marketing mix.
A. Possession
B. Placement
C. Production
D. Promotion
E. Product
____ provide a place where buyers and sellers can come together and bid to complete a
transaction.
A. Export agents
B. Brokers
C. Auction companies
D. Selling agents
E. Rack jobbers
Which of the following is the WORST example of an advertising objective?
A. “We want to increase awareness among the members of the target audience by 10
percent within three months after the start of our advertising campaign.”
B. “We want 50 percent of the television audience for the Super Bowl to recall having
seen a commercial for our product during the game.”
C. “We want our advertising to create favorable word-of-mouth promotion for our
product.”
D. “We want our banner ad on the Yahoo! homepage to generate 50,000 page views
(hits) on our corporate website within the first week that it appears on the World Wide
Web.”
E. “We want our infomercial running on cable television stations to generate 10,000
orders for the advertised product within one month after it starts.”
Which of the following is an example of an operational decision?
A. Focus promotion on the economy of the product.
B. Make the product available in every possible retail outlet.
C. Have a salesperson visit the manager of a new hardware store that will open next
week.
D. Set a price that is no higher than competitors’ prices.
E. None of these is an example of an operational decision.