In the U.S., about three-fourths of new retailing ventures fail during the first year.
Answer:
Flexible-price policies are most common in the channels, in direct sales to business
customers, and for expensive shopping products because sales reps may need to make
adjustments for market conditions.
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Transport costs represent a significant part of the cost of products that are already
valuable relative to their size and weight.
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A trademark can be a word, but cannot be a symbol.
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The AIDA sequence can help a sales manager evaluate a possible sales presentation.
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An online interactive approach allows a marketer to customize communication to the
needs and responses of the customer.
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Personal selling is often a company’s largest single operating expense.
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As compared to larger competitors, smaller firms benefit from lower unit costs which
they achieve with lower sales volumes.
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A marketing plan usually spells out the time schedule for a marketing strategy as well
as the time-related details.
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Attractive opportunities for a particular firm are those that the firm has some chance of
doing something about-given its resources and objectives.
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Good salespeople try to help customers buy by presenting both the advantages and
disadvantages of a product-and showing how it will satisfy the customer’s needs.
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A description of what a firm wants to buy is called its purchasing specifications,
whether that description is written or electronic.
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Channel conflict often results when a manufacturer opens a new distribution channel,
especially if it directly competes with its existing intermediaries.
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If customers in other countries are interested in the products a firm offers, or could
offer, serving them may improve economies of scale.
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Introductory price dealing means setting a low “penetration” price early in the product
life cycle to discourage competitors from entering the market.
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In customer-initiated communication, the source decides how much information to
send.
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Cooperative chains tend to work with independent retailers, not corporate chain
retailers.
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“Deal-of-the-Day” websites are platforms that offer discounts that generally aren’t
enough to move consumers into action.
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Thanks to much publicity, the marketing concept is now practiced by all firms.
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In the experimental method, researchers compare the responses of two or more groups
that are similar even on the characteristic being tested.
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With the PD concept, firms decide what specific service level to provide their
customers.
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A target return pricing objective seeks to obtain a specific level of profit-often stated as
a percentage of sales or return on investment.
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Environmental problems pose a major hazard to society and they are a particular threat
to many firms working in the environmental engineering and management industry.
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Advertising in Europe accounts for roughly half of worldwide ad spending.
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Marketing collaborators are any firms that provide the marketing functions of buying
and selling.
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Selective distribution is becoming more popular than intensive distribution as firms see
that they do not need 100 percent coverage of a market to support national advertising.
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In the market growth stage of the product life cycle, firms usually earn smaller profits
than they did in the market introduction stage because new competitors enter the
market.
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A product that is new in any way for the company concerned is a new product,
according to the text.
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Department stores are stores that usually try to serve customers seeking a variety of
convenience products.
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A product which has no brand other than the identification of the contents is a generic
product.
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In-store shopping varies a lot from country to country, but online shopping does not.
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In countries where physical distribution systems are inefficient, consumers face
shortages of the products they need.
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Consumer satisfaction at the micro level cannot be measured because firms cannot
determine how well their products satisfy customers.
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Because the use of new information technologies can change how well the sales job is
done, their use should be left to individual sales reps.
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During the “marketing company era,” the total company effort is guided by the idea that
customers exist to buy the firm’s output.
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Marketing opportunities involving present products and present markets are called
“market penetration” opportunities.
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Most retail and wholesale buyers see themselves as purchasing agents for their target
customers.
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The business strengths dimension of the GE grid focuses on:
A. market diversity.
B. the question: Does this product-market plan look like a good idea?
C. the ability of the company to pursue a product-market plan effectively.
D. industry profitability.
E. the social and legal environment.
Answer:
Industrial Plastics Corporation has decided to manufacture and sell electric motors for
fishing boats. The firm appears to be pursuing a ______________ opportunity.
A. combiner
B. product development
C. market development
D. market penetration
E. diversification
Answer:
Which of the following is NOT a current trend affecting marketing strategy planning?
A. slower new-product development
B. growth of value pricing
C. more multichannel shopping
D. more attention to profitability, not just sales
E. international expansion by retailers
Answer:
In the U.S. market-directed system, it is up to each _____ to decide how effectively
individual firms satisfy the consumer’s needs.
A. market research consultant
B. customer
C. manufacturer
D. advertising agency
E. salesperson
Answer:
As part of its promotional efforts, Blue Ink Projectors Inc. offered pens and other
merchandise to teachers in private schoolstheir primary target market. However,
teachers in most private schools were hesitant to accept the promotional material as
their organizational policy was against accepting gifts from suppliers. As a result, the
company’s promotional efforts failed. What lesson did the marketers of Blue Ink
Projectors learn?
A. Their marketing efforts must avoid conflicts of interest between the customer
company and its employees who influence the purchase.
B. The buying centers in private schools are ineffective.
C. Their promotional efforts have been targeted toward the wrong organizational
customer.
D. The needs of the customer company and the needs of its employees are
complementary to each other.
E. The company should secretly deliver pens to its customers’ homes.
Answer:
Jiffy Cake Mix Company developed a new brownie mix that is much improved over its
current brownie mix. When a sales representative for Jiffy contacted a buyer for a major
supermarket chain, the buyer demanded that Jiffy give the supermarket chain a
combination of cash and free cases of goods whose total value exceeded the entire
marketing budget Jiffy planned to spend on the new brownie mix during its first year on
the market. When the sales representative from Jiffy protested, the buyer said, “It is
company policy to get ______________ in order to secure shelf space for new brands.”
A. push money
B. advertising allowances
C. quantity discounts
D. stocking allowances
E. sale prices
Answer:
The source deciding what it wants to say and translating it into words or symbols that
will have the same meaning to the receiver is termed as
A. transmutation.
B. exposition.
C. decoding.
D. encoding.
E. recoding.
Answer:
Health Care Products Company has noticed that in one of its product-markets industry
sales have leveled off and competition has been getting tougher. This product-market
appears to be in the ____ stage of the product life cycle.
A. market maturity
B. market introduction
C. market growth
D. sales decline
E. market decline
Answer:
After working for 18 hours, Katrina arrived home exhausted and wanted to go straight
to sleep. Katrina’s need to sleep is a ______________ need.
A. psychological
B. social
C. physiological
D. behavioral
E. emotional
Answer:
The total fixed costs are $10,000, and the average variable cost per unit is $3. For a
production volume of 10,000 units, the average cost per unit is
A. $3.00
B. $1.00
C. $4.00
D. $3.30
E. $10.00
Answer:
Direct marketing communication designed to prompt immediate feedback by customers
is also called
A. direct mail advertising.
B. direct-response promotion.
C. interactive communication.
D. online marketing.
E. downward communication.
Answer:
____ are short-lived capital items.
A. Accessories
B. Installations
C. Raw materials
D. Components
E. Professional services
Answer:
Order-getting salespeople would be required for which one of the following jobs?
A. Helping a buyer plan and install a computer and software for use as a website server
B. Helping drug retailers figure out better ways to display and promote their products
C. Seeking orders from supermarket buyers for a new brand of high protein diet
supplement that has been added to the company’s line
D. “Helping” an indecisive consumer in a supermarket select the kind of meat she
should buy for dinner
E. Handling a complaint from a furniture store about a shipment that is late
Answer:
A firm’s decisions regarding channel type, market exposure and kinds of intermediaries
would fall under the marketing mix variable of
A. Product.
B. Place.
C. Promotion.
D. Price.
E. People.
Answer:
If a producer has a technically superior and expensive product-which has achieved
brand preference-and wants retailers to provide aggressive promotion and maximum
customer service, this producer should seek:
A. Multichannel distribution
B. Exclusive distribution
C. Administered distribution
D. Intensive distribution
E. Selective distribution
Answer:
Which of the following would NOT require an operational decision for a leading hair
color manufacturer?
A. Solicit orders from any new, financially attractive, salons.
B. Drop colors that are losing appeal.
C. Create a fresh ad for each Sunday newspaper.
D. Set a competitive price if a primary competitor offers a special discount.
E. Promote the fair price and satisfactory quality of the product.
Answer:
Scrambled merchandising is carrying
A. any product lines that a store thinks that it can sell profitably.
B. discounted product lines.
C. a specific product line and offering yearly discounts.
D. a number of product lines and offering a clearance sale twice a year.
E. a limited product line at a high price aimed at a small number of consumers.
Answer:
Regarding new-task organizational buying, which of the following persons is LEAST
likely to be involved?
A. A competitor’s purchasing manager
B. A purchasing manager
C. A production line supervisor
D. The company president
E. A research assistant
Answer:
Identify the INCORRECT statement about approaches to market-oriented strategy
planning.
A. It’s usually safer to be a combiner.
B. Cost considerations encourage aggregating.
C. Demand considerations encourage less aggregating.
D. The approach a firm uses depends in part on the firm’s resources.
E. Generally, it is better to try and satisfy some customers very well instead of many
just fairly well.
Answer:
If a firm targets business and organizational markets,
A. NAICS codes may be helpful for segmenting potential customers.
B. each customer may need to be treated as a different segment.
C. competing manufacturers are often clustered in geographic locations.
D. All of these alternatives are true.
Answer:
Which of the following statements about physical distribution is False?
A. Marketers should always try to maximize the customer service level provided
regardless of cost.
B. Physical distribution activities are invisible to most consumers-unless something
goes wrong.
C. There are trade-offs between costs, the customer service level desired, and sales.
D. Information technology can help marketers improve service and cut costs.
E. In countries with inefficient distribution systems, consumers can face shortages of
products they need.
Answer:
____ conflict occurs between firms at the same level in the channel of distribution.
A. Vertical
B. Diagonal
C. Horizontal
D. Parallel
E. Cyclical
Answer:
Which of the following is NOT an example of sales promotion?
A. A contest to motivate a company’s own sales force
B. Point-of-purchase displays at the checkout counters of a retail store
C. Price-off coupons distributed to consumers’ homes
D. A trade show for wholesalers
E. All of these are examples of sales promotion.
Answer:
Which of the following is a useful plan during the market maturity stage of the product
life cycle?
A. Disregard changes in customer behavior because only competitor behavior matters.
B. Slash product prices to maintain market share.
C. Elimination points of differentiation to increase market share.
D. Phase-out products for more market penetration.
Answer:
If Climbing High Ladder Company produced ladders that were unstable and caused
many injuries, the ___ has the power to force the company to recall its product.
A. Consumer Product Safety Commission
B. Food and Drug Administration
C. Federal Trade Commission
D. Environmental Protection Agency
E. Consumer Protection Agency
Answer:
The fact that producers usually prefer to produce products in large quantities, while
most consumers prefer to buy in small quantities, results in:
A. discrepancies of quantity.
B. separation of ownership.
C. discrepancies of assortment.
D. spatial separation.
E. temporal separation.
Answer:
In which of the following places would logistics costs be most likely to run between 9
and 15 percent of GDP?
A. Uganda
B. Brazil
C. United Kingdom
D. Zimbabwe
E. Argentina
Answer:
In _____ channel systems the amount of cooperation among members of the channel is
very high.
A. contractual
B. traditional
C. corporate
D. administered
E. horizontal
Answer:
Which of the following is NOT one of the selective processes?
A. Selective perception.
B. Selective distribution.
C. Selective exposure.
D. Selective retention.
E. All of these are selective processes.
Answer:
An important step in applying the marketing concept is:
A. changing the firm’s organizational structure.
B. changing the firm’s management methods and procedures.
C. appointing someone with a marketing management background to be the firm’s
president.
D. hiring a marketing consultant.
E. committing to customer satisfaction.
Answer:
Early adopters
A. can help the promotion effort by spreading word-of-mouth information and advice
among other consumers.
B. tend to rely on impersonal and scientific information sources, or other innovators,
rather than salespeople.
C. avoid risk and wait to consider a new idea after laggards have tried it-and liked it.
D. make little use of marketing sources of information-mass media and salespeople.
E. tend to look to the early majority group for advice.
Answer: