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Joe Hamas sells for Rush Beverages. He is trying to convince retailers to carry his
company's Ginseng Rush, a new all-natural beverage that delivers an energy punch
without caffeine. When he gets retailers to agree to stock his product, he asks them for
the names of other retail operations that might be interested in carrying it. He is using
___ to get his sales leads.
a. networking
b. cold calling
c. referrals
d. direct marketing
e. noncompeting sales
Answer:
Caterpillar has been experimenting with replacing the traditional steering mechanism
on its graders with a joystick- based steering mechanism. As a part of its research, it
built graders that included both a steering wheel and joystick steering mechanisms, then
asked operators to use the machines for a few days. After two days of testing, several of
the operators liked the joysticks so much that they suggested the steering wheel be
removed to provide better visibility. This would be an example of using an experiment
to gather ____ data.
a. primary
b. secondary
c. dichotomous
d. ethnographic
e. collaborative
Answer:
____ is a legal process whereby a firm agrees to let another firm use its manufacturing
process, trademarks, patents, trade secrets, or other proprietary knowledge in return for
a fee or royalty.
a. A joint venture
b. Divestment
c. Licensing
d. A principal-agent agreement
e. A contract manufacturing arrangement
Answer:
In general, Hispanic Americans:
a. prefer to buy American products rather than brands found in their homelands,
because they want to be "real
Americans".
b. are much older than the general U.S. population.
c. prefer products from their native countries.
d. respond unfavorably to advertising targeted directly at them.
e. are highly aware of most mainstream U.S. brands.
Answer:
Monette has posted over 100 book reviews on Amazon.com. She also frequently
reviews products and services on Epinions and posts her impressions of local
restaurants on Yelp. As a social media user, Monette would best be characterized as a
joiner.
a. True
b. False
Answer:
While hundreds of metrics have been developed to measure social media's value, these
metrics are meaningless unless they are tied to key performance indicators.
a. True
b. False
Answer:
The length of the introductory stage of the product life cycle for a new product is
largely determined by:
a. the size of the product
b. the product's marketing mix
c. the efficiency of the test marketing
d. product characteristics, such as advantages over substitute products
e. the size of the market
Answer:
____occurs when an increase in sales exactly offsets a decrease in price so that total
revenue remains exactly the same.
a. Inelastic demand
b. Functional elasticity of demand
c. Unitary elasticity
d. Highly elastic demand
e. Fixed elasticity
Answer:
AppleStores
Apple, Inc. opened its first Apple Store in 2001 and currently has hundreds of stores
spanning several countries. Many of the Apple Stores are inside malls, but Apple also
has several freestanding stores, which they call their flagship stores, with each looking a
little different on the outside. These are located in New York City, Boston, Los Angeles,
Chicago, San Francisco, Montreal, Tokyo, and Osaka.
The store in New York City is a glass cube with a glass cylindrical elevator and spiral
staircase that leads to an underground store. Inside, they have long tables displaying
products ranging from the iMac, MacBook Air, iPods, printers, cameras, and other
accessories. All these products are accessible to customers who can try them out and
ask various questions of informed associates. The walls are mostly metallic, and the
signs are all backlit.
All stores have a Genius Bar where customers can receive technical advice or set up
service and repair for their products. To address the needs of the many iPod users, some
stores, such as the New York store, have set up a separate iPod Bar where customers
can get their own technical assistance. They also have an iMac station for kids who
want to try out games and learning products and a theater for workshops, product
training sessions, and special presentations.
Apple introduced the handheld Easy Pay system where customers don"t have to wait in
line to purchase products. With a simple click of a paperless, handheld credit card
scanner, the employee brings the cash register to the customer. Items can be rung up
anywhere on the show room floor. Apple plans to open several more stores in the years
to come.
Apple also has its online store. At its Web site, a customer can order any Mac or iPod
product, plus a large variety of accessories. In addition to its product offerings, a
customer can watch a demonstration of how products work or check out the latest Mac
ads or news.
Refer to Apple Stores. In terms of ownership, which of the following best describes
Apple stores?
a. Independent retailer
b. Chain stores
c. Franchises
d. Pop-up shops
e. Department stores
Answer:
The growth of mass marketing is an indication of the importance of implementing
CRM.
a. True
b. False
Answer:
Lea Kirkham is a physician. She charges each patient the same price for a physical
examination, whether the procedure takes 10 minutes or a full hour. Which pricing
policy is Dr. Kirkham following?
a. Professional services
b. Potential (or base)
c. Price maintenance
d. Psychological
e. Flexible (or variable)
Answer:
How can personal selling costs be controlled?
a. By increasing the time that the sales force spends on personal selling.
b. By adjusting the size of the sales force en masse.
c. By offering the sales force benefits such as stock options.
d. By dropping and replacing the entire sales force.
e. By adjusting the size of the sales force in one-person increments.
Answer:
The CAN-SPAM Act:
a. prohibits commercial e-mailers from using false addresses and presenting false or
misleading information
b. requires meat manufacturers to open their facilities to health inspection at least once
per quarter
c. requires verifiable parental consent before a Web site can collect information from
children
d. allows commercial emailers to charge consumers a fee to "opt out" of receiving
further email from the sender
e. prohibits the online practice of "behavioral targeting"
Answer:
In traditional selling, more time is spent ____ than in relationship selling.
a. qualifying leads
b. following up
c. handling objections
d. approaching the customer and probing needs
e. designing and proposing solutions
Answer:
Consider a small southern town where more than half the residents are African
American and the rest are white. A
successful marketing campaign for this community would include:
a. internet advertising.
b. radio advertising.
c. billboards.
d. newspaper advertising.
e. outdoor advertising.
Answer:
EffectiveSocialMedia
Many marketers define their social media objectives around five core concepts: (1)
listening""understanding what customers are saying and who those customers are, (2)
talking""promoting products/services through conversations with customers, (3)
energizing""finding enthusiastic customers and using them to sell to others, (4)
supporting""enabling customers to help one another, and (5) embracing""using
customers as a source of product innovation. Marketers should also keep in mind that,
more and more, customers expect companies to use social medi
a. According to a recent survey, more than half of all consumers want ongoing
conversations with companies and brandsand of consumers who use social media
themselves, a whopping 85 percent believe that companies should have an active social
media presence. Marketers who embrace such consumers can harness the power of
social media and ultimately improve profits and brand loyalty.
Refer to Effective Social Media. Consumers' opinions about the value of social
marketing reflect:
a. the decreasing influence of marketing as an important factor in business.
b. the fact that paid media is no longer relevant in the marketing world.
c. the widespread shift in marketing from one-to-many communication to
many-to-many communication.
d. marketers' continuing reluctance to wholeheartedly dive into social media.
e. customers can be easily manipulated by the onslaught of information available in the
social media universe.
Answer:
Generally, companies with lower levels of compensation:
a. suffer higher turnover rates
b. experience overall decreased cost
c. experience increased effectiveness
d. experience lower termination rates
e. experience improved customer satisfaction
Answer:
A business thinking of expanding into global markets needs to examine all of the
following external environments EXCEPT:
a. Culture.
b. political structure and actions.
c. its marketing mix.
d. natural resources.
e. demographic makeup.
Answer:
What does "YMS" stands for?
a. Yorkshire manufacturing sector.
b. Yield management systems.
c. Yes-man syndrome.
d. Yardstick measurement scale.
e. Year-end marketing services.
Answer:
____ is the ultimate goal of a new trend in marketing that focuses on understanding
customers as individuals instead of as part of a group.
a. Organizational optimization
b. Consumer relationship marketing (CRM)
c. Total quality management (TQM)
d. Customer relationship management (CRM)
e. Market aggregation
Answer:
The brand name of a manufacturer is known as a(n)___ brand.
a. private
b. manufacturer's
c. individual
d. captive
e. family
Answer:
Fujisawa is Japan's seventhlargest pharmaceutical company. It sells drugs for organ
transplant patients to increase
the probability the new organ will operate efficiently and not be rejected. Currently, the
only product Fujisawa makes is these organ transplant drugs, which it sells worldwide.
Its patents protect it from competitors. Fujisawa has a:
a. brand name advantage
b. niche competitive advantage
c. cost competitive advantage
d. marketing competitive advantage
e. complete competitive advantage
Answer:
Nontraditional channel arrangements:
a. tend to make a firm's product seem the same as the competition.
b. usually broaden a brand's coverage.
c. can give a producer serving a niche market a way to gain market access without
having to establish channel intermediaries.
d. are not usually useful for larger firms.
e. All of the above are true.
Answer:
When a salesperson asks for the sale, he or she is:
a. closing the sale.
b. creating empathy.
c. reducing cognitive dissonance.
d. creating long-term reciprocal arrangements.
e. qualifying the sale.
Answer:
Large retailers such as Target and Walmart and sellers of shopping goods such as
automobiles and furniture often use ____ for their locations.
a. remote, rural locations
b. office complexes
c. factory outlets
d. freestanding stores
e. regional malls
Answer:
Redbox
Movie DVD sales represent a $16 billion market, and rentals make up another $7.5
billion. Naturally, production studios would prefer consumers purchase DVDs rather
than rent them. Production studios like Twentieth-Century Fox, Warner Bros., and
General Electric refused to sell new releases to Redbox, a DVD vending machine
company, until almost a month after new releases arrived in stores. Redbox, the
ubiquitous DVD rental red kiosks found in and outside of convenience stores, grocery
stores, drugstores, fast-food restaurants, and Walmart, is cutting in on production
companies' profits. These studios are tangled in lawsuits with Redbox. Sony,
Paramount, and Lionsgate, on the other hand, permit distribution through Redbox, and
Disney allows third-party distribution to Redbox. With more than 20,000 kiosks now in
operation, Redbox ranks fifth in DVD rental revenues, which is impressive considering
the rental fee is only $1.00. But Blockbuster is trying to steal vending market share by
allowing NCR Corporation, known for ATM machines, to license its name to place
Blockbuster Express kiosks in similar types of locations.
Refer to Redbox. Redbox offers DVDs from several production studios, such as Disney,
Sony, and Paramount.
Refer to Redbox. Redbox offers DVDs from several production studios, such as Disney,
Sony, and Paramount. Consumers can rent from Redbox instead of obtaining the DVD
from the various production studios if they want a children's movie from Disney and an
action movie from Paramount. Thus, one kiosk provides ____ for both consumers and
the production studios.
a. contact efficiency
b. integration
c. synergy
d. distribution efficiency
e. distribution intensity
Answer:
Volvo, working with FedEx, set up a warehouse in Memphis with a complete stock of
truck parts. A dealer needing a part for an emergency phones a toll-free number, and the
part is delivered by FedEx within 24 hours. This is an example of how manufacturers
are using:
a. outsourcing.
b. cross-docking.
c. disintermediation.
d. piggybacking.
e. an integrated demand channel.
Answer:
GotMilk?
Just because consumers live in a big city doesn"t mean they can"t have fresh milk right
from the farm. Many dairy farms, such as Oberweis Dairy and Smith Brothers Farms,
offer home delivery of fresh milk, just like in the old days. While some of these services
are established and have been around since the 1920s, New York City"based Manhattan
Milk started up in 2008. For $20 or more, depending on what is ordered, consumers
anywhere in Manhattan can enjoy organic milk, butter, yogurt, and cheese from
Pennsylvania Amish farms and eggs from Vermont. Unlike most store-bought milk,
theirs is not homogenized and is free of hormones typically given to cows to produce
more milk.
Refer to Got Milk? One important aspect of Manhattan Milk's service is the ability to
deliver the milk within 48 hours of being milked from the cow. This service quality
component of the ability to perform the service dependably, accurately, and consistently
is referred to as:
a. assurance
b. empathy
c. reliability
d. tangibles
e. consistency
Answer:
Making sure products are available when and where customers want them is the job of
which element of the marketing mix?
a. Advertising strategies
b. Production strategies
c. Product strategies
d. Promotion strategies
e. Place strategies
Answer:
Apple's "Back to School" program offered students who purchased an iMac computer
and an iPod Touch MP3 player a $250 refund. The $250 check was essentially a:
a. rebate.
b. reciprocal allowance.
c. cash discount.
d. functional discount.
e. trade promotion.
Answer:
Marketing research should NOT be undertaken when:
a. the perceived costs are greater than the projected benefits.
b. there are no secondary data in existence to guide the project definition.
c. it will take a long time to complete.
d. the actual costs are less than the forecasted benefits.
e. the perceived costs are the same as the forecasted benefits.
Answer:
Rag fibers for paper and cotton seeds for cottonseed oil are two by-products of the
cotton textile industry. Because these products are produced together, they are
complementary products.
a. True
b. False
Answer:
If a firm has a production orientation, what types of questions does management ask
after assessing its resources?
Answer:
Explain how technology has changed the role of the consumer for today's marketers.
Answer:
List five noncomputer sources of competitive intelligence.
Answer:
An essential part of marketing strategy is target market strategy. Selection of target
market(s) drives marketing objectives and selection of the marketing mix (the four Ps).
What are the three general strategies for selecting target markets?
Answer:
A specialty store is not only a type of store but also is a method of retail operations.
Describe the specialty store strategy. Then name two examples of specialty stores.
Answer:
The use of the Internet to facilitate activities between organizations has evolved and
grown rapidly throughout its short history. Define B-to-Be-commerceand describe the
various tools that B-to-B marketers are using online. Also discuss the evolution of
e-business initiatives.
Answer:
What is the final stage in the new-product development process? What tasks are set in
motion during this stage?
Answer:
Describe how a multinational corporation can most efficiently and effectively meet the
needs of the global market.
Answer:
What is product differentiation, and how can it be achieved?
Answer:
What is the difference between a homogeneous shopping product and a heterogeneous
shopping product? Give specific examples of products that fit into each category to help
illustrate your answer.
Answer:
You are the sales promotion manager for VitaBalls, a new children's vitamin that is
designed to be chewed like gum. Your company uses a pull strategy, and you are
responsible for recommending sales promotion tools to accomplish this strategy.
Describe three specific sales promotion activities you would recommend for Vita-Balls.
Answer:
Packaging is an important component of the product strategy. List and briefly describe
the four major functions of packaging.
Answer:
What are three advantages and three disadvantages inherent in the use of a mail survey?
Distinguish between a mail survey and a mail panel.
Answer:
Discuss the two reasons why managers sometimes price their products too low, thereby
reducing company profits.
Answer:
Riot Media is a media and toy company that capitalizes on the "grossout" humor
enjoyed by boys ages 8 through 12 In other words, it targets:
a. members of Generation X.
b. a cohort generation.
c. Tweens.
d. baby boomers.
e. the baby bridging generation.
Answer:
One important reason channel members are included between producers and users is to
increase contact efficiency. How do channel members increase contact efficiency? Use
the following two scenarios to illustrate your
Answer:
How would a marketer define the term product?
Answer:
