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Which of the following publicity tools would a software company most likely use in
order to target commercial press?
A. Customer reviews
B. Case studies
C. Blogs
D. Podcasts
E. Online media room
Answer:
All publicity relies on mass media message channels.
Answer:
On average, U.S. corporations spend only about 2.5 percent of their sales on
advertising.
Answer:
The four "Ps" are: Product, Promotion, Price, and Personnel.
Answer:
Salespeople may represent their company to customers and, in turn, represent their
customers within the company.
Answer:
Marketing is both a set of activities performed by organizations and a social process.
Answer:
To avoid wasting time working on the wrong problem, marketing researchers can use a
logical strategy planning framework to guide their efforts.
Answer:
A supermarket is bound to expect a higher stockturn for fresh fruits and vegetables
compared to soaps and detergents.
Answer:
The major shortcoming of competitor analysis is that it focuses on the weaknesses of
competitors-but ignores their strengths.
Answer:
In an advanced economy, all goods and services can be produced with mass production
and its economies of scale.
Answer:
Consumer products that are linked to cultural variables tend to be lower risk when
entering international markets.
Answer:
Much of the secondary data on the Internet is stored in database formats that standard
website search engines cannot find.
Answer:
Spending money to improve protective packaging may be necessary, but it usually
results in higher total distribution costs for a firm's product.
Answer:
In the customer-initiated communication process, marketing managers should simply
ignore online information they do not create.
Answer:
Facebook, FourSquare, and LinkedIn are all examples of publicity tools for interactive
communication between a company and final consumers or business customers.
Answer:
In the U.S., big warehouse clubs have taken much of the cash-and-carry wholesalers
business.
Answer:
Monopolistic competition is caused by customer preferences, not business manipulation
of markets.
Answer:
As B2B buyers rely more on social networks, it's more likely that communications from
sellers will have even more influence.
Answer:
Even in a full-scale market test, the firm is testing only the product, not the whole
marketing mix.
Answer:
Publicity allows a firm to avoid media costs.
Answer:
The "continuum of environmental sensitivity" suggests that industrial products are more
sensitive to the cultural environments in which they are placed than high-style
consumer products.
Answer:
The smaller the comparative advantage of a new product over those already on the
market, the faster its sales will grow.
Answer:
Just-in-time delivery systems typically shift more responsibility for PD activities to the
customer rather than the supplier.
Answer:
The marketing concept cannot be applied to nonprofit organizations because they are
not profit-oriented.
Answer:
Promotion to business customers emphasizes personal selling.
Answer:
Key countries in Europe have moved to the euro, a new unified money system for the
European Union.
Answer:
Ignoring demand is the major weakness of average-cost pricing.
Answer:
A service is not a "Product" because services do not include any physical good.
Answer:
The General Electric 'strategic planning grid" relies on subjective judgments about
business strengths and industry attractiveness.
Answer:
Marketers should be aware of federal legislation, as well as state and local laws, when
planning marketing strategy.
Answer:
Companies such as Campbell's can only implement one marketing strategy at a time.
Answer:
When Intuit, a tax and financial planning software company, created a website where its
QuickBooks customers could interact about problems facing their small businesses, this
was an example of an online community.
Answer:
The U.S. has about 462,000 people working directly in the advertising industry, and
half of them work for advertising agencies.
Answer:
One of the disadvantages of a market-directed economic system is that it does not
operate automatically and requires careful government oversight.
Answer:
A 'supercenter" carries all the goods and services that a consumer might routinely
purchase.
Answer:
How much effort is put into a buying decision depends on the economic needs,
psychological variables, social influences, culture, purchase situation, and the amount
of risk involved.
Answer:
If the cost of production per unit goes down as the quantity produced increases, small
producers can be at a great cost disadvantage.
Answer:
The total sales of a product, by all competitors in the industry, is
A. highest in the introduction stage.
B. lowest in the market maturity stage.
C. highest in the sales decline stage.
D. lowest in the market growth stage.
E. lowest in the market introduction stage.
Answer:
Which of the following statements concerning "negotiated price" is FALSE?
A. The negotiated price is set by bargaining between the buyer and the seller.
B. Negotiated pricing is not a demand-oriented approach.
C. Bargaining may involve the whole marketing mix, not just the price level.
D. Sellers must know their costs to negotiate effectively.
E. None of these statements about "negotiated price" is FALSE.
Answer:
To guarantee good media selection, the advertiser FIRST must clearly specify its
A. promotion objectives.
B. target market.
C. budget.
D. advertising campaign.
Answer:
Which of the following is NOT a trend affecting marketing strategy planning in the area
of International Marketing?
A. tensions between "have" and "have-not" cultures
B. more attention to exporting by small companies
C. global communication over the Internet
D. decreasing income and population in emerging markets
E. impact of "pop" cultures on traditional cultures
Answer:
____ is an example of a primary data source.
A. Cost data
B. A marketing information system
C. Company files
D. Observation
E. Library
Answer:
Consumers remembering only what they want to remember is called:
A. conscious response.
B. selective retention.
C. selective exposure.
D. cognitive learning.
E. selective perception.
Answer:
A typical purchasing manager:
A. buys strictly on economic needs.
B. tries to satisfy both individual needs and company needs.
C. seeks the lowest possible cost.
D. has the final decision on all purchases.
E. All of these alternatives are correct.
Answer:
Staple products:
A. need maximum exposure and widespread distribution at low cost.
B. need adequate representation in major shopping areas.
C. need widespread distribution but with assurance of preferred display.
D. need widespread distribution near probable points of use.
E. can have limited availability as long as display is good.
Answer:
A wholesaler who takes over the whole marketing job NATIONALLY for one or a few
manufacturers is called a:
A. merchant wholesaler.
B. manufacturers' agent.
C. broker.
D. specialty wholesaler.
E. selling agent.
Answer:
Use this information for question that refer to the Pricing 1 case. (WPI) case.
As a project for her marketing class, Emily Washington is researching how five local
businesses price their products. The following are brief sketches of what she has learned
about each company.
At Bella Computers, Emily has discovered that the company earned a 6 percent return
on investment this year and wants to increase it to 9 percent next year. To its retailer
customers, Bella Computers gives cash discount terms of 2/10, net 30. It also gives
retailers a 3% reduction on the invoice amount for advertising Bella products locally.
Bella gives retailers' salespeople 2% of the sale price for each Bella Computer they sell.
At Ross Pharmaceuticals, she learned that the company has invested heavily in
developing a new product that recently received a patent. Because cash is tight, the
company wants to achieve a rapid return on its investment. The new patented product is
badly needed in the market, so a very inelastic demand curve is expected.
Digital Imaging makes photographic prints for wedding photographers. It is very
concerned about competitor reactions to its pricing, so it has selected prices that will not
draw the attention of the competition and not start a price war. Digital Imaging offers
customers an 8% discount if their purchases exceed $20,000 a year.
Jack's One Hour Cleaners recently opened for business. The company invested a lot of
money in new equipment, and feels that it has to quickly get "at least 10% market share
to stay in the game." This need obviously influences the company's pricing decisions.
Jack's also plans to offer customers 20% discounts on any order over $20.
National Printing Equipment (NPE) produces equipment that helps to print newspapers
and magazines. The company sells directly to printers and through wholesalers. Its
salespeople negotiate prices with individual customers and often have to match
competitors' prices. NPE has a new product, the Gutenberg NP201, with some
competitive advantages now, but competitors are expected to follow quickly with
similar products. The new product is being introduced into a market with elastic
demand. Regarding freight charges for its equipment, NPE's invoice reads, "Seller pays
the cost of loading equipment onto a common carrier. At the point of loading, title to
such products passes to the buyer, who assumes responsibility for damage in transit,
except as covered by the transportation agency."
Which pricing policy would be recommended for Ross Pharmaceuticals' new product?
A. meeting competition pricing
B. penetration pricing
C. introductory pricing
D. skimming pricing
E. below-the-market pricing
Answer:
HomeFront Construction Company built large, single-family homes for 25 years. Then
there was a shift toward more demand for small luxury condominiums-and HomeFront
changed its focus. The change in demand could be explained by:
A. the increasing number of senior citizens who are "empty-nesters."
B. the fact that consumers in urban areas generally have higher incomes.
C. the increasing number of 45-64 year olds whose children are grown.
D. All of these explanations could be relevant.
Answer:
Which of the following scenarios illustrates how sales promotion can erode brand
loyalty?
A. An insurance company has not been able to gain employee commitment or loyalty
even after providing regular training to its sales force.
B. A newspaper article on the side effects of deep-fried food causes most fast food
chains to lose their customers.
C. A firm airs a radio ad similar to a competitor's, which results in consumer brand
confusion.
D. A wholesaler switches between brands as he is attracted by price deals and
promotion allowances of various competing brands during Christmas.
E. A television ad of a specific brand increases the sales for the entire product category,
thus benefiting the competitors as well.
Answer:
Good Health Co. has set a suggested retail list price of $40 on its new vitamin tablets on
the assumption that its target market will find the product attractive at this price. From
this suggested retail list price, Good Health has subtracted its usual chain of markups
for wholesalers and retailers to obtain its own selling price of $17. This is:
A. demand-backward pricing.
B. full-line pricing.
C. average-cost pricing.
D. odd-even pricing.
E. prestige pricing.
Answer:
What basic promotion objective should be emphasized by a producer introducing a
really new product which satisfies customer needs better than any existing product?
A. Persuading
B. Reminding
C. Maximizing
D. Informing
E. Communicating
Answer:
Manufacturer brands are also called ___________.
A. dealer brands
B. global brands
C. national brands
D. private brands
E. store brands
Answer:
Which item would likely possess the highest customer value for a person who makes
scrapbooks?
A. The lowest price glue
B. The highest price glue
C. The glue that does the best job
D. The glue that does the best job at the most affordable price
E. All glues have the same customer value
Answer:
A modified rebuy would be most likely when:
A. A railroad plans to change from steel to aluminum rail cars to cut weight.
B. A car producer is developing a sportier car which will require wider tires.
C. A bread producer is placing its weekly order for flour.
D. A computer producer is buying new assembly line equipment.
E. A shoe factory needs more glue to attach heels to its shoes.
Answer:
The "marketing concept" says that a business firm should:
A. Aim all its efforts at meeting society's needs-regardless of profitability.
B. Aim all its efforts at satisfying its customers-at a profit.
C. Sell those products which it can make at lowest cost.
D. Place heavy emphasis on developing new products.
E. Treat advertising and selling as its priority.
Answer:
Managers should make operational decisions
A. within the guidelines set down during strategy planning.
B. with great care as these decisions are the same as strategic decisions.
C. for the long-run to help formulate strategic plans.
D. keeping in mind that these decisions should always lead to changes in the basic
strategy.
E. on a month-to-month basis and never daily or weekly.
Answer:
Consumers are increasingly accessing the Internet "on the go." How should physical
retailers best leverage this trend?
A. They should develop websites and apps that work with tablet computers and
smartphones.
B. They should design and use traditional catalogs to appear different from the
competitors.
C. They should make their customers feel like they are sitting at a desk with a computer
and shopping, even if they are shopping on a mobile device.
D. They should provide customers with free access to the Internet in their stores.
E. They should make more profits by charging higher prices on their products when
sold through the Internet.
Answer:
When assessing a firm's quality from the customer's perspective, marketing managers
must take account of all relevant _____ where customers have contact with the firm and
its products.
A. locations
B. touchpoints
C. sales data
D. connectors
E. intersects
Answer:
Smartphones embedded with GPS (Global Positioning System) can be used as a
medium to deliver ads based on a customers'_____.
A. attitude
B. behavioral positioning
C. geographic location
D. ethnic identity
E. psychographics
Answer:
Which of the following is NOT an important problem-solving step for a consumer
trying to satisfy a need?
A. search for information
B. identify alternatives
C. set criteria
D. evaluate alternatives
E. none of these (i.e., all are important steps)
Answer:
For marketers who seek to sell to organizational customers, initial contact with the
customer is likely to be with a customer's:
A. most senior salesperson.
B. clerk who process paperwork.
C. purchasing manager.
D. accounting department.
E. Chief Executive Officer (CEO).
Answer:
Identify the incorrect statement concerning the North American Free Trade Agreement
(NAFTA).
A. NAFTA lays out a plan to reshape the rules of trade among the U.S., Canada, and
Mexico.
B. NAFTA enlarges the free-trade pact that had already knocked down most barriers to
U.S.-Canada trade.
C. NAFTA has already eliminated most barriers to U.S.-Mexico trade.
D. NAFTA prohibits moving of production and jobs from the U.S. to Mexico.
E. NAFTA establishes a forum for resolving future trade disputes.
Answer:
A vendor is LEAST LIKELY to make a sale if the buyer has not bought from the vendor
before and is doing:
A. straight rebuy buying.
B. selective buying.
C. new-task buying.
D. selective task buying.
E. modified rebuy buying.
Answer:
Direct marketing is
A. personal sales contact between a representative of the company and an individual
consumer.
B. primarily concerned with the degree of market exposure.
C. direct communication between a seller and an individual customer using a promotion
method other than face-to-face personal selling.
D. an effort to sell through only one intermediary.
E. a strategy that works best when a producer has little working capital.
Answer:
The right physical distribution system should be based primarily on
A. the desired customer service level.
B. how customers store the product.
C. the physical characteristics of the product.
D. what is the lowest cost method of transportation for the product.
E. the inventory level that allows the smoothest production runs.
Answer:
For marketers, the purpose of gathering primary data is usually:
A. to learn what customers think or how they behave in certain situations.
B. to specify what information needs to be obtained and how.
C. to monitor what others are saying online about the company or its products.
D. to define the problem that needs to be solved.
E. to help develop a hypothesis.
Answer:
The forces of competition in and among _____ helps speed the diffusion of marketing
advances to consumers everywhere.
A. market-directed economies
B. command economies
C. production-oriented firms
D. collectivistic cultures
E. individualistic cultures
Answer:
If a supermarket runs an ad for a gallon of milk in the local newspaper at a price that
many consumers will recognize as a low price for this product, this is an example of:
A. reference pricing
B. price lining
C. bundle pricing
D. leader pricing
E. bait pricing
Answer:
Regarding our MACRO-marketing system, the text suggests that:
A. consumers' freedom of choice should be reduced-for the good of society.
B. some changes may be necessary-but consumer-citizens should vote on these
changes.
C. marketing managers should limit consumers' freedom of choice.
D. marketing managers should produce only what they feel is good for consumers.
E. None of these alternatives is correct.
Answer:
Regarding installations, which is NOT true?
A. The number of potential customers at any one time is quite large.
B. Leasing installations may be attractive to buyers.
C. It is common for sellers to offer specialized services.
D. The buying needs of potential customers are basically economic.
E. Multiple buying influence is common.
Answer:
Macro-marketing:
A. tries to produce discrepancies of quantity and discrepancies of assortment.
B. focuses on the activities of individual organizations.
C. tries to effectively match supply and demand.
D. is a set of activities performed by individual firms.
Answer:
