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Purchasing managers in business markets (compared to buyers in consumer markets)
are generally:
A. fewer in number.
B. more technically qualified.
C. less emotional in their buying motives.
D. more insistent on dependability and quality.
E. all of these alternatives are correct.
Answer:
Marketing managers should make specific strategy decisions about:
A. how many and what kind of salespeople are needed.
B. how salespeople should be compensated and motivated.
C. what kind of sales presentation should be used.
D. how salespeople should be selected and trained.
E. All of these alternatives are correct.
Answer:
_____ is an informal study of what information is already available in the problem area.
A. Qualitative research
B. Situation analysis
C. A focus group interview
D. Quantitative research
E. A marketing model
Answer:
A national restaurant chain encourages its customers to use its website as a means of
providing comments about their experiences at the chain's locations. This website is one
way of measuring:
A. macro-marketing effectiveness.
B. the effectiveness of competition.
C. employee empowerment.
D. micro-marketing effectiveness.
E. All of these alternatives are correct.
Answer:
In a scenario where the market is not showing any signs of growth, sales promotion is
more likely to:
A. encourage deal-prone customers to switch between brands.
B. contribute to long-term profits.
C. result in long-term brand loyalty toward the firm.
D. provide a competitive advantage to the company.
E. reduce the selling costs of firms.
Answer:
As a product moves through its product life cycle:
A. a firm should change its target market-but not its marketing mix.
B. the competitive situation moves toward monopoly.
C. industry profits keep increasing along with industry sales.
D. customers' needs and attitudes may change.
E. All of these alternatives are true.
Answer:
Marginal analysis
A. assumes that the firm's total revenue curve is a straight line.
B. bases the analysis on the cost of the first few units sold.
C. explicitly considers demand when calculating price.
D. takes into account the break-even point.
E. None of these alternatives is correct.
Answer:
Use this information for question that refer to the Yummy Ice Cream case.
Kelly Stich, marketing manager for Yummy Ice Cream Products, is thinking about some
of her products and her promotion plans for the coming year.
Yummy Ice Cream Products is introducing a new ice cream treat called PlanetSavers.
This treat uses ice cream produced with environmentally friendly processes that save
energy and protect the ozone. Yummy plans to send articles to magazines, local
newspapers, and environmental groups that explain the environmentally safer treat. The
product also has a unique texture and different flavor.
Stich wants to use counter cards and in-store signs to let people know about Cherry
Walrus, the company's new flavor. She is also developing sales training materials that
will teach ice cream scoopers in Yummy's ice cream stores to promote the product.
Right after Cherry Walrus is introduced each store will also hand out coupons that are
good for one day only.
Yummy Mondaes is a product that has been around for 25 years. It is Yummy's take on
the classic ice cream sundae, but white-brownie and coffee-flavored crumbles are added
to make it extra special. The company sells this product in one and two quart containers
through major grocery store chains. It relies on personal selling and price discounts to
retailers to move more of the product. The company does very little consumer
promotion for this product.
Yummy Fudge on a Stick is a new product of fudge-flavored ice cream on a stick.
Yummy plans to sell it through retail grocery stores and is launching an aggressive
advertising program that will use television, radio, newspaper, magazines, and the
Internet. Most of its promotion will be directed at consumers.
Two years ago, the company introduced Yummy Fruit on a Stick, an all-natural frozen
fruit product on a stick. The product category has been popular, continues to grow, and
is in the market growth stage of the product life cycle.
Based on where the product category is in the product life cycle, promotion for Yummy
Fruit on a Stick should:
A. emphasize ways that Yummy Fruit on a Stick is best.
B. be cut back or dropped so that money can be used on products that contribute to
customer equity.
C. use reminder advertising.
D. build primary demand.
Answer:
All of the following are true of requisitions except
A. it is a request to buy something.
B. it is frequently handled online to cut time and paper shuffling.
C. its processing usually takes a few hours for both simple and complex purchases.
D. it is a form of centralized control.
Answer:
The marketing concept can be applied by:
A. nonprofit hospitals.
B. symphony orchestras.
C. private universities.
D. manufacturers of consumer products.
E. all of these organizations can apply the marketing concept.
Answer:
A footwear company specializing in the production of ballet shoes normally produces
shoes only in women's and girl's sizes. The company is hired by several customers to
produce shoes in men's and boy's sizes. Which of the following should the manufacturer
consider in order to achieve economies of scale in shoe production?
A. The amount of shoe production cost compared to the typical costs incurred in
shipping
B. The level of effort required to retool the company's manufacturing plant to produce
only men's shoes
C. The cost of producing one size shoe at a time in large quantities and storing them for
future sales
D. The amount of shoe storage cost compared to the typical costs incurred in shipping
E. The cost associated with efforts to increase customers that might also place orders for
men's shoes
Answer:
"Promotion" does NOT include:
A. personal selling.
B. sales promotion.
C. advertising.
D. introductory price dealing.
E. publicity.
Answer:
Effective marketing should begin with
A. an effort to persuade unwilling customers to buy the firm's products.
B. potential customer needs.
C. a decision about what the firm can produce efficiently.
D. evaluation of the effect of the firm's decisions on the MACRO-marketing system.
E. the marketing manager making important production, accounting, and financial
decisions for the firm.
Answer:
An advertising manager's job is to:
A. manage the firm's advertising effort.
B. plan creative marketing strategies.
C. develop the firm's marketing mix.
D. develop the firm's promotion blend.
E. all of these are included in an advertising manager's job.
Answer:
The St. Louis Symphony is an example of what type of organizational customer?
A. Government
B. Wholesaler
C. Intermediary
D. Resident buyer
E. Nonprofit
Answer:
Business products that are necessary expense items, and continually used up, but which
do not become part of the buyer's final product are:
A. component materials.
B. supplies.
C. component parts.
D. raw materials.
E. accessory equipment.
Answer:
The physical distribution customer service level concerns
A. the costs to carry a product in inventory.
B. the length of time a product is stored in inventory.
C. the effort put in by channel members to meeting customer needs.
D. the location of distribution centers.
E. how rapidly and dependably a firm can deliver what customers want.
Answer:
According to the text, marketing means:
A. much more than selling and advertising.
B. selling.
C. producing and selling.
D. advertising.
E. selling and advertising.
Answer:
Good marketing managers know that
A. marketing strategies can't influence consumer "wants."
B. marketers can't create internal drives in consumers.
C. it is not that difficult to develop a marketing strategy that gets consumers to do what
they don't want to do.
D. None of these alternatives is correct.
Answer:
By presenting a coupon to a retailer, the consumer is:
A. given a discount off the list price.
B. allowed to sample the product.
C. offered the option of an installment payment.
D. given the right to pretest the product.
E. obligated to buy the product again in the future.
Answer:
A sales rep might use new software for ______________ to provide a competitive
advantage.
A. sales forecasting
B. shelf-space management
C. customer contact management
D. time management
E. any or all of these software could help provide a competitive advantage
Answer:
In the U.S., producers of games and toys spend about _____ percent of their sales
dollars on advertising.
A. 1
B. 4
C. 7
D. 10
E. 14
Answer:
"Product" is concerned with:
A. branding.
B. packaging and warranty.
C. physical goods.
D. services.
E. all of these might be involved with Product.
Answer:
Dolly Westin calls on the many gift shops in Savannah and sells a variety of unique
decorative glass items, wind chimes, and picture frames produced by the companies
that she represents. The store owners can order from Dolly rather than from the three
different producers she represents. Apparently, Dolly is a
A. selling agent.
B. rack jobber.
C. drop-shipper.
D. broker.
E. manufacturers' agent.
Answer:
Regarding personal selling, good sales managers know that:
A. many orders are lost simply because the salesperson didn't ask for the order.
B. salespeople should spend the same amount of time with each prospect.
C. the sales rep has very little influence on a prospect's response.
D. good salespeople are born-not taught.
E. None of these alternatives is correct.
Answer:
Customer value
A. is greater if costs exceed benefits.
B. becomes less important as competition increases.
C. is the same thing as low price.
D. affects a customer's relationship with a firm before and after a sale.
E. none of these responses is correct.
Answer:
Alia was satisfied with the old television that she had owned for years. But after
watching a few shows on her friend's big, flat-screen, HD television, she felt that she
should buy a newer model for herself. Which of the following limitations of
macro-marketing effectiveness does this illustrate?
A. Customer satisfaction is easy to measure by means of a survey or a poll.
B. Customer satisfaction depends on and is relative to individual aspirations.
C. Customer satisfaction remains unchanged even when levels of expectation rise.
D. The American Customer Satisfaction Index provides an accurate measure of
satisfaction.
E. The average level of customer satisfaction provides a complete picture for evaluating
macro-marketing effectiveness.
Answer:
A farmer's cooperative in California is sponsoring TV ads aimed at getting Americans
to eat more garlic. The ads don't mention any brand names. This is an example of
______________ advertising.
A. competitive
B. pioneering
C. indirect competitive
D. reminder
E. comparative
Answer:
Dell sells custom-made computer systems. Besides order getters, Dell probably uses:
A. order takers.
B. missionary salespeople.
C. merchandisers.
D. manufacturers' agents.
E. technical specialists.
Answer:
Use this information for question that refer to the United Tools case.
Terry Harter is marketing manager for United Tools and Mike O'Reilly is the firm's
logistics manager. They work together to make decisions about how to get United's
hand and power tools to its customers-a mix of manufacturing plants and final
consumers (who buy United tools at a hardware store). United Tools does not own its
own transport facilities and it works with wholesalers to reach its business customers.
Together, Harter and O'Reilly try to coordinate transporting, storing, and product
handling activities to minimize cost while still achieving the customer service level
their customers and intermediaries want. This usually requires that United keep an
inventory of most of its products on hand, but demand for its products is fairly
consistent over time so inventory is easy to manage.
Harter has identified four options for physical distribution systems she could use to
reach two of her key wholesalers, Ralston Supply and Ricotta Tool Co. The total cost
for each option-and the distribution service levels that can be achieved-are as follows:
Ralston Supply expects a very high level (90 percent) of distribution customer service.
Ricotta Tool Co. is willing to settle for a 70 percent customer service level, even if that
means some products will occasionally be out of stock, if it gets products at a lower
price.
For its large retail hardware customers (like Home Depot), United regularly ships
smaller orders directly to individual stores or in some cases to the retail chain's
warehouses. Cross-country shipments usually go by rail while regional shipments
usually go by truck.
As marketing manager, United's Terry Harter should realize that:
A. transporting costs may limit her choice of target markets.
B. a supply chain can only consist of one distribution channel.
C. the lowest cost distribution system is the best alternative.
D. none of these alternatives is correct.
Answer:
Recently, some executives for highway construction companies agreed to stop
competing with each other on price and to meet every three months to decide their price
for the next quarter. In this situation:
A. the Sherman Act has been violated.
B. the Robinson-Patman Act has been violated by price discrimination.
C. the executives are exercising their right to free trade.
D. the unfair trade practice acts have been violated.
E. as long as prices don't increase-the executives have done nothing wrong.
Answer:
What is the best pricing tool marketers have for looking at costs and revenue at the
same time?
A. Break-even analysis
B. Markdown approach
C. Average-cost pricing method
D. Marginal analysis
E. Markup approach
Answer:
An energy company that has expertise in drilling for oil would also likely have the
resources to:
A. manufacture automobiles.
B. operate a chain of gas stations.
C. drill for natural gas.
D. sell office supplies.
E. make medical devices.
Answer:
Sometimes suppliers take straight rebuy relationships for granted, which can:
A. lead to poor customer service.
B. create opportunities for competitors.
C. are reserved for short-term marketing relationships.
D. lead to new-task buying.
E. cause buyers to request routine information updates from suppliers.
Answer:
Which pricing policy would probably be best for a profit-oriented producer introducing
a really new product with a very inelastic demand curve?
A. Skimming pricing
B. Meeting competition pricing
C. Below-the-market pricing
D. Penetration pricing
E. Introductory price dealing
Answer:
