It’s best to think of “breakthrough opportunities” as opportunities which:
A. appeal to the mass market.
B. will quickly create a whole new industry of firms competing with similar marketing
mixes.
C. help innovators develop hard-to-copy marketing mixes.
D. increase sales.
E. All of these apply to breakthrough opportunities.
Regarding product life cycle planning, good marketing managers know that:
A. a “me-too” new brand may immediately enter during market growth or market
maturity.
B. every brand must go through the sales decline stage.
C. market introduction is usually profitable for the innovator.
D. any change in an existing product results in a new product life cycle.
E. All of these alternatives are true.
Which of the following is associated with debt financing?
A. Dividends
B. Stock appreciation
C. Interest cost
D. Bonus shares
E. Stock split
During a heavy rainstorm, Louie Hirasawa stepped into a drugstore and bought an
umbrellajust like the one he had at homefor $15.00 plus tax. In this case, the umbrella
is:
A. a specialty product.
B. a shopping product.
C. an unsought product.
D. an emergency product.
E. an impulse product.
Buying specialists for organizations are commonly called:
A. supply agents.
B. vendor agents.
C. value analysts.
D. purchasing managers.
E. consumer buyers.
People from different ethnic groups
A. create challenges and not opportunities for marketers.
B. do not play an important role in the American marketplace.
C. may be influenced by very different cultural variables.
D. have common needs.
E. have similar ways of thinking.
The college or university that you attend is considered which type of organizational
customer?
A. Producer.
B. Intermediary.
C. Government.
D. Nonprofit.
Which of the following statements about close buyer-seller relationships in business
markets is False?
A. In close relationships, buyers and suppliers can share tasks at a lower total cost of
doing business.
B. The buyer can gain a more dependable source of supply.
C. Buyers and suppliers can engage in joint problem solving.
D. Long-term commitments on larger order quantities often cause the supplier to raise
its selling price.
E. None of these statements is False.
Which of the following give a producer a way to be certain that final consumers
actually get the price reduction?
A. Rebates
B. Push money allowances
C. Spiffs
D. Trade-in allowance
E. Noncumulative quantity discount
In marketing cost analysis, all of the following are considered natural accounts
EXCEPT:
A. salaries.
B. raw materials.
C. wages.
D. office supplies.
E. packing and shipping.
Which of the following statements about the cost and value of information is False?
A. Dependable information can be expensive.
B. Managers rarely get all the information they would like to have.
C. Money may be wasted if a manager ignores the facts revealed in a marketing
research study and bases his/her decisions on guesswork.
D. The cost of gathering additional information is always justified by its value.
E. All of these statements are False.
Which of the following products would have the lowest transporting costs as a
percentage of the selling price?
A. Electronic equipment.
B. Chemicals and plastics.
C. Pharmaceuticals.
D. Sand and gravel.
E. Manufactured food.
Until recently, Triad Equipment, Inc. took trade-ins when it sold new equipment to
manufacturers. Now, Triad has a new owner who wants to sell the inventory of used
equipment quickly to the best available buyer. He should look for:
A. a manufacturers’ sales branch.
B. a broker.
C. a selling agent.
D. a manufacturers’ agent.
E. a sales finance company.
Which of the following statements is True regarding international opportunities in
marketing?
A. There is no need to consider international opportunities when the domestic market is
prosperous.
B. International trade is decreasing worldwide.
C. A product with slow sales growth in a domestic market may experience faster growth
in another country.
D. Only large firms can engage in international marketing.
E. All of these statements about international opportunities in marketing are True.
The production of a new mountain bike model includes which of the following
activities?
A. Determining how to get the new model to likely bike purchasers.
B. Actually making the new mountain bikes.
C. Estimating how many competing companies will be making bikes.
D. Predicting what types of bikes different types of bike riders will want.
Which of the following is NOT one of the sales presentation approaches discussed in
the text?
A. Prepared sales presentation
B. Selling formula approach
C. Consultative selling approach
D. Target market approach
E. None of these, i.e., all are discussed in the text.
Comparative ads for a product work best in which stage of the adoption process?
A. Awareness
B. Interest
C. Evaluation and trial
D. Decision
E. Confirmation
Which of the following would NOT be favorable to successful branding?
A. The product offers superior customer value
B. Product quality fluctuates due to variations in raw materials
C. Dependable and widespread availability
D. Economies of scale in production
E. Favorable shelf locations are available
Skye West is a manufacturers’ agent. Skye is most likely to have responsibilities like
those of
A. a wholesaler’s order taker.
B. a producer’s order taker.
C. a producer’s supporting salesperson.
D. a retail order taker.
E. a producer’s order getter.
The North American Free Trade Agreement (NAFTA):
A. Provides a plan to reshape the rules of trade among Canada, the United States, and
Colombia.
B. Has resulted in the movement of production jobs to Mexico due to lower labor costs.
C. Eliminates the need for companies to adjust strategies.
D. Makes it more difficult to resolve trade disputes among the countries participating in
NAFTA.
Identify the incorrect statement about sales promotions.
A. Sales promotions have increased because of competition in emerging markets.
B. Sales promotions can be used as tools to overcome consumer price resistance.
C. Changes in technology have made sales promotions more efficient.
D. The availability of more ad agencies and specialists has spurred growth in sales
promotions.
E. An appropriate sales promotion depends on the situation and objectives.
A marketing manager for a new brand of bar soap decides to mail free samples to
consumers. The logic for using this approach is best explained by
A. the “economic buyer” model.
B. the stimulus-response model.
C. the typical consumer’s adoption process.
D. the need to reduce dissonance.
E. the high level of problem solving required with such a product.
L’Oreal advertises its hair color with the popular tagline, “So it costs a bit more. But I’m
worth it!” Here, L’Oreal’s marketing effort focuses on satisfying what level in the
hierarchy of needs?
A. Social needs
B. Safety needs
C. Physiological needs
D. Personal needs
During the market introduction stage of the product life cycle:
A. large profits are typicaluntil competition arrives.
B. Price and Promotion are more important than Place and Product.
C. much money is spent on Promotion, while spending on Place is left until later.
D. money is investedin the hope of future profits.
E. most customers will try really new products.
Which of the following is NOT likely to be included in a research proposal?
A. How long the research will take.
B. Preliminary recommendations on how to solve the problem.
C. Information about what the research will cost.
D. A description of what data will be collected.
E. A description of how data will be collected.
Which of the following statements about marketing is FALSE?
A. Marketing affects the products you buy.
B. Marketing applies to nonprofit organizations too.
C. Marketing affects the advertising you see and hear.
D. Marketing offers many good job opportunities.
E. Marketing can help with individual transactions but not in building relationships with
customers.
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.
Which of the following is NOT an example of the micro-macro dilemma?
A. Many people like beer and wine, but drunk driving is a big social problem.
B. Some people like to eat a lot, but later feel guilty about eating too much.
C. A “good” lawn mower can be produced cheaply, but its price must be higher if its
design must be safe for “ignorant” users.
D. A smoker may enjoy a cigar, but the smell can make other people sick.
E. Downhill snow skiing is fun, but really quite dangerous.
Which of the following sales approaches is most to be suitable for simple order-taking?
A. Prepared sales presentation
B. Missionary sales approach
C. Consultative selling approach
D. Selling formula approach
E. Merchandising presentation
Unlike a generic market description, a product-market definition includes
A. customer needs.
B. customer types.
C. geographic area.
D. product type.
E. organization chart.