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Rapid growth strains human resources because it's a challenge getting enough qualified
people.
Cross-functional links rarely affect strategy planning.
A firm that adopts the integrated marketing communications concept tries to coordinate
all of its promotion communications to a target customer to convey a consistent and
complete message.
The job of integrating the four Ps strategy decisions is the responsibility of the company
controller since the money to do so must be available.
Word-of-mouth publicity from opinion leaders can be favorable or unfavorable.
Electronic data interchange is important in business markets in the U.S., but it plays
little role in international trade.
A producer who wants to reach certain customers may have no choice about which
wholesaler to use.
A certain item has a production cost of $24. The manufacturer takes a 25 percent
markup, the wholesaler takes a 20 percent markup, and the retailer takes a 50 percent
markup. Therefore, the item has a retail selling price of $80.
People have always been materialistic, even in the most primitive societies.
Regarding sales force compensation, straight commission increases the firm's need for
working capital.
A product idea may be in different life-cycle stages in different markets.
Home shopping methodslike cable TV shopping channels and catalogsnow use a
multichannel approach by adding a website.
An extremely good plan might be carried out badly and still be profitable, while a poor
but well implemented plan can lose money.
Only large firms have their own intranets.
Better information flows make it easier to coordinate activities, improve efficiency, and
add value for the customer.
The majority of U.S. firms use a one-price policy.
Variations on an existing product idea can make a product new.
There are about 17 times as many service firms as manufacturing firms.
The U.S. has about 462,000 people working directly in the advertising industry, and
half of them work for advertising agencies.
The three basic ideas in the marketing concept are: 1) customer satisfaction; 2)
confining marketing activities to marketing professionals; and 3) having profit as an
objective.
Distribution costs can be very low for digital products because there is often no
physical good to distribute.
Spying on competitors to obtain trade secrets, raises moral issues but is not illegal.
Marginal revenue is always positive.
The marketing concept was very quickly accepted, especially among producers of
industrial commodities like steel and glass.
The direct type of competitive advertising tries to obtain immediate buying action.
A major advantage of mass selling is that the sourcethe sellercan get immediate
feedback from the receiver.
Marketing can be viewed as a social process, but not as a set of activities performed by
organizations.
When evaluating marketing, it is best to evaluate micro-marketing and
macro-marketing separately.
A marketing strategy specifies a target market and a related marketing mix.
A manager shouldn't worry about making a financial return from money spent on a
quality program as long as customers recognize that the quality is high.
Product liability means the legal obligation of sellers to pay damages to individuals who
are injured by defective or unsafe products.
Assorting activities involve putting together a variety of products to give a target
market what it wants.
The regrouping activity which involves grading or sorting products into the grades and
qualities desired by different target markets is called:
A. assorting.
B. sorting.
C. wholesaling.
D. accumulating.
E. allocation.
A S.W.O.T. analysis
A. should help a manager develop a strategy that leads to a competitive advantage.
B. seeks to improve strategy planning by 'scanning for warnings, omens, and tips" about
competitors' plans.
C. is not necessary if competitors have already entered the market.
D. defends against potential competitive threats by planning specific 'safeguards,
weapons, or tactics."
E. None of these is a good answer.
_____ are bought often, routinely, and without much thought.
A. New unsought products
B. Staples
C. Specialty products
D. Business products
E. Shopping products
All of the following are advantages of using trucks EXCEPT:
A. flexibility.
B. fast delivery speed.
C. reliability in meeting delivery schedules.
D. handling a variety of goods.
E. serving a limited number of locations.
Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby
and craft supplies. She bought the store after working there for 7 years. Carol has just
been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber
of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goodsmostly
men's and women's clothingwith the upscale Walden's brand name. Walden's primarily
relies on its own stores where knowledgeable salespeople offer great service. Walden
products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks
display racks for paperback books and magazines. Most retailers welcome the service
Audrey provides, in part because she does her own research to determine which
paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of
merchandise. The company used to concentrate its product mix on small appliancesbut
now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster
turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed
a contract with Games Unlimited and follows strict rules covering her store's operations
and the Games Unlimited marketing strategy. She pays that company a fee for
promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty
products to retailers and salons throughout the greater Centerville area. It owns the
goods it sells to these retailer customers, and it provides all the wholesaling functions
they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored
by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer
name are linked by contracts that include basic operating procedures, storefront designs,
and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding
in the Centerville area. It earns a commission from each manufacturer on the products it
sells for that manufacturer, but it does not take ownership of the equipment it sells nor
does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years
ago. After some success, the company moved into a nicer storefront, raised prices, and
now operates in the middle of the market.
Which of the following terms best describes Publisher's Helper business?
A. Rack jobber
B. Broker
C. Drop shipper
D. Selling agent
"Zone pricing":
A. allows a uniform delivered price to be charged to all buyers in each zone.
B. simplifies the calculation of transportation charges.
C. means making an average freight charge to all buyers within some geographic area.
D. may make it possible to compete with sellers located closer to the buyer.
E. All of these alternatives are correct.
Empty nesters
A. are usually in the 30-44 age group.
B. are not an attractive market for any items.
C. spend a larger percent of their income on housing, child care, and other necessities.
D. are people whose children are grown and who are now able to spend their money in
other ways.
E. disrupt the family life-cycle pattern.
A company would be charged with product warranty violations under:
A. the Total Quality Management Act.
B. the Robinson-Patman Act.
C. the Federal Trade Commission Act.
D. the Magnuson-Moss Act.
E. There are no laws regulating product warranties.
A retailer buys a particular product for $4. To make a profit, the retailer adds $2 to
cover operating expenses and provide a profit. The percentage markup on the $6 selling
price is
A. 50 percent.
B. 33.33 percent.
C. 100 percent.
D. 20 percent.
E. 25 percent.
The early majority group
A. tends to have the greatest contact with salespeople.
B. tends to cling to the status quo and think it's the safe way.
C. prefers to do things the way they have been done in the past and are very suspicious
of new ideas.
D. tends to avoid risk and waits to consider a new idea after many early adopters have
tried itand liked it.
E. can help the promotion effort by spreading word-of-mouth information and advice
among other consumers.
A complete marketing information system should:
A. provide a good overall view on many types of problems.
B. organize incoming information into a data warehouse.
C. provide answers to specific questions.
D. continually gather data from internal and external sources, and from market research
studies.
E. All of these alternatives are true.
_____ refers to how customers think about proposed or present brands in a market.
A. Differentiating
B. CRM
C. Clustering
D. Positioning
E. Dimensioning
Consumers are more likely to be price sensitive when _____.
A. it is not easy to compare the prices of different goods
B. the marginal cost of production is zero
C. the price of the good is very low
D. they have many substitute ways of meeting a need
E. someone else pays the bill or shares the cost
Working capital may be used to pay for:
A. what it costs to store inventory.
B. marketing research.
C. advertising.
D. what a firm owes suppliers.
E. All of these.
Which of the following impersonal sources enable purchasing mangers to easily search
for potential new suppliers?
A. Trade shows
B. Supplier Web sites
C. Consultants and outside experts
D. Salespeople
E. Special publicity features by local news reporters
Heinz, in order to boost its sales, came up with ketchup in gross green and funky purple
colors. It packaged the ketchup in EZ Squirt dispensers molded to fit little hands. This
is an example of:
A. Product development.
B. Market development.
C. Diversification.
D. Market penetration.
A pencil, a dictating machine, and a word processor might compete in the same
A. target market.
B. generic market.
C. product-market.
D. Any of these could be correct.
____ refers to a commitment to constantly make things better one step at a time.
A. Just-In-Time
B. Ladder approach
C. Continuous improvement
D. Production focus
E. Sales orientation
The marketing concept is a strategic way of approaching business that contrasts sharply
with ____.
A. the marketing orientation
B. the production orientation
C. the profit orientation
D. macro-marketing
E. the triple bottom line
EDI was developed in response to which of the following problems?
A. Firms using different transportation modes
B. International telecommunication difficulties
C. Differences in order fulfillment processes
D. Computer system differences among firms
E. Differences in product output and quality levels
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. In regard to 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 company uses administered prices?
A. Bella Computers.
B. Ross Pharmaceuticals.
C. Digital Imaging.
D. Jack's One Hour Cleaners.
E. All of the companies use administered prices
Selecting an effective promotion blend to reach a firm's promotion objectives requires
careful consideration of the:
A. nature of competition.
B. promotion budget available.
C. product life cycle stage.
D. All of these should be considered.
When a marketing manager scans a firm's MIS to try to obtain information about why
the firm's product sales are down, this is an example of a(n):
A. intranet.
B. hypothesis testing.
C. experiment.
D. data warehouse.
E. situation analysis.
Coorgs Coffee, Inc., has substantial market share in South America but seeks growth.
Its managers want to expand into North America and target cities with populations of
50,000-99,999. Identify the segmenting dimension most probably being used by Coorgs
Coffee.
A. Geographic
B. Behavioral
C. Urgency to get need satisfied
D. Demographic
E. Attitudes of consumers
The Federal Fair Packaging and Labeling Act:
A. was created due to consumer criticism of packaging and labeling.
B. calls on government agencies and industry to try to reduce the number of packaging
sizes.
C. requires that consumer goods be clearly labeled in understandable terms.
D. All of these alternatives are correct.
Of the following, which are the most receptive to new products and new brands?
A. Families with small children.
B. Older people with no children.
C. Families with teenagers.
D. Families whose children are grown.
E. Younger people with no children.
Which of the following has played a role in increasing competition within the
transportation industry in the U.S.?
A. Increasing costs of PD overall
B. Increasing costs of product storage
C. Increasing costs of transportation
D. Decreasing governmental regulations
E. Decreasing role of technology
Which of the following statements about single- and limited-line stores is TRUE?
A. Many are small, with high expenses relative to sales.
B. They usually believe in a "buy low and sell high" philosophy.
C. Such stores face the costly problem of having to stock some slow-moving items in
order to satisfy their target markets.
D. Most conventional retailers are single- or limited-line stores.
E. All of these statements about single- and limited-line stores are TRUE.
The percentage of new retailing ventures which fail during their first year is:
A. two-thirds.
B. three-fourths.
C. one-half.
D. one-fourth.
E. one-third.
"Unfair trade practice acts":
A. require different types of retailers to charge different retail prices.
B. make price fixing illegal.
C. eliminate price competition on manufacturers' brands.
D. prohibit intermediaries from taking excessive markups.
E. put a lower limit on prices, especially at the wholesale and retail levels.
A firm that focuses its attention primarily on 'selling" its present products in order to
meet or beat competition is operating in which of the following "management eras"?
A. Production era
B. Sales era
C. Marketing department era
D. Marketing company era
E. Advertising era
Which variation of personal interview surveys helps reduce the cost of locating
consumer respondents?
A. Pull interviews
B. Mall intercept interviews
C. Push interviews
D. Perception interviews
Which of the following is the main type of "mass selling"?
A. Personal selling.
B. Publicity.
C. Sales promotion.
D. Advertising.
Which of the following may be the only sensible pricing policy in oligopoly situations?
A. Maximizing profits
B. Pricing way below market
C. Meeting competition
D. Pricing way above market
E. Price leadership
Maria Lopez runs an errand service from her home. For a fee, she will pick up dry
cleaning, buy groceries, plan small parties, and do errands for her customers. The
demand for this type of service has increased because of changes in the
A. cultural and social environment.
B. legal environment.
C. technological environment.
D. political environment.
E. None of these environments is relevant.
