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Corrective advertising corrects deceptive advertising.
The basic idea for supermarkets developed in the U.S. in the 1960s when consumers
started to move from the cities to the suburbs.
In light of the relationships between consumer expectations and satisfaction, it's usually
best for promotion to slightly "over promise" what the firm can actually deliver.
The supercenter retailing format began in the U.S. and then was exported to other
countries.
Teens play an increasingly minor role in shaping family purchases.
The qualifying dimensions help identify the "core benefits" that must be offered to
everyone in a product-market.
The prepared sales presentation involves developing a good understanding of the
individual customer's needs before trying to close the sale.
Top management often finds contribution margin analysis to be much more useful than
full-cost analysis.
Finding and allocating capital is usually the responsibility handled by a firm's chief
financial officer.
A common quantitative research approach is to use survey questionnaires with
multiple-choice questions.
Only a few of the principles normally associated with advertising also apply to
publicity.
Vertical marketing systems account for a majority of U.S. retail sales.
Spending money to improve protective packaging may be necessary, but it usually
results in higher total distribution costs for a firm's product.
Games and toys producers spend a higher percentage of their sales on advertising than
do footwear producers.
"Economies of scale" means that as a company produces larger numbers of a particular
product, the cost for each unit of the product goes down.
A skimming pricing policy tries to sell to customers who are at the top of the demand
curve first, before aiming for more price sensitive customers.
Strong sentiments of nationalism facilitate growth in importing and exporting.
Simply showing customer-contact employees around the rest of the businessso that they
learn how their contribution fits in the total effortcan be a key part of their training.
A marketing plan should contain specific information like costs and sales forecasts, but
not background information about customers, competitors, or the company's resources.
If Burger King added tacos to the "burger-oriented" menu in its existing restaurants, it
would be seeking "market development" opportunities.
For many physical goods, firms spend half or more of their total marketing dollars on
physical distribution activities.
Some firms are adopting new software and hardware technologies to get a competitive
advantage in personal selling.
Consumers in less-developed nations have the income to support mass distribution.
In general, the more products a company has the more difficult it will be to allocate
costs.
There are many reasons for business failures including products that do not create value
in the eyes of the customer, improperly identifying the target market, or lack of
innovative thinking.
Advertising is any paid form of nonpersonal presentation of ideas, goods, or services by
an identified sponsor.
The combined target market approach involves segmenting the market and choosing
two or more segments, then treating each as a separate target market needing a different
marketing mix.
The growth of cooperative chains of retail stores is due to the desire of small retailers to
achieve some of the benefits of large-scale corporate chains.
Saying that a market segment is 'substantial" means that it contains customers from a
variety of demographic variables.
The competitive environment affects the number and types of competitors the
marketing manager must face and how they may behave.
A good business manager should adhere to the idea "if it ain't broke, don't fix it."
The price most consumers expect to pay for a product is called the leader price.
Personal selling is often a company's largest single operating expense.
Monopolistic competition is the result of control of markets by business, not consumer
demands.
Cross-functional challenges are greater for minor changes to a strategy than for a
completely new strategy.
In the market growth stage, more competitors enter the market, and promotion
emphasis shifts from selective demand to primary demand.
Customer-initiated interactive communication makes it easy for a consumer to get as
much information as desired.
Ideally, segmenters should start with the idea that each person is "one of a kind" and
can be described by a special set of dimensions that may be used to aggregate similar
customers together.
When looking for new product ideas, which of the following would be good sources?
A. Your salespeople.
B. Your intermediaries.
C. Your competitors.
D. Your production people.
E. All of these would be good sources for new product ideas.
Intensive distribution is
A. selling through only those wholesalers or retailers who will give the product special
attention.
B. selling a product through all responsible and suitable wholesalers or retailers who
will stock or sell the product.
C. selling through only one wholesaler or retailer in a particular geographic area.
D. making a product available widely enough to satisfy target customers' needs but not
exceed them.
E. used to gain some of the advantages of exclusive distributionwhile still achieving
fairly widespread market coverage.
Yakima Valley Produce, Inc. buys artichokes from many small farmers, assembles them
into larger quantities, and ships in carload quantities to a central market where they are
sold to large food processors. This "regrouping activity" is called:
A. bulk-breaking.
B. assorting.
C. sorting.
D. wholesaling.
E. accumulating.
Satisfaction with a firm's marketing efforts can be roughly measured by
A. its profit.
B. the firm's impact on the macro-marketing system.
C. the size of its target markets.
D. its marketing mix.
E. None of these are good measurements.
Which of the following is not a common cause of conflict between producers and
channel partners in a channel system?
A. lack of communication.
B. different objectives.
C. independent operations.
D. lack of a channel captain.
E. different target customers.
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.
Which of the following statements illustrates the 80/20 rule?
A. "80 percent of our target market doesn't respond to our marketing mix, and we only
have a 20 percent market share."
B. "Of the hundred retailers who carry our products, the top twenty account for nearly
80 percent of our total business."
C. "20 percent of our marketing effort is wasted, but we don't know which 20 percent."
D. "We don't know whether our profits are 20 percent higher than we deserve, or only
80 percent of what might be easily obtained."
E. None of these is correct.
"Positioning" is a marketing management aid which refers to:
A. a product's ability to provide both immediate satisfaction and social responsibility.
B. how customers think about proposed and/or present brands in a market.
C. a firm's ability to distribute products through intermediaries who are in the right
position to reach target customers.
D. how a firm approaches customer relationship management.
E. All of these alternatives are true.
Which of the following statements about customer complaints is FALSE?
A. Customer complaints that are handled well by the company usually help it win new
customers.
B. In business markets, customer complaints are usually handled by the sales force.
C. In consumer markets, customer complaints are usually handled by toll-free telephone
lines, Web sites, and e-mail customer service reps.
D. Customer complaints that are handled well by the company usually help it keep its
customers.
E. None of these is false.
Everyday low pricing of consumer convenience products:
A. tends to reduce fluctuations in prices customers actually pay.
B. has been used by many retailers even though no producers have adopted this
approach.
C. makes it easy to quickly compete on pricewithout changing the basic strategywhen a
competitor offers a particularly large discount for a short period of time.
D. relies on frequent discounts and allowances from the producer.
E. confuses customers and increases selling costs.
From the macro-marketing perspective, the spatial separation that exists between
military equipment manufacturers and the people who use the equipment overseas is
directly addressed through this marketing function:
A. financing
B. transporting
C. risk taking
D. market information
E. storing
HomeFront Construction Company built large, single-family homes for 25 years. Then
there was a shift toward more demand for small luxury condominiumsand 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.
When a consumer puts much effort into deciding how to satisfy a need, he engages in
A. extensive problem solving.
B. critical problem solving.
C. routinized response behavior.
D. limited problem solving.
E. intensive problem solving.
Which of the following is LEAST likely to be a convenience product for most
consumers?
A. Peanut butter.
B. Laundry detergent.
C. Candy bar.
D. Pair of jeans.
E. Paper towels.
Which of the following is the BEST example of an advertising objective?
A. "We want 35 percent of our target customers to be aware of our new product within
the next two months."
B. "We want to generate enough interest in our product that intermediaries will be
willing to stock it."
C. "We want to make older consumers aware of our productsince they have the greatest
need."
D. "We want to increase profitsand that will require significantly expanding sales of our
product."
E. "We want to win an advertising industry artistic award for the creative effort on the
ad."
Competition for a product or product category begins to increase rapidly during the
following stage of the product life cycle:
A. Market introduction
B. Market growth
C. Market maturity
D. Sales decline
E. Market extinction
In the U.S., about ________ people work in advertising agencies.
A. 100,000
B. 230,000
C. 350,000
D. 750,000
E. 1,000,000
Marketing intermediaries and collaborators can often perform marketing functions:
A. worse than producers or consumers can perform them.
B. which leaves producers with more time for production.
C. which leaves consumers with less time for consumption.
D. at a high costbecause of specialization, economies of scale, or e-commerce.
Regarding the government market,
A. sales reps generally do not (and should not) write the specifications for government
business.
B. government is the largest customer group in the United Statesspending about 30
percent of GDP.
C. governments buy a lot, but only of certain products and can be safely ignored by
most producers.
D. competitive bids are uncommon because of mandatory bidding procedures.
E. All of these alternatives are true.
The main difference between the "marketing department era" and the "marketing
company era" is:
A. more emphasis on selling and advertising in the marketing department era.
B. whether the president of the firm has a background in marketing.
C. more emphasis on short-run planning in the marketing company era.
D. whether the whole company is customer-oriented.
E. There is no difference.
When new product ideas are chosen based on ratings and comments from customers,
this process is called ______.
A. idea engineering
B. creative resourcing
C. reaction engineering
D. crowdsourcing
E. idea solicitation
VoiceSys, Inc. produces voice-mail switchboard systems used in large office buildings,
hotels, and other facilities. VoiceSys's products are selling so well that it has decided to
buy new equipment that will increase its production capacity. This example best
illustrates
A. why the demand for a particular seller's equipment is inelastic.
B. derived demand.
C. why the industry demand for this kind of equipment is quite elastic.
D. that the market for installations is a "boom or bust" business.
E. All of these alternatives are correct.
A close buyer-seller relationship in a business market:
A. may require relationship-specific adaptations by the seller, the customer, or both.
B. may result in the seller accepting a lower price.
C. may increase the buyer's 'switching costs."
D. may not involve a contract that spells out each party's responsibilities.
E. All of these may be part of a close buyer-seller relationship.
Customer service reps:
A. are advocates for the customer.
B. solve problems after a purchase.
C. are advocates for the company.
D. promote the customer's next purchase.
E. All of these alternatives are correct.
Which of the following statements about social class is False?
A. People in different social classes tend to have different beliefs and feelings.
B. People with the same income level are always in the same social class.
C. Variables such as occupation, education, and type of housing form the basis of
simple approaches for measuring social class.
D. The U.S. class system is far less rigid than those in most other countries.
E. None of these statements about social class is False.
Supermarkets:
A. Usually earn net profits that are at least 15 percent of sales.
B. Were late adopters of the mass-merchandising concept.
C. Usually carry about 100,000 product items per store.
D. Are designed to maximize efficiency.
E. All of these alternatives are correct for supermarkets.
Which of the following is NOT likely to be a part of the segmenting step in market
segmentation?
A. Looking for similarities rather than basic differences in needs.
B. Naming a broad product-market of interest to the firm.
C. Clustering people with similar needs into a "market segment."
D. Determining an appropriate number of segments.
E. Aggregating individual customers into market segments.
Rob Rose sat back to review the portfolio of products his company, Wire Products Inc.
(WPI), has in its product line. The company specializes in making various products for
consumer and industrial uses from hard laminated wirecoated with special paints.
1) WPI's "Wire Closet" products have been on the market for 10 years. Consumers
install the wire shelves and closet rods themselves. The market leader, Closetmaid, has
been selling similar products for more than 20 years, but so far the sales volume and
profits for the market continue to grow. Recently, several new competitors have come
into the market.
2) Three months ago, WPI entered the lawn and garden market with folding fences
made with laminated wire and branded as "Wire Fold-Fence." Previously, WPI had
never made fences or been a player in the lawn and garden market-although other
companies have been making products in this market for years. However, Rob Rose has
discovered that recent sales of wire garden fencing have leveled off and profits are
declining overall. Still, WPI thinks it has some cost advantages and can grow its own
sales and profits in this market.
3) WPI has just developed "Oil Wire," a new concept for the environmental cleanup
market. Oil Wire is coated with a special material that cleans up oil spills. There has
never been a product like this and WPI wants to quickly get the word out about its
benefits. The product is now being rolled out in selective markets.
4) Another business product is "Wire Locker" used for secure storage by gymnasiums
or companies. This style of locker has now gone out of fashion and most customers are
finding better materials to use for lockers. Aggressive selling has helped Wire Locker's
sales stay flat, but the total market for wire style lockers is only half of what it was 10
years ago.
5) WPI's "Wire Window" product is used as a security product to protect glass
windows. It sells to homeowners and retailers looking for additional safety. WPI's sales
of this product have dropped in recent years because competitors have introduced
maintenance-free products. However, the overall market for this type of product
continues to show good growth.
6) WPI is running concept tests of a new wire car-top carrier called "Wire Car Top."
There are other car-top carrier products on the market, but WPI plans to include options
in its carrier that will make it easier to load bikes, skis, and suitcases. "Wire Car Top" is
also very easy to put on and take off of the car because of its light weight and
ease-of-use features. The concept tests are helping WPI analysts develop rough
estimates of costs, sales, and profits.
7) Another new product idea, tentatively called "Wire Tent," is being considered. It
would use laminated wires to create a portable tent frame. This product is currently
being evaluated to determine its fit with the company's objectives and external market
trends.
Rob is thinking about the product life cycle, where each product fits, and what he
should be doing as part of his marketing plan for each of these products.
Based on the text's recommendations for different stages in the product life cycle, for
which product does WPI most need to consider developing different markets?
A. Wire Window
B. Oil Wire
C. Wire Closet
D. It would be equally important to develop new markets for all of these products.
Marketers segment broad markets into smaller target segments based on a variety of
_____.
A. marketing grids
B. positioning maps
C. dimensions
D. qualifiers
E. data
Product life cycles refer to the life of:
A. a firm's individual product.
B. a product idea.
C. a firm's brand.
D. a fashion.
E. Any or all of these is correct.
