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Gen Y is the result of the echo boom and its members are more techno-savvy than any
other group.
Answer:
In a recent Nielsen online survey of over 28,000 Internet consumers from 56 countries,
over 60 percent of respondents said they trusted paid television advertising as an
information source.
Answer:
Sales data becomes wisdom when it provides answers to questions of "who," "what,"
"where," "how much," and "when."
Answer:
In both a supply chain and a channel of distribution, the primary aim should be to create
maximum value for the customer.
Answer:
The General Electric 'strategic planning grid" forces company managers to make
three-part judgments (high, medium, and low) about the business strengths and industry
attractiveness of all proposed or existing product-market plans.
Answer:
When measuring an advertising campaign, success depends on the total marketing mix.
Answer:
If Radio Shack offers several models of clock radios at each $5 increment between
$19.95 and $49.95, it is probably practicing odd-even pricing.
Answer:
Strong sentiments of nationalism facilitate growth in importing and exporting.
Answer:
Differentiation emphasizes uniqueness rather than similarity.
Answer:
People who have the same amount of income-but who are in different social
classes-tend to spend their income in the same way.
Answer:
Organizations guided by a triple bottom line consider economic, social, and
environmental outcomes as measures of long-term success.
Answer:
The moral standards that guide marketing decisions and actions are called marketing
ethics.
Answer:
The function of marketing research is to develop and analyze new information to help
marketing managers make better decisions.
Answer:
In a market-directed economy, price is a rough measure of how society values particular
goods and services.
Answer:
Retailers and their strategies can easily be classified based on the type of merchandise
they sell.
Answer:
A profit-oriented firm will usually want to continue aggregating potential customers
into larger submarkets until every consumer fits neatly into some segment.
Answer:
The three basic jobs in the marketing management process are planning,
implementation, and control.
Answer:
Although wholesalers no longer dominate channels in the U.S., they do provide a
necessary function and some of the biggest B2B e-commerce sites on the Internet are
wholesaler operations.
Answer:
More than half of all agent wholesalers are manufacturers' agents.
Answer:
Progressive wholesalers are becoming more concerned with their customers and with
adding value in their channels.
Answer:
The basic reason to focus on some specific target customers instead of all possible
customers is so that managers can develop a marketing mix that satisfies those
customers' specific needs better than they are satisfied by some other firm.
Answer:
The challenges of coordinating logistics functions in a supply chain has led to less
sharing of information over the Internet and at websites.
Answer:
Consumers do not usually see or hear all the stimuli that come their way.
Answer:
Response rate is the percentage of people contacted who complete a given
questionnaire.
Answer:
Competitive advertising tries to develop selective demand for a specific brand.
Answer:
Comparative advertising makes specific brand comparisons using actual product names.
Answer:
The qualifying dimensions help identify the "core benefits" that must be offered to
everyone in a product-market.
Answer:
Secondary data involves information that has been collected or published already.
Answer:
The "consultative selling" sales presentation is fast and requires little skill.
Answer:
A marketing exchange is a single transaction between a firm and a customer, nothing
more.
Answer:
S.W.O.T. analysis is based on the idea that one of the best ways to develop a strategy is
to identify and copy the marketing 'strategies, weapons, outlook, and tactics" of the
firm's most effective competitor.
Answer:
The 'selling formula approach" to sales presentations assumes that something is known
about the target customer's needs and attitudes.
Answer:
When RedBox rents DVD movies from vending machines at McDonald's, it is acting as
a channel captain, not a retailer.
Answer:
When consumers decide to purchase a music CD from Amazon.com, the company's
website often suggests that consumers purchase an additional CD by the same artist for
a combined price that is lower than the two CDs would sell for separately. Amazon.com
is using:
A. Product-bundle pricing.
B. Complementary product pricing.
C. Full-line pricing.
D. Bid pricing.
E. Demand-backward pricing.
Answer:
MACRO-marketing:
A. is probably best evaluated by how individual consumer-citizens vote.
B. can be evaluated with quantitative measures of consumer satisfaction.
C. is concerned with how efficiently individual companies use their resources.
D. is easier to evaluate than micro-marketing.
E. None of these alternatives is correct.
Answer:
The physical distribution ________________________ is how rapidly and dependably
a firm can deliver merchandise in demand through the appropriate channels.
A. product service level
B. trade-offs service level
C. customer service level
D. standard service level
E. efficiency service level
Answer:
A company is planning sales promotion aimed at its consumers and distributors. What
should the company do to effectively run its sales promotion?
A. The company should hire a recent business graduate, with no work experience, to
manage its sales promotion.
B. The company should ask its sales or advertising managers to take the responsibility
of sales promotion as well.
C. The company should hire outside consultants who are specialists in sales promotion
to manage the task.
D. The objectives and policies of the sales promotion should be independent of the
entire marketing strategy.
E. The company should target trade shows and price deals at its own sales force and
training materials at its final consumers.
Answer:
Advertising is:
A. the designing and distribution of novelties, point-of-purchase materials, store signs,
contests, catalogs, and circulars.
B. direct communication between sellers and potential customers.
C. any paid form of nonpersonal presentation of ideas, goods, or services by an
identified sponsor.
D. the main form of publicity.
E. All of these are included in Advertising.
Answer:
The fact that US car companies are located in the upper Midwest while their customers
are located throughout the U.S. is an example of:
A. separation in values.
B. discrepancies of assortment.
C. separation of information.
D. spatial separation.
E. separation in time.
Answer:
This promotional approach emphasizes the importance of securing the wholehearted
cooperation of channel members to promote the product in the channel and to the final
user.
A. Pulling
B. Pushing
C. Encoding
D. Decoding
E. Franchising
Answer:
Which of the following wholesalers would be most helpful to a small manufacturer of
computer components who wants to obtain distribution in several major markets and
still retain control of the marketing of its products?
A. Manufacturers' agents
B. Rack jobbers
C. Selling agents
D. Brokers
E. Manufacturers' sales branches
Answer:
A sales manager's CONTROL over his salespeople:
A. is strongest with order getters who are paid on straight commission.
B. cannot be obtained with combination plans.
C. can be the strongest with a straight salary plan.
D. is small; it's the responsibility of the marketing manager.
E. is not too important if the salespeople regularly meet their sales quotas.
Answer:
In a market-directed system:
A. the emphasis lies in optimizing the rate of production.
B. the government decides what products should be produced to meet the people's
needs.
C. firms do not rely on customer satisfaction as it is impossible to measure.
D. customer satisfaction has very little importance.
E. it is up to each customer to decide how effectively individual firms satisfy his or her
needs.
Answer:
Which of the following is most likely to spend less than 1/10 of 1 percent on
advertising as a percentage of sales?
A. A producer of games and toys that sells to retailers
B. A company that sells plastics products to manufacturers
C. A company that sells women's clothing to retail consumers
D. A company that sells perfume and cosmetics to consumers
E. A business products company that depends on e-commerce
Answer:
Southwest Airlines' "Ding" widget pops up on your computer desktop to let you know
of lower fares to cities you want to visit. This is an example of a(n) _________
promotion objective.
A. Persuading
B. Reminding
C. Informing
D. Pioneering
Answer:
A manufacturer of lawn mowers pays for and provides local dealers with
professionally-produced commercials for its products. A dealer can pay to have its
name, address, and telephone number appear at the end of the commercial. The
commercials are much higher quality ads than most local lawn mower dealers could
afford by themselves. These commercials provided by the manufacturer for local use
are an example of:
A. Advertising allowances.
B. Cooperative advertising.
C. Vertical communication.
D. Horizontal integration.
E. None of these is a good answer.
Answer:
Identify the characteristics of vending machines and door-to-door retailing.
A. Expanded assortment, reduced margins, and more information.
B. Added convenience and higher than conventional margins, usually reduced
assortment.
C. Expanded assortment and/or reduced margins and service.
D. Expanded assortment and service.
E. Expanded assortment and service, and more information.
Answer:
Because more intermediaries are using computer systems to control inventory levels,
A. they can assess the profitability of each product.
B. new-task buying is increasing.
C. they are carrying larger inventories.
D. negotiated contract buying is increasing.
E. All of these alternatives are occurring.
Answer:
According to the text, segmenting should be viewed as a(n) ______________ process.
A. assorting
B. mechanical, nonjudgmental
C. "clustering" or aggregating
D. "breaking apart" or disaggregating
E. combining
Answer:
Which of the following statements is true?
A. Good salespeople are born with inherent selling traits and need little training.
B. All salespeople need training.
C. Selling skills are best learned with interactive web training programs.
D. New salespeople should be immediately sent out on the road to get acquainted with
the firm's best customers.
E. Training should include on-the-job observation, but classroom and web-based
learning is rarely needed.
Answer:
BEHAVIORAL (rather than DEMOGRAPHIC) segmenting dimensions include:
A. type of problem-solving.
B. kind of shopping.
C. brand familiarity.
D. benefits sought.
E. All of these are behavioral dimensions.
Answer:
A good marketing manager will try to:
A. set the desired customer service level before trying to minimize physical distribution
costs.
B. minimize the total cost of physical distribution.
C. maximize the level of customer service provided by his firm.
D. minimize storing time and costs.
E. provide customers with just-in-time delivery service.
Answer:
A "good" retail strategy planner knows that:
A. it's a mistake to try to develop a strategy that isn't equally appealing to all social
class groups.
B. the failure rate among beginning retailers is quite high.
C. emotional needs are more important than economic needs in choosing a retailer.
D. it's a mistake to try to develop a strategy that isn't equally appealing to all income
groups.
E. None of these alternatives is correct.
Answer:
Rosalita has a special place in her heart for Fina Pasta. She will make a special effort to
find the pasta-even going to another store if she cannot find it at her usual store. For
Rosalita, Fina Past is a(n) _____ product.
A. homogeneous
B. specialty
C. unsought
D. new unsought
E. impulse
Answer:
_____ NOT the government's job in a market-directed economy.
A. Protecting property and enforcing contracts are
B. Regulating radio and television broadcasting is
C. Setting import and export rules is
D. Determining what and how much is to be produced is
E. Controlling interest rates and the supply of money are
Answer:
Which of the following social influences will likely have the greatest impact on a
teenager's purchase of a skateboard?
A. family
B. reference group
C. culture
D. ethnic group
E. social class
Answer:
Dissonance is a:
A. tension caused by uncertainty about the rightness of a decision.
B. conflict between opinion leaders.
C. confirmation in the learning process.
D. kind of belief.
E. form of social influence.
Answer:
The retail life cycle of which of the following took the longest to reach market
maturity?
A. Department stores
B. Mass-merchandisers
C. Supermarkets
D. Variety stores
E. Fast-food outlets
Answer:
Many countries forbid this form of advertising.
A. Comparative advertising
B. Pioneering advertising
C. Competitive advertising
D. Reminder advertising
E. Institutional advertising
Answer:
Which one of the following statements about packaging is TRUE?
A. The number of package sizes for similar products from different manufacturers is
increasing dramatically, because most firms realize that this makes direct comparisons
among brands harder.
B. There is very little government regulation of packaging, except for drug products.
C. A good package can sometimes provide more promotional impact than advertising.
D. Better packaging almost always raises total distribution costs.
E. None of these statements about packaging is TRUE.
Answer:
Use this information for question that refer to the Sporting Products, Inc. (SPI) case.
Randy Todd, marketing manager for Sporting Products, Inc. (SPI), is thinking about
how changes taking place among retailers in his channel might impact his strategy.
SPI sells the products it produces through wholesalers and retailers. For example, SPI
sells basketballs to Wholesale Supply for $8.00. Wholesale Supply uses a 20 percent
markup and most of its 'sport shop" retailer customers, like Robinson's Sporting Goods,
use a 33 percent markup to arrive at the price they charge final consumers. However,
one fast growing retail chain, Sports Depot, only uses a 20 percent markup for
basketballs, even though it pays Wholesale Supply the same price as other retailers.
Furthermore, Sports Depot occasionally lowers the price of basketballs and sells them
at cost-to draw customers into its stores and stimulate sales of its pricey basketball
shoes.
Sports Depot is also using other pricing approaches that are different from the sports
shops that usually handle SPI products. For example, Sports Depot prices all of its
baseball gloves at $20, $40, or $60-with no prices in between. There are three big bins -
one for each price point.
Todd is also curious about how Sports Depot's new strategy to increase sales of tennis
balls will work out. The basic idea is to sell tennis balls in large quantities to nonprofit
groups who resell the balls to raise money. For example, a service organization at a
local college bought 2,000 tennis balls printed with the college logo. Sports Depot
charged $.50 each for the tennis balls-plus a $500 one-time charge for the stamp to print
the logo. The service group plans to resell the tennis balls for $2.50 each and contribute
the profits to a shelter for the homeless.
Todd is not certain if Sports Depot ideas will affect SPI's plans. For example, SPI is
considering adding tennis racquets to the lines it produces. This would require a
$500,000 addition to its factory as well as the purchase of new equipment that costs
$1,000,000. The variable cost to produce a tennis racquet would be $20, but Todd
thinks that SPI could sell the racquet at a wholesale price of $40 each. That would allow
most retailers to add their normal markup and make a profit. However, if Sports Depot
sells the racquet at a lower than normal price other retailers might decide to carry it.
If SPI produces tennis racquets, how many racquets must it sell at $40 to break even?
A. 50,000
B. 60,000
C. 75,000
D. 100,000
E. none of these alternatives is correct.
Answer:
These salespeople are often science or engineering graduates with the know-how to
understand the customer's applications and explain the advantages of the company's
product.
A. Customer service reps
B. Order takers
C. Technical specialists
D. Missionary salespeople
E. Systems engineer
Answer:
Identify the incorrect statement regarding target marketing.
A. Target marketing is not mass marketing.
B. Mass marketers cannot do target marketing.
C. Target marketing can mean big markets and profits.
D. Marketing-oriented managers practice "target marketing."
E. It aims at a marketing mix that is tailored to fit specific target customers.
Answer:
Use this information for question that refer to the "Salespeople" case.
Wilson Alvaro graduated with a marketing degree almost a year ago. Like many of his
friends, he took a job in sales and really enjoys it. A description of Wilson's job and
those of some of his friends are noted below.
Wilson Alvaro loves biking and has his dream job. He works for a wholesale company
that sells mountain bikes for a manufacturer. He works with a small group of people
who call on the buying offices for two large retail chains, Wal-Mart and Toys R Us. The
group includes a finance person and a production person, and they all work together to
meet the specific needs of these two big accounts; for example, sometimes they
recommend a model of bike that will be available from only that retailer's stores.
However, Wilson's main job focuses on building relationships and solving customer
problems. Only occasionally is he expected to try to persuade the retailers to buy more
bikes.
Amy Bowden sells life insurance. She calls on new parents and persuades them to buy
insurance products. It is difficult for a manager to control Amy's work, but she has
incentive to work hard because her job security and income depend on getting sales.
She is a confident self-starter, so she likes it that way.
Ben Peterson works for a fashionable men's clothing store. He enjoys spending time
with customers who come in, learning about their fashion needs, and helping them pick
clothes that really work for them. While the store manager can easily observe and direct
Ben's activities, the manager wants Ben to have the incentive to increase customer
purchases and satisfaction.
Emily Winters handles inside sales for a major industrial distributor. She deals with a
regular set of established customers, most of whom know what they want. Emily talks
to them on the phone and answers questions about products, delivery time, and pricing.
She sometimes works with outside sales reps who visit customers and help introduce
new products. Emily is the first person her customers call when there's a problem with a
purchase, so she spends a lot of time dealing with customer problems. As an inside
salesperson, Emily's work is easily supervised by a sales manager - and she has little
influence on how much her customers buy.
Melissa Tran works for a company that sells paper products (like napkins, paper towels,
and paper plates) primarily through small independent grocers. Most of the grocers are
regular customers, but sometimes she makes cold calls to new grocery stores. Melissa's
job is to develop goodwill and try to increase sales. For example, she often sets up
special promotional displays in stores. Her compensation plan gives her income
security, but she also can receive a bonus for sales growth in her territory.
Charlie Riggs is a telemarketer for an Internet service provider. He calls people on a list
provided by his firm and tries to sign them up for Internet service. Charlie relies heavily
on a presentation he learned during his training. Charlie is very good at what he does
and loves that the more success he has the more he earns.
Which of the following is true about Melissa Tran's sales position?
A. Recruiting for this job would not require a job description.
B. It involves major account management.
C. The job would not require product training - only sales training.
D. It involves missionary sales.
E. None of these alternatives is true for Melissa's sales position.
Answer:
Why can't marketing managers be satisfied just planning present activities?
A. Markets are dynamic.
B. Consumers' needs keep changing.
C. The environment keeps changing.
D. Competitors often change.
E. All of these are reasons why marketing managers can't be satisfied just planning
present activities.
Answer:
Clustering techniques
A. help sellers fine-tune the marketing effort with information from a detailed customer
database.
B. establish how customers think about proposed or present brands in a market.
C. try to find similar patterns within sets of data.
D. group customers into heterogeneous segments.
E. use intuition and judgment to do what previously was done by computers.
Answer:
A cutlery manufacturer producer produces 200 units of output at a total cost of $1,500.
If total variable costs are $500, the average variable cost (per unit) is:
A. $3.00.
B. $7.50.
C. $2.5.
D. $1.00.
E. $2.00.
Answer:
