Scenario 11.2 Use the scenario to answer the questions.
Jonathan Moore, President of Polar Manufacturing Company, has just reviewed the
performance reports for the previous year and observes that there are certain areas in
which the company needs to improve. He specifically feels that Polar’s product mix can
be managed in a more effective way. Jonathan summons a meeting of all the managers
responsible for each of the product lines that Polar currently manufactures. The group
reaches a consensus that the complete industrial product line of ice chests needs to be
eliminated. It contemplates to do so by letting the product decline without making any
changes in the marketing strategy or product. The group also decides to delete Polar’s
line of personal thermal underwear within a week, owing to its unprofitability. While
discussing these strategies, the group also uncovers several customer segments at which
new products could be targeted. The managers decide to assemble a group of people
from all functional areas of the company and confer them responsibilities for all aspects
of the new-product development.
Refer to Scenario 11.2. The Polar management team is currently in the_____________
stage of the new-product development process.
a. idea generation
b. screening
c. concept testing
d. product development
e. test marketing
Which of the following offers the widest product mixes and the deepest product lines?
a. Category killer
b. Outlet mall
c. Traditional business district
d. Community shopping center
e. Superregional shopping center
Cheyenne, a sales person, should call to see if her customer’s new hardwood floors were
installed correctly:
a. during the follow-up step.
b. immediately after the closing.
c. near the end of the sales presentation.
d. the next time she makes a sales call to that customer.
e. after she receives cash payment from that customer.
A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is
available at Kmart and
Walmart. This form of sales promotion is called:
a. cooperative advertising.
b. a dealer listing.
c. push money.
d. a dealer loader.
e. an advertising allowance.
When using the percentage-of-sales approach for determining the advertising
appropriation, marketers:
a. base their funding on a percentage of the competitors’ sales.
b. multiply the firm’s past sales by a set percentage they want to spend.
c. set sales objectives for the upcoming period and base appropriations on these goals.
d. multiply the firm’s past sales, plus a factor for expected changes in sales by a
standard percentage.
e. use an industry standard to determine what percentage of their profits they want to
allocate to advertising.
Johnson Controls hires a consultant to assess its materials handling procedures. The
consultant recommends the implementation of if they want easier movement
of__________items between internal destinations in the warehouse.
a. unit loading
b. piggybacking
c. containerization
d. inventory management
e. priority transportation
If a company calls a meeting to announce a major news event, this is known as a .
a. media call
b. press conference
c. news release
d. press release
e. public service announcement
A subsidiary operating in a foreign country may have important tax, tariff, and other
operating advantages over a licensing agreement or a joint venture.
a. True
b. False
Reinforcement advertising tells current users how to get the most satisfaction from the
brand they have chosen.
a. True
b. False
Scenario 12.4
Use the following to answer the questions.
The BASF Chemical Company in Germany has developed a new rubberized coating.
The product is used on cell phones and other hand-held electronic devices that give
them protection from falls and scratches. BASF plans to market the product directly to
businesses that manufacture the casings for these types of products. BASF currently
uses a system of salespeople headquartered in Germany, while its primary business
customers are in China.
Refer to Scenario 12.4. BASF has decided to offer discounts to its businesses customers
in the form of the following: For each order of $100,000 or more during the next 90
days, the buyer will receive a rebate of 5 percent. This type of pricing would be an
example of discounts.
a. allowance
b. cash
c. seasonal
d. noncumulative
e. cumulative
When evaluating the alternatives, the buyer rates and eventually ranks the brands in the
consideration set.
a. True
b. False
Scenario3.2 Clayton Homes, a mobile home manufacturer since 1934, introduced its
new iHome in 2009. The iHome is one of the first of its kind, designed as an updated,
modern version of the modular home, offered as a base home plus add- ons known as
‘œpods.’ The base home is a oneÂbedroom, oneÂbath 734Âsquare foot version at a
price of around
$80,000. There is also a 1,000 square-foot version for around $100,000. All versions
may add on the additional
one-room pods as desired which are shipped to your location and constructed on-site.
The homes offer galvanized metal roofing, corrugated steel siding, VOCÂfree paints,
and a ‘œbutterfly’ roof that collects rainwater. The iHome uses 30% less energy than a
similar squareÂfoot home and offers ‘œgreen’ characteristics of solar panels, tankless
water heaters, and low-flow faucets. In addition, it comes with bamboo flooring, a
renewable resource. The modular, preÂfabricated design offers endless options for
creating the customer’s home and its engineered building system cuts down on
construction waste. Due to the ‘œgreen effects’ of the iHome, the state governments
have given it a tax abatement for any sales taxes. The new Clayton Homes iHome
product is a reflection of the company’s attention to___
strategy.
a. marketing research analysis
b. self-regulatory analysis
c. consumer behavior analysis
d. marketing information processing
e. environmental scanning and analysis
Anyone who becomes a member of MySpace, Twitter, Facebook, or other social
networking sites is a:
a. collector.
b. spectator.
c. joiner.
d. creator.
e. critic.
Family packaging cannot be used for individual product lines; it must apply to the
entire product mix of the firm.
a. True
b. False
All marketing mix decisions must have two characteristics: consistency and .
a. flexibility
b. rigidity
c. irregularity
d. variability
e. resistance
Alton is reading a magazine ad of a new cologne. In the ad, he sees little more than a
photo of a man riding on a horseback on a beach, and the name of the new cologne,
Rugged. With respect to the components of a communication process, Alton is
a(n)________-.
a. sender
b. receiver
c. source
d. communication channel
e. channel member
Order handling involves all of the following activities except that the:
a. credit department approves the purchase.
b. order is transmitted to the warehouse.
c. availability of product is verified.
d. warehouse is instructed to fill the order.
e. customer places a purchase order.
Scenario 4.2
Use the following to answer the questions.
Colin Jackson recently purchased Blue Waters Adventures, a kayak and canoeing rental
business near the Chatsworth River in Arizona. Blue Waters Adventures had been in
operation for five years and was located in an ideal area. Even though the winters in the
area can be cold, kayaking and canoeing activities are generally popular year-round.
After two months of operation, it became clear why the previous owners had sold the
business. While the business appeared to be ideally located, sales were extremely
disappointing.
Before administering the questionnaire, Colin discovered, through talking to other
sports
rental businesses, that although retired males made up a small percentage of the area’s
population, they often rented kayaks and canoes. In light of this, Colin decided to
include a minimum of 25 percent retired males in his sample. The final choice of
respondents was left up to the interviewers. This sampling method is known as
sampling.
a. quota
b. stratified
c. random
d. representative
e. area
When markets are comprised of people with differing product needs, the marketing
manager should use a(n)_____ targeting strategy.
a. differentiated
b. market-intensive
c. integrated
d. concentrated
e. undifferentiated