“Publicity”:
A. is generally less useful than advertising for promoting a really new product.
B. is mass selling that avoids paying media costs.
C. is any paid form of nonpersonal presentation of ideas, goods, or services by an
identified sponsor.
D. is more expensive than all other promotion methods.
E. None of these alternatives for “publicity” is true.
Producers that advertise in GOOD HOUSEKEEPING magazine sometimes show that
they have the Good Housekeeping ‘seal of approval.” This illustrates their recognition
of the importance of the ______________ in the communication process.
A. feedback
B. noise
C. decoding
D. encoding
E. message channel
Which of the following statements about the contribution-margin approach is FALSE?
A. It is concerned with the amount contributed by an item or group of items toward
covering fixed costs.
B. This approach suggests that it is not necessary to consider all costs in all situations.
C. Top management almost always finds this approach more useful than full-cost
analysis.
D. This approach frequently leads to data which suggest a different decision than might
be indicated by the full-cost approach.
E. It focuses on controllable costsrather than on total costs.
A total profit approach to evaluating product-market strategic plans
A. will not work if the plans are for the same number of years.
B. will be most useful when the plans require very different levels of investment.
C. may support a particular plan even if it generates poor profits in some years.
D. does not include sales and costs incurred in the first year of the plan.
E. None of these are good answers.
Setting prices by adding a “reasonable” markup to a firm’s average cost is called:
A. break-even pricing.
B. add-on pricing.
C. target-return pricing.
D. average-cost pricing.
E. marginal analysis.
Typically the _____ is responsible for building good distribution channels and
implementing “place” policies.
A. public relations manager
B. sales manager
C. advertising manager
D. human resources manager
E. recruitment manager
Differentiating the marketing mix is important because:
A. It can help the firm build a competitive advantage with a group of target customers.
B. It can help target customers to view the firm’s position in the market as uniquely
suited to their preferences and needs.
C. It can clarify the position the firm wants to achieve with customers.
D. It can contribute to better blending of marketing mix decisions to achieve desired
objectives.
E. All of these alternatives are true.
The statement, “I plan to see the new Tom Hanks movie,” is an example of:
A. a drive.
B. reinforcement.
C. an attitude.
D. a belief.
E. an intention.
A firm would likely pursue penetration pricing when
A. it expects zero competition.
B. economies of scale are nonexistent.
C. the elite market is substantial.
D. the whole demand curve is fairly elastic.
E. supply is limited.
A sales rep might use new software for ______________ to provide a competitive
advantage.
A. sales forecasting
B. shelf-space management
C. customer contact management
D. time management
E. Any or all of these software could help provide a competitive advantage
NAFTA:
A. is a free-trade pact between the U.S., Canada, and Mexico.
B. is a long-term proposition.
C. has already eliminated most trade barriers with Mexico.
D. All of these are correct.
Compared to specialty wholesalers, general merchandise wholesalers handle:
A. a narrower lineor perhaps only a specific line of merchandise.
B. almost no physical products.
C. a very narrow assortment of products.
D. products they do not own, while specialty wholesalers do own them.
E. a broader variety of products.
What type of business product is General Motors purchasing when it asks a law firm for
bankruptcy advice?
A. Emergency product
B. Professional service
C. Component
D. Accessory
E. Installation
Organizational customers:
A. Purchase goods in order to satisfy their customers, but the services they purchase are
for themselves.
B. Are more emotional in their buying than final consumers.
C. Try to consider the total cost of selecting a supplier, not just the initial cost of the
product.
D. Typically focus on behavioral needs instead of economic factors in making
purchases.
E. None of these alternatives is correct.
Lisa Campos was interested in buying a coffee pot to use at college and a cassette
player for her sister’s birthday present. At the local discount store, she compared prices
on coffee pots and chose the cheapest. She read the product information on each
cassette player and finally chose one with stereo headphones and a rechargeable battery.
For Lisa, the coffee pot was
A. a convenience product, but the cassette player was a specialty product.
B. a heterogeneous shopping product, but the cassette player was a staple.
C. an impulse product, but the cassette player was a convenience product.
D. a specialty product, but the cassette player was a heterogeneous shopping product.
E. a homogeneous shopping product, but the cassette player was a heterogeneous
shopping product.
In the communication process, the individual who decodes a message is also most
likely to be which of the following?
A. The source of the message
B. Noise affecting message transmission
C. The encoder of the message
D. The receiver of the message
E. The channel for message transmission
Which of the following is NOT true about the relation between promotion blends and
the promotion target?
A. Pushing in the channel means using normal promotion to intermediaries.
B. Service-oriented companies often try to design ads targeted at customers that also
communicate to their own employees.
C. Promotion to intermediaries emphasizes personal selling.
D. Pushing within the firm involves promotion to employees, especially salespeople.
E. All of these alternatives are true.
Working capital may be used to pay for:
A. advertising
B. storing
C. employee salaries
D. what a firm owes suppliers
E. All of these.
Which of the following is FALSE with respect to data, information, knowledge and
wisdom.
A. Data in its raw form is not useful to managers.
B. Software can be used to convert data into information.
C. Information answers questions about “who” and “how much.”
D. Knowledge answers questions of “when” and “where”.
E. Gaining experience about why things happen builds wisdom.
_____ are one widely used form of qualitative questioning in marketing research.
A. Focus group interviews
B. Situation analyses
C. Telephone surveys
D. Direct observations of customers
E. Experimental research studies
Natalie St. John, brand manager for a cookie producer, says that she is looking for a
“full service” advertising agency. Apparently, in addition to having the agency purchase
media, she wants an agency to help
A. plan package development.
B. develop sales promotions.
C. provide market research.
D. create the actual advertisements.
E. A full service agency might help with any of these.
Which of the following is a condition favorable to successful branding?
A. The product quality is difficult to maintain.
B. The product is difficult to label and identify by brand.
C. Favorable shelf locations or display spaces are available in stores.
D. Limited availability for the product in the market.
E. No economies of scale for the product.
The 80/20 rulethat 80 percent of a company’s sales often come from just 20 percent of
its customersis a good reason for marketers to use:
A. selective distribution.
B. intensive distribution.
C. exclusive distribution.
D. international distribution.
E. multichannel distribution.
As a product moves into the market maturity stage of the product life cycle:
A. Consumers tend to view products as being more similar.
B. The competitive situation moves toward monopoly.
C. Promotion emphasizes informing consumers more than persuading them.
D. There is less consideration of competition in setting prices.
E. None of these alternatives is true.
Regarding the new-product development process:
A. the hypothesis tested is that the new product idea will not be profitable.
B. a gradual “roll-out” of the productregion by regionallows for more market testing.
C. concept tests are done before any physical models are produced.
D. likely ROI should be estimated throughout the process to force the new idea to prove
itself.
E. All of these alternatives are correct.
During a ‘situation analysis,” a marketing researcher should:
A. collect primary data.
B. talk with competitors facing similar problems.
C. begin to talk informally to as many customers as possible.
D. study what information is already available.
E. All of these are good choices.
_____ means trying to increase sales of a firm’s present products in its present markets.
A. Differentiation
B. Product development
C. Market development
D. Diversification
E. Market penetration
Bonafide Electric produces electric motors that power refrigerators, air condition units,
washing machines, and many other electric appliances produced by various
manufacturers. Bonafide Electric is selling
A. raw materials.
B. component parts.
C. MRO items
D. accessory equipment.
E. installations.
A retailer’s “Place” may include:
A. a physical store and/or an online store.
B. store size and layout.
C. number of stores.
D. store hours.
E. All of these are included in a retailer’s “Place.”
A technical specialist:
A. often has a background in product applications rather than sales.
B. may call on the customer both before and after a purchase.
C. may work in conjunction with an order getter to persuade new clients.
D. usually is the person who explains technical details of the firm’s product to
prospective customers.
E. All of these alternatives are correct.
A firm intends to use an online survey questionnaire in a marketing research project.
Compared to a mail survey:
A. feedback will likely be faster online.
B. the response rate will likely be lower online.
C. respondents will likely be younger and better educated online.
D. costs will likely be less online.
E. All of these alternatives are correct.