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All of the following should be determined by the marketing department of a firm
EXCEPT:
A. storing the product.
B. actually making the product.
C. advertising the product.
D. designing the packaging for the product.
E. setting the price of the product.
The "marketing concept" says that a business firm should:
A. Aim all its efforts at meeting society's needsregardless of profitability.
B. Aim all its efforts at satisfying its customersat a profit.
C. Sell those products which it can make at lowest cost.
D. Place heavy emphasis on developing new products.
E. Treat advertising and selling as its priority.
Gross national income (GNI) is the:
A. total cost of producing all goods and services sold in a year.
B. total market value of goods and services provided in an economy in a year by
residents of that country.
C. total market value of goods (but not services) consumed in an economy in a year.
D. total market value of goods and services consumed in a year.
E. total market value of goods (but not services) produced in an economy in a year.
Planning for mass selling involves strategy decisions about:
A. what is to be said to the target customers.
B. how target customers are to be reached.
C. who is the target audience.
D. what kind of advertising is to be used.
E. All of these strategy decisions are involved in planning for mass selling.
______________ means selling a product through only one wholesaler or retailer in a
particular geographic area.
A. Exclusive distribution
B. Direct distribution
C. Intensive distribution
D. Multichannel distribution
E. Selective distribution
Analyzing customer comments and other companies to find new product concepts is
carried out during which step of the new-product development process?
A. Idea generation
B. Screening
C. Idea evaluation
D. Development
E. Commercialization
The Federal Trade Commission Act of 1914 is primarily concerned with:
A. deceptive warranties.
B. price-fixing agreements.
C. conspiracies in restraint of trade.
D. mergers which might substantially lessen competition.
E. unfair methods of competition.
A research proposal
A. develops and analyzes new information about a market.
B. specifies what information will be obtained and how.
C. is an informal study of what information is already available in the problem area.
D. seeks in-depth, open-ended responses, not yes or no answers.
E. is typically in a database format that standard website search engines can find.
Which of the following is an example of the cultural and social environment?
A. Growing acceptance of women in business.
B. Growing popularity of exercise.
C. Increased desire for satisfaction with life.
D. All of these are examples of the cultural and social environment.
Department stores:
A. Are no longer a major retail force in large U.S. cities.
B. Have increased in number since the 1970s.
C. Usually offer many product lines.
D. Have increased their share of retail business since the 1970s.
E. Are not threatened by mass-merchandising retailers.
In the American Marketing Association's Statement of Ethics, which ethical value
stresses a firm's attempts to recognize the basic human dignity of its customers?
A. Citizenship
B. Respect
C. Honesty
D. Openness
E. Responsibility
When ranked in importance from greatest to least, the four Ps line up as follows:
A. Product, price, promotion, place.
B. Price, promotion, place, product.
C. Promotion, place, product, price.
D. Place, product, price, promotion.
E. The four Ps are of equal importance.
In monopolistic competition,
A. one firm completely controls a broad product-market.
B. each competitor tries to get control in its "own" target market.
C. competitors offer the same marketing mix.
D. different marketing mixes are nevertheless seen as the same by all customers.
E. all customers view various alternatives as substitutes.
The marketing concept can be applied by:
A. a nurses association.
B. cosmetic manufacturers.
C. nonprofit hospitals.
D. national parks.
E. all of these can apply the marketing concept.
The change in a company's total cost from producing one more unit is called:
A. average total cost.
B. marginal cost.
C. average fixed cost.
D. variable cost.
E. average variable cost.
Marketing
A. applies to both profit and nonprofit organizations.
B. is another name for selling and advertising.
C. should pick up where the production process ends.
D. people should expect that the production department will determine what goods and
services are to be developed.
The accounting department should do a marketing audit since they have access to the
data.
Terry Harter is marketing manager for United Tools and Mike O'Reilly is the firm's
logistics manager. They work together to make decisions about how to get United's
hand and power tools to its customersa mix of manufacturing plants and final
consumers (who buy United tools at a hardware store). United Tools does not own its
own transport facilities and it works with wholesalers to reach its business customers.
Together, Harter and O'Reilly try to coordinate transporting, storing, and product
handling activities to minimize cost while still achieving the customer service level
their customers and intermediaries want. This usually requires that United keep an
inventory of most of its products on hand, but demand for its products is fairly
consistent over time so inventory is easy to manage.
Harter has identified four options for physical distribution systems she could use to
reach two of her key wholesalers, Ralston Supply and Ricotta Tool Co. The total cost
for each optionand the distribution service levels that can be achievedare as follows:
Ralston Supply expects a very high level (90 percent) of distribution customer service.
Ricotta Tool Co. is willing to settle for a 70 percent customer service level, even if that
means some products will occasionally be out of stock, if it gets products at a lower
price.
For its large retail hardware customers (like Home Depot), United regularly ships
smaller orders directly to individual stores or in some cases to the retail chain's
warehouses. Cross-country shipments usually go by rail while regional shipments
usually go by truck.
It appears that United Tools:
A. is implementing the physical distribution concept.
B. works to provide just-in-time delivery to both of its wholesalers.
C. needs to buy its own fleet of trucks.
D. uses the distribution system with the lowest transportation cost.
E. All of these alternatives are logical.
Procedures that develop and analyze new information to help marketing managers make
decisions are called:
A. marketing research.
B. statistical techniques.
C. operational planning.
D. strategy planning.
E. sample building units (SBUs).
______________ advertising tries to develop goodwill for a company or even an
industryinstead of a specific product.
A. Primary demand
B. Selective demand
C. Institutional
D. Persuading
E. Pioneering
Which of the following sources of buying information is LEAST likely to be trusted by
customers?
A. Paid magazine ads
B. Brand websites
C. Personal recommendations
D. Search engine ad
E. Paid television ads
_____ is setting a few price levels for a product line and then marking all items at these
prices.
A. Price following
B. Bait pricing
C. Odd-even pricing
D. Price lining
E. Price leading
A wholesaler that carries only health foods instead of a full line of groceries is a
A. general merchandise wholesaler.
B. limited-function wholesaler.
C. general-line wholesaler.
D. cash-and-carry wholesaler.
E. specialty wholesaler.
Which of the following does NOT support the idea that MICRO-marketing often DOES
cost too much?
A. Product planners frequently develop me-too products.
B. Many firms focus exclusively on their own internal problems.
C. Many firms try to maximize profits.
D. Managers routinely seize on whatever strategy seems easiest.
E. None of these, i.e. all of these do support the idea that MICRO-marketing often
DOES cost too much.
Which of the following is NOT one of the consumer product classes discussed in the
text?
A. Unsought products
B. Innovative products
C. Shopping products
D. Convenience products
E. Specialty products
Cherokee Cable Corporation, sells heavy wire cable to large construction companies
around the country. Customers pay shipping from a central warehouse in Dallas.
Recently, a new competitor in Atlanta has been taking away some of Cherokee Cable's
southern customers. If Cherokee Cable wants to compete in those distant markets, but
not increase the cost of its product to other customers, it would probably switch to
A. zone pricing.
B. specifying "F.O.B. Dallas" in its contracts.
C. uniform delivered pricing.
D. freight absorption pricing.
E. None of these would help Cherokee Cable Corporation with its problem.
American economic and legislative thinking is based on the idea that
A. encouraging competition harms public interest.
B. competition among many small firms helps the economy.
C. attempts by business to limit competition aids large firms during recessions.
D. the economic environment provides a base for the technological environment.
E. laws should protect companies and not consumers.
A producer with only one product has total fixed costs of $15,000 per month. In
addition, it cost the producer $100 in variable costs to produce each unit of his product
(raw materials and direct labor cost). The producer charges his wholesalers $125 per
unit. How many units of the product does the producer have to sell each month in order
to break even?
A. 450 units
B. 500 units
C. 550 units
D. 600 units
E. 650 units
A contribution-margin income statement shows:
A. the contribution of each department to both fixed costs and profit.
B. the effect of a marketing strategy on sales in different areas.
C. the marginal costs for producing each new unit of a product.
D. the effect of competitors' prices on the profits of a company.
E. the contribution of external market factors to the profits or losses of the company.
The adoption curve concept is most closely related to which of the following?
A. "noise" in the communication process
B. sales promotion aimed at a company's own sales force
C. the product life cycle
D. selective demand
E. the AIDA model
Terry Harter is marketing manager for United Tools and Mike O'Reilly is the firm's
logistics manager. They work together to make decisions about how to get United's
hand and power tools to its customersa mix of manufacturing plants and final
consumers (who buy United tools at a hardware store). United Tools does not own its
own transport facilities and it works with wholesalers to reach its business customers.
Together, Harter and O'Reilly try to coordinate transporting, storing, and product
handling activities to minimize cost while still achieving the customer service level
their customers and intermediaries want. This usually requires that United keep an
inventory of most of its products on hand, but demand for its products is fairly
consistent over time so inventory is easy to manage.
Harter has identified four options for physical distribution systems she could use to
reach two of her key wholesalers, Ralston Supply and Ricotta Tool Co. The total cost
for each optionand the distribution service levels that can be achievedare as follows:
Ralston Supply expects a very high level (90 percent) of distribution customer service.
Ricotta Tool Co. is willing to settle for a 70 percent customer service level, even if that
means some products will occasionally be out of stock, if it gets products at a lower
price.
For its large retail hardware customers (like Home Depot), United regularly ships
smaller orders directly to individual stores or in some cases to the retail chain's
warehouses. Cross-country shipments usually go by rail while regional shipments
usually go by truck.
One of United's biggest customer has placed a very large, heavy order. Its warehouse is
in a location served by all transport modes, and the customer has directed United to ship
the order by the mode with the lowest transport costs. In this situation, United will
probably ship the tools by
A. Airfreight.
B. Trucks.
C. Waterways.
D. Railroads.
Organizational buyers:
A. are producers' agents.
B. are problem solvers.
C. base purchasing decisions entirely on company needs.
D. are not affected by emotional needs.
E. All of these alternatives are correct.
