Job descriptions are not necessary for personal selling because all salespeople are
expected to do the same task-sell products.
Answer:
“Good” market segments should be heterogeneous within and homogeneous between.
Answer:
Making a very specific marketing mix for a particular group is always less profitable
than a more general marketing mix that appeals to a larger segment.
Answer:
Organizations always focus on economic factors when they make purchase decisions
and are never as emotional as final consumers in their buying behavior.
Answer:
The AIDA model focuses on markets as a whole while the adoption curve model
focuses on individuals.
Answer:
Compared to final consumers, manufacturers tend to be more spread out geographically.
Answer:
Sales promotion can involve point-of-purchase materials, store signs, contests, catalogs,
and circulars.
Answer:
The ‘supply chain” concept refers to the idea that distribution can usually be reduced if
the firm that is the “weakest link” in the channel of distribution is eliminated.
Answer:
Differentiation emphasizes similarity rather than uniqueness.
Answer:
The “battle of the brands” hurts consumers by driving up prices.
Answer:
Average fixed cost goes down as output decreases.
Answer:
A close buyer-seller relationship in a business market may reduce a firm’s flexibility.
Answer:
Motivation theory suggests that only one need can be satisfied at a time.
Answer:
Often, attractive opportunities are fairly close to markets the firm already knows.
Answer:
A buying center is generally thought of as all the people who participate in or influence
a purchase.
Answer:
Order getters are concerned with finding new opportunities for the company.
Answer:
Merchant wholesalers account for over 60 percent of all wholesale sales.
Answer:
To guarantee good media selection, the advertiser must specify its target market and
then choose media that will reach these target customers.
Answer:
Procter and Gamble is an example of a consumer packaged goods firm that has
dramatically increased its use of trade promotion in the promotion blend.
Answer:
The median age in the United States increased from 30 in 1980 to 37 in 2010.
Answer:
The four groups of consumer products are: convenience products, shopping products,
specialty products, and unsought products.
Answer:
Using the General Electric strategic planning grid, an opportunity rated “medium” in
terms of both industry attractiveness and business strengths is an opportunity that the
firm should always avoid.
Answer:
It’s usually possible for a consumer to get much more information about a product in a
retail store than on the Web.
Answer:
A chemical company might use institutional ads to highlight its concern for the
environment.
Answer:
Achieving a measurable, direct response from specific target customers is the heart of
direct marketing.
Answer:
The Product area is concerned with developing the right physical good, service, or
blend of both for the target market.
Answer:
Intensive distribution covers the broad area of market exposure between selective and
exclusive distribution.
Answer:
Vertical marketing systems account for a majority of U.S. retail sales.
Answer:
Institutional advertising is advertising aimed at business customers and intermediaries.
Answer:
It is possible for marketing managers to change or create new attitudes about goods and
services-but overcoming negative attitudes is a really tough job.
Answer:
A firm usually has more different strategy possibilities than it can pursue, so it must use
screening criteria to help eliminate those strategies not well-suited to the firm.
Answer:
Goods are intangible and services are tangible.
Answer:
From a marketing management perspective, it’s best to think of customer service as part
of Promotion, not part of Product.
Answer:
Because of cookies, some advertisers already know where customers have been on the
web and what they did there.
Answer:
In total, firms spend less money on advertising than on personal selling or sales
promotion.
Answer:
Good marketing managers put themselves in the customer’s position.
Answer:
The target return figure is zero for an organization that sets a price level that will just
recover costs.
Answer:
Under the Robinson-Patman Act, meeting a competitor’s price is not permitted as a
defense in price discrimination cases.
Answer:
______________ are products a consumer needs but isn’t willing to spend much time
and effort shopping for.
A. Convenience products
B. Unsought products
C. Homogeneous shopping products
D. Utility products
E. Heterogeneous shopping products
Answer:
A new grocery store features a bank, a pharmacy, a flower shop, a full-service bakery, a
caf, photo processing, and equipment rentals, in addition to its normal grocery product
lines. The store is engaging in:
A. The wheel of retailing.
B. Retailing strategy.
C. Scrambled merchandising.
D. The retail life cycle.
E. Merchandising strategy.
Answer:
Average-cost pricing may lead to losses because there are a variety of costs-and each
changes
A. in a similar fashion.
B. in a different way as output changes.
C. in a similar fashion with time.
D. in an exponential manner.
E. in a highly predictable and similar manner.
Answer:
Marketing can be viewed as:
A. a set of activities performed by individual organizations.
B. relevant to for-profit organizations only.
C. just selling and advertising.
D. beginning with the production process.
Answer:
The AIDA model includes all of the following promotion jobs EXCEPT:
A. increasing demand.
B. obtaining action.
C. arousing desire.
D. getting attention.
E. holding interest.
Answer:
A “marketing plan”:
A. is just another term for “marketing strategy.”
B. consists of several “marketing programs.”
C. includes the time-related details for carrying out a marketing strategy.
D. is a strategy without all the operational decisions.
E. ignores implementation and control details.
Answer:
Which of the following qualities of packaging would not be likely to turn a casual
customer into a loyal buyer?
A. Makes the product easier or safer to use
B. Makes a product convenient to store
C. Prevents spoiling or damage
D. Makes products easier to identify
E. Promotes the brand at the point of purchase
Answer:
A firm that sets prices such that consumers will save 15% of their fuel costs by buying
its products is employing _____.
A. leader pricing
B. value in use pricing
C. odd-even pricing
D. price lining
E. product-bundle pricing
Answer:
A research report shows that a magazine’s readers are well-respected by their peers and
high in opinion leadership. They tend to be younger, more mobile, and more creative
than later adopters. But they have fewer contacts outside their own social group or
community than innovators. A firm might advertise to the readers of this magazine if it
is targeting:
A. laggards.
B. innovators.
C. the early majority.
D. early adopters.
E. the late majority.
Answer:
Which of the following products in a supermarket is LEAST likely to be an impulse
product?
A. Bread
B. Local newspaper
C. Camera film
D. An ice cream cone
E. Flashlight batteries
Answer:
____ provide a place where buyers and sellers can come together and bid to complete a
transaction.
A. Export agents
B. Brokers
C. Auction companies
D. Selling agents
E. Rack jobbers
Answer:
A tire manufacturer currently produces tires in small quantities as they are ordered. The
company learns that it can reduce costs significantly by producing one type of tire at a
time in large quantities and storing its unsold tires for later sale. Should the company
switch to large quantity production?
A. No, because this will prevent the company from providing tires as they are ordered.
B. No, because this will cause the company to incur unexpected transportation costs.
C. Only if the economies of scale in production are greater than the additional inventory
carrying cost.
D. Yes, because this will allow the company to utilize JIT delivery systems.
E. Yes, because this will enable the company to improve its production speed per tire.
Answer:
Advertising
A. always results in higher prices for products.
B. is a waste of resources.
C. costs so much that it reduces the chance to achieve economies of scale in production.
D. guarantees a product’s success.
E. None of these alternatives is correct.
Answer:
The Clayton Act is NOT concerned with:
A. product warranties.
B. price discrimination by manufacturers.
C. exclusive dealing contracts.
D. tying contracts.
E. encouraging competition.
Answer:
The “marketing concept” says that a business firm should aim all of its efforts at:
A. doing more advertising and selling than competitors.
B. selling what the company produces.
C. satisfying customers-regardless of profitability.
D. satisfying its customers-at a profit.
E. producing those products which it can make at lowest cost.
Answer:
A retailer’s “Price” may include:
A. delivery charges.
B. discount policies.
C. frequency of sales.
D. store credit card.
E. all of these are included in a retailer’s “Price.”
Answer:
Some developers of apps for the Apple iPhone price their apps low at launch to
encourage sales and get attention so they can move into the prestigious “Top 25” list.
Then, they frequently raise prices to get a higher profit margin on later sales. The initial
low price is a(n):
A. Noncumulative quantity discount
B. Temporary sale
C. Introductory price deal
D. Skimming price
E. Cumulative quantity discount
Answer:
Which of the following is a NOT a key trend affecting marketing strategy planning?
A. Aging of the baby boomer population
B. More selling via the Internet
C. Less use of integrated marketing communications
D. More electronic bid pricing and auctions
E. More attention to quality
Answer:
Which of the following is true of a trade-in allowance?
A. It is a price reduction to stimulate sales of newly introduced products.
B. It allows managers to reduce the effective price without reducing the list price.
C. It forces managers to reduce the list price.
D. It is used to save old products from being removed from the market.
Answer:
New hardware and software available to salespeople:
A. Change the basic sales tasks that must be performed, but don’t change how well the
tasks are done.
B. Involve no costs to the firm except the purchase of the hardware and software.
C. Do not provide any new ways to meet customer needs.
D. May provide a real competitive advantage to a firm if they are used properly.
E. None of these alternatives are correct.
Answer:
A generic market is one in which
A. products from different industries compete for customers by trying to satisfy the
same basic need.
B. no firm can establish a competitive advantage.
C. a number of firms are all offering new or improved products in an effort to increase
sales.
D. one seller has a patent for a superior product and other competitors imitate the leader
with inferior products.
E. None of these alternatives is true.
Answer:
A marketing plan will:
A. explain what marketing mix the firm will use for its target market.
B. include time-related details for the marketing strategy.
C. change with the marketing strategy as the product moves through its life cycle.
D. All of these alternatives are correct.
Answer:
The idea that new types of retailers begin as low-status, low-margin, low-price
operators and then-if successful-evolve into more conventional retailers offering more
services is called the:
A. wheel of retailing theory.
B. pyramid concept.
C. scrambled merchandising concept.
D. superstore concept.
E. mass-merchandising concept.
Answer:
Segmenters, in contrast to combiners:
A. try to aim at homogeneous submarkets of larger product-markets.
B. see one aggregate demand curve for a generic market.
C. are accepting the likelihood of lower sales.
D. assume that everyone in a broad product-market has the same needs.
E. develop general-purpose marketing mixes that appeal to several submarkets.
Answer:
Sales promotion for frequently purchased consumer products usually has to change in
mature markets. Why is this the case?
A. Demand for more support for manufacturer brands.
B. Increased competition from dealer brands in large, powerful retail chains.
C. Greater price sensitivity among consumers.
D. Limitations on shelf space in retail stores.
E. All of these alternatives are correct.
Answer:
Which of the following is NOT one of the “regrouping activities?”
A. Assorting
B. Ranking
C. Sorting
D. Bulk-breaking
E. Accumulating
Answer:
A major benefit of _____ is that it protects the products and simplifies handling during
shipping.
A. fast freight
B. truck service
C. containerization
D. airfreight
E. piggyback
Answer:
Which of the following is NOT an explanation for why retailers continue to evolve and
change?
A. The emergence of automatic vending
B. Wheel of retailing theory
C. Data collected from technology
D. Scrambled merchandising
E. Product life cycle
Answer:
Which of the following statements about advertising spending is NOT TRUE?
A. Advertising in newspapers or on TV is a form of mass selling.
B. Personal selling can be expensive, so it is often combined with mass selling and sales
promotion.
C. Placing a video on a company website or YouTube is a form of publicity.
D. On average, more money is spent on advertising that on personal selling or sales
promotion.
E. Sales promotion can be aimed at final consumers, a company’s own sales force,
wholesalers or retailers.
Answer:
A producer using several competing channels to distribute its products to its target
market is using ______________ distribution.
A. multichannel
B. intensive
C. administered
D. horizontal
E. selective
Answer: