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As a product moves through its product life cycle stages:
A. consumers are offered less product variety.
B. distribution tends to become more and more exclusive.
C. competition forces firms to skim instead of just meeting competition.
D. the promotion emphasis is on building selective demand.
When an AFLAC insurance agent calls a competitor's small-business customers to try
to convince them to switch insurance companies, what type of sales activity is this?
A. Missionary calling
B. Technical prospecting
C. Telemarketing
D. Order taking
E. Supporting
When a website places a small file (containing information about the visitor) on the
computer of people who visit its site, this file is called a(n):
A. product.
B. cookie.
C. reminder.
D. cooperative.
E. institution.
Regarding sales force compensation, the commission method is based on:
A. a percentage of dollar sales.
B. the number of new accounts.
C. customer satisfaction ratings.
D. customer service problems resolved.
E. Any of these alternatives could be used with the commission method.
Regarding marketing cost analysis:
A. there is only one right way to allocate functional costs.
B. traditional accounting analysis doesn't analyze the purpose of marketing costs.
C. marketing costs usually should be allocated to general overhead.
D. functional accounts and natural accounts usually have the same names.
E. All of these are true.
Increased demand for new homes due to low interest rates is an example of the impact
of the ___________ environment.
A. technological
B. cultural
C. competitive
D. economic
E. social
A grocery store or mass-merchandiser might rely on a _____ to decide which paperback
books or magazines it sells.
A. catalog wholesaler
B. rack jobber
C. truck wholesaler
D. drop-shipper
E. specialty wholesaler
For which of the following would an organization most likely engage in new task
buying?
A. A small portable welding machine for use in making repairs.
B. A new desktop copying machine.
C. Dishwashing detergent for use in a restaurant.
D. A new desk chair to replace one that had broken.
E. A 10,000 square foot prefabricated steel building for use as a warehouse.
The owners of all the Chrysler auto dealerships in a large metropolitan area have an
informal meeting during a golf outing. During the meeting, they agree to limit their
orders of a new model of automobile that has received excellent reviews from the trade
press for its styling and handling characteristics. Restricting orders will permit the
dealers to sell these models at a price that will be at or above the manufacturer's
suggested retail price for the vehicle. As a result, the dealers will make more profit on
each vehicle sold due to the high demand for the new model. This type of agreement
would be viewed by the courts as:
A. Horizontal collusion that is illegal.
B. Horizontal collusion that is legal.
C. Vertical collusion that is legal.
D. Vertical collusion that is illegal.
E. An exclusive distribution arrangement that is legal.
When evaluating the potential of possible opportunities (product-market strategies), a
marketing manager should:
A. evaluate each opportunity over the life of the project, since short-term losses may
hide long-term profitability.
B. avoid using quantitative criteria because they tend to oversimplify the problem.
C. look at each opportunity on its own, since there is no good way to compare different
plans.
D. look only at internal resources, since they are controllable.
It is usually most economical to ship bulky nonperishable items, such as coal and iron
ore, by
A. water.
B. pipeline.
C. truck.
D. air.
E. None of these is a good answer, since the cost of shipping a product usually does not
vary from one mode to another.
Which of the following NAICS codes would be used by a marketing manager who
wanted data that was the MOST SPECIFIC to a particular type of firm within an
industry?
A. 31
B. 31522
C. 315
D. 3152
E. There is no way to tell from the information provided.
Consumer products which consumers do not yet want or know they can buy-and
probably would not buy without special promotion even if they saw them-are called:
A. new brands of well-accepted staples.
B. unsought products.
C. heterogeneous shopping products.
D. emergency products.
E. homogeneous shopping products.
Regarding geographic pricing policies:
A. uniform delivered pricing tends to decrease the size of a firm's market.
B. F.O.B. pricing tends to increase the size of a firm's market.
C. freight absorption pricing tends to increase the size of a firm's market.
D. zone pricing encourages large orders.
E. None of these alternatives is correct.
The "contribution-margin approach" to marketing cost analysis:
A. considers only those costs which are directly related to particular alternatives.
B. is especially useful for estimating the long-run profit of a proposed strategy.
C. allocates variable costs which are hard to measure to overhead.
D. is especially useful for determining if there should be more controls on fixed costs.
E. All of these are correct.
All of the following are part of the direct market environment EXCEPT:
A. customers.
B. competitors.
C. the company itself.
D. the technological environment.
Which of the following observations is true?
A. Variable costs are irrelevant in the contribution-margin approach.
B. Both the full-cost approach and the contribution-margin approach yield similar
decisions.
C. The contribution-margin approach ignores some costs to get results.
D. Top management always prefers the contribution-margin approach.
E. In the contribution-margin approach, all costs are allocated to products, customers, or
other categories.
When assessing a firm's quality from the customer's perspective, marketing managers
must take account of all relevant _____ where customers have contact with the firm and
its products.
A. locations
B. touchpoints
C. sales data
D. connectors
E. intersects
Which of the following statements is not characteristic of a good?
A. Goods are tangible items that can be touched.
B. Goods can be produced and then stored to sell at some future time.
C. Goods are typically manufactured at the location where the customer makes the
purchase.
D. Goods can be owned by the customer.
E. Goods are typically mass-produced.
When developing a good promotion blend, a marketing manager should:
A. be more concerned with persuading the target customers than informing or
reminding.
B. determine who the firm is trying to influence.
C. realize that the right blend depends more on what customers expect than on what the
firm wants to accomplish.
D. realize that promotion to final consumers is usually based on "pulling."
E. None of these alternatives is true.
Ali Mulhammed has been working for a producer of video games that sell through toy
wholesalers to retailers. He knows all about the games sold by his company and by
competitors. He goes into his wholesalers' territories and tries to get local retailer
customers interested in the company's lineand even trains retailers to demonstrate the
games. When a retailer is ready to buy, Ali turns the business over to the wholesaler's
sales rep. Ali is a:
A. member of the firm's major accounts sales force.
B. missionary salesperson.
C. technical specialist.
D. manufacturers' agent.
E. None of these jobs is correct.
Managed Care Concepts facilitates the processing of medical claims for organizations,
such as government agencies, whose employees are injured while performing their jobs.
The company does not actually process the claims. Instead, it coordinates the work of
customer service personnel, nurses, physicians, case managers, and pharmacists who
work for other companies and have some role to play in the processing of an injured
worker's claim. Managed Care Concepts relieves its clients of the burden of processing
their own injured worker claims and can usually save the organizations a significant
amount of money. Managed Care Concepts operates like a:
A. Merchant wholesaler.
B. Manufacturer's agent.
C. Virtual Corporation.
D. Manufacturer.
E. None of these.
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.
United Tools is considering building a new private warehouse for its tools. Which of the
following are benefits of private warehouses?
A. Low unit storing cost, if volume is high.
B. Very flexible if storage needs expand or contract in the future.
C. Low fixed investment.
D. All of these are benefits of private warehouses.
Detailed sales analysis is:
A. not worth the cost unless the firm is very unprofitable.
B. based on the information available on traditional accounting reports.
C. important for producers, but usually not that valuable for retailers.
D. most useful when it analyzes costs from different possible target markets.
E. None of these is true.
When a firm tries to increase sales by offering new or improved products to its present
markets, this is called:
A. mass marketing.
B. product development.
C. market penetration.
D. diversification.
E. market development.
Which of the following observations provides some hope that micro-marketing is
becoming more efficient and effective?
A. More firms are becoming sales-oriented.
B. More firms are becoming production-oriented.
C. Fewer firms are becoming customer-oriented.
D. Firms are embracing new technologies and diversity.
E. None of these is a good answer.
A retail store advertises an SLR digital camera for $350. Once bargain hunters come to
the store, salespeople point out the disadvantages of the low-priced camera and try to
convince them to trade up to a better, and more expensive, unit. This is an example of
A. price following.
B. bait pricing.
C. odd-even pricing.
D. low pricing.
E. everyday low pricing.
A target marketer who uses a single marketing mix strategy to appeal to both office
tablet computer users and home tablet computer users is applying:
A. the broad market approach.
B. the single target market approach.
C. the multiple target market approach.
D. the combined target market approach.
E. the generic market approach.
In the U.S., producers of sporting and athletic goods spend about _____ percent of their
sales dollars on advertising.
A. 1
B. 3
C. 6
D. 9
E. 14
In promotion to final consumers:
A. advertising, publicity, and sales promotion are the dominant promotion methods.
B. aggressive personal selling is usually found only in expensive channel systems.
C. reminder ads may be all the promotion that is needed for products that have won
brand preference or insistence.
D. personal selling is effective for consumer electronics and automobiles.
E. All of these alternatives are correct.
Given the nature of their work, which of the following should have a marketing
orientation?
A. Girl Scouts of America.
B. Dallas-Fort Worth Symphony.
C. American Cancer Society.
D. University of Wisconsin.
E. All of these organizations should have a marketing orientation.
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.
A _____ is a dollar amount added to the cost of products to get the selling price.
A. markup
B. rebate
C. list price
D. spiff
E. deal
What basic promotion objective should be emphasized by a producer introducing a
really new product which satisfies customer needs better than any existing product?
A. Persuading
B. Reminding
C. Maximizing
D. Informing
E. Communicating
