Automobiles, haircuts, tutoring, and lighting fixtures are all examples of tangible
products.
Personal selling can take place in a business or nonbusiness environment.
Both financial and nonfinancial goals are included in the company description, purpose,
and goals section of a marketing plan.
The BCG matrix is used primarily for tactical planning, while the the balanced
scorecard is used primarily for strategic planning.
The forecasting section of a marketing plan draws on data analysis rather than
subjective judgment.
A variety of plans, including a marketing plan, exist within a business plan.
The purpose of a CRM program is to identify new potential customers.
The achievement of a marketing objective is not typically measured as a part of the
marketing planning process.
In marketing terms, a consumer insight is an understanding a consumer has about a
product or service.
Marketing can influence consumers’ perceptions of a product’s utility.
The idea of utility is borrowed from the study of psychology.
Business planning is an ongoing process of making decisions that guides a business in
both the short and long term.
In the BCG matrix, dogs are low growth services or products with low market share.
Individuals with varying chronological and cognitive ages may all be in the same life
stage.
Liquids such as oil and natural gas can be transported through pipelines.
In developed markets such as the United States, it has become more difficult for high
rates of GDP growth to be sustained.
Sales management is responsible for supplying leads to the sales force so salespeople
can focus on the preapproach.
The forecasting section of a marketing plan includes predictions for both revenues and
expenses.
A company can use public relations internally as well as externally.
Low masculinity societies have limited differentiation between genders.
Telemarketing that is not outsourced requires relatively little financial investment from
a company.
Simpson Products, Inc. requires that any marketing campaign it implements has a
minimum expected ROMI factor of 2. This is Simpson Products’ hurdle rate.
Retailers employ about 10% of the American workforce.
Freight distribution is also known as intermodal distribution.
Dove marketers go beyond the brand’s cleansing cream properties and talk about the
resulting benefit of softer skin. This is known as product attributes in brand positioning.
Cannibalization is a possible result of adding products to a portfolio.
Marketing accountability is practiced in a wide variety of ways from company to
company.
Offshoring is a type of outsourcing in which business activities are completed in
another country.
Few companies provide sales training beyond a few weeks or months for new members
of the sales force.
Alternative media such as viral marketing and social networking are rarely used to build
emotional connections with consumers.
The majority of the best-known brands in the United States are less than 25 years old.
The final stage of the creative selling process is the close.
Most business plans include three types of financial statements.
The only way for a company to accurately measure customer satisfaction is through
independent rating organizations such as J.D. Power and Associates and the American
Customer Satisfaction Index.
Before selecting media that will be used in an advertising campaign, a marketer should
complete the message.
A company with a strong position in a market will try to encourage routine response
problem solving for consumers who have a need that can be met by the company’s
product.
In the competitive bidding process, all bids should be blind so communication between
buyer and sellers remains confidential.
Of the components of the marketing mix, pricing is the most heavily regulated by
federal law.
A marketer has no control over when a consumer redeems a coupon.
In a basic SWOT analysis, the “T” stands for ________.
A. timing
B. trust
C. threats
D. trade
E. tangible
During which step of the personal selling process is it MOST important for a
salesperson to build rapport with a potential customer?
A. preapproach
B. prospecting
C. follow-up
D. sales presentation
E. qualifying
Azerbaijan imported wheat from Romania in exchange for crude oil and Vietnam
exchanged rice for Philippine fertilizer and coconuts. Both scenarios are examples of
which of the following?
A. convertible trade
B. tarriffs
C. quotas
D. protectionism
E. countertrade
Burt can visit his local hardware store and buy one 4-inch paint brush and not the case
of 24 brushes that the retailer had to buy. This is an example of how the channel of
distribution facilitates ________.
A. assortment creation
B. risk taking
C. breaking bulk
D. relationship management
E. logistics
Which of the following is the most likely result when average income levels do not
keep pace with inflation?
A. Utility decreases.
B. Demand increases.
C. Demand decreases.
D. Demographic shifts occur.
E. Unemployment levels go down.
Sally purchased Brand X lotion. In comparing her perception of how the lotion made
her skin feel and look to her expectations for Brand X lotion, Sally was measuring her
level of ________.
A. customer perceived value
B. customer satisfaction
C. loyalty
D. demand
E. customer lifetime value
The euro is the currency used by ________.
A. NAFTA
B. CAFTA-DR
C. the EU
D. the WTO
E. ACFTA
It is most accurate to say that fair prices are those consumers perceive as ________.
A. being based on cost
B. being based on demand
C. fixed
D. variable
E. offering good value
Serengeti makes lightweight sunglasses with 100 percent UV protection for hunters,
hikers, and cyclists. Serengeti’s long-term plans include the development of lenses for
people who fish. These new lenses will have effective water-sheeting action to reduce
lens spotting. Serengeti believes it can use its reputation as a sunglasses manufacturer
for specialized markets to enter this new market of people who fish professionally and
recreationally. Serengeti’s plan is an example of ________.
A. ROMI
B. strategic planning
C. portfolio analysis
D. tactical planning
E. scorecard balancing
________ can influence a company’s marketing decisions by writing letters to
management and attending shareholder meetings.
A) Investors
B) Competitors
C) Customers
D) Government agencies
E) Consumers
Which of the following statements about customer relationships is true?
A. Customers who are not profitable at the beginning of a relationship are highly
unlikely to become profitable.
B. Small increases in customer retention rate can translate into substantial increases in a
company’s profits.
C. Today’s successful companies are more likely to take a transaction-based view than a
relationship-based view.
D. It costs more to retain existing customers than to recruit new customers.
E. Relationship marketing focuses only on those customers who are currently
profitable.
A company that wants to keep its customers from switching brands would be most
likely to select a ________ strategy.
A. new brand
B. line extension
C. multibranding
D. co-branding
E. licensing
________ are desires for things that are not essential.
A) Needs
B) Wants
C) Demands
D) Values
E) Equities
Marketers should be aware of laws and government regulations that influence or limit
various organizations and individuals in a given society. This is most accurately
described as the ________ environment.
A. legal
B. cultural
C. competitive
D. technological
E. economic
Which of the following is a direct communication that marketers can use to
communicate with a target market?
A. personal selling
B. advertising
C. sales promotions
D. sponsorships
E. public relations
________ is the outcome of cultures intermingling, sharing experiences, news, and
commerce.
A. Extraterritoriality
B. Nationalization
C. Privatization
D. Sustainability
E. Globalization
Your new employer has asked you, as a new marketing graduate, to identify a group of
potential customers who might respond in a similar way to a given set of marketing
efforts. You have been asked to identify a(n) ________.
A. target market
B. market segment
C. market
D. market strategy
E. undefined niche
Lower costs in the form of cheaper labor or raw materials and the opportunity to gain
better first-hand knowledge of the wants and needs of consumers in the local market are
factors that would likely lead a company to ________ in a foreign market.
A. use direct exporting
B. begin licensing
C. begin franchising
D. use indirect exporting
E. make a direct investment
Using an alternative close, a salesperson would ask a prospect to ________.
A. buy immediately in order to get a discount
B. choose between buying or not buying
C. choose between product features or other options
D. express any objections to buying
E. identify how much will be ordered
Which of the following is the process of evaluating and selecting the most viable
market segment to enter?
A. segmentation
B. differentiation
C. targeting
D. market mixing
E. positioning
Marketing communicators should be good at ________ messages that take into account
how the target audience ________ them.
A. delivering; encodes
B. sending; encodes
C. encoding; decodes
D. retrieving; perceives
E. decoding; receives
AMA stands for ________.
A) the Advertising and Marketing Association
B) the Advertising and Marketing Agency
C) the Association of Market Advertisers
D) the American Media Association
E) the American Marketing Association
The average price Xerox charged when it introduced the first stand-alone fax machine
was $12,700. This premium price was a way for Xerox to recoup some of the research
and development costs that went into production. Xerox used ________.
A. a skimming price
B. a trial price
C. penetration pricing
D. bundle pricing
E. loss-leader pricing
A company introduced the Funday film to compete with lower-priced brands, but it
found many of its regular customers buying Funday instead of the company’s usual,
higher-priced film. The company experienced ________.
A. a brand contraction
B. counterfeiting
C. brand protection
D. cannibalization
E. a brand alliance
The vice president of marketing for a software development company wants “to
increase new business customers by 20 percent within the next two years.” This is an
example of a ________.
A. marketing objective
B. business vision
C. business mission
D. strategic plan
E. marketing audit
Refer to the scenario below to answer the following questions.
The Treble Clef offers a complete line of sheet music, musical instruments, and novelty
gifts of a musical nature. In recent years, owner Gary Zahn has even served as the local
representative of several musical instrument manufacturers, providing a contact person
for three local school districts. “If we don’t have it, chances are excellent that we can get
it for you,” Gary tells all Treble Clef visitors and customers.
Most walk-ins are particularly interested in a specific piece of sheet music from a
particular era or just browsing among the hundreds of musical knickknacks in the store.
Gary spends most of his time making presentations to beginning music students at the
local schools and making biweekly visits to the schools in order to deliver instruments,
make minor repairs when possible, or pick up instruments to ship to the manufacturer
for more complicated repairs.
After dragging his feet for quite some time, Gary was convinced that a Treble Clef Web
site could benefit a variety of customers. He began with a simple site explaining store
hours and depicting types of gifts and services available. The site received so much
response that Gary added a question-and-answer option. Questions poured in, ranging
from “Where can I get the sheet music for ‘Hello, Dolly’?” to “Do you carry clarinet
reeds?” to “My saxophone needs two new pads. When will you be at Elmhurst school to
repair it?” The Web site is now able to accept credit card orders, and gifts can even be
wrapped and shipped for no extra charge.
“I don’t know how we did it without our Web site,” Gary admitted. “It allows us to be so
responsive. And our novelties sales have doubled!”
Two music students at one of the local schools the Treble Clef services have created a
“Fans of Treble Clef” page on Facebook. More than 100 current and former students
have joined the Facebook group. This is an example of ________.
A. search marketing
B. user-generated content
C. classified advertising
D. banner advertising
E. mobile advertising
Which of the following is the best example of a direct channel?
A. J&L Manufacturing Company sells drapery hardware to The Home Depot’s Design
Center, and the Design Center then sells it to consumers.
B. Family Dollar Store sells modeling clay to school-age children.
C. A wholesaler sells candy to convenience stores that then sell it to store patrons.
D. Farmer Mintz sells corn to the Hughes household, who will eat it for supper.
E. A farmer in Colombia sells flowers to an international broker, who makes sure the
flowers reach consumers in the United States.
A regional restaurant chain spends $90,000 for a local television advertising campaign
that delivers $450,000 in incremental revenue. If the incremental contribution margin
based on the incremental revenue for this campaign is 75%, then how much would the
program return for each additional marketing dollar invested?
A. $2.70
B. $3.00
C. $3.75
D. $5.00
E. $7.50
Which media type offers the longest life for an advertisement?
A. radio
B. network television
C. magazine
D. newspaper
E. cable television
Which of the following is most closely associated with customer relationship
management?
A) the creation of perceived needs
B) mass marketing
C) production and distribution efficiencies
D) commitment to customer lifetime value
E) idea and cause marketing
Organic foods are those that are grown ________.
A. without the use of technology
B. locally
C. without the use of pesticides and synthetic fertilizers
D. using sustainable measures such as crop rotation
E. by independent farmers rather than corporations
Managers often start with ________ research and later follow with ________ research.
A. exploratory; explanatory
B. explanatory; exploratory
C. descriptive; exploratory
D. explanatory; descriptive
E. explanatory; causal
Harpo Enterprises maintains the Oprah Winfrey show, a Web site, and O magazine.
Because Harpo Enterprises practices integrated marketing communications, these
different brand contacts all maintain ________ in design and tone.
A. variety
B. contact
C. consistency
D. creativity
E. convenience
Marketing ________ is collecting and evaluating marketing metrics to determine the
effectiveness of marketing activities in fulfilling customer, organizational, and
marketing objectives.
A. measurement
B. accountability
C. testing
D. synthesis
E. return
Which of the following is the form of government that seeks to control not only all
political and economic matters, but also the attitudes, values, and beliefs of its
population?
A. limited democracy
B. monarchy
C. limited monarchy
D. totalitarianism
E. parliamentary democracy
What are two ways that an advertising message’s frequency can be increased? Give an
example of each.
Describe one disadvantage of a producer using a direct channel.
Explain the advantage of using data that is trended.
Why might a marketer of laundry detergent be interested in viewing a perceptual map?
Briefly compare the three categories of problem solving, explaining in what type of
purchase situation a consumer would be most likely to use each.
Describe the criteria that the most successful marketing plans meet.
Explain the difference between a full-line product strategy and a limited-line product
strategy.
What are trade barriers and why might a government adopt them as a policy? Explain
how three examples of trade barriers function.
You regularly purchase cleaning supplies for your custodial staff, using the same vendor
and ordering relatively consistent amounts of the same products with each purchase.
This is an example of a ________ situation.
A. modified rebuy
B. new task
C. straight rebuy
D. solution selling
E. value analysis
Retail stores can be classified in terms of several characteristics. Discuss three of these.
What is the difference between catalogs and direct mail?
What is the difference between a sample and a census?
Identify four factors that make a marketing mix more desirable than others.
Explain the four ways in which a service is distinguished from a good.
Why are marketers particularly concerned about word of mouth?
Give an example of how a customer might influence a company’s marketing decisions.