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The development of department stores and supermarkets is explained by the "wheel of
retailing" theory.
Answer:
Computing a percentage of either past sales or sales expected in the future is the most
common method of budgeting for promotion expenditures.
Answer:
The largest share of total advertising expenditures in the United States goes for TV
(including cable) advertising.
Answer:
The product life cycle concept is concerned with planning for product recycling to
protect the environment.
Answer:
The Internet makes it easy to do comparison shopping of products and prices.
Answer:
About 20 times more people are employed in selling than in advertising.
Answer:
Marketing, in the literal sense, means 'selling" or "advertising."
Answer:
Many needs are culturally (or socially) learned.
Answer:
The U.S. is one of only a few countries in the world where the government takes an
active role in deciding what kinds of advertising are allowable, fair, or appropriate.
Answer:
Vertical marketing systems are growing in the U.S., but declining in the rest of the
world.
Answer:
Because wholesalers and retailers are closer to the final user, they are in an ideal
position to assume the channel captain role.
Answer:
The political environment may either block or promote new marketing opportunities.
Answer:
Demand estimates are required for demand-backward pricing to be successful.
Answer:
Responsibility for performing the marketing functions can be shifted and shared in a
variety of ways, but no function can be completely eliminated.
Answer:
Defining the problem is always the easiest step in the marketing research process.
Answer:
A firm's "relevant market for finding opportunities" should be bigger than the present
product-market but not so large that it couldn't expand and still be an important
competitor.
Answer:
The three basic ideas in the marketing concept are: 1) customer satisfaction; 2)
confining marketing activities to marketing professionals; and 3) having profit as an
objective.
Answer:
The rate of growth of the U.S. population is lower than the rate of growth of some other
countries' population.
Answer:
One advantage of the major mass media is that the advertiser does not have to pay for
the whole audience to whom the media delivers, but instead just pays based on the
number of potential customers in the audience.
Answer:
From a micro view, marketing activities are performed only by profit-oriented
organizations.
Answer:
The unfair trade practices acts are intended to prevent intermediaries from using
"outrageously" high markups that would cheat consumers.
Answer:
In the evaluation stage of the adoption process, a consumer begins to give the product a
mental trial, applying it to his or her personal situation.
Answer:
A product-market is a market with broadly similar needs-and sellers offering various,
often diverse, ways of satisfying those needs.
Answer:
Firms that operate on the Internet are at a disadvantage when it comes to using
approaches like CRM.
Answer:
Opinion leaders for one subject or product are also usually opinion leaders for many
other subjects or products.
Answer:
Public warehouses (compared to private warehouses) provide greater economy and
flexibility when a firm does not have a regular need to store a large volume of goods,
but they provide fewer services than a firm's own warehouse could.
Answer:
Beliefs may help shape a consumer's attitudes but don't necessarily involve any liking
or disliking.
Answer:
Place decisions are easier to change in the short-run than Product, Price, and Promotion
decisions.
Answer:
The job description should provide clear guidelines concerning (1) who should be
selected, (2) how they are trained, (3) how well they are performing, and (4) how they
should be paid.
Answer:
"Good" market segments should be homogeneous (similar) within, heterogeneous
(different) between, substantial, and operational.
Answer:
Most manufacturers are quite small, with 250 or fewer employees.
Answer:
Federal Fair Packaging and Labeling Act requires that consumer goods be clearly
labeled in easy-to-understand terms to give consumers more information.
Answer:
A S.W.O.T. analysis identifies the 'special weapons or tactics" used by the competitor in
a product-market that has the most profitable marketing mix.
Answer:
Missionary salespeople usually work for wholesalers and provide special promotion
help to producers whose products are widely distributed.
Answer:
Agent wholesalers-particularly manufacturers' agents and brokers-are often order
getters.
Answer:
Competitive advertising is typically used in the market introduction stage of the product
life cycle-to develop primary demand.
Answer:
A fad is an idea that is fashionable only to certain groups who are enthusiastic about it.
Answer:
The length of each stage in the product life cycle is set.
Answer:
A local TV retailer hires knowledgeable salespeople to explain the differences among
its models to customers, but a nearby discount store with very few sales staff sells the
same TVs at a lower price. This is an example of __________ conflict.
A. horizontal
B. traditional
C. vertical
D. contractual
E. corporate
Answer:
The advertising medium of __________ has a wide reach, is good for getting attention
and for demonstrations, but it is expensive, has a lot of clutter, and in many cases has a
less selective audience.
A. Direct mail
B. Yellow Pages
C. Television
D. Internet
E. Outdoor
Answer:
Looking at marketing as a set of managerial activities focuses on
A. macro-marketing.
B. for-profit marketing.
C. micro-marketing.
D. nonprofit marketing.
E. personalized marketing.
Answer:
The following headlines are from Business Week magazine. Which article is most likely
to be reporting on a macro-marketing topic?
A. "Two-Person Engineering Firm Offers Unique Service."
B. "Russia Increases Output of Consumer Goods."
C. "Pepsi Sells in Japan."
D. "Bank of America Offers New Internet Banking Services."
E. "Donations to Tsunami Victims Fund Increase after TV Broadcast."
Answer:
Which of the following is a common cause of new product failures?
A. The product fails to offer the customer a unique benefit.
B. The company tries to follow an organized new-product development process-rather
than using a faster and more spontaneous, "race-to-market" approach.
C. The managers worry too much about the competition.
D. The company delays putting the product on the market until it develops a complete
marketing plan.
E. All of these are common causes of new product failures.
Answer:
The text's discussion of Ford's marketing strategy highlights the fact that:
A. it's not wise for managers just to define a business in terms of the products they
currently produce or sell.
B. there is little alternative but to stick with the traditional promotion channels for a
product.
C. most consumers see basic products-like cars-as close substitutes for each other.
D. once a firm establishes a position as the market leader, competitors are not likely to
be a big problem.
Answer:
Educated guesses about the relationships between things or about what will happen in
the future are:
A. theories.
B. laws.
C. facts.
D. hypotheses.
E. None of these is a good choice.
Answer:
Which of the following statements about salesperson compensation is FALSE?
A. Commissions reduce the need for working capital.
B. Incentives must be carefully aligned with the firm's objectives.
C. Compensation plans should be clear.
D. Sales managers must plan, implement, and control.
E. None of these alternatives is FALSE.
Answer:
_____ is best described as delivering ads to consumers based on the conversations and
behaviors they exhibit in social media and more generally, surfing on the web.
A. Web auditing
B. Reminder advertising
C. Behavioral positioning
D. Social targeting
E. Pioneering advertising
Answer:
_____ can help create brand recognition, but only _____ can create brand insistence.
A. Design; price
B. Advertising; satisfying experiences
C. Quality; distribution
D. Brand names; endorsements
E. Publicity; product trials
Answer:
Use this information for question that refer to the Wire Products Inc. (WPI) case.
Rob Rose sat back to review the portfolio of products his company, Wire Products Inc.
(WPI), has in its product line. The company specializes in making various products for
consumer and industrial uses from hard laminated wire-coated with special paints.
1) WPI's "Wire Closet" products have been on the market for 10 years. Consumers
install the wire shelves and closet rods themselves. The market leader, Closetmaid, has
been selling similar products for more than 20 years, but so far the sales volume and
profits for the market continue to grow. Recently, several new competitors have come
into the market.
2) Three months ago, WPI entered the lawn and garden market with folding fences
made with laminated wire and branded as "Wire Fold-Fence." Previously, WPI had
never made fences or been a player in the lawn and garden market-although other
companies have been making products in this market for years. However, Rob Rose has
discovered that recent sales of wire garden fencing have leveled off and profits are
declining overall. Still, WPI thinks it has some cost advantages and can grow its own
sales and profits in this market.
3) WPI has just developed "Oil Wire," a new concept for the environmental cleanup
market. Oil Wire is coated with a special material that cleans up oil spills. There has
never been a product like this and WPI wants to quickly get the word out about its
benefits. The product is now being rolled out in selective markets.
4) Another business product is "Wire Locker" used for secure storage by gymnasiums
or companies. This style of locker has now gone out of fashion and most customers are
finding better materials to use for lockers. Aggressive selling has helped Wire Locker's
sales stay flat, but the total market for wire style lockers is only half of what it was 10
years ago.
5) WPI's "Wire Window" product is used as a security product to protect glass
windows. It sells to homeowners and retailers looking for additional safety. WPI's sales
of this product have dropped in recent years because competitors have introduced
maintenance-free products. However, the overall market for this type of product
continues to show good growth.
6) WPI is running concept tests of a new wire car-top carrier called "Wire Car Top."
There are other car-top carrier products on the market, but WPI plans to include options
in its carrier that will make it easier to load bikes, skis, and suitcases. "Wire Car Top" is
also very easy to put on and take off of the car because of its light weight and
ease-of-use features. The concept tests are helping WPI analysts develop rough
estimates of costs, sales, and profits.
7) Another new product idea, tentatively called "Wire Tent," is being considered. It
would use laminated wires to create a portable tent frame. This product is currently
being evaluated to determine its fit with the company's objectives and external market
trends.
Rob is thinking about the product life cycle, where each product fits, and what he
should be doing as part of his marketing plan for each of these products.
In which step of the new-product development process is "Oil Wire"?
A. Screening
B. Development
C. Idea evaluation
D. Commercialization
E. Idea generation
Answer:
Advertising spending as a percent of sales dollars is lowest for:
A. shoes.
B. soap and detergent.
C. plastics.
D. soft drinks.
E. perfume.
Answer:
Which of the following is the main type of "mass selling"?
A. Personal selling.
B. Publicity.
C. Sales promotion.
D. Advertising.
Answer:
Regarding international marketing research:
A. If a firm is well-established internationally, there is nothing to be gained from
working with local market research firms in the countries of interest.
B. It is impossible to coordinate similar marketing research efforts under way in several
countries due to language and cultural differences.
C. Accurate data (both primary and secondary data) may be hard to find in international
markets.
D. It is impossible to standardize the elements of an international marketing information
system.
E. None of these alternatives is true.
Answer:
Which of the following statements about ideal market exposure is true?
A. As a firm goes from exclusive to intensive distribution, it loses progressively more
control over price and service offered by retailers.
B. A producer usually should seek maximum market exposure.
C. Intensive distribution means trying to sell through all retail stores.
D. It is necessary to get almost 100 percent market exposure to justify national
promotion.
E. All of these statements about ideal market exposure are true.
Answer:
The ____ ultimately determines a product's quality and value?
A. product designer
B. marketing manager
C. quality inspection team
D. retail manager
E. customer
Answer:
A close buyer-seller relationship in a business market:
A. may require relationship-specific adaptations by the seller, the customer, or both.
B. may result in the seller accepting a lower price.
C. may increase the buyer's 'switching costs."
D. may not involve a contract that spells out each party's responsibilities.
E. All of these may be part of a close buyer-seller relationship.
Answer:
Which of the following practices would suggest that Acme Tools practices a marketing
orientation:
A. sets inventory levels with customer requirements and costs in mind.
B. sells products that it can make easily for its customers.
C. focuses its advertising efforts on product features and how products are made.
D. views customer service as an activity required to reduce consumer complaints.
E. ends its relationship with customers when a sale is made.
Answer:
Which of the following would be likely to help you develop a "breakthrough
opportunity?"
A. A two-month advantage over competitors in introducing a new product.
B. An idea for a new website animation that will attract consumer attention.
C. Accurate marketing research information about how much of a planned product the
target market is likely to buy.
D. None of these would help you develop a breakthrough opportunity.
Answer:
In a command economy:
A. producers generally have a lot of choice about what and how much to produce.
B. prices usually fluctuate according to supply and demand.
C. marketing activities such as advertising, branding, and market research are
encouraged.
D. consumers usually have some freedom of choice-but it is quite limited.
Answer:
Marketing strategies that focus on quick short-term sales:
A. miss an opportunity to ensure repeat purchases in the future.
B. do not generate revenue or profits.
C. never involve personal selling.
D. are known as breakthrough opportunities.
E. are never used by reputable companies.
Answer:
Which of the following statements about marketing is FALSE?
A. Marketing concepts and techniques apply for nonprofit organizations-as well as for
profit-seeking organizations.
B. Marketing offers many rewarding career opportunities.
C. The cost of marketing is about 15 percent of the consumer's dollar.
D. Marketing affects almost every part of your daily life.
E. Marketing is vital for economic growth and development.
Answer:
Which of the following is an example of a JIT system shifting responsibility for PD
activities backward in a distribution channel?
A. A paint supplier is highly efficient at controlling logistics costs. Products are
distributed at a high customer service level.
B. An ice cream chain makes its own ice cream at each of its retail sites. Its customers
are highly pleased with the product.
C. A wholesale appliance distributer is inefficient at controlling logistics costs. It
develops a reputation for low customer service levels.
D. A book retailer is more efficient than its suppliers at controlling PD costs. Products
are distributed at an acceptable customer service level.
E. An automotive parts supplier is less efficient than its retail customers at controlling
logistics costs. Products are distributed at a high customer service level.
Answer:
Which of the following statements about the marketing research process is NOT
TRUE?
A. Defining the problem is important because this decision will remain unchanged
throughout the process.
B. The situation analysis step helps educate a researcher.
C. Researchers and marketing managers need to work together.
D. The situation analysis includes looking at secondary data.
E. Marketing managers often have to explain problems to researchers.
Answer:
Archer Daniels Midland (ADM) is a producer of food ingredients, sweeteners, cocoa,
flours, vegetable oils, and protein products that are used in the manufacture of
processed foods. ADM does not make products that are typically sold to final
consumers; it makes business-to-business products. However, ADM is a major
advertiser on news and public affairs programs that appear on national television
networks. The main objective of ADM's television commercials is to build goodwill for
the company and to improve relations with current and prospective shareholders. ADM
is engaged in:
A. Product advertising.
B. Institutional advertising.
C. Pioneering advertising.
D. Competitive advertising.
E. Reminder advertising.
Answer:
In a market-directed economy:
A. profit, survival, and growth are all guaranteed for producers.
B. consumers have little freedom of choice.
C. consumers decide what is to be produced and by whom through their dollar votes.
D. prices usually do not change according to supply and demand.
E. only the needs of the majority are served.
Answer:
In a down economy, a local florist surveys her customers to determine the amount they
feel comfortable spending for a bouquet of flowers. Then she displays bouquets costing
that exact amount in her refrigerated case. This is an example of:
A. Reference price
B. Line price
C. Bundle price
D. Leader price
E. Demand-backward price
Answer:
Producers and wholesalers that target business customers typically emphasize
A. publicity.
B. mass selling.
C. personal selling.
D. advertising.
E. sales promotions.
Answer:
"Place" decisions:
A. may focus on the location of retail stores and wholesale facilities.
B. may focus on the selection and use of intermediaries and collaborators.
C. can be aided by knowing about the product classes.
D. are harder to change than Product, Promotion, or Price decisions.
E. All of these choices are correct.
Answer:
Use this information for question that refer to the Pricing 1 case. (WPI) case.
As a project for her marketing class, Emily Washington is researching how five local
businesses price their products. The following are brief sketches of what she has learned
about each company.
At Bella Computers, Emily has discovered that the company earned a 6 percent return
on investment this year and wants to increase it to 9 percent next year. To its retailer
customers, Bella Computers gives cash discount terms of 2/10, net 30. It also gives
retailers a 3% reduction on the invoice amount for advertising Bella products locally.
Bella gives retailers' salespeople 2% of the sale price for each Bella Computer they sell.
At Ross Pharmaceuticals, she learned that the company has invested heavily in
developing a new product that recently received a patent. Because cash is tight, the
company wants to achieve a rapid return on its investment. The new patented product is
badly needed in the market, so a very inelastic demand curve is expected.
Digital Imaging makes photographic prints for wedding photographers. It is very
concerned about competitor reactions to its pricing, so it has selected prices that will not
draw the attention of the competition and not start a price war. Digital Imaging offers
customers an 8% discount if their purchases exceed $20,000 a year.
Jack's One Hour Cleaners recently opened for business. The company invested a lot of
money in new equipment, and feels that it has to quickly get "at least 10% market share
to stay in the game." This need obviously influences the company's pricing decisions.
Jack's also plans to offer customers 20% discounts on any order over $20.
National Printing Equipment (NPE) produces equipment that helps to print newspapers
and magazines. The company sells directly to printers and through wholesalers. Its
salespeople negotiate prices with individual customers and often have to match
competitors' prices. NPE has a new product, the Gutenberg NP201, with some
competitive advantages now, but competitors are expected to follow quickly with
similar products. The new product is being introduced into a market with elastic
demand. Regarding freight charges for its equipment, NPE's invoice reads, "Seller pays
the cost of loading equipment onto a common carrier. At the point of loading, title to
such products passes to the buyer, who assumes responsibility for damage in transit,
except as covered by the transportation agency."
If one of Bella Computers' retail customers did not pay the invoice for 30 days, the
customer would - in effect - be borrowing at what annual interest rate?
A. 9 percent
B. 18 percent
C. 27 percent
D. 36 percent
E. 72 percent
Answer:
The first and most important question to ask when evaluating product-market
opportunities is:
A. "How does it fit with our objectives and resources?"
B. "What is the sales forecast for this product?"
C. "How much profit will we make this year?"
D. "How much do we need to invest in this product?"
E. "How far along is our research and development effort in this area?"
Answer:
