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Differentiation of a firm's marketing mix:
A. Means the firm's marketing mix is hard to distinguish from a competitor.
B. May provide the firm with a competitive advantage in the marketplace.
C. Makes it harder for consumers to notice if there is a consistent theme across all
elements of the marketing mix.
D. Is usually not necessary in order for the firm to succeed.
The marketing manager for Aerial Photography, Inc. says his sales reps have gotten in
the habit of setting prices which do not produce a profit. Aerial Photography apparently
is using:
A. penetration pricing.
B. introductory price dealing.
C. administered pricing.
D. flexible pricing.
E. profit minimization pricing.
Gross margin is expressed as
A. gross sales minus accounts receivable.
B. net sales minus contribution margin.
C. net margin minus sales and operating expenses.
D. net sales minus administrative expenses.
E. net sales minus cost of goods sold.
Which of the following retailers spent the LEAST amount on advertising as a
percentage of sales?
A. Amusement parks.
B. Grocery stores.
C. Furniture stores.
D. Jewelry stores.
E. Women's clothing stores.
Which of the following is an example of the micro-macro dilemma?
A. Disposable packages are convenient, but contribute to environmental problems.
B. Children like to ride bicycles, but accidents are common.
C. Sulfites help to keep restaurant salads looking fresh, but some people have a
dangerous allergic reaction to sulfites.
D. Jet skis can be fun but can also be dangerous to the driver and others.
E. All of these are examples of the micro-macro dilemma.
Elise Noble works as a telephone salesperson for the Catalog Division of JC Penney.
Her primary job is to call customers with Penney charge accounts to inform them about
sale items and ask if they would like to order the sale items. Which of the following
kinds of sales presentations would be best for Elise to use?
A. Prepared sales presentation.
B. Customer service approach.
C. Consultative selling approach.
D. Selling formula approach.
E. Target market presentation.
The adoption curve
A. emphasizes the importance of securing the wholehearted cooperation of channel
members to promote the product in the channel and to the final user.
B. emphasizes the relations among groups and shows that individuals in some groups
act as leaders in accepting a new idea.
C. is any distraction that reduces the effectiveness of the communication process.
D. is the intentional coordination of every communication from a firm to a target
customer to convey a consistent and complete message.
E. puts more emphasis on technology and less on relationships.
Which of the following is a status quo oriented pricing objective?
A. Target return
B. Unit sales growth
C. Profit maximization
D. Growth in market share
E. Nonprice competition
Managers at Wayzata Communications, an Internet service provider, want access to a
continual flow of information about their marketavailable whenever they need it.
Wayzata managers need a(n)
A. marketing information system.
B. intranet.
C. data warehouse.
D. customer relationship management system.
E. big data.
Regarding the future of wholesalers, which of the following statements is TRUE?
A. Most high-cost wholesalers will disappear in the near future.
B. Modern wholesalers are seeing that vertical integration with producers provides their
only assurance of long-run survival.
C. Some small high-cost wholesalers will probably survive due to the specialized
services they offer some market segments.
D. Net profit margins in wholesaling have been increasing in recent years.
E. All of these statements are TRUE.
Whistler's Camping Supplies wants to identify its most frequent customers and offer
them quantity discounts to increase their purchases and loyalty. Which of the following
implementation approaches might address that problem?
A. Put a toll-free telephone number and Web site address on the product label.
B. Use bar code scanners, RFID tags, EDI, and inventory reorder software.
C. Create a "favored customer" club with an ID card.
D. Set different prices in similar markets and track sales, including sales of competing
products.
E. Set up a televideo conference.
The text's discussion of Ford's marketing strategy highlights the fact that:
A. creative strategy planning is needed for survival.
B. there is little alternative but to stick with the traditional promotion channels for a
product.
C. most consumers want only established products.
D. once a firm reaches a position as the market leader, competitors are not likely to be a
big problem.
Regarding alternative transporting modes, which of the following statements is TRUE?
A. Waterways usually provide the lowest cost way of shipping heavy freight.
B. Airways are quickest.
C. Pipelines offer reliability in moving oil and natural gas.
D. Trucks serve the most locations.
E. All of these statements are TRUE.
Products which have no brand other than the identification of their contents are called
A. generic products.
B. local brands.
C. regional brands.
D. licensed products.
E. dealer brands.
The major weakness of "average-cost pricing" is that:
A. it ignores likely customer demand at different prices.
B. it usually leads to losses instead of profits.
C. it always results in a profit that is less than expected.
D. it is too hard for most managers to use.
E. All of these are major weaknesses of "average-cost pricing."
The Sherman Act is primarily designed to:
A. prevent monopolies or conspiracies in restraint of trade.
B. stop the flow of foreign products into the United States.
C. prevent unfair or deceptive acts or practices in commerce.
D. reduce price discrimination by manufacturers.
E. eliminate deceptive selling practices.
The total sales of a product, by all competitors in the industry, is
A. highest in the introduction stage.
B. lowest in the market maturity stage.
C. highest in the sales decline stage.
D. lowest in the market growth stage.
E. lowest in the market introduction stage.
Personal selling is extremely important for sellers of:
A. specialty products.
B. regularly unsought products.
C. heterogeneous shopping products.
D. new unsought products.
E. homogeneous shopping products.
Blending the firm's promotion efforts to convey a complete and consistent message is
the goal of:
A. Sales management communications.
B. Sales promotion communications.
C. Integrated promotional marketing.
D. Integrated marketing communications.
E. Integrated sales promotion.
Wholesaling is concerned with the activities of:
A. manufacturers who set up branch warehouses at separate locations.
B. persons or establishments that sell to industrial, institutional, and commercial users.
C. persons or establishments that sell to retailers.
D. All of these alternatives are correct.
Total quality management:
A. requires that everyone in the organization be concerned with improving quality.
B. means more than just using statistical controls to reduce manufacturing defects.
C. views the cost of lost customers as an important result of quality problems.
D. applies to service producers as well as manufacturers.
E. All of these alternatives are correct.
Value in use pricing
A. does not vary from one product to another.
B. sets a price that will capture some of what customers will save by substituting the
firm's product for the one currently being used.
C. merely sets the price at what customers expect to pay.
D. sets a rather high price to suggest high quality or high status.
E. is determined by online auctions.
Some retailers commonly use prices that end in certain numbers. They seem to assume
that their customers see prices with these numbers as substantially lower. This is:
A. odd-even pricing.
B. demand-backward pricing.
C. leader pricing.
D. prestige pricing.
E. psychological pricing.
Marketing managers should recognize that:
A. product life cycles appear to be getting longer.
B. every segment within a market has the same product life cycle.
C. the product life cycle describes the sales and profits of individual products, not
industry sales and profits.
D. firms that enter mature markets have to compete with established firms for declining
industry profits.
E. None of these alternatives is correct.
Kayla Jurgenson, marketing manager for Super Gaming Computers and Accessories
(SGCA), is reviewing her company's plans for the coming year.
SGCA sells its products through retail computer dealers and some specialty gaming
stores. Currently, SGCA is carried in 25 percent of all retail computer stores nationwide,
but in California is carried in only 10 percent of stores. So, Kayla has set an objective of
being in 25% of all retail computer stores in California within one year.
SGCA plans to introduce a new SuperDuperGamer model with special features that fits
its target market of teen and young adult gamers. The SuperDuperGamer uses a new
technology and is expected to be a breakthrough product, but it will be important to
build awareness for it to succeed. So, the advertising objective is for 40% of SGCA's
target market to be aware of the new SuperDuperGamer model within 3 months. SGCA
also wants to help its retailers reduce their current stock of SuperGamer computers
before the new model comes out in a month. The SuperGamer has been on the market
for two years and has been a top seller in the category. SGCA's advertising objective for
the SuperGamer computer is to reduce current dealer stock by 80% within the next
month.
SGCA is also introducing a SuperEnhancer sound card, which is designed to
significantly enhance the game-playing experience with older computers. Research with
gamers show that it is very well received, so the advertising objective for the
SuperEnhancer sound card is to gain 40% market share among all gaming-specific
sound cards in the next year. To help achieve that objective, Jurgenson is planning to
use an ad that shows the sound card and a game player being knocked off his chair by
the sound. The headline on the ad reads, "9 Out of 10 Gamers Say that the
SuperEnhancer Sound Beats All Others!"
The copy thrust of the ad for the SuperEnhancer sound card is an example of what kind
of advertising?
A. Pioneering advertising.
B. Indirect competitive advertising.
C. Direct competitive advertising.
D. Reminder advertising.
E. Institutional advertising.
A large producer of snack foods feels that retailers do not promote its products
aggressively enoughbecause they also sell competitors' products. The producer should
use some:
A. missionary sales reps.
B. more aggressive sales reps.
C. order takers.
D. order getters.
E. manufacturers' agents.
David Oreck advertises Oreck vacuum cleaners via commercials that run on national
radio programs. He encourages consumers to "try my 8-pound Oreck vacuum for free
for 30 days," and to return it if they aren't satisfied. He then provides an
easy-to-remember toll-free telephone number that consumers can use to place orders.
Regarding the AIDA model, the free-trial period and availability of a toll-free number
are devices used mainly to:
A. Get attention.
B. Hold interest.
C. Arouse desire.
D. Obtain action.
E. Gain confirmation.
Looking at marketing as a set of activities focuses on
A. macro-marketing.
B. for-profit marketing.
C. micro-marketing.
D. nonprofit marketing.
E. personalized marketing.
The standardization and grading function of marketing involves:
A. Looking for and evaluating goods and services.
B. Providing necessary cash and credit.
C. Promoting the product.
D. Sorting products according to size and quality.
E. None of these answers is correct.
Gross domestic product (GDP) 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 both
residents and nonresidents 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.
In which quadrant of the SWOT analysis tool does the following fit? A firm is
vulnerable to recession.
A. Strengths.
B. Weaknesses.
C. Opportunities.
D. Threats.
Given the American economy's basic objective of meeting consumers' needs as
THEYthe consumerssee them, it is sensible to evaluate our MACRO-marketing system
in terms of:
A. the level of consumer satisfaction.
B. how efficiently our resources are used.
C. the value of the inputs to the system.
D. our standard of livingas measured by GNI.
E. total business profits.
A marketing audit should help determine if:
A. current marketing strategies are good ones.
B. the company's marketing objectives are reasonable.
C. implementation of a marketing program was effective.
D. All of these are correct.
Which of the following age groups saw a decline in population from 2005-2015?
A. 0-9
B. 10-19
C. 30-39
D. 40-49
E. 80+
