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38) ________ for a product is the total volume that would be bought by a defined customer
group in a defined geographical area in a defined time period in a defined marketing
environment under a defined marketing program.
A) Company demand
B) Area market potential
C) Market demand
D) Company sales potential
E) Total market potential
39) With an increase in marketing expenditure, market demand ________.
A) continues to increase at an increasing rate
B) initially increases and then declines
C) increases first at an increasing rate, then at a decreasing rate
D) decreases first and then spikes
E) continues to increase at a decreasing rate.
40) The base sales of an organization that takes place even without any demand-stimulating
expenditures is called ________.
A) primary demand
B) market potential
C) market minimum
D) optimum demand
E) market demand
41) Only one level of industry marketing expenditure will actually occur. The market demand
corresponding to this level is called the ________.
A) market minimum
B) market share
C) market forecast
D) market potential
E) company demand
42) During recession, the market demand curve which is a function of marketing expenditure
________.
A) shifts upward
B) becomes vertical
C) remains unaffected
D) shifts downward
E) slopes downward
43) The sales goal set for a product line, company division, or sales representative of an
organization is called ________.
A) sales budget
B) company sales forecast
C) sales quota
D) company sales potential
E) market potential
44) A ________ is a conservative estimate of the expected volume of sales, primarily for making
current purchasing, production, and cash flow decisions.
A) sales budget
B) company sales forecast
C) sales quota
D) company sales potential
E) market potential
45) ________ is the limit approached by market demand as industry marketing expenditures
approach infinity for a given marketing environment.
A) Sales budget
B) Company sales forecast
C) Sales quota
D) Company sales potential
E) Market potential
46) ________ is the company's estimated share of market demand at alternative levels of
company marketing effort in a given time period.
A) Sales budget
B) Market demand
C) Company demand
D) Company sales potential
E) Market potential
47) ________ is the sales limit approached by company demand as company marketing effort
increases relative to that of competitors.
A) Sales budget
B) Market demand
C) Company demand
D) Company sales potential
E) Market potential
48) A company's sales potential would be equal to market potential if ________.
A) the marketing expenditure of the company is reduced to zero
B) industry marketing expenditures approach infinity for a given marketing environment
C) the market is non expansible
D) market minimum is equal to market potential
E) the company gets 100 percent share of the market
49) ________ is the maximum sales available to all firms in an industry during a given period,
under a given level of industry marketing effort and environmental conditions.
A) Company demand
B) Market demand
C) Company sales potential
D) Sales quota
E) Total market potential
50) The ________ method of determining area market potential calls for identifying all the
potential buyers in each market and estimating their potential purchases.
A) group-discussion
B) market-test
C) market-buildup
D) brand development index
E) multiple-factor index
51) An efficient method of estimating area market potentials makes use of the ________,
developed by the U.S. Bureau of the Census in conjunction with the Canadian and Mexican
governments. It classifies all manufacturing into 20 major industry sectors and further breaks
each sector into a six-digit, hierarchical structure.
A) Thomson Reuters Business Classification
B) Global Industrial Classification Standard
C) North American Product Classification System
D) Industry Classification Benchmark
E) North American Industry Classification System
52) Which of the following organizations is likely to use the multiple-factor index method to
estimate the market potential?
A) a firm that manufactures auto parts
B) a firm that provides facility management services to large offices
C) a company that provides Web site development services for small businesses
D) a company that manufactures diagnostic machines for hospitals
E) a firm that manufactures fashionable clothes for teenagers
53) Which of the following is true of the various elements of the multi-factor index method of
estimating area market potentials?
A) Zip+4 code centers generally have stable boundaries and a population of about 4000.
B) The weights in the buying-power index are somewhat arbitrary.
C) Normally, the lower the BDI, the less room there is to grow the brand.
D) Census tracts are a little larger than neighborhoods.
E) This method is primarily used by business marketers.
54) Suppose Concrete Express, a cement manufacturing firm, finds that its sales have increased
by 3 percent this year, while industry sales have increased by 5 percent. This implies that
________.
A) Concrete Express has acquired additional market share in relation to the cement industry
B) Concrete Express is losing its relative standing in the cement industry
C) other players in the industry are losing market share
D) the absolute market share of Concrete Express has declined
E) Concrete Express's position in relation to the industry has remain unchanged
55) For which of the following categories of products will demand forecasting be easiest?
A) commodities which are in the initial stage of their product life cycles
B) products which have many close substitutes in the market
C) goods which are produced in an oligopoly market
D) products whose sales fluctuate widely
E) products whose consumers are highly sensitive to change in price
56) Few consumers actually delete cookies frequently. When customers do not delete cookies,
they expect customized marketing appeals and deals.
57) If a company were pursuing a policy of networking externally to gather marketing
intelligence, it might collect competitors' ads or look up news stories about competitors.
58) One of the ways to find relevant online information on competitors' strengths and
weaknesses might be to frequent distributor or sales agent feedback sites.
59) A fad is more predictable and durable than a trend.
60) Demographic developments are often unpredictable.
61) There is a global trend toward an aging population.
62) The basis of cohort segmentation is that the experiences of key defining moments during the
time when an individual becomes an adult can influence his or her values, preferences, and
buying behaviors for the rest of his or her life.
63) Marketing strategies of firms should not consider the ethnic and racial diversity existing in
their markets.
64) Consumers belonging to the same ethnic group have identical tastes and preferences.
65) The available purchasing power in an economy depends on current income, prices, savings,
debt, and credit availability.
66) Industrial economies provide limited marketing opportunities for luxurious goods.
67) Business has responded to increased awareness of nature's fragility and finiteness by
producing wider varieties of camping, hiking, boating, and fishing gear such as boots, tents,
backpacks, and accessories.
68) Secondary beliefs and values are passed on from parents to children and reinforced by major
social institutions, making them very difficult to change by marketers.
69) Corporate environmentalism recognizes the need to integrate environmental issues into the
firm's strategic plans.
70) Firms that can develop substitute materials for finite nonrenewable resources have an
excellent opportunity.
71) A growing portion of U.S. R&D expenditures goes to the development as opposed to the
research side.
72) Environmental laws imposed by the government may at times create new business
opportunities.
73) In order to estimate future demand, companies commonly prepare a company sales forecast
first, followed by an industry forecast, and finally a macroeconomic forecast.
74) Forecasting is the art of anticipating what buyers are likely to do under a given set of
conditions.
75) Sales reps might have better insight into developing trends than any other group, and
forecasting might give them greater confidence in their sales quotas and more incentive to
achieve them.
76) What are the various steps a company can take to improve the quality of its marketing
intelligence function?
77) What are the different income-distribution patterns? How does income distribution in the
economies affect the marketing decision of the firms?
78) Discuss the impact of tougher environmental regulations on businesses, citing examples
whenever possible. Also, point out opportunities, if any, presented by these regulations.
79) Why do the companies need to search for practical means to harness renewable sources of
energy like wind and water?
80) How does the marketing environment determine the position of the market demand function?
