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"Good" market segments should be homogeneous (similar) within, heterogeneous
(different) between, substantial, and operational.
In countries where physical distribution systems are inefficient, consumers face
shortages of the products they need.
Any business transaction can be thought of as an exchange of 'something of value" for
moneywhere money is the price.
In a market-directed economy, consumers enjoy complete freedom of choice.
Even in a full-scale market test, the firm is testing only the product, not the whole
marketing mix.
"Multiple buying influence" means that several people in an organization share in
making a purchase decision, but top management is never involved.
Scrambled merchandising is carrying any product lines a store thinks it can sell
profitably.
Cookies give customers information about advertisers.
On average, the 500,000 advertising agencies in the United States are large, employing
about 200 people each.
Producers of all kinds of products, especially consumer products, have a great need for
order getters.
Comparative advertising has been banned by the Federal Trade Commission because it
was so effective in winning sales from competing products named in ads.
While intermediaries facilitate exchange, their cost makes the whole macro-marketing
system less efficient.
It makes sense for a firm to produce where it can produce most economicallyif the cost
of transporting and storing products to match demand doesn't offset the production
savings.
Average fixed cost goes down as output decreases.
Information technology involves a trade-off because it cannot improve service levels
and cut costs at the same time.
A firm should not simply assume that its profits will grow if its sales grow.
In general, top management support is needed for successful new-product development
efforts.
Promotion to business customers emphasizes personal selling.
The fact that many firms are too production-oriented and inefficient is one reason why
so many new products fail.
The Internet is not very useful for firms that want to target government markets.
The AIDA model can help plan messages for advertisements.
Setting a low price for a firm's offering is a sure way of creating high customer value.
Producers of consumer packaged goods typically stop using sales promotion when their
product-markets mature.
Many countries forbid comparative advertising, but it is now legal in the U.S.
The most suitable sales presentation for prospective customers whose needs are very
different is the "consultative selling approach."
Specialized search engines can help a business buyer search for products by description.
At some websites, Internet ads are free if the ads don't get results.
One way to increase customer equity is to find cost-effective ways to add new
customers for the firm's products.
Installations are long-lasting capital items such as buildings and land rights,
custom-made equipment, and standard equipment.
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.
Order getters are even more important for business products than for consumer
products.
Even though some sales tasks can be handled effectively and economically using
technology, a sales rep is still needed to build relationships.
Customer service reps are customer advocates, but they need company support.
The sum of those changing expenses which are closely related to output is called:
A. total fixed cost.
B. total cost.
C. total overhead cost.
D. total variable cost.
E. None of these is a good answer.
The iceberg principle suggests that:
A. most competitors' strategies are not obvious on the surface.
B. small customers usually have the most hidden profit potential.
C. conclusions based on summary information are often misleading.
D. no matter what control procedure is used, most major problems are impossible to
detect until it is too late.
E. None of these is true.
A markup chain:
A. only applies to consumer products, not to business products.
B. implies that a retailer must always apply a smaller markup than a wholesaler.
C. causes lower prices in longer channel systems.
D. determines the price structure in a channel of distribution.
E. None of these alternatives is correct.
Department stores:
A. usually aim at customers seeking convenience products.
B. have accounted for a larger share of retail sales every year since 1950.
C. have no trouble holding their own against mass-merchandisers.
D. are organized into separate departments.
E. All of these alternatives are true for department stores.
A company may be inclined to use both direct and indirect channels of distribution:
A. When serving multiple target markets.
B. When it wants total control over the marketing mix.
C. When suitable channel partners are hard to find.
D. When selling to business customers.
E. When selling to final customers.
Wants
A. are an effort to satisfy a drive.
B. are more basic than needs.
C. are strong stimuli that encourage action to reduce a need.
D. are needs that are learned during a person's life.
E. remain the same during a person's life.
Traditional channel systems:
A. Are characterized by strong ties between channel members.
B. Exhibit little cooperation between channel members.
C. Have channel members that look out for each other's best interest.
D. Have members that go to great lengths to cooperate with each other.
E. Usually feature a strong product-market commitment that is shared by all of the
members of the channel.
Marketing is NOT needed in a ______________ economy.
A. consumer-oriented
B. command
C. pure subsistence
D. market-directed
E. None of these is correct.
______ means that a firm has a marketing mix that the target market sees as better than
a competitor's mix.
A. Competitive advantage
B. Strategic policy
C. Customer equity
D. Comparative opportunity
E. Market development
_____ help(s) innovators develop hard-to-copy marketing strategies that will be very
profitable for a long time.
A. Opportunity segments
B. Competitive decisions
C. Breakthrough opportunities
D. Competitive marketing
E. Operational decisions
______ is the expected earnings stream of a firm's current and prospective customers
over some period of time.
A. Profit
B. Earnings
C. Operating profit
D. Customer equity
E. Net value
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!"
In order to achieve its objective at a retailer called Computer Superstore, SGCA intends
to repay the retailer for a share of what it spends to advertise SGCA's computers in
local media. This is
A. called cooperative advertising.
B. likely to increase the income that SGCA's ad agency gets for buying media space.
C. a bad idea because retail stores usually pay higher rates in local media than do
national advertisers.
D. All of these alternatives are true.
A footwear company specializing in the production of ballet shoes normally produces
shoes only in women's and girl's sizes. The company is hired by several customers to
produce shoes in men's and boy's sizes. Which of the following should the manufacturer
consider in order to achieve economies of scale in shoe production?
A. The amount of shoe production cost compared to the typical costs incurred in
shipping
B. The level of effort required to retool the company's manufacturing plant to produce
only men's shoes
C. The cost of producing one size shoe at a time in large quantities and storing them for
future sales
D. The amount of shoe storage cost compared to the typical costs incurred in shipping
E. The cost associated with efforts to increase customers that might also place orders for
men's shoes
______________ are products a consumer needs but isn't willing to spend much time
and effort shopping for.
A. Convenience products
B. Unsought products
C. Homogeneous shopping products
D. Specialty products
E. Heterogeneous shopping products
An intermediary:
A. is a wholesalernot a retailer.
B. usually increases the number of transactions required.
C. tends to make the exchange process more difficult and costly.
D. is someone who specializes in trade rather than production.
E. none of these answers is correct.
A pest control company using the most common method of promotional budget
planning is most likely to base its promotional budget on which of the following?
A. A percentage of expect future sales revenue from pest control jobs
B. Advertising costs incurred by related businesses within the same area
C. Customer reviews of other pest control companies in the local market
D. A detailed analysis of the requirements of the promotion objectives
E. Survey data from customers regarding company promotion methods
When a firm's average variable cost is constantno matter how much is producedthen the
firm's:
A. average cost will increase as the quantity produced increases.
B. fixed cost must be zero.
C. average cost will also be constant.
D. average fixed cost will also be constant.
E. average cost will decrease as the quantity produced increases.
Marketing research experiments
A. may be difficult to set up in real world situations.
B. may involve a combination of observing and questioning.
C. may be disrupted by competitors' promotion efforts.
D. may be disrupted by competitors' pricing efforts.
E. All of these alternatives are true.
A farmer's cooperative in California is sponsoring TV ads aimed at getting Americans
to eat more garlic. The ads don't mention any brand names. This is an example of
______________ advertising.
A. competitive
B. pioneering
C. indirect competitive
D. reminder
E. comparative
A "market" consists of:
A. customers who are willing to exchange something of value.
B. a group of potential customers with similar needs.
C. sellers offering various ways of satisfying customer needs.
D. All of these are correct.
A merchant wholesaler who wants to provide the most INCENTIVE in his sales force
payment plan should use:
A. salary plus commission.
B. straight commission.
C. the same level of pay for all salespeople.
D. salary plus bonus.
E. straight salary.
A potential customer for a new Audi A4 sedan takes the car for a two-hour test drive to
see how it responds on the open road. This customer is at the ___________ stage of the
adoption process.
A. awareness
B. interest
C. decision
D. confirmation
E. trial
The stage of the product life cycle characterized by informative promotion but little
customer awareness of a product is:
A. market introduction
B. market growth
C. market maturity
D. sales decline
E. market extinction
_____ is a change in a person's thought processes caused by prior experience.
A. Selective retention
B. Processing
C. Wanting
D. Learning
E. Perception
Which of the following observations concerning planning strategies for international
markets is FALSE?
A. A marketing manager should know that relying on intuition or personal experience
may be misleading.
B. A marketing manager should know that understanding local cultural differences is of
no real value.
C. A marketing manager should know that consumers in a foreign culture are probably
bound by some similar cultural forces.
D. A marketing manager should involve locals who have a better chance of
understanding the interests of customers.
E. A marketing manager should understand that many specific influences do not
generalize from one culture to another.
Providing training in selling techniques helps a salesperson in all of the following ways
except
A. winning new customers by disparaging competitors.
B. listening carefully to identify a customer's real objections.
C. closing the sale.
D. working with customers in difficult customer service situations.
E. how to be more effective in cold calls on new prospects.
Regarding the storing function:
A. Public warehouses are storing facilities owned or leased by companies for their own
use.
B. Private warehouses are most useful when a company does not have a regular need
for space.
C. Public warehouses are independent storing facilities and provide a full range of
services.
D. Private warehouses are designed to speed the flow of goods.
E. None of these alternatives is correct.
Using General Electric's 'strategic planning grid," an opportunity rated "medium" in
terms of industry attractiveness and "high" in terms of business strengths would be
evaluated as:
A. yellowborderline.
B. redfor no growth.
C. greenfor growth.
D. could be yellow, red, or greenbecause the grid suggests that opportunities with
medium ratings need more analysis.
When a firm considers a triple bottom line as a measure of long-term success, this
means that it measures outcomes in which of the following three different areas:
A. economic success, social impact, and political change.
B. firm profitability, customer satisfaction, and behavioral change.
C. economic success, social impact, and environmental impact.
D. company effort, customer satisfaction, and relative market share.
E. customer satisfaction, environmental impact, and production efficiency.
"Product" is concerned with:
A. branding and warranties.
B. physical goods and/or services.
C. packaging.
D. developing the right new product for a market.
E. all of these might be involved with Product.
Salespeople are likely to be responsible for:
A. providing market information to the firm.
B. providing technical support.
C. attaining sales goals.
D. maintaining customer relations.
E. Any or all of these are correct.
In advanced economies:
A. both supply and demand tend to be homogeneous.
B. producers and consumers are often separated in several ways.
C. most firms specialize in producing and selling small amounts of a huge assortment of
goods and services.
D. exchange is aided by discrepancies of quantity and assortment.
Segmenting, in contrast to combining:
A. tends to focus more on customer similarities than on differences.
B. tries to identify homogeneous submarkets and develop different marketing mixes for
each submarket.
C. usually means settling for a smaller sales potential.
D. relies more on promotion appeals and minor product differences to create general
customer appeal among several submarkets.
E. All of these answers are true statements.
In the ____ era, families traded or sold their 'surplus" output to local distributors.
A. production
B. pure subsistence
C. sales
D. simple trade
E. marketing company
From the Industrial Revolution until the 1920s, most companies were in the
A. marketing department era.
B. production era.
C. simple trade era.
D. marketing company era.
E. sales era.
