Although the salesperson’s job may change constantly, there are three basic sales tasks.
Answer:
Customer lifetime value represents the total stream of purchase a customer could
contribute to the company over the life of the relationship.
Answer:
Personal selling is likely to be an effective method of promotion for reaching the
opinion leaders in the early adopter group.
Answer:
Of all service wholesalers, specialty wholesalers carry the narrowest range of products
and offer the most service.
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Hispanic Americans are now the largest and fastest-growing ethnic group in the U.S.
Answer:
The “economic buyer” view of consumers says that individuals will only buy the
cheapest goods and services available-regardless of quality.
Answer:
Large sales volume and efficient operation are usually very important for supermarkets,
since net profits usually run 1-2 percent of sales or less.
Answer:
GNI is the total market value of all goods and services provided in a country’s economy
in a year by both residents and nonresidents of that country.
Answer:
A focus group interview involves interviewing 6 to 10 people in an informal group
setting.
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In marketing research, a population is a part of the relevant sample.
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If a manager sells more than was expected when average-cost pricing was used to set a
price, the firm will lose money.
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Joint venturing gives a firm less control than if it owns a separate subsidiary.
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Administered and contractual channel systems are vertical marketing systems which
depend on informal agreements-or contracts between channel members-to cooperate.
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E-commerce refers to exchanges between organizations, but not exchanges between
individuals.
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A significant emerging middle class consumer segment in a country is a strong
opportunity for brands to shift focus toward it.
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The FTC places no restriction on the length of time a product can be called “new.”
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A lot more firms will put ads on websites if there is a direct relationship between costs
and results.
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Americans’ preoccupation with deodorants is an example of a culturally learned need.
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Personal selling techniques vary little from country to country.
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A requisition is a request to buy something.
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Raw materials are unprocessed expense items such as farm products and natural
products.
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There are two kinds of quantity discounts: cumulative and accumulative.
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A good order getter tries to sell solutions to the customer’s problems-not just physical
products.
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Consumers may evaluate a product not just on how well it performs, but on how it
performs relative to their expectations.
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Product managers can be instrumental in adapting products for international markets.
Answer:
Customer value is the difference between the benefits a customer sees from a market
offering and the costs of obtaining those benefits.
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Bulk-breaking means separating products into grades and qualities as desired by
different target markets.
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Making goods or performing services is called marketing.
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Personal selling dominates the promotion mix in business markets. This is practical
since there are fewer of these customers and their purchases are typically larger.
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Organizational buyers often buy on the basis of a set of purchasing specifications.
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Any business transaction can be thought of as an exchange of ‘something of value” for
money-where money is the price.
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Good relations with intermediaries, good locations, and good salespeople are some of
the many resources of a firm that should be evaluated when searching for new
opportunities.
Answer:
The probable length of the product life cycle has little effect on strategy planning.
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Sales promotion directed at employees is especially popular with service-oriented firms.
Answer:
In a franchise operation, the franchisor develops a good marketing strategy, and the
retail franchise holders carry out the strategy in their own units.
Answer:
Economic needs include such things as self-respect, accomplishment, fun, freedom and
relaxation.
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Limited-function wholesalers provide all of the basic wholesaling functions, except that
they do not take title to the products they sell.
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By differentiating the marketing mix to do a better job meeting customers’ needs, the
firm builds a competitive advantage.
Answer:
“Positioning” might cause a marketing manager to:
A. introduce a new product for a segment with unsatisfied needs.
B. change a product’s promotion to make its image fit more closely with the needs and
attitudes of the target market.
C. shift attention to another market segment where competition is weaker.
D. physically change his or her product to compete more effectively with a competitor
aiming at the same target market.
E. Any of these could be true.
Answer:
“Logistics” is concerned with:
A. reducing spatial separations between producers and consumers.
B. transporting, storing, and handling of physical goods along channel systems.
C. transporting, storing, and handling of physical goods within individual firms.
D. physical distribution.
E. All of these are included in Logistics.
Answer:
During a heavy rainstorm, Louie Hirasawa stepped into a drugstore and bought an
umbrella-just like the one he had at home-for $15.00 plus tax. In this case, the umbrella
is:
A. a specialty product.
B. a shopping product.
C. an unsought product.
D. an emergency product.
E. an impulse product.
Answer:
In selling to government units, a supplier should do each of the following EXCEPT:
A. learn the bidding methods of government units it is targeting.
B. match marketing mixes to bid procedures.
C. read about potential government target markets from various government
publications.
D. get permission from the government in a particular country to sell to that country.
E. All of these should be done by suppliers.
Answer:
The U.S. Census Bureau defines wholesaling as being concerned with the activities of
those persons or establishments that sell
A. to retailers and other merchants, but that do not sell in large amounts to final
consumers.
B. to industrial users.
C. to institutional users.
D. to commercial users.
E. All of these alternatives are correct.
Answer:
The first retailers to really show the importance of the mass-merchandising concept
were the operators of:
A. general stores.
B. supermarkets.
C. single-line stores.
D. department stores.
E. limited-line stores.
Answer:
Reference-group influence would be WEAKEST for determining which particular
______________ a person buys.
A. watch
B. cosmetics
C. clothing
D. laundry soap
E. car
Answer:
The most risky and challenging opportunities usually involve:
A. market development.
B. product development.
C. diversification.
D. market penetration.
E. All of these are similar in terms of risk.
Answer:
In which product life cycle stage must companies focus on educating potential
customers about the advantages of a new product concept?
A. Market establishment.
B. Market introduction.
C. Market growth.
D. Market maturity.
E. Sales decline.
Answer:
Regarding the manufacturers’ market, large firms (with more than 250 employees)
A. account for the majority of the total “value added” by all manufacturers.
B. are very few compared to the many small firms.
C. employ about 44 percent of all people employed in manufacturing.
D. All of these alternatives are true.
Answer:
All of the following are examples of a production orientation, as opposed to a
marketing orientation, EXCEPT:
A. the company sells what it can make easily.
B. advertising focuses on the benefits of the product to customers.
C. the relationship with the customer ends with the sale of the product to the customer.
D. the purpose of customer service is to reduce customer complaints.
E. advertising focuses on the features of the product.
Answer:
Mass selling:
A. makes widespread distribution possible-by reaching many potential customers at the
same time.
B. alternatives do not vary much in cost when target market preferences are considered.
C. alternatives do not vary much from one country to another.
D. alternatives do not vary much in results when target market preferences are
considered.
E. None of these alternatives is true.
Answer:
______________ means trying to increase sales of a firm’s present products in its
present markets.
A. Product development
B. Market penetration
C. Market development
D. Mass marketing
E. Diversification
Answer:
Genetech Corp. has invested heavily to develop a patented new product. Genetech
wants to achieve a rapid return on its investment. It probably should set a
______________ pricing objective.
A. profit maximization
B. target return
C. sales-oriented
D. status quo
E. None of these is a good answer
Answer:
The Ivory Islands Resort offers a forty percent discount on lodging from September
through December every year due the dramatic fall in the number of visitors during the
period, largely because of unfavorable weather conditions. This type of price reduction
is called _____.
A. cumulative quantity discounts
B. noncumulative quantity discounts
C. seasonal discounts
D. trade discounts
E. functional discounts
Answer:
Which of the following statements about trademarks is TRUE?
A. Trademarks must always be registered in their home country only.
B. In the U.S., common law does not protect the rights of owners of brand names and
trademarks.
C. The Lanham Act requires that all trademarks be registered.
D. Registering under the Lanham Act is often a first step to protecting a trademark to be
used in foreign markets.
E. None of these statements about trademarks is TRUE.
Answer:
Smart marketers might respond to the changes in the U.S. population by:
A. targeting customers in international markets to take advantage of faster population
growth overseas.
B. targeting areas where there is less population but also fewer competitors.
C. focusing on areas, like the Northeast, where there are large numbers of potential
customers.
D. all of these are good responses.
Answer:
The Garland Advertising Agency provides promotional assistance to small and
medium-sized firms that cannot afford to pay the fees charged by large national
advertising agencies. Garland would fall into which of the following business product
classes?
A. Components
B. Installations
C. Professional services
D. Raw materials
E. Supplies
Answer:
In its ads, General Mills highlights the advantages of its Milk ‘n Cereal breakfast bars
over Kellogg’s breakfast bars. This is:
A. comparative advertising.
B. primary advertising.
C. selective advertising.
D. reminder advertising.
E. institutional advertising.
Answer:
Which of the following is NOT a social influence in consumer buying?
A. Social class
B. Beliefs
C. Family
D. Reference groups
E. Culture
Answer:
______________ involve(s) sorting products according to size and quality.
A. Transporting and storing
B. Financing
C. Standardization and grading
D. Marketing
E. Buying
Answer:
When a college student receives e-mail messages that are a ‘sales pitch” for a product
that she is not interested in purchasing, this is an example of:
A. spam.
B. AIDA.
C. pulling.
D. publicity.
E. decoding.
Answer:
In the 30-minute TV infomercial for a new type of “home gym equipment,” a toll-free
800 number is prominently displayed across the bottom of the screen. This is an
example of ______________ promotion.
A. latent-response
B. delayed-response
C. indirect-response
D. laggard-response
E. direct-response
Answer:
Which of the following social and cultural factors would be of greatest interest to a
mass transit company?
A. The role of women in society
B. Population shift to urban areas
C. Growing incomes among consumers
D. Technology usage among baby boomers
E. Generational preferences for healthy foods
Answer:
Which of the following applies to “value in use pricing?”
A. How much profit will the firm make?
B. How much will the customer save?
C. What does a competitor offer?
D. How much can the customer afford?
Answer:
In monopolistic competition,
A. one firm completely controls a broad product-market.
B. each competitor tries to get control in its “own” target market.
C. competitors offer the same marketing mix.
D. different marketing mixes are nevertheless seen as the same by all customers.
E. all customers view various alternatives as substitutes.
Answer:
Kira Johannson’s salary as a sales rep was reduced to $32,000 last year, but she earned
an additional $10,000 in sales commissions. Her tax bill was $14,000 and bills covering
other necessities such as food, housing, and transportation amounted to $11,000. Kira’s
discretionary income last year was:
A. $17,000.
B. $11,000.
C. $32,000.
D. $28,000.
E. $42,000.
Answer:
A limited-line store is to a single-line store as
A. a tennis shop is to a sporting goods store.
B. a paint store is to a drugstore.
C. quality is to price.
D. a CD and tape store is to a movie theater.
E. full service is to self-service.
Answer:
3-D televisions are very new products in the U.S. market. They are in the __________
________ stage of the product life cycle.
A. market maturity
B. market introduction
C. market growth
D. sales decline
Answer:
Which of the following is not a common cause of conflict between producers and
channel partners in a channel system?
A. lack of communication.
B. different objectives.
C. independent operations.
D. lack of a channel captain.
E. different target customers.
Answer:
Use the following information to answer question that refer to the Jewel Craft case.
Jewel Craft, Inc. is a leading producer in the United States’ women’s costume jewelry
and accessories market. Its brands are well known and are sold by department stores
and better women’s stores. Several stores in a city may carry Jewel Craft’s brands
because most of Jewel Craft’s customers will not consider any other brand.
Jewel Craft’s sales force calls on one wholesaler in each state. Gemco, Inc., of Boston,
Massachusetts, is the Jewel Craft distributor in that state. Gemco stocks and sells
women’s accessories (noncompeting lines) for several manufacturers like Jewel Craft.
Wholesalers are allowed a 20 percent markup by Jewel Craft-but pay the freight
charges to their warehouses. Jewel Craft’s policy of using one wholesaler per state
comes from its desire to control its distribution. Jewel Craft uses national magazine
advertising and also supports a cooperative ad program with retailers.
Jewel Craft’s prices allow for a 40 percent retail markup-an attractive percent when one
considers that Jewel Craft’s products require little in-store selling because of their
well-established reputation.
Recently, Jewel Craft was approached by a watch producer with the idea of expanding
to watches under the Jewel Craft name. It was argued that although national watch sales
have leveled off, Jewel Craft could enjoy growing sales for several years because of the
fine reputation the company has achieved. If watches are added, Jewel Craft will use its
present policies regarding distribution, pricing, and advertising. Further, it will offer the
wholesalers and retailers an attractive “package” deal as an incentive to carry Jewel
Craft watches. Intermediaries will be required to carry the watches if they wish to
handle the jewelry and accessories.
In the Jewel Craft case, Gemco, Inc. is a:
A. commission merchant.
B. selling agent.
C. manufacturers’ agent.
D. merchant wholesaler.
E. manufacturer’s sales branch.
Answer:
During the introduction stage of the product life cycle,
A. “me-too” products quickly take market share away from the innovator.
B. most products achieve intensive distribution.
C. industry profits are at their highest.
D. promotion is likely to be needed to build primary demand.
E. None of these alternatives is true.
Answer: