Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
In __________, print ads must be identified so they are not confused with editorial
matter.
A. USA
B. Canada
C. New Zealand
D. Japan
E. Switzerland
The appeal that has the most relevance to an economic buyer is:
A. "I'm lovin' it" (McDonald's).
B. "Expect great things" (Kohl's).
C. "Live for now" (Pepsi).
D. "Who doesn't want 50% more cash?" (Capital One Rewards Card).
E. "Relentlessly protecting your identity" (LifeLock).
Smart tips for selling to business customers include all the following except:
A. Emphasize various benefits that meet the differing needs and interests of each
member of the buying center.
B. Offer fresh insight and ideas in e-mails and other correspondence.
C. Develop a marketing mix to satisfy the needs of the organization as well as the needs
of individual purchasing managers.
D. Show appreciation by offering desirable gifts to purchasing managers.
E. Explain how products and services will reduce the firm's risk.
A requisition
A. is only used for nonroutine purchases.
B. is the same as a purchase order.
C. sets the terms under a negotiated contract.
D. is a formal contract between a buyer and a seller.
E. None of these choices is correct.
When a firm develops a marketing mix for teenage boys which is different from its
marketing mix for teenage girls, which target market approach is it using?
A. Single
B. Generic
C. Combined
D. Clustering
E. Multiple
Which of the following wholesalers would be most helpful to a small manufacturer of
computer components who wants to obtain distribution in several major markets and
still retain control of the marketing of its products?
A. Manufacturers' agents
B. Rack jobbers
C. Selling agents
D. Brokers
E. Manufacturers' sales branches
A manufacturers' agent sells
A. similar products for several noncompeting producers for a commission on what is
actually sold.
B. different products for several noncompeting producers for a commission on what is
actually sold.
C. similar products for several competing producers for a commission on what is
actually sold.
D. different products for several competing producers for a commission on what is
actually sold.
E. different products for several competing producers for a fixed salary irrespective of
sales.
A good marketing manager for a producer knows that the most profitable price and
level of output:
A. is where the positive difference between the total revenue and total cost curves is the
greatest.
B. is where the firm's profit is the same as that of its competitors.
C. is where total revenue equals total cost.
D. is where total profit equals total cost.
E. None of these alternatives is correct.
Michael Solesowner of Soles Shoe Storerecently discovered that shoe stores in his
trading area have an average markup of 40 percent. Upon investigation, Michael found
that his average markup is $15 on shoes that he sells for $45. This suggests that:
A. Michael has higher-than-average costs.
B. Michael is pricing his products higher than his competitors.
C. Michael is taking a smaller average markup than his competitors.
D. Michael has a relatively high stockturn rate.
E. Michael's markups in dollar amounts are about the same as his competitors.
A "product" might include:
A. a brand name, a package, and a warranty.
B. instructions.
C. a service which does not include a physical good at all.
D. some physical item and its related features.
E. All of these choices are good answers.
Intensive distribution is often very appropriate for:
A. shopping products and convenience products.
B. convenience products and business supplies.
C. business products of all classes.
D. unsought products and specialty products.
E. shopping, specialty, and unsought products.
A retailer might expect a stocking allowance:
A. for paying the supplier's invoice before the product is delivered.
B. to pass along to retail salesclerks who aggressively sell the product.
C. to offset the handling costs for a new product.
D. if the manufacturer can't fill an order by the promised delivery date.
E. None of thesestocking allowances only apply to wholesalers.
Randy Todd, marketing manager for Sporting Products, Inc. (SPI), is thinking about
how changes taking place among retailers in his channel might impact his strategy.
SPI sells the products it produces through wholesalers and retailers. For example, SPI
sells basketballs to Wholesale Supply for $8.00. Wholesale Supply uses a 20 percent
markup and most of its 'sport shop" retailer customers, like Robinson's Sporting Goods,
use a 33 percent markup to arrive at the price they charge final consumers. However,
one fast growing retail chain, Sports Depot, only uses a 20 percent markup for
basketballs, even though it pays Wholesale Supply the same price as other retailers.
Furthermore, Sports Depot occasionally lowers the price of basketballs and sells them
at costto draw customers into its stores and stimulate sales of its pricey basketball
shoes.
Sports Depot is also using other pricing approaches that are different from the sports
shops that usually handle SPI products. For example, Sports Depot prices all of its
baseball gloves at $20, $40, or $60with no prices in between. There are three big bins -
one for each price point.
Todd is also curious about how Sports Depot's new strategy to increase sales of tennis
balls will work out. The basic idea is to sell tennis balls in large quantities to nonprofit
groups who resell the balls to raise money. For example, a service organization at a
local college bought 2,000 tennis balls printed with the college logo. Sports Depot
charged $.50 each for the tennis balls-plus a $500 one-time charge for the stamp to print
the logo. The service group plans to resell the tennis balls for $2.50 each and contribute
the profits to a shelter for the homeless.
Todd is not certain if Sports Depot ideas will affect SPI's plans. For example, SPI is
considering adding tennis racquets to the lines it produces. This would require a
$500,000 addition to its factory as well as the purchase of new equipment that costs
$1,000,000. The variable cost to produce a tennis racquet would be $20, but Todd
thinks that SPI could sell the racquet at a wholesale price of $40 each. That would allow
most retailers to add their normal markup and make a profit. However, if Sports Depot
sells the racquet at a lower than normal price other retailers might decide to carry it.
Which of the following would NOT be one of SPI's fixed costs in the production of
basketballs?
A. rent on the building used to store inventory of balls.
B. rubber used to make the balls.
C. property taxes for the building used to make the balls.
D. depreciation on the equipment used to make the balls.
E. insurance on the building used to make the balls.
For six months Kim Wu has been working for Sunny Day Foods (SDF), a fast-growing
manufacturer of organic foods. After graduating college, she worked for four years as a
sales rep for a nationally known food company. But, she jumped at the chance when
SDF contacted her about becoming marketing manager for its breakfast foods division,
which sells dry cereals and a pancake mix.
Kim spent the first few months on the job trying to better understand SDF, its product
line, and marketing strategy. She reviewed the company's past marketing research,
commissioned new research, and talked to both consumers and retailers. Now, the CEO
of the company wants her thoughts on what the company's marketing strategy should be
for the next few years.
Her research indicates that among cereal customers there are at least five segments of
customers who use SDF products.
a) One segment, the loyalists, has a strong preference for one or two of the SDF cereals.
These customers often go out of their way to visit a store with their favorite SDF cereal
and buy only that product at the store.
b) Another segment, the regulars, buys SDF cereals without much thought. For them it
is just part of their routine and, if you ask them why they pick the cereal, they'd say it's
just a habit.
c) A third segment, the deal prone, sees SDF cereals as just another organic cereal. They
view all organic cereals as pretty much the same and buy whichever brand seems to
offer the best deal that week.
d) A fourth segment, the politicos, consists of former buyers of SDF cereals. A few
years ago the company took a strong stand in a presidential race-and these customers
resented it. Now, they boycott all SDF foods because of that incident.
e) A fifth segment, SDF who?, is made up of consumers who buy organic cereals but
who don't have much awareness of particular organic brand names.
In reviewing how SDF currently brands its products, Kim sees that it is using several
different approaches. The Sunny Day Foods brand is used on most products the
company sells. But a few years ago the company brought out an instant organic oatmeal
with the Hot n Healthy name. SDF also makes cereal sold by a health food chain; the
package for that chain uses the store's own name, Nature's Foods, as the brand name for
the cereal.
What best describes the level of brand familiarity that customers in "SDF who?"
segment have with SDF?
A. Brand insistence
B. Brand rejection
C. Brand nonrecognition
D. Brand recognition
E. Brand preference
Expanded assortment and/or reduced margins and service are characteristic of
A. supermarkets.
B. convenience stores.
C. specialty shops.
D. the Internet.
E. department stores.
Which of the following descriptions of the salespeople is CORRECT?
A. Order-takers: sell to the regular or established customers.
B. Supporting salespeople: routine completion of sales made regularly to target
customers.
C. Order-getters: help the order-oriented salespeople.
D. Missionary salespeople: supporting salespeople who provide technical assistance.
E. Customer service reps: work to close orders after other salespeople have started
them.
Catalogs, point-of-purchase materials, and free samples are all examples of:
A. publicity.
B. personal selling.
C. sales promotion.
D. advertising.
Godiva, a maker of expensive European chocolates, does not mention price in its
magazine advertising. Instead, the ad copy mentions the quality of the ingredients, the
fine packaging, and the luxurious boutiques where Godiva chocolates are sold. Godiva
seems to be pursuing a pricing objective of:
A. Meeting competition.
B. Nonprice competition.
C. Target return.
D. Growth in market share.
E. None of these is a good answer.
American supermarket chain, FoodMart, purchases cheese from five different
manufacturers from around the world to assure its customers can choose among
different types of cheeses at different prices. FoodMart facilitates the macro-marketing
system by helping to address:
A. spatial separation.
B. discrepancies of assortment.
C. separation of values.
D. all of these are correct.
The "marketing concept" says that a business firm should aim all of its efforts at:
A. doing more advertising and selling than competitors.
B. selling what the company produces.
C. satisfying customersregardless of profitability.
D. satisfying its customersat a profit.
E. producing those products which it can make at lowest cost.
Kelly Stich, marketing manager for Yummy Ice Cream Products, is thinking about some
of her products and her promotion plans for the coming year.
Yummy Ice Cream Products is introducing a new ice cream treat called PlanetSavers.
This treat uses ice cream produced with environmentally friendly processes that save
energy and protect the ozone. Yummy plans to send articles to magazines, local
newspapers, and environmental groups that explain the environmentally safer treat. The
product also has a unique texture and different flavor.
Stich wants to use counter cards and in-store signs to let people know about Cherry
Walrus, the company's new flavor. She is also developing sales training materials that
will teach ice cream scoopers in Yummy's ice cream stores to promote the product.
Right after Cherry Walrus is introduced each store will also hand out coupons that are
good for one day only.
Yummy Mondaes is a product that has been around for 25 years. It is Yummy's take on
the classic ice cream sundae, but white-brownie and coffee-flavored crumbles are added
to make it extra special. The company sells this product in one and two quart containers
through major grocery store chains. It relies on personal selling and price discounts to
retailers to move more of the product. The company does very little consumer
promotion for this product.
Yummy Fudge on a Stick is a new product of fudge-flavored ice cream on a stick.
Yummy plans to sell it through retail grocery stores also and is launching an aggressive
advertising program that will use television, radio, newspaper, magazines, and the
Internet. Most of its promotion will be directed at consumers.
Two years ago the company introduced Yummy Fruit on a Stick, an all-natural frozen
fruit product on a stick. The product category has been popular, continues to grow, and
is in the market growth stage of the product life cycle.
Which of the following illustrates customer-initiated interactive communication?
A. People who enter Yummy's online contest receive a "2 for 1" coupon for Yummy's
new flavors.
B. A customer goes to Yummy's website to see if Yummy has an ice cream shop that is
nearby.
C. A consumer goes to the CNN website and selects a video clip from World Cup
Soccer, but at the start of the clip there is a short ad that shows kids eating Yummy
Mondaes.
D. A "gamer" at an online website ends a game and encounters a pop-up ad for Yummy
Fruit on a Stick.
E. Consumers who participate in an online marketing research survey are later called
and interviewed about which of Yummy's ads they remember.
A salesperson driving to visit a client located two hours away has a tire blow out on the
highway. He walks about a mile to the next exit where he finds a service station. The
owner of the station says he can replace the blown tire, but it will cost twice as much as
it would to purchase a tire in the salesperson's home city. The salesperson, not wanting
to be late for his appointment, agrees to pay the higher price in order to get back on the
road. This case illustrates the effect of ______________________ on buying behavior.
A. cultural background
B. social groups
C. purchase situation
D. learning situation
E. reference groups
The slogan from the GEICO ads, "15 minutes could save you 15 percent or more on
your car insurance" is an example of which of the following elements of the
communication process?
A. Message
B. Source
C. Receiver
D. Encoder
E. Feedback
Focus groups:
A. Are usually composed of 15-25 people.
B. Yield results that are largely dependent on the viewpoint of the researcher.
C. Always do a good job of representing the broader target market.
D. Are expensive compared to other marketing research methods.
E. Are conducted in a formal group setting.
Terry Harter is marketing manager for United Tools and Mike O'Reilly is the firm's
logistics manager. They work together to make decisions about how to get United's
hand and power tools to its customersa mix of manufacturing plants and final
consumers (who buy United tools at a hardware store). United Tools does not own its
own transport facilities and it works with wholesalers to reach its business customers.
Together, Harter and O'Reilly try to coordinate transporting, storing, and product
handling activities to minimize cost while still achieving the customer service level
their customers and intermediaries want. This usually requires that United keep an
inventory of most of its products on hand, but demand for its products is fairly
consistent over time so inventory is easy to manage.
Harter has identified four options for physical distribution systems she could use to
reach two of her key wholesalers, Ralston Supply and Ricotta Tool Co. The total cost
for each optionand the distribution service levels that can be achievedare as follows:
Ralston Supply expects a very high level (90 percent) of distribution customer service.
Ricotta Tool Co. is willing to settle for a 70 percent customer service level, even if that
means some products will occasionally be out of stock, if it gets products at a lower
price.
For its large retail hardware customers (like Home Depot), United regularly ships
smaller orders directly to individual stores or in some cases to the retail chain's
warehouses. Cross-country shipments usually go by rail while regional shipments
usually go by truck.
Which physical distribution system is best suited for Ralston Supply?
A. Airfreight.
B. Inland waterways.
C. Truck.
D. Rail and warehouse.
E. Cannot be determined without more information.
Regarding types of wholesalers, which of the following has the HIGHEST costs as a
percent of sales?
A. Manufacturers' sales branches (with stock)
B. Merchant wholesalers
C. Brokers
D. Manufacturers' agents
E. Agent wholesalers
Average cost is obtained by dividing:
A. total fixed cost by the related quantity.
B. marginal cost by marginal revenue.
C. total cost by the related quantity.
D. average fixed cost and average variable cost by the quantity produced.
E. total variable cost by the related quantity.
When an American accounting firm sends some of its tax work to India to take
advantage of lower wages, this is called _____.
A. skill transfer
B. task transfer
C. knowledge transfer
D. tax movement
E. source relaying
The physical distribution concept says (or implies) that:
A. transporting, storing, and product-handling are unrelated activities for cost control.
B. the best distribution system is the lowest cost one.
C. a firm should seek to minimize the total cost of transporting, storing, and
product-handlingfor a given level of customer service.
D. if the transporting department minimizes its costs and the storing department
minimizes its costs and the product-handling department minimizes its coststhen the
total cost of physical distribution will be minimized.
E. None of these alternatives is correct.
When a market test for a new product is successful, the firm typically introduces the
product in different regions of the U.S. in sequential stages. This process is called a:
A. rollout.
B. fallout.
C. TQM.
D. concept test.
E. JIT.
"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.
When Southwest Airlines sends an e-mail to frequent-flier customers offering a special
low price between selected cities if the plane ticket is purchased within the next four
days, this is an example of:
A. direct marketing.
B. integration.
C. publicity.
D. indirect-response promotion.
E. mass selling.
The advertising medium of ___________ reaches local customers who are ready to buy,
but differentiation is hard because many other competitors are listed in the same place.
A. Radio
B. Yellow Pages
C. Television and cable
D. Magazine
E. Internet
