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Regarding the roles of marketers and consumers in improving the macro-marketing
system:
A. Marketing managers should not be expected to improve and extend the range of
goods and services they make available.
B. The decisions that marketing managers make always increase the choices available
to consumers.
C. Consumer-citizens have the responsibility to vote for laws that place constraints on
businesses, if those businesses harm the ecological system or make excessive demands
on scarce resources.
D. Marketers and consumers should decide in advance what products will be produced
so as not to waste scarce resources.
E. None of these alternatives is correct.
A computer store regularly advertises a very low price for a well-known brand of disks.
When the customers come in, however, the salespeople point out the disadvantages of
this particular brand and try to persuade them to buy other disks at much higher prices.
This retailer is using:
A. bait pricing.
B. odd-even pricing.
C. psychological pricing.
D. leader pricing.
E. price lining.
Which of the following descriptions of the three basic sales tasks is CORRECT?
A. ORDER-TAKING: various activities aimed at getting sales in the long run.
B. SUPPORTING: routine completion of sales made regularly to target customers.
C. ORDER-GETTING: seeking possible buyers with a well-organized sales
presentation designed to sell a good, service, or idea.
D. None of these descriptions is correct.
______________ (as a way to enter foreign markets) means selling the right to use
some process, trademark, patent, or other right for a fee.
A. Licensing
B. Management contracting
C. Direct investment
D. Joint venturing
E. Exporting
Which of the following illustrates the marketing concept in action?
A. A young lawyer gives free legal advice to poor people.
B. A local police department organizes a "community crime watch" program in a
neighborhood that has had many burglaries.
C. Several lawyers set up a group practiceso that the costs of the office and equipment
can be shared.
D. None of these illustrate the marketing concept in action.
A public utility that has adopted the marketing concept would be most likely to
A. set up a special service to help consumers reduce expensive peak-hours energy
consumption.
B. lower prices until almost all consumers felt that prices were fair.
C. advertise its "public service role" to improve its image with the public.
D. use email to send customers a personal apology if a blackout were to occur.
E. None of these answers is true.
A common "product-market commitment" in a channel system helps to eliminate:
A. the need for a channel captain.
B. unnecessary and costly duplication of marketing functions.
C. all production-oriented channel members.
D. competition among different channel systems.
E. the need for marketing managers in individual firms.
Reverse channels may be used to retrieve products from:
A. business customers.
B. intermediaries.
C. business customers and intermediaries.
D. final consumers.
E. All of these.
Simon Juarez sells life insurance for a large New Mexico firm. He locates customers by
selecting names out of a telephone directory and calling to arrange an appointment. He
begins each presentation by explaining the basic features and merits of his
producteventually bringing the customer into the conversation to clarify the customer's
insurance needs. Then he tells how his insurance policy would satisfy the customer's
needs and attempts to close the sale. Simon's sales presentation is based on the:
A. consultative selling approach.
B. selling formula approach.
C. canned presentation approach.
D. target market approach.
E. customer service approach.
If a producer has a technically superior and expensive productwhich has achieved brand
preferenceand wants retailers to provide aggressive promotion and maximum customer
service, this producer should seek:
A. Multichannel distribution.
B. Exclusive distribution.
C. Administered distribution.
D. Intensive distribution.
E. Selective distribution.
Which of the following criticisms focuses most directly on a macro view of marketing,
rather than a micro view?
A. Products often wear our right after the warranty expires.
B. Much TV advertising is annoying.
C. Marketing exploits the poor and the uneducated.
D. Prices for very similar products vary a lot from store to store.
E. Door-to-door salespeople are trained to be pushy.
As a project for her marketing class, Emily Washington is researching how five local
businesses price their products. The following are brief sketches of what she has learned
about each company.
At Bella Computers, Emily has discovered that the company earned a 6 percent return
on investment this year and wants to increase it to 9 percent next year. To its retailer
customers, Bella Computers gives cash discount terms of 2/10, net 30. It also gives
retailers a 3% reduction on the invoice amount for advertising Bella products locally.
Bella gives retailers' salespeople 2% of the sale price for each Bella Computer they sell.
At Ross Pharmaceuticals, she learned that the company has invested heavily in
developing a new product that recently received a patent. Because cash is tight, the
company wants to achieve a rapid return on its investment. The new patented product is
badly needed in the market, so a very inelastic demand curve is expected.
Digital Imaging makes photographic prints for wedding photographers. It is very
concerned about competitor reactions to its pricing, so it has selected prices that will not
draw the attention of the competition and not start a price war. Digital Imaging offers
customers an 8% discount if their purchases exceed $20,000 a year.
Jack's One Hour Cleaners recently opened for business. The company invested a lot of
money in new equipment, and feels that it has to quickly get "at least 10% market share
to stay in the game." This need obviously influences the company's pricing decisions.
Jack's also plans to offer customers 20% discounts on any order over $20.
National Printing Equipment (NPE) produces equipment that helps to print newspapers
and magazines. The company sells directly to printers and through wholesalers. Its
salespeople negotiate prices with individual customers and often have to match
competitors' prices. NPE has a new product, the Gutenberg NP201, with some
competitive advantages now, but competitors are expected to follow quickly with
similar products. The new product is being introduced into a market with elastic
demand. In regard to freight charges for its equipment, NPE's invoice reads, "Seller
pays the cost of loading equipment onto a common carrier. At the point of loading, title
to such products passes to the buyer, who assumes responsibility for damage in transit,
except as covered by the transportation agency."
What is Jack's One Hour Cleaners' pricing objective?
A. profit oriented.
B. target return.
C. sales oriented.
D. status quo oriented.
E. None of these is a good answer
In the example for the seven-step approach to market segmentation (used in the text),
which of the following is a qualifying need?
A. a good bed
B. heating and cooling
C. a clean bathroom
D. security
E. All of these.
Supercenters are also known as
A. hypermarkets.
B. mass-merchandisers.
C. discount houses.
D. supermarkets.
E. single-line mass merchandisers.
From a micro view, which of the following is the best example of marketing?
A. North Korea unveils a new five-year production plan.
B. China and the U.S. agree on a new trade agreement.
C. The American Red Cross seeks more blood donors.
D. The Internet makes it possible for firms to reach customers in other countries.
E. None of these is a good example.
A producer of disposable diapers is planning to introduce a new brand of diapers that is
specially designed for large babies who are hard to fit with regular diapers. The
company mails coupons for the new brand to all the consumers in its database of
disposable diaper users. The coupons offer consumers a $2 discount off the regular
price of a pack of diapers. The company sends an accompanying letter advising
consumers to bring the coupons to their favorite store and use them. If the brand is not
in stock, the letter encourages consumers to ask the store manager to stock the new
brand. This promotion effort by the company is an example of:
A. Pushing in the channel.
B. Pulling by customers.
C. Integrated marketing communications.
D. Buyer-initiated communication.
E. None of these is a good answer.
According to the text, "product":
A. means a physical good.
B. includes all the elements of a marketing mix.
C. means the need-satisfying offering of a firm.
D. refers to goods but not services.
E. All of these choices are good answers.
Each month the billing department of Lone Star Drilling, Inc., processes an average of
102 orders from customers at a cost of about $1,734 (in salaries and supplies). What is
the average cost per order for this department (to the nearest dollar amount)?
A. $14
B. $17
C. $20
D. $22
E. $25
All of the following are reasons why international opportunities should be considered
by managers, EXCEPT
A. the world is getting smaller.
B. serving international markets may improve economies of scale.
C. favorable trends at home and unfavorable trends in other countries make
international marketing particularly attractive.
D. around the world, potential customers have needs and money to spend.
E. it helps to develop a competitive advantage at home and abroad.
Some sales reps try to get a prospect to do most of the talking at firstto help pinpoint the
potential customer's needs. After the sales rep feels that he understands the customer's
needs, he begins to enter more into the discussion, helping the customer understand his
own needs, showing how his product satisfies the customer's needs, and then trying to
close the sale. This type of sales presentation uses the:
A. selling formula approach.
B. target market presentation.
C. consultative selling approach.
D. prepared sales presentation.
E. None of these is a good answer.
A "rollout" happens in the ____ step of the new-product development process.
A. idea generation
B. idea evaluation
C. screening
D. development
E. commercialization
Careful handling of "trade-ins"to avoid reducing the list priceis especially important for
sellers of:
A. expense items.
B. raw materials.
C. emergency products.
D. component materials.
E. None of these is a good answer.
Honda requires its brake suppliers to deliver parts to its production plants three hours
before the parts are scheduled to be installed in a new car. This is an example of what
logistics activity?
A. EDI
B. PD concept
C. Piggyback
D. Containerization
E. JIT
A marketing model is a
A. procedure that develops and analyzes new information about a market.
B. detailed breakdown of a company's sales records.
C. plan that specifies what information will be obtained and how.
D. statement of relationships among marketing variables.
E. software that organizes incoming information into a data warehouse.
When Hallmark stores offer a product line that includes everything you need to have a
Spiderman theme birthday party, what is the primary segmenting dimension that
Hallmark is using?
A. Gender
B. Family size
C. Benefits sought
D. Rate of use
E. Size of city
Which of the following is secondary data that is easily accessible to marketers and
generated inside their own firms?
A. Focus group surveys
B. Library research
C. Marketing information system
D. U.S. government-published data
E. Internet research
Logistics decisions include all of the following except:
A. distribution service level.
B. transporting of goods.
C. handling of goods.
D. prices to charge for delivery.
E. storage of goods.
Rosalinda's Steak House purchases 70 T-bone steaks every Fridayincluding last Friday.
Last Friday's order was an example of a
A. straight buy.
B. modified rebuy.
C. new-task buy.
D. straight rebuy.
E. simplified buy.
Which of the following is NOT a type of limited-function wholesaler?
A. Specialty wholesaler
B. Catalog wholesaler
C. Truck wholesaler
D. Drop-shipper
E. Cash-and-carry wholesaler
A salesperson for an athletic shoe company is assigned the functions of order-getting,
order-taking, and sales support. Is this a mistake by his company?
A. No, because order-getters tend to be less well trained than order-takers.
B. No, because sales support activities can require a great deal of technical knowledge.
C. Yes, because order-takers are often required to develop sales presentations.
D. Yes, because one employee may fulfill all three types of roles for some businesses.
E. Yes, because supporting salespeople should always be involved in order-getting as
well.
The main difference between retailing and wholesaling is that:
A. Retailing involves selling to other merchants and wholesaling does not.
B. Retailing involves selling to business customers and wholesaling does not.
C. Technology is more important in wholesaling than in retailing.
D. Wholesaling involves selling mainly to other merchants and business customers, but
retailing involves selling mainly to final consumers.
E. Wholesaling involves selling to final consumers and retailing does not.
