Good marketing managers know that:
A. a major advantage of personal selling is that noise can be eliminated.
B. noise in the communication process improves promotion effectiveness.
C. the trustworthiness of the source does not affect how receivers evaluate a message.
D. different audiences may interpret a message differently.
E. All of these alternatives are true.
Answer:
The main difference between agent wholesalers and merchant wholesalers is:
A. the kind of selling they do.
B. that agent wholesalers do not own the products they sell-while merchant wholesalers
do.
C. that no agent wholesalers physically handle products-while all merchant wholesalers
do.
D. their attitudes regarding the marketing concept.
E. There is no difference-an agent wholesaler IS a merchant wholesaler.
Answer:
When a supermarket manager decides the amount to charge customers for home
delivery of grocery items, this is a decision about:
A. Product
B. Place
C. Promotion
D. Price
Answer:
Ted and Amy Balderas were married last year, at age 24. They have no children and
both are currently working hard to build their careers. Couples like Ted and Amy:
A. are likely to be a poor target for firms that are trying to market a new brand or new
product concept.
B. usually focus on buying durables-such as furniture and appliances.
C. usually don’t spend money on discretionary purchases.
D. are unlikely to be careful, price-conscious shoppers.
E. none of these is a good answer for couples like Ted and Amy.
Answer:
To help cosmetic company, RedRain Inc., launch a new line of lipstick, tickets that can
be redeemed for prizes are enclosed in some of the lipstick packages. This activity can
be best classified as
A. advertising.
B. publicity.
C. sales promotion.
D. personal selling.
E. mass marketing.
Answer:
Use this information to answer the following question that refer to the CPI case.
Conservo Products, Inc. (CPI), with annual sales of $200 million, is a well-known
producer of a variety of paper products, almost all of which are made from recycled
materials. Picnic plates account for about 70 percent of CPI’s sales. The rest of the
firm’s sales come from custom-designed materials-such as box liners and spacers, small
boxes, and disposable products-like trays, towels and napkins.
CPI’s picnic plates are sold through ‘sales reps” to grocery wholesalers and retail
grocery chains. The sales reps are paid a 5 percent commission on all sales in their
assigned territories. They usually handle related-but noncompeting-lines for several
other manufacturers. Along with their selling duties, the sales reps help CPI with local
advertising and sales promotion efforts. Orders for the custom products are obtained by
area managers who are paid a straight salary to call on business and institutional
customers. The area managers are trained paper specialists and often help their
customers design the products they order.
The picnic plates are priced to give CPI a 90 percent markup on the cost of producing
the product-with the cost figured by taking the total factory cost for the previous year
and dividing that total cost by the number of units produced and sold during that period.
The firm’s invoices read “F.O.B.-Delivered” and “1/10, net 30.” Customers are allowed
to deduct 3 percent from the face value of the invoice for buying plates in carload
quantities, and another 2 percent for advertising them locally.
The custom products are sold “F.O.B. mill”-with CPI offering a price for each job.
Competition is strong from many other manufacturers who are able to offer very similar
products which meet the customers’ specifications.
CPI forecasts that sales will increase to $250 million by 2012. However, much of this
growth is tied to picnic plates-a market in which the firm has about a 7 percent market
share and faces aggressive price competition from many smaller firms with greater
brand familiarity. Further, CPI has been late with more than 50 percent of its plate
orders due to scheduling conflicts with orders for custom products.
The ‘sales reps” who sell CPI’s plates are:
A. manufacturers’ agents.
B. limited-function wholesalers.
C. the firm’s own order takers.
D. selling agents.
E. merchant wholesalers.
Answer:
Which of the following is true about public warehouses?
A. They are leased by companies for their own use.
B. They are designed to speed the flow of goods.
C. They are very expensive.
D. They are useful for manufacturers that must maintain stock in many locations,
including foreign countries.
E. They are used by firms who must regularly store large volumes of goods.
Answer:
Good marketing strategy planners know that:
A. transporting costs may limit a marketing manager’s possible target markets.
B. the transporting costs for some bulky or low-value products may be greater than their
manufacturing costs.
C. transporting is vital for mass distribution and modern urban life.
D. the cost of shipping some “high-value” products to users is less than 5 percent of
their selling prices.
E. All of these alternatives are correct.
Answer:
The Wheeler-Lea Amendment specifically aims at:
A. product warranties.
B. product safety.
C. unfair or deceptive practices.
D. tying and exclusive dealing contracts.
E. mergers and acquisitions.
Answer:
The text argues that MACRO-marketing in the United States:
A. costs too much because many consumers are dissatisfied.
B. is a growing concept.
C. does not cost too much.
D. tends to decrease consumer welfare.
E. costs too much because satisfying consumers costs too much.
Answer:
Customer service reps
A. work with customers to resolve problems that arise at the time of purchase.
B. work for producers calling on their intermediaries and their customers.
C. provide technical assistance to order-oriented salespeople.
D. work with customers to resolve problems that arise with a purchase, usually after the
purchase has been made.
E. are invaluable in working with business customers, but not final consumers.
Answer:
Boomerang, Inc. has created a truly new product and the firm’s marketing manager is
worried that consumers may not buy the product because it is such a different way of
satisfying the basic need. The promotion blend for the new product probably should
emphasize ______________ during market introduction.
A. comparative advertising
B. institutional advertising
C. reminder advertising
D. pioneering advertising
E. competitive advertising
Answer:
Sears reduces prices on gas grills between November and February, prior to spring and
summer. This price reduction is a:
A. stocking allowance.
B. seasonal discount.
C. noncumulative quantity discount.
D. cumulative quantity discount.
E. cash discount.
Answer:
FedBizOpps.gov is a forum that:
A. provides resources to find business opportunities with the government to fit a firm’s
strategy.
B. allows organizational buyers to voice their concerns about suppliers.
C. allows organizational buyers to conduct an online vendor analysis approved by the
government.
D. provides information on the prices of essential goods in the U.S. market.
E. provides information on the prices of luxury goods in the U.S. market.
Answer:
These are the moral standards that guide marketing decisions and actions.
A. Civil laws
B. Macro dilemmas
C. Micro dilemmas
D. Marketing ethics
E. Laws
Answer:
Use the following information to answer the following question that refer to the Sure
Foot case.
Sure Foot, Ltd. produces high-quality shoes and boots for serious hikers.
Sure Foot’s shoes have suggested retail prices ranging from just under $40 to about
$150. Usually, the retailer buys the shoes for about 50 percent less than the list price,
and the retailer pays the freight charges from Sure Foot’s plant in Maine. Sure Foot’s
credit terms are 2/10, net 30. Although Sure Foot’s brand appears on every shoe-the
firm does very little mass selling, except for a limited program of cooperative
advertising and some sales promotion at walking events.
Sure Foot’s shoes are carried by “better” sporting goods stores all across the
nation-although usually in fairly small quantities. Its main showroom is in Boston,
where two salaried salespeople handle most of the firm’s large accounts. Sure Foot’s
products are also sold by seven independent “field reps” who are paid a 5 percent
commission on all sales. Each of these field reps is responsible for a several state
territory-emphasizing mostly the small stores in or near major cities. The field reps
carry Sure Foot’s products as a minor line-but none of their lines are competitive with
each other.
The walking shoe market is supplied by 7 large firms and 50 or more smaller firms.
While these firms are competitive, they do vary their materials, styles, prices, and
promotion. The “high-quality” market is supplied by only 5 firms-Sure Foot being the
largest. While these firms are also competitive, they generally offer a more limited
assortment of materials, styles, and prices because the “high-quality” part of the market
is not as large-and does not appear to be growing any more.
How are Sure Foot’s shoes seen by most of its target market?
A. Impulse products
B. Staple products
C. Heterogeneous shopping products
D. Homogeneous shopping products
E. Specialty products
Answer:
A situation analysis
A. usually involves formal talks with informed people.
B. can help define the problem.
C. should never involve a firm’s customers.
D. is a step that can often be skipped.
E. provides a controlled test of an hypothesis.
Answer:
According to the text, missionary salespeople are sometimes called
A. customer service reps.
B. technical specialists.
C. detailers.
D. order takers.
E. account managers.
Answer:
As macro-marketing systems improve worldwide:
A. there will be greater monopolization.
B. poverty in industrialized nation will increase.
C. there will be fewer competitors worldwide.
D. the price of products will rise steeply.
E. more consumers will have income to buy products.
Answer:
When one considers the strategy decisions organized by the four Ps, branding is related
to packaging as:
A. branding is to pricing.
B. production is to marketing.
C. store location is to sales force selection.
D. personal selling is to mass selling.
E. pricing is to promotion.
Answer:
When Herbal Essences tries to get shelf space in Target and Walmart because young
women frequently shop there for hair care products, this is an example of which of the
4Ps?
A. Price
B. Product
C. Promotion
D. Place
Answer:
Managers justify status quo objectives as an attempt to do all of the following except
A. stabilize prices.
B. meet competition.
C. maximize profits.
D. avoid competition.
E. stabilize market situation.
Answer:
A good sales manager knows that:
A. order takers usually do very little aggressive selling.
B. order takers can be used by wholesalers-but not by producers.
C. order getters complete almost all sales in our country.
D. whenever possible, order takers should be replaced by order getters.
E. All of these alternatives are correct.
Answer:
Which of the following is the best example of an individual product?
A. 32-ounce boxes of Gain and Tide.
B. Three types of pears.
C. Six brands of cookies.
D. 12 oz. size of Pert Plus.
E. All of these are good examples of individual products.
Answer:
An on-site auction may stimulate a different response than an online auction. This is an
example of ___________ affecting the purchase decision.
A. demographics
B. time
C. surroundings
D. task
E. culture
Answer:
During the market introduction stage of the product life cycle:
A. large profits are typical-until competition arrives.
B. Price and Promotion are more important than Place and Product.
C. much money is spent on Promotion, while spending on Place is left until later.
D. money is invested-in the hope of future profits.
E. most customers will try really new products.
Answer:
Which of the following is NOT a trend affecting marketing strategy planning in the area
of Mass Selling?
A. changing agency compensation
B. decreasing role of publicity
C. integrated marketing communications
D. growth of interactive agencies
E. more targeted media
Answer:
A “channel of distribution”:
A. usually has three members-a manufacturer, a distributor, and a retailer.
B. is any series of firms (or individuals) from producer to final user or consumer.
C. should be as short as possible.
D. is not involved if a firm sells directly from its own website to final customers.
Answer:
Which of the following types of advertising is most associated with the confirmation
stage of the adoption process?
A. Reminder ads
B. Teaser campaigns
C. Persuasive copy
D. Competitive ads
E. Search ads
Answer:
Order getters:
A. may make a sale by helping a customer solve a business problem.
B. are more likely to be used with homogeneous shopping products than heterogeneous
shopping products.
C. are used in business markets but not in consumer markets.
D. generally rely on a routine “canned” sales presentation.
E. All of these alternatives are correct.
Answer:
Which of the following strategic decision areas is a part of the product component of
the marketing mix?
A. Branding
B. Managing channels
C. Publicity
D. Discounts
E. Geographic terms
Answer:
_____ means getting customers to ask intermediaries for the product.
A. Pulling
B. Pushing
C. Branding
D. Underwriting
E. Forecasting
Answer:
More than 600,000 loyal customers signed up in advance to purchase the iPhone4 in an
Apple store the first day it was available for sale in the U.S. What type of response
behavior were these Apple followers demonstrating?
A. Low-involvement buying
B. Limited problem solving
C. Extensive problem solving
D. Routinized response
E. Dissonance response
Answer:
Characteristics of a good brand name include all of the following except:
A. Be easy to spell and pronounce.
B. Be trendy and fashionable.
C. Describe the product and key benefits.
D. Be legally available for use by the firm.
E. Match the brand’s packaging.
Answer: