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Which of the following objectives of a business is the most important?
A. To engage in some specific business activity which will perform a socially and
economically useful function.
B. To develop an organization to carry on the business and implement its strategies.
C. To earn enough profit to survive.
D. All three of these objectives are equally important, because a failure in any one could
lead to a total failure of the business.
Definitely Scrumptious Co., a cookie manufacturer, decides to expand into cake
manufacturing. It begins the buying process for cake molds, toppings, and icing
equipment by setting product specifications and evaluating sources of supply. This is an
example of a
A. simplified buy.
B. straight rebuy.
C. modified rebuy.
D. straight buy.
E. new-task buy.
To choose the best advertising medium, you have to:
A. decide what target market(s) should be reached.
B. decide on promotion objectives.
C. know the cost of alternative media.
D. decide what must be said.
E. All of these alternatives are correct.
The vertical marketing system in which control is maintained via informal cooperation
among the channel members is a(n):
A. Administered channel system.
B. Corporate channel system.
C. Contractual channel system.
D. Franchise channel system.
E. Channel captain system.
Which of the following statements about advertising agencies is FALSE?
A. Advertising agencies are specialists in planning and handling mass selling details.
B. Most advertising agencies are smallwith 10 or fewer employees.
C. The largest advertising agencies account for most of the billings.
D. Advertising agencies are independent of the advertiser and have an outside view.
E. None of these statements about advertising agencies is FALSE.
Which of the following statements about agent wholesalers is FALSE?
A. Agent wholesalers do not own the products they sell.
B. Their main purpose is to help in buying and selling.
C. They normally specialize by customer type and by product or product line.
D. They are more common in international trade than in domestic trade.
E. They usually provide a larger number of functions than limited-function wholesalers.
Of the following, which are the most receptive to new products and new brands?
A. Young people
B. Senior citizens
C. Empty-nesters
D. Middle-aged people
E. All are equally receptive to new products and new brands.
A carefully designed package may:
A. raise or lower total distribution cost.
B. provide more "promotion" effect than advertising.
C. enhance the product by making it easier or safer to use.
D. offer product information that helps consumers buy.
E. All of these alternatives are correct.
Which of the following might be sections in a marketing plan?
A. Competitor Analysis.
B. Customer Analysis.
C. Marketing Strategy.
D. Situation Analysis.
E. All of these sections could be included in a marketing plan.
Which of the following is NOT a stage in the TRADITIONAL flow of the family life
cycle?
A. Young single
B. Young married without children
C. Young divorced with children
D. Middle-aged married without dependent children
E. Young married with children
Very large retail stores that carry not only foodsbut all goods and services which
consumers purchase ROUTINELYare called:
A. supercenters.
B. general stores.
C. supermarkets.
D. mass-merchandisers.
E. department stores.
As compared to final consumers, organizations
A. always focus on economic factors.
B. have more varied needs, and require more varied marketing mixes.
C. have needs that are often easier to understand.
D. always set out detailed information about the performance standards the product
must meet when quality is highly standardized.
E. are usually more emotional in their buying than final consumers.
"Comparative advertising":
A. is usually ignored by consumers.
B. is illegalaccording to the FTC.
C. should be supported by research evidence.
D. must focus on major consumer benefits to be legal.
E. None of these alternatives is correct.
All of the following are true of the market growth stage except
A. the main job is to persuade customers to buy, and keep buying, the company's
product.
B. the promotion must build primary demand and not just for the company's own brand.
C. more competitors enter the market and mass selling becomes more economical.
D. the promotion emphasis shifts to stimulating selective demand.
E. salespeople and personal selling work towards expanding the number of outlets and
cementing relationships with channel members.
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.
Which of the following statements about positioning is NOT true? Positioning
techniques
A. position products on a graph based on price level and quantity demanded.
B. require a firm to collect data about consumer perceptions of products.
C. are sometimes called "perceptual mapping" techniques.
D. typically rely on a "product space" diagram to show the relationship among various
products.
E. may use information about consumers' "ideal" products, so that the preferences of
different segments of consumers can be considered.
The most risky types of marketing opportunity to pursue usually involve
A. market development.
B. market penetration.
C. diversification.
D. product development.
E. All of these are equally risky.
Retailing on the Internet:
A. makes it hard for consumers to compare products or prices.
B. is limited to only a few mass-merchandisers.
C. makes it possible to get to an almost unlimited assortment of products.
D. is not expected to grow very fast.
E. All of these alternatives are correct.
The _____ can help the promotion effort by spreading word-of-mouth information and
advice among other consumers.
A. innovators
B. late majority customer group
C. laggards
D. early adopters
E. nonadopters
During the market growth stage of the product life cycle, a producer would focus
promotional efforts on creating ___________ demand for its own brand.
A. Competitive
B. Customer
C. Selective
D. Discerning
E. Persuasive
When personal computers were in the market introduction stage of their product life
cycle, advertising had to help consumers understand why they needed to own a
computer and what a computer could do. Now that personal computers are mature
products and have wide acceptance among business and home users, the advertising is
focused more on trying to get consumers to purchase a particular brand of computer.
So, personal computer advertising used to be _______________ advertising in market
introduction, but is now _______________ advertising in market maturity.
A. comparative; pioneering
B. pioneering; institutional
C. competitive; pioneering
D. pioneering; competitive
E. comparative; reminder
Which of the following tips would help marketers find new B2B clients that are similar
to clients they already serve?
A. Ask a current customer to help identify new leads.
B. Look up firms that use automated systems for straight rebuying.
C. Conduct a vendor analysis.
D. Identify current customers' NAICS codes and then look at NAICS-coded lists for
related firms.
E. Research ISO 9000 certified companies.
The total system view of the marketing concept builds on the idea that
A. sales should be the firm's high-level objective.
B. a company should not have specialized departments.
C. each department in an organization should do what it does best.
D. all departmentsnot just marketingshould be guided by customer needs.
E. none of these responses is correct.
Business products which are necessary expense items, and continually used up, but
which do not become part of the buyer's final product are:
A. component materials.
B. supplies.
C. component parts.
D. raw materials.
E. accessory equipment.
Which of the following statements about advertising spending is NOT TRUE?
A. Advertising in newspapers or on TV is a form of mass selling.
B. Personal selling can be expensive, so it is often combined with mass selling and sales
promotion.
C. Placing a video on a company website or YouTube is a form of publicity.
D. On average, more money is spent on advertising that on personal selling or sales
promotion.
E. Sales promotion can be aimed at final consumers, a company's own sales force,
wholesalers or retailers.
When deciding how to evaluate costs, a marketing manager should realize that
A. the best method for dealing with fixed costs depends on the objectives of the
analysis.
B. according to the iceberg principle too much detail in cost analysis obscures the big
problems by calling attention to the superficial problems.
C. the full cost approach is misleading and should not be used.
D. the contribution-margin approach ignores necessary fixed costs and should not be
used.
E. None of these are correct.
Rack jobbers:
A. don't own the products they sell.
B. apply their knowledge of the local market to many stores.
C. are full service merchant wholesalers.
D. are different from most wholesalers because they specialize in giving small retailers
long-term credit.
E. All of these are correct for rack jobbers.
Secondary data is often availableat little or no costfrom:
A. both private and government sources.
B. the Internet.
C. trade associations.
D. company files.
E. All of these are good sources for secondary data.
Trane Corp. manufactures long-lived, custom-made equipment which its customers
treat as capital items. Trane's sales force faces much multiple-buying influence. Trane's
products, which do not become part of the customer's final product, are:
A. accessory equipment.
B. installations.
C. MRO items.
D. component parts.
E. operating supplies.
As a product moves into the market maturity stage of its life cycle, the marketing
manager should:
A. try to build primary demand.
B. move toward exclusive distribution.
C. expect the market to move toward pure competition.
D. emphasize promotion that informs rather than persuades.
E. None of these alternatives is correct.
The "universal functions of marketing":
A. are usually performed in the same way and by the same types of institutions in all
MACRO-marketing systems.
B. can sometimes be eliminatedin very efficient macro-marketing systems.
C. must be performed in both market-directed and command economies.
D. must all be performed by every firm from a MICRO view.
According to the concept of social responsibility, a firm has a duty to:
A. communicate regularly with the public.
B. satisfy consumer needs at any cost.
C. place profit above all other considerations.
D. place customer satisfaction above all other considerations.
E. conduct business in a way that is good for society as a whole, both now and for the
future.
Drue Valentine is a management consultant who helps manufacturers improve their
quality-control procedures for new products. Drue is selling:
A. supplies.
B. components.
C. accessories.
D. MROs.
E. professional services.
Impulse products:
A. can have limited availability as long as display is good.
B. need widespread distribution with display at point of purchase.
C. need enough exposure to facilitate price comparisons.
D. need adequate representation in major shopping areas.
E. need widespread distribution at low cost.
