The Federal Trade Commission can require firms to use “corrective advertising” or
“affirmative disclosures,” if it decides a particular advertisement is unfair or deceptive.
The introduction of a totally new product idea would present a greater challenge in
coordinating the activities of the different functional areas of a company than would a
modification of an existing product.
The contribution-margin and the full-cost approaches to marketing cost analysis are
different, but they should lead to the same action implications.
Evaluating marketing effectiveness is impossible.
Meeting competition and nonprice competition are both status quo objectives.
Beliefs are not as action-oriented as attitudes.
When the dollar is strong in international exchange, it is easier to sell U.S. products in
overseas markets.
Total distribution costs may increase because of packaging.
“Scrambled merchandising” refers to the practice of conventional retailers handling
many products within a limited-line, even though many of these products have to be
sold at a low profit.
Branding would be more likely to be successful if dependable and widespread
availability of a product is possible.
General Motors (GM), a U.S. automotive manufacturer, has an arrangement with Isuzu
Motors of Japan in which the Isuzu Ascender is produced at the same GM
manufacturing plant as the Chevrolet TrailBlazer and GMC Envoy. All three vehicles
use the same basic platform and engine. This is an example of licensing.
In zone pricing, the seller pays the actual freight charges and bills each customer the
exact amount.
Differentiation means that the marketing mix is distinct from and better than what is
available from a competitor.
Qualitative research seeks in-depth, open-ended responses.
Macro-marketing is concerned with examining the relationship of the entire production
and distribution system.
A positioning analysis is a product-oriented approach.
Service wholesalers may be general-merchandise, single-line, or specialty wholesalers.
Highly trusted people, brands, and companies have many disadvantages in the
marketplace.
How quickly a new product will be accepted by customers and how quickly competitors
will follow with their own version of a product are important factors when planning the
best strategy for a new product.
Advertising is any paid form of nonpersonal presentation of ideas, goods, or services by
an identified sponsor.
With auction companies, demand and supply interact to determine the price.
To share in the government market, it is advantageous to be on the list of approved
suppliers.
A large producer with economies of scale always has a competitive advantage over
smaller firms.
When comparing two similar products, the product with the most features is the higher
quality product.
A marketing plan and a marketing strategy mean the same thing.
Organizational buyers often buy on the basis of a set of purchasing specifications.
There are more pricing options in pure competition than in monopolistic competition.
Retailers who carry any product line that will sell profitably are practicing ‘scrambled
merchandising.”
Consumer products that a customer feels are worth the time and effort to compare with
competing products are shopping products.
Sales promotion can be aimed at intermediaries, at final consumers, or even at a firm’s
own employees.
The seven-step approach to market segmentation begins to consider whether a
particular group can be profitable to the firm in Step 1and that is a major consideration
throughout all seven steps.
____ are short-lived capital items.
A. Accessories
B. Installations
C. Raw materials
D. Components
E. Professional services
Which of the following statements might result from a performance analysis?
A. Our California salesman sold more aluminum tubing than any of our other reps.
B. Sophia Sanchez calls on two of our three biggest customers.
C. Joshua Voigt sold less tubing to wholesalers than to manufacturers.
D. Walker Brown sold more aluminum tubing than steel tubing.
E. Pele Ruiz’s sales are over his quota.
Reminder advertising
A. tries to develop primary demand for a product category rather than demand for a
specific brand.
B. tries to keep the product’s name before the public.
C. means making specific brand comparisons using actual product names.
D. tries to develop selective demand for a specific brand.
E. informs potential customers about the new product and helps turn them into adopters.
Safety standards for products such as bicycles are set by the:
A. Consumer Product Safety Commission.
B. U.S. Department of Transportation.
C. Federal Trade Commission.
D. Environmental Protection Agency.
E. Food and Drug Administration.
An ad stressing the advantages of one brand of cookwarecompared to similar (but
unnamed) competitive productsis an example of ______________ advertising.
A. institutional
B. comparative
C. pioneering
D. primary
E. competitive
Which of the following is NOT a promotion method?
A. mass selling
B. personal selling
C. sales promotion
D. All of these choices are promotion methods.
Paul Osborne is an agent for a major insurance company. He is responsible for building
his own network of clients who purchase insurance policies and other financial services
from him. He schedules appointments with prospective clients, makes sales
presentations, and provides policy service after the sale. Paul is a(n)?
A. Order taker.
B. Order getter.
C. Supporting salesperson.
D. Sales technician.
E. Sales manager.
Which of the following is true of selective distribution?
A. It is commonly needed for convenience products and business supplies used by all
offices.
B. It is selling a product through all responsible and suitable wholesalers or retailers
who will stock or sell the product.
C. It is selling through only one intermediary in a particular geographic area.
D. It is making a product available widely enough to satisfy target customers’ needs but
not exceed them.
E. It is selling through only those intermediaries who will give the product special
attention.
Exporting
A. is selling some of what the firm produces to foreign markets.
B. can be a way to get rid of surplus output.
C. can come from a real effort to look for new opportunities.
D. All of these alternatives are correct.
The main difference between a generic market and a product-market is that:
A. a generic-market involves a less similar set of needs than does a product-market.
B. a product-market is usually larger than a generic market.
C. product-markets usually don’t involve competition, but generic markets do.
D. sellers in a generic market are more concerned with prices than sellers in a
product-market.
E. There is no difference between the two.
Chains formed by independent retailers to run their own buying organizations and
conduct joint promotion efforts are called:
A. cooperative chains.
B. true values.
C. voluntary chains.
D. retailer chains.
E. franchise operations.
A consumer who purchases a new computer but encounters frustration with set up and
technical support may experience: _____.
A. limited problem solving
B. extensive problem solving
C. dissonance
D. evaluation
E. an information search
Which of the following statements about communication processes is(are) true?
A. Targeting is important in both traditional and customer-initiated interactive
communication.
B. The seller starts the communication in the traditional communication process.
C. Noise can distract the process in traditional and customer-initiated interactive
communication.
D. The buyer starts the communication in the customer-initiated interactive
communication process.
E. All of these statements about communication processes are true.
A discount that is offered to encourage buyers to stock earlier than present demand
requires is:
A. a cash discount.
B. a seasonal discount.
C. a quantity discount.
D. “push money.”
E. a credit discount.
Focus groups
A. stimulate discussion among participants.
B. involve interviewing people in a formal setting.
C. use close-ended, yes or no questions.
D. are the same as opinion leaders.
E. are the same as reference groups.
Retailers of expensive heterogeneous shopping products usually have a strong need for:
A. order takers.
B. technical specialists.
C. merchandisers.
D. order getters.
E. supporting salespeople.
When thinking about the product life cycle, a good manager knows that:
A. Sales and profits for individual brands always follow the same life cycle pattern as
industry sales and profits.
B. The only stage in which products are introduced is the market introduction stage.
C. All products will eventually earn a profit.
D. A product that is mature in one market may be in the growth stage in another
international market.
E. None of these alternatives is correct.
Which of the following activities is NOT typical of the commercialization stage?
A. Goods have to be produced to fill the channels of distribution.
B. People must be hired and trained to provide services.
C. Manufacturing or service facilities have to be set up.
D. Full-scale market testing is conducted.
E. Products are introduced city by city or region by region in a gradual “rollout.”
Which of the following is NOT one of the “regrouping activities?”
A. Assorting
B. Ranking
C. Sorting
D. Bulk-breaking
E. Accumulating
A company trying to market its products in a country that has a low literacy rate would
be well advised to:
A. Print its promotional messages in larger font (character) sizes.
B. Conduct marketing research using paper-and-pencil surveys.
C. Use symbols, colors, and other nonverbal means of communication.
D. All of these measures would be useful.
Distribution centers:
A. Are designed to facilitate the flow of products through the channel.
B. Are the same as public warehouses.
C. Are not places where regrouping activitiessuch as bulk-breakingare performed.
D. Increase storing costs.
E. Are designed to eliminate all storage.
The primary purpose of the transporting and storing functions of marketing is to
overcome:
A. the need for marketing specialists.
B. separation of information.
C. spatial separation.
D. discrepancies of assortment.
E. separation of values.
Which of the following is NOT a full-service merchant wholesaler?
A. Broker
B. Single-line wholesaler
C. General-line wholesaler
D. General merchandise wholesaler
E. Specialty wholesaler
Cheese manufacturer, Ashe Mountain Corp., started a new chain of movie theaters
called Ashe Mountain’s Movie World. The theaters have been a major success and
significantly increased the revenues of Ashe Mountain Corp. This is an example of:
A. Diversification.
B. Market development.
C. Product penetration.
D. Differentiation.
E. Market penetration.
Accessory equipment:
A. needs fair to widespread distribution for prompt delivery.
B. needs fairly widespread and numerous contacts by experienced and sometimes
technically trained personnel.
C. needs very widespread distribution for prompt delivery.
D. needs technical contacts to determine specifications required, but widespread
contacts usually are not necessary.
E. needs fairly widespread contacts with users.
For coordinating logistics activities among firms, which of the following statements is
true?
A. Wholesalers in the channel should coordinate storage activities.
B. Competitive firms usually share logistics coordination similarly.
C. Retailers in the channel should coordinate transportation activities.
D. Firms may share logistics coordination in multiple effective ways.
E. Retailers in the channel should coordinate all storage and transport.
When selecting among possible product-market strategic plans,
A. the total profit approach tends to support plans that will be profitable in the short
term even if longer term profits would be higher with another plan.
B. the total profit approach requires estimates of sales, costs, and profits.
C. the total profit approach compares plans that require the same investment.
D. None of these statements is true.
A new grocery store features a bank, a pharmacy, a flower shop, a full-service bakery, a
caf, photo processing, and equipment rentals, in addition to its normal grocery product
lines. The store is engaging in:
A. The wheel of retailing.
B. Retailing strategy.
C. Scrambled merchandising.
D. The retail life cycle.
E. Merchandising strategy.
______________ means potential customers insist on a firm’s branded product and are
willing to search for it.
A. Brand insistence
B. Brand preference
C. Brand nonrecognition
D. Brand rejection
E. Brand recognition
Which of the following statements by a sales manager suggests a problem?
A. “Taking a successful sales rep out of a territory for sales training is like spending
money to teach a fish to swim.”
B. “I was a sales rep before becoming manager, so I don’t need a job description to help
me look for new salespeople.”
C. “I select new salespeople all by myself, because I am the one responsible for the
performance of the sales force.”
D. Each of these statements indicates a problem.
Marketing cost analysis shows that one of Buildco, Inc.’s customers is unprofitable, so
Buildco should:
A. refuse to sell to that customer.
B. try to determine why this customer is unprofitable.
C. drop the customer and shift all fixed costs to the other customers.
D. assign a new salesperson to that account.
E. immediately develop a plan to sell more to that customer.
Avon, which in the past relied on door-to-door personal selling, is trying to reach new
customers by distributing mail-order catalogs, adding toll-free telephone ordering, and
opening online retail sites. Avon is pursuing a ______________ opportunity.
A. market development
B. market penetration
C. target marketing
D. product development
E. mass marketing
Regarding pricing objectives, a good marketing manager knows that:
A. sales-oriented objectives usually lead to high profits.
B. target return objectives usually lead to a large profit.
C. status quo pricing objectives can be part of an extremely aggressive marketing
strategy.
D. profit maximization objectives always lead to high prices.
E. None of these alternatives is correct.