MET 87695

subject Type Homework Help
subject Pages 15
subject Words 4021
subject Authors E. Jerome Mccarthy, Joseph Cannon, William Perreault Jr.

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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.
Answer:
Which of the following is a consequence of consumers easily finding product
satisfaction information through consumer reviews on the Internet?
A. It allows firms to make exaggerated claims about its products.
B. It allows government agencies to control interest rates and the supply of money.
C. It allows firms to monopolize markets.
D. It lets firms evaluate macro-marketing strategies in terms of society's objectives.
E. It lets firms play by the socially accepted "rules of the game."
Answer:
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If the promotion objective is to develop a desired positioning, which type of publicity
would work best?
A. Branded services
B. Direct-to-consumer press releases
C. Customer reviews
D. Case studies
E. Facebook
Answer:
Regarding marketing strategy planning:
A. marketing managers seldom know everything they would like to know about the
needs and attitudes of their target markets.
B. marketing managers implement marketing STRATEGIES-NOT marketing plans.
C. the market environment may force marketing managers to change target markets-but
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their marketing mixes usually are not affected.
D. it is easier in large firms because marketing managers can count on specialists to
plan each of the "four Ps."
E. All of these alternatives are correct.
Answer:
Auction companies:
A. Take over the whole marketing job of producers.
B. Work almost as members of a company's sales force.
C. Take title to the products they resell.
D. Provide a place where buyers bid to complete a transaction with a seller.
E. All of these alternatives are correct for auction companies.
Answer:
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Some top managers seek only enough profits to convince stockholders that they are
"doing a good job." The pricing objective of such managers is:
A. satisfactory profits.
B. status quo.
C. nonprice competition.
D. profit maximization.
E. meeting competition.
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
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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.
For the picnic plates, CPI seems to be facing:
A. monopolistic competition approaching pure competition.
B. a pure monopoly situation.
C. pure competition.
D. monopolistic competition approaching pure monopoly.
E. an oligopoly situation.
Answer:
A producer's order taker
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A. usually has little opportunity to increase sales in a territory.
B. is expected to help customers when something goes wrong with the marketing mix.
C. doesn't have to make sales presentationsorder getters do this task.
D. doesn't have to keep customers informed about new developments-order getters do
this task.
E. None of these alternatives is correct.
Answer:
A retailer pays a wholesaler $24.00 for an item and then sells it with a 25 percent
markup. The retailer's selling price is:
A. $32.00.
B. $56.00.
C. $48.00.
D. $30.00.
E. None of these alternatives is correct.
Answer:
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Product recalls, returns, and recycling plans require some firms to use:
A. vertical integration.
B. contractual channel systems.
C. exclusive distribution.
D. selective distribution.
E. reverse channels.
Answer:
Luke Flaherty wants to buy an electric drill for some jobs around his home. Deciding
that all such drills are similar, he reads all the advertisements in his Sunday paper in
search of the best price. For Luke, these drills are:
A. a heterogeneous shopping product.
B. a staple product.
C. a specialty product.
D. a homogeneous shopping product.
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E. an emergency product.
Answer:
In the United States, the federal regulatory agency that has the power to control
deceptive advertising and require corrective advertising is the:
A. Securities and Exchange Commission.
B. Federal Trade Commission.
C. Office of Consumer Affairs.
D. Fair Trade Committee.
E. Consumer Product Safety Commission.
Answer:
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Which of the following is NOT true about searches on the Internet?
A. The Internet provides information useful to marketing managers.
B. Search directories are useful for general information about a broader topic area.
C. Search engines have access to all information on the Internet.
D. Sites like Complete Planet give a listing of more than 70,000 searchable databases.
E. Search engines like Google are useful when you have a pretty clear idea about what
you are seeking.
Answer:
When a firm tries to increase sales by offering new or improved products to its present
markets, this is called:
A. mass marketing.
B. product development.
C. market penetration.
D. diversification.
E. market development.
Answer:
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Which of the following is the primary difference between introductory price dealing
and low penetration price policy?
A. Introductory price dealing targets the top of the demand curve while low penetration
price policy targets the bottom of the demand curve.
B. Low penetration price policy targets the top of the demand curve while introductory
price dealing targets the bottom of the demand curve.
C. In introductory price dealing, the price continuously moves down the demand curve
while it is static in low penetration price policy.
D. In the low penetration price policy, the price is fixed as opposed to introductory price
dealing where the price varies according to the customer's ability to pay.
E. In introductory price dealing, the price rises after the introductory offer while it
remains unchanged in low penetration price policy.
Answer:
Consumers go through six steps when deciding to accept or reject a new idea. In this
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adoption process:
A. the confirmation step follows the decision step.
B. the evaluation step follows the trial step.
C. the awareness step follows the interest step.
D. the trial step follows the awareness step.
E. none of these is correct for the steps in the adoption process.
Answer:
In marginal analysis, the most profitable price is the price at which:
A. Profit is based on competitive pricing.
B. Total revenue and total cost are equal.
C. The difference between total revenue and total cost is greatest.
D. Total profit and total cost are equal.
E. None of these is a good answer.
Answer:
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Despite the Antimerger Act, there has been some leniency in allowing mergers between
firms that have been competitors. When considering a merger, companies should take
this aspect of the _____________ environments into consideration.
A. legal and political
B. cultural and economic
C. technological and legal
D. social and cultural
E. political and economic
Answer:
Total cost:
A. increases directly with increases in total variable cost.
B. is zero at zero output.
C. is fixed in total no matter how much is produced.
D. increases directly with increases in total fixed cost.
E. None of these alternatives is correct.
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Answer:
Use this information for question that refer to the Sunny Day Foods (SDF) Case.
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.
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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.
Which of the following terms best describes the "Hot 'n Healthy" brand?
A. Manufacturer brand
B. Individual brand
C. Family brand
D. Generic product
E. Private brand
Answer:
Each of the following statements regarding online promotional communications is true
EXCEPT:
A. Marketing managers need not focus on online information they don't create.
B. Online complaints can serve the purpose of highlighting unmet customer needs.
C. Marketing managers need to know where customers are likely to search for
information and monitor what is being said there.
D. Customers often make purchases based on information that was not influenced by
the product's marketing manager.
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E. Customers who search online often find messages outside the marketer's control.
Answer:
The typical markup (percent) is the:
A. cost of an item divided by its selling price-times 100.
B. selling price minus the cost of the item, divided by the cost of the item-times 100.
C. selling price of an item, divided by its cost-times 100.
D. selling price minus the cost of the item, divided by the selling price-times 100.
E. selling price minus the cost of the item, divided by the average fixed cost-times 100.
Answer:
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Which of the following is NOT true about a market-directed economy?
A. Consumers enjoy maximum freedom of choice.
B. Producers enjoy maximum freedom of choice.
C. The interaction between consumers and producers is great.
D. Government is responsible for setting up all marketing activities.
E. The price of a consumer product serves as a measure of its value.
Answer:
Use this information for question that refer to the "Salespeople" case.
Wilson Alvaro graduated with a marketing degree almost a year ago. Like many of his
friends, he took a job in sales and really enjoys it. A description of Wilson's job and
those of some of his friends are noted below.
Wilson Alvaro loves biking and has his dream job. He works for a wholesale company
that sells mountain bikes for a manufacturer. He works with a small group of people
who call on the buying offices for two large retail chains, Wal-Mart and Toys R Us. The
group includes a finance person and a production person, and they all work together to
meet the specific needs of these two big accounts; for example, sometimes they
recommend a model of bike that will be available from only that retailer's stores.
However, Wilson's main job focuses on building relationships and solving customer
problems. Only occasionally is he expected to try to persuade the retailers to buy more
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bikes.
Amy Bowden sells life insurance. She calls on new parents and persuades them to buy
insurance products. It is difficult for a manager to control Amy's work, but she has
incentive to work hard because her job security and income depend on getting sales.
She is a confident self-starter, so she likes it that way.
Ben Peterson works for a fashionable men's clothing store. He enjoys spending time
with customers who come in, learning about their fashion needs, and helping them pick
clothes that really work for them. While the store manager can easily observe and direct
Ben's activities, the manager wants Ben to have the incentive to increase customer
purchases and satisfaction.
Emily Winters handles inside sales for a major industrial distributor. She deals with a
regular set of established customers, most of whom know what they want. Emily talks
to them on the phone and answers questions about products, delivery time, and pricing.
She sometimes works with outside sales reps who visit customers and help introduce
new products. Emily is the first person her customers call when there's a problem with a
purchase, so she spends a lot of time dealing with customer problems. As an inside
salesperson, Emily's work is easily supervised by a sales manager - and she has little
influence on how much her customers buy.
Melissa Tran works for a company that sells paper products (like napkins, paper towels,
and paper plates) primarily through small independent grocers. Most of the grocers are
regular customers, but sometimes she makes cold calls to new grocery stores. Melissa's
job is to develop goodwill and try to increase sales. For example, she often sets up
special promotional displays in stores. Her compensation plan gives her income
security, but she also can receive a bonus for sales growth in her territory.
Charlie Riggs is a telemarketer for an Internet service provider. He calls people on a list
provided by his firm and tries to sign them up for Internet service. Charlie relies heavily
on a presentation he learned during his training. Charlie is very good at what he does
and loves that the more success he has the more he earns.
Which salesperson has a job that requires NO training in sales?
A. Charlie Riggs.
B. Melissa Tran.
C. Emily Winters.
D. Ben Peterson.
E. All of these jobs require some training in sales.
Answer:
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For a home-based purchase of a furnace, the consumer decision process typically
begins:
A. when home heating commercials create product awareness.
B. when a furnace sale is advertised in coupon mailings.
C. when the first cold day of winter sets in.
D. when a malfunction occurs in an older furnace.
E. every ten years.
Answer:
A combined target market approach
A. sacrifices possible economies of scale.
B. requires more investment than a multiple target market approach.
C. may not satisfy customers as well as the multiple target market approach.
D. trades off sales volume to provide a small market superior value.
E. aims at two or more segments with multiple marketing mixes.
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Answer:
Advertising agencies:
A. usually require advertisers to sign long-term contracts.
B. prefer to work with local advertisers rather than national advertisers.
C. compete against the national media for the business of big advertisers.
D. do little more than sell media time or space to advertisers.
E. are specialists in planning and handling mass selling details.
Answer:
In a pure subsistence economy,
A. each family unit is self-sufficient.
B. exchanges are very important.
C. the standard of living must be relatively high.
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D. there is a great need for intermediaries.
Answer:
A corporate chain is defined as
A. a firm that owns and manages more than one store.
B. retailer-sponsored groups formed by independent retailers that run their own buying
organizations and conduct joint promotion efforts.
C. wholesaler-sponsored groups that work with "independent" retailers.
D. franchisors who develop good marketing strategies, and who carry out the strategy in
their own units.
E. a firm that owns a single-store but operates through multiple franchisors.
Answer:
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As a product moves through its product life cycle stages:
A. consumers are offered less product variety.
B. distribution tends to become more and more exclusive.
C. competition forces firms to skim instead of just meeting competition.
D. the promotion emphasis is on building selective demand.
Answer:

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