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It is illegal for a firm to use a package that cannot be recycled.
Answer:
When considering international markets, income is often one of the most important
demographic dimensions.
Answer:
In a recent survey of over 28,000 Internet consumers from 56 countries, 90 percent of
respondents said they trusted recommendations from people they knew.
Answer:
A S.W.O.T. analysis is not necessary if the firm is considering entering an established
market that is already served by competitors.
Answer:
Mass-merchandisers have become the primary place to shop for many frequently
purchased consumer products.
Answer:
Macro-marketing emphasizes how the whole marketing system works.
Answer:
When evaluating opportunities, quantitative screening criteria help a manager decide
what kind of opportunities to pursue.
Answer:
Placing the interests of individual consumers before the interests of business is
nationalism.
Answer:
A nonprofit organization does not measure profit in the same way as a firm.
Answer:
The fact that many firms are too production-oriented and inefficient is one reason why
so many new products fail.
Answer:
A mission statement sets out the organization's basic purpose for being.
Answer:
It is the sole responsibility of the sales manager to decide what types of tools are needed
and how they will be used.
Answer:
When evaluating marketing, it is best to evaluate micro-marketing and
macro-marketing separately.
Answer:
Market-directed economies tend to provide consumers with greater freedom of choice
than command economies.
Answer:
Estimating what price consumers are willing to pay for a product and if the firm can
make a profit selling at that price, is an example of a production activity.
Answer:
Department stores keep growing in numbers, sales, and market share.
Answer:
A firm that has a lot of "management know-how," but expects production problems in a
foreign market, might be wise to use management contracting.
Answer:
"Demand-backward pricing" involves a producer estimating an acceptable final
consumer price and working backward to determine what the producer can charge in
the channel.
Answer:
An effective macro-marketing system overcomes discrepancies of quantity and
discrepancies of assortment by using the universal functions of marketing.
Answer:
The marketing concept means that an organization aims all its efforts at satisfying its
customers-at a profit.
Answer:
Advertising can be useful in a marketing strategy for getting attention, holding interest,
arousing desire, and obtaining action.
Answer:
Sales promotions can usually get sales results sooner than advertising.
Answer:
"Sorting" means separating products into grades and qualities desired by different target
markets.
Answer:
The first step in a competitor analysis is to identify potential competitors.
Answer:
The American economy is entirely market-directed.
Answer:
Pay-per-click advertising means advertisers pay only if the customer clicks on the ad
and links to the advertiser's website.
Answer:
Of all the major ethnic groups in the U.S., Asian Americans have the highest median
family income.
Answer:
One reason for the popularity of mail surveys is that the response rates are usually very
high.
Answer:
A value pricer tries to offer a target market the same marketing mix as competitors but
with a below-the-market price.
Answer:
Brand preference means customers usually choose the brand over other brands, perhaps
out of habit or past experience.
Answer:
A wholesaler's order-getting salespeople are likely to be paid more than its order takers.
Answer:
Computer-aided segmenting approaches eliminate the need for managerial judgment
and intuition in selecting segmenting dimensions.
Answer:
Price discrimination is illegal according to the provisions of the Robinson-Patman Act.
Answer:
A firm in monopolistic competition with a down-sloping demand curve:
A. does not have to worry about price competition due to the nature of its demand
curve.
B. can use marginal analysis to help it maximize profits.
C. will have to charge the "market price" which is set by the intersection of industry
supply and demand.
D. could use marginal analysis to compare alternatives-but this would not help in
pricing because this method focuses on selling one more unit and therefore ignores total
profitability.
E. None of these alternatives is correct.
Answer:
"Intensive distribution" means selling through:
A. only one channel of distribution.
B. all responsible and suitable retailers or wholesalers.
C. only one intermediary in a particular geographic area.
D. only those intermediaries who give the product special attention.
E. all retail outlets.
Answer:
Which of the following statements about positioning is FALSE?
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.
Answer:
A firm's "relevant market for finding opportunities" should:
A. be limited to products the firm already produces.
B. be bigger than the firm's present product-market-but not so big that the firm could
not be an important competitor.
C. have no geographic boundaries.
D. be as large a possible.
E. be no larger than the firm's present product-market.
Answer:
Which of the following types of salespeople is essential for selling installations to
producers?
A. Order takers
B. Missionary salespeople
C. Customer service reps
D. Order getters
E. Technical specialists
Answer:
Which of the following is an effective source of ideas at the idea generation stage of the
new-product development process?
A. Customer complaints.
B. Lead-users of the product.
C. Competitors' products.
D. Products found in overseas markets.
E. All of these would be effective sources of ideas.
Answer:
Which of the following is the LEAST appropriate advertising objective?
A. "We want our ads to increase traffic in our retail outlets by 10 percent."
B. "We want our TV ads to really promote the product."
C. "We want the ad campaign to increase our market share by 3 percent."
D. "We want distribution in 30 percent of the desirable retail outlets."
E. None of these, i.e., all are equally appropriate.
Answer:
Advertising allowances
A. are price reductions to firms further along in the channel to encourage them to
advertise or otherwise promote the firm's products locally.
B. involve intermediaries and producers sharing in the cost of ads.
C. allow for coordination and integration of ad messages in the channel.
D. set the allowance amount as a percent of the retailer's actual purchases.
E. offer incentives that encourage retailers to stock up on a product.
Answer:
A salesperson in a large furniture outlet who earns 5 percent of the dollar sales she
completes each month is on what type of compensation program?
A. Straight salary
B. Sales quota
C. Combination plan
D. Straight commission
E. Selling formula plan
Answer:
A cash discount of 3/15, net 30 means that:
A. The buyer gets a 15 percent discount off the face value of the invoice if the invoice is
paid within 3 days.
B. The buyer gets a 3 percent discount off the face value of the invoice if the invoice is
paid within 15 days.
C. The buyer makes a 3 percent down payment on the face value of the invoice within
15 days; the remainder is due in 30 days.
D. The buyer gets a 3/15 (20 percent) discount if the invoice is paid within 30 days.
E. None of these alternatives is correct.
Answer:
The fact that the demand for business products depends a lot on the demand for final
consumer products is called:
A. primary demand.
B. derived demand.
C. diminishing demand.
D. elastic demand.
E. secured demand.
Answer:
A firm acquiring another firm at a different level of activity within a channel of
distribution is called:
A. vertical integration.
B. a tying contract.
C. dual distribution.
D. horizontal integration.
E. a regrouping activity.
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.
For its plates, CPI uses ______________ pricing.
A. flexible
B. demand-oriented
C. target return
D. average-cost
E. penetration
Answer:
A focus on a target return or return on investment are characteristic of _____ pricing
objectives.
A. profit-oriented
B. sales-oriented
C. status-quo oriented
D. purchase oriented
E. market-share oriented
Answer:
A potential customer watches a TV ad for the new BMW 7-series sedan during the
highly-rated Academy Awards program. In the traditional communication model, the
TV is the:
A. Source
B. Message channel
C. Receiver
D. Encoder
E. Decoder
Answer:
Emil Flores won't buy any coffee except "Blue Mountain"-a relatively expensive type
that few stores sell. He used to have to drive about 10 miles out of his way to buy it at a
small shop-but now he has persuaded his local supermarket manager to handle this
coffee. For him, this coffee is
A. an emergency product.
B. a specialty product.
C. a staple product.
D. an unsought product.
E. a heterogeneous shopping product.
Answer:
When evaluating international markets, the marketing manager should:
A. focus primarily on consumer markets because foreign business markets are in
general too risky.
B. not worry very much about segmenting because marketing concepts are not very
well developed in most other economies.
C. consider the whole "foreign market" as a segment.
D. use broad criteria, such as geographic region or stage of economic development, to
define submarkets before further segmenting.
E. treat each foreign market as a separate segment.
Answer:
When Ford Motor Co. introduced its Escape hybrid SUV, it offered a $1,000 rebate as
an incentive to attract new buyers. This was an example of which aspect of the
marketing mix?
A. Price
B. Promotion
C. Place
D. Product
Answer:
To improve its profits, Delta Tool Corp. has redesigned its entire line of rechargeable
power drills-adding several new or improved features and three new models.
Apparently, Delta Tool is pursuing a ______________ opportunity.
A. combiner
B. market development
C. product development
D. diversification
E. market penetration
Answer:
Deciding on the appropriate promotion blend is a job for the firm's:
A. advertising agency.
B. marketing manager.
C. advertising manager.
D. sales manager.
E. sales promotion manager.
Answer:
One basic idea of the marketing concept is
A. a production orientation must guide the whole system.
B. an organization should build "fences" around its own departments.
C. survival and success require a profit.
D. a firm should "give customers what it produces best."
E. a firm's obligation to have a positive effect on society.
Answer:
Department stores:
A. Are no longer a major retail force in large U.S. cities.
B. Have increased in number since the 1970s.
C. Usually offer many product lines.
D. Have increased their share of retail business since the 1970s.
E. Are not threatened by mass-merchandising retailers.
Answer:
When marketing a truly new product, a marketing manager should:
A. use an informing promotion objective.
B. target communication towards innovators and early adopters.
C. attempt to obtain publicity.
D. All of these alternatives are correct.
Answer:
Allan Clapp is a purchasing agent for Deep River Mfg. Co. He regularly buys items
such as nails, light bulbs, brooms, and sweeping compounds. In other words, he buys:
A. components.
B. supplies.
C. installations.
D. professional services.
E. accessory equipment.
Answer:
Regarding component parts,
A. the original equipment market and the aftermarket for component parts are typically
separate target markets.
B. a product originally sold as a component part may become a consumer product when
sold in the "aftermarket."
C. component buyers want dependable suppliers.
D. they are finished items that must meet specifications.
E. All of these alternatives are correct.
Answer:
Which of the following statements about "needs" is true?
A. A higher level need may develop before lower level needs are all satisfied.
B. If lower level needs are reasonably satisfied, those at higher levels become more
dominant.
C. A particular product may satisfy more than one need at the same time.
D. All of these statements about "needs" are true.
Answer:
In the market maturity stage
A. sales promotion may be targeted at channel members to get them interested in selling
the new product.
B. mass selling becomes more economical.
C. business products require less aggressive personal selling.
D. mass selling and sales promotion may dominate the promotion blends of consumer
products firms.
E. the main job is to persuade customers to buy, and keep buying, the company's
product.
Answer:
The need for reverse channels may arise in all of the following situations EXCEPT
A. a consumer buys something in error and wants to return it.
B. a firm makes an error in completing an order.
C. a product is recalled for safety reasons.
D. a consumer changes her mind after purchasing a product.
E. All of these create a need for reverse channels.
Answer:
According to the text:
A. both micro-marketing and macro-marketing usually cost too much.
B. neither micro-marketing nor macro-marketing costs too much.
C. macro-marketing costs too much in the United States.
D. micro-marketing frequently costs too much.
Answer:
The ____ prohibits exclusive dealing contracts.
A. Antimerger Act
B. Clayton Act
C. Magnuson-Moss Act
D. Wheeler-Lea Amendment
E. Federal Trade Commission Act
Answer:
When a supplier's computer automatically processes an online order from a customer,
schedules production activities for the order, and then sets up delivery of the finished
product to the customer, what approach is being used?
A. Piggyback
B. EDI
C. Containerization
D. JIT
E. Contractual
Answer:
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.
Answer:
The "adoption curve" shows:
A. when different groups accept ideas.
B. how quickly a firm should drop current products.
C. the relationship between promotion spending and sales.
D. when a firm should introduce a new product.
E. All of these alternatives are correct.
Answer:
A producer of country music CDs pays a share of local retailers' costs-to get them to
promote its new releases. This is an example of:
A. pioneering advertising.
B. institutional advertising.
C. comparative advertising.
D. cooperative advertising.
E. selective advertising.
Answer:
Many companies police the Internet:
A. to remove outdated comments posted by customers.
B. to delete positive reviews about their brands.
C. to bury negative information about their brands.
D. to add positive reviews of their competitors' brands.
Answer:
