MET 92417 | Course Paper

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Trying to maximize short-run return on investment may not be compatible with a

company’s other objectives.

Answer:

Micro-marketing is a social process that directs an economy’s flow of goods and

services from producers to consumers in a way that effectively matches supply and

demand and accomplishes society’s objectives.

Answer:

In the market growth stage, sales promotion is targeted at salespeople or channel

members to get them interested in selling the new product.

Answer:

The late majority are less likely to follow opinion leaders and may need some pressure

from their own group before they try a new product.

Answer:

Assorting means separating products into grades and qualities desired by different target

markets.

Answer:

Which of the following statements regarding marketing strategies is FALSE?

A. It is useful to think of the marketing strategy planning process as a narrowing-down

process.

B. These strategies must meet the needs of target customers, and a firm is likely to get a

competitive advantage if it just meets needs in the same way as some other firm.

C. Developing successful marketing strategies doesn’t need to be a hit-or-miss

proposition.

D. These strategies require decisions about the specific customers the firm will target

and the marketing mix the firm will develop to appeal to that target market.

E. Most companies implement more than one marketing strategy and related marketing

plan at the same time.

Answer:

Many business products are sold direct, but hardly any services are.

Answer:

One of the important differences between raw materials and other business products is

that raw materials usually have to be graded.

Answer:

2/10, net 30 means the buyer can take a 2 percent discount off the face value of the

invoice if the invoice is paid within 10 days.

Answer:

The total cost approach involves evaluating each possible PD system and identifying all

the transportation costs associated with each alternative.

Answer:

Beliefs are more action-oriented than attitudes.

Answer:

Manufacturer brands are always advertised and distributed more widely than dealer

brands.

Answer:

Marketing can be viewed as a set of activities performed by organizations, but not as a

social process.

Answer:

Adoption of the marketing concept is now universal.

Answer:

In international markets marketing managers usually have an easier time understanding

the variables in the market environment.

Answer:

The main difference between a “product-market” and a “generic market” is whether

customer needs are similar or different.

Answer:

When segmenting markets, one should look at geographic location and demographic

characteristics as well as customers’ desire and willingness to compare and shop, but

behavioral needs aren’t important for this purpose.

Answer:

“Value pricing” means setting a fair price level for a marketing mix that gives the target

market superior customer value.

Answer:

“Ideal market exposure” should make a product widely enough available to satisfy

target customers’ needs, but not exceed them.

Answer:

In the market growth stage, more competitors enter the market, and promotion

emphasis shifts from selective demand to primary demand.

Answer:

The average retail store is too small to gain economies of scale.

Answer:

Horizontal agreements to limit sales by territory or customer are always illegal

according to the Supreme Court.

Answer:

Franchise operations, such as Subway, Quiznos, Curves, The UPS Store, Jackson

Hewitt Tax Service, Dunkin’ Donuts, Jani-King, RE/MAX Int’l, 7-Eleven, and Liberty

Tax Service account for about a third of all retail sales.

Answer:

“Meeting competition” in “good faith” is allowed as a defense in price discrimination

situations.

Answer:

The “universal functions of marketing” consist only of buying, selling, transporting, and

storing.

Answer:

Price fixing is not illegal unless it hurts a competitor.

Answer:

Adopting the marketing concept requires that a business firm eliminate all functional

departments.

Answer:

The main problem with integrated direct-response promotion is that it’s nearly

impossible to determine if it’s effective.

Answer:

The U.S. auto industry has become much more marketing-oriented since Henry Ford

introduced the Model T.

Answer:

Because the Consumer Product Safety Commission has no power to force a product off

the market, safety is not a very important consideration in product design.

Answer:

The customer is a part of the marketing mix and should be the target of all marketing

efforts.

Answer:

Exchanges between producers and consumers are more difficult in an advanced

economy because of:

A. separation in time.

B. separation in values.

C. spatial separation.

D. separation of information.

E. All of these are correct.

Answer:

When setting salespeople’s compensation level,

A. a company should pay everyone at least the going market wage for order getters.

B. salespeople should be the highest-paid employees in the company.

C. order takers should be paid more than order getters.

D. the first step is to write job descriptions.

E. None of these alternatives is correct.

Answer:

After evaluating all of its alternatives and the costs of each, Vegpro Kenya decided the

most efficient way to quickly get its fresh vegetables from Nairobi to European cities

was to use air freight. What approach did it use in making this decision?

A. Diagonal

B. Total cost

C. Piggyback

D. EDI

E. Layered

Answer:

Monica does not find her regular brand of shampoo at the store. She looks at the bottles

of three brands before deciding on the Shine-On brand. Monica has engaged in

A. limited problem solving.

B. intensive problem solving.

C. routinized response behavior.

D. extensive problem solving.

E. analytical problem solving.

Answer:

A producer wants to reduce sales force turnover AND obtain a more aggressive sales

effort for its accessories. Which of the following sales force payment methods should it

use?

A. Straight salary

B. Selling formula plan

C. Combination plan

D. Straight commission

Answer:

Which of the following is NOT a convenience product?

A. A staple.

B. An impulse product.

C. A business product.

D. An emergency product.

E. All of these are convenience products.

Answer:

When firms promote products to their own employees as part of an internal marketing

effort, they are using a

A. digital marketing approach.

B. pulling approach.

C. personal selling approach.

D. telemarketing approach.

E. pushing approach.

Answer:

Which of the following is NOT one of the consumer product classes discussed in the

text?

A. Unsought products

B. Imitation products

C. Shopping products

D. Convenience products

E. Specialty products

Answer:

A target market and a related marketing mix make up a:

A. Marketing plan.

B. Marketing strategy.

C. Marketing program.

D. Marketing analysis.

E. Marketing proposal.

Answer:

Which era of marketing is characterized by families who sold their surpluses to local

distributors?

A. The simple trade era

B. The production era

C. The sales era

D. The marketing department era

E. The marketing company era

Answer:

A generic market

A. related to a consumer’s functional need is smaller than a related product-market.

B. might involve competition among skis, roller blades, bicycles, and ice skates.

C. might logically include rubber, cement, a lamp, and a CD player.

D. is usually narrower than the firm’s target market.

E. All of these choices are correct.

Answer:

_____ is the intentional coordination of every communication from a firm to a target

customer to convey a consistent and complete message.

A. Integrated marketing communications

B. Online marketing

C. Branding

D. Digital marketing

E. Product positioning

Answer:

______________ is the words and illustrations of an ad message that actually

communicate information to the target customer.

A. Copy text

B. Copy thrust

C. Copy edits

D. Copy proof

E. Copy objective

Answer:

Over time, a skimming policy usually involves

A. price movement up the demand curve.

B. price movement down the demand curve.

C. profit minimization in the market introduction stage.

D. efforts to target the top portion of the demand curve.

E. declining sales and profits.

Answer:

“Target marketing,” in contrast to “mass marketing,”

A. ignores the need for the firm to obtain a competitive advantage.

B. ignores markets that are large and spread out.

C. is limited to small market segments.

D. assumes that all customers are basically the same.

E. None of these answers is correct.

Answer:

Which of the following does NOT support the idea that “MICRO-marketing often

DOES cost too much”?

A. Many firms focus exclusively on their own internal problems.

B. Distribution channels may be selected on the basis of personal preferences.

C. Product planners frequently develop “me-too” products.

D. Costly promotion may try to compensate for a weak marketing mix.

E. Many firms try to maximize profits.

Answer:

“Price”:

A. is affected by the kind of competition in the target market.

B. includes markups and discounts, but not allowances and freight charges.

C. is not affected by customer reactions.

D. is the most important part of a marketing mix.

Answer:

Which item famously originated in the production era?

A. Laptop computers

B. Home movie rentals

C. Chariots

D. Automobiles

E. Compact fluorescent light bulbs

Answer:

Regarding an estimate from a survey, the range on either side of the survey result that is

likely to contain the “true” value of the relevant population is called:

A. sample range.

B. accuracy range.

C. confidence interval.

D. validity interval.

E. population estimate.

Answer:

Buyers at _______ sees their role as being “purchasing agents for their target

customers”?

A. manufacturers

B. government agencies

C. service firms

D. non-profits

E. retailers and wholesalers

Answer:

The Robinson-Patman Act specifically aims at:

A. unfair methods of competition.

B. price discrimination.

C. deceptive advertising.

D. firms that rely on salespeople who sell “door to door.”

E. attempts to monopolize.

Answer:

Use this information for question that refer to the Sporting Products, Inc. (SPI) case.

Randy Todd, marketing manager for Sporting Products, Inc. (SPI), is thinking about

how changes taking place among retailers in his channel might impact his strategy.

SPI sells the products it produces through wholesalers and retailers. For example, SPI

sells basketballs to Wholesale Supply for $8.00. Wholesale Supply uses a 20 percent

markup and most of its ‘sport shop” retailer customers, like Robinson’s Sporting Goods,

use a 33 percent markup to arrive at the price they charge final consumers. However,

one fast growing retail chain, Sports Depot, only uses a 20 percent markup for

basketballs, even though it pays Wholesale Supply the same price as other retailers.

Furthermore, Sports Depot occasionally lowers the price of basketballs and sells them

at cost-to draw customers into its stores and stimulate sales of its pricey basketball

shoes.

Sports Depot is also using other pricing approaches that are different from the sports

shops that usually handle SPI products. For example, Sports Depot prices all of its

baseball gloves at $20, $40, or $60-with no prices in between. There are three big bins –

one for each price point.

Todd is also curious about how Sports Depot’s new strategy to increase sales of tennis

balls will work out. The basic idea is to sell tennis balls in large quantities to nonprofit

groups who resell the balls to raise money. For example, a service organization at a

local college bought 2,000 tennis balls printed with the college logo. Sports Depot

charged $.50 each for the tennis balls-plus a $500 one-time charge for the stamp to print

the logo. The service group plans to resell the tennis balls for $2.50 each and contribute

the profits to a shelter for the homeless.

Todd is not certain if Sports Depot ideas will affect SPI’s plans. For example, SPI is

considering adding tennis racquets to the lines it produces. This would require a

$500,000 addition to its factory as well as the purchase of new equipment that costs

$1,000,000. The variable cost to produce a tennis racquet would be $20, but Todd

thinks that SPI could sell the racquet at a wholesale price of $40 each. That would allow

most retailers to add their normal markup and make a profit. However, if Sports Depot

sells the racquet at a lower than normal price other retailers might decide to carry it.

If SPI uses average-cost pricing, a big problem will be:

A. it ignores the demand curve for its products.

B. fixed costs are too hard to estimate.

C. the effects of variable costs are ignored.

D. the desired profit cannot be included.

Answer:

Everyday low pricing of consumer convenience products:

A. tends to reduce fluctuations in prices customers actually pay.

B. has been used by many retailers even though no producers have adopted this

approach.

C. makes it easy to quickly compete on price-without changing the basic strategy-when

a competitor offers a particularly large discount for a short period of time.

D. relies on frequent discounts and allowances from the producer.

E. confuses customers and increases selling costs.

Answer:

The median age of the U.S. population

A. was 37 in 1980.

B. will be about 30 by 2010.

C. is decreasing because the percentage of population in older age groups has

decreased.

D. is growing because the percentage of population in older age groups has increased.

E. has not changed since 1980.

Answer:

A salesperson driving to visit a client located two hours away has a tire blow out on the

highway. He walks about a mile to the next exit where he finds a service station. The

owner of the station says he can replace the blown tire, but it will cost twice as much as

it would to purchase a tire in the salesperson’s home city. The salesperson, not wanting

to be late for his appointment, agrees to pay the higher price in order to get back on the

road. This case illustrates the effect of ______________________ on buying behavior.

A. cultural background

B. social groups

C. purchase situation

D. learning situation

E. reference groups

Answer:

In order to stand apart, the airline Fly High Air offers low airfares and heavy seasonal

discounts. However, it charges its passengers for in-flight meals, water, and baggage

service as opposed to its competitors who offer these services for free. Fly High Air is

following a(n) _____ pricing strategy.

A. odd-even

B. unbundled

C. negotiated

D. bid

E. markup

Answer:

Use this information for question that refer to the Sporting Products, Inc. (SPI) case.