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A mission statement substitutes for more specific objectives.
Answer:
The major disadvantage of price lining is that it is complicated for both clerks and
customers.
Answer:
A firm may find that both the competitive and economic environments are better in a
foreign market than in its domestic market.
Answer:
A marketing researcher using the scientific method develops and tests hypotheses about
the relationships between things or about what will happen in the future.
Answer:
The approaches used to serve business customers in international markets are even
more varied than those required to reach individual consumers.
Answer:
In a recent survey of over 28,000 Internet consumers from 56 countries, less than 50
percent of respondents said they trusted recommendations from people they knew.
Answer:
The cultural and social environment affects how and why people live and behave as
they do.
Answer:
The process of organizational buying is entirely different from consumer buying.
Answer:
Cookies give customers information about advertisers.
Answer:
As with any business, a nonprofit organization must take in as much money as it spends
or it won't survive.
Answer:
Most companies implement only one marketing strategy at a time.
Answer:
By 2010, after taking inflation into account, the median income in the U.S. declined by
7 percent in the previous decade.
Answer:
With complementary product pricing, different price levels are set on different products
because the products are targeted at different market segments.
Answer:
Warehouse clubs started the move to mass-merchandising.
Answer:
Not all societies need an economic system.
Answer:
Sales promotion can be aimed at intermediaries, at final consumers, or even at a firm's
own employees.
Answer:
An important difference between raw materials and other business products is the need
for grading.
Answer:
A channel captain helps direct the activities of a whole channel and tries to avoid or
solve channel conflicts.
Answer:
The more narrowly we define a product-market, the shorter the product life cycle
because improved product ideas come along to replace the old.
Answer:
A combination export manager is a blend of manufacturers' agent and selling agent.
Answer:
Marketing strategy planning should specify all of the operational decisions to
implement the plan.
Answer:
Mass-merchandisers emphasize "hard goods" while discount houses emphasize 'soft
goods."
Answer:
Product means the need-satisfying offering of a firm.
Answer:
Firms that embrace the marketing concept seek ways to build a profitable long-term
relationship with each customer.
Answer:
The Lanham Act spells out the exact method for protecting registered trademarks, but
does not force firms to register their trademarks.
Answer:
In the "Borden case," the U.S. Supreme Court ruled that a well-known label alone
makes a product different from a physically similar product with an unknown label.
Answer:
"Regrouping activities" involve adjusting the quantities or assortments of products
handled at each level in a channel of distribution.
Answer:
The task method of budgeting focuses on the amount being spent by competitors.
Answer:
Producers who operate in a competitive environment are more likely to adopt the
marketing concept.
Answer:
Sales reps calling on large food retailers often must make their sales presentations to a
buyer who doesn't have the final decision responsibility.
Answer:
Average fixed costs are lower when a large quantity is produced.
Answer:
Corrective advertising corrects deceptive advertising.
Answer:
Most purchasing managers use search engines as their FIRST step to satisfy new or
unfamiliar questions.
Answer:
Salespeople often are responsible for representing the customer inside their own
company as well as representing their company to the customer.
Answer:
Agent wholesalers do not own the products they sell, but they usually perform even
more functions than a service wholesaler.
Answer:
The first step in segmenting international markets is to group countries that are close to
each other into "common markets."
Answer:
A patent owner has a 20-year monopoly to develop and use its new product, process, or
material.
Answer:
The mass marketing approach is more production-oriented than marketing-oriented.
Answer:
There are about 17 times as many service firms as manufacturing firms.
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.
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.
For which market segment would coupons be most effective?
A. Loyalists
B. Regulars
C. Deal prone
D. Politicos
E. SDF who?
Answer:
Product line length indicates:
A. the number of individual offerings in a product line.
B. the number of product lines that the company has to offer its customers.
C. the number of intermediaries involved in the distribution of all the offerings in a
product line.
D. the total customer lifetime value associated with the offerings in a product line.
E. the total number of products that the company has to offer its customers.
Answer:
Logistics costs
A. are important to both firms and consumers.
B. don't vary from firm to firm.
C. are very similar across different countries.
D. total less than 10 percent of the cost of groceries.
E. have little impact on a macro marketing system.
Answer:
What is the likely level of involvement in a purchase decision for a new couch?
A. Extensive.
B. Limited.
C. Low.
D. Moderate.
E. Routine.
Answer:
When referencing NAICS codes, marketers should know that:
A. two-digit industries are subindustries of the three-digit industries.
B. two-digit codes offer the broadest categorization of industries.
C. categories become less detailed as you move to codes with more digits.
D. the international version of the NAICS system is the most accurate and reliable.
E. NAICS codes provide detailed information about the apparel industry only.
Answer:
"Average-cost pricing":
A. will result in losses if actual sales are much higher than expected.
B. might cause a firm to charge too high or too low a price-and reduce its profits.
C. usually assumes the firm will sell a larger quantity than the year before.
D. cannot be profitable-because it ignores demand.
E. All of these alternatives are correct.
Answer:
Which of the following is NOT part of the five-step marketing research process
discussed in the text?
A. Interpreting the data
B. Developing the marketing information system (MIS)
C. Analyzing the situation
D. Defining the problem
E. Solving the problem
Answer:
Use this information for question that refer to the Wire Products Inc. (WPI) case.
Rob Rose sat back to review the portfolio of products his company, Wire Products Inc.
(WPI), has in its product line. The company specializes in making various products for
consumer and industrial uses from hard laminated wire-coated with special paints.
1) WPI's "Wire Closet" products have been on the market for 10 years. Consumers
install the wire shelves and closet rods themselves. The market leader, Closetmaid, has
been selling similar products for more than 20 years, but so far the sales volume and
profits for the market continue to grow. Recently, several new competitors have come
into the market.
2) Three months ago, WPI entered the lawn and garden market with folding fences
made with laminated wire and branded as "Wire Fold-Fence." Previously, WPI had
never made fences or been a player in the lawn and garden market-although other
companies have been making products in this market for years. However, Rob Rose has
discovered that recent sales of wire garden fencing have leveled off and profits are
declining overall. Still, WPI thinks it has some cost advantages and can grow its own
sales and profits in this market.
3) WPI has just developed "Oil Wire," a new concept for the environmental cleanup
market. Oil Wire is coated with a special material that cleans up oil spills. There has
never been a product like this and WPI wants to quickly get the word out about its
benefits. The product is now being rolled out in selective markets.
4) Another business product is "Wire Locker" used for secure storage by gymnasiums
or companies. This style of locker has now gone out of fashion and most customers are
finding better materials to use for lockers. Aggressive selling has helped Wire Locker's
sales stay flat, but the total market for wire style lockers is only half of what it was 10
years ago.
5) WPI's "Wire Window" product is used as a security product to protect glass
windows. It sells to homeowners and retailers looking for additional safety. WPI's sales
of this product have dropped in recent years because competitors have introduced
maintenance-free products. However, the overall market for this type of product
continues to show good growth.
6) WPI is running concept tests of a new wire car-top carrier called "Wire Car Top."
There are other car-top carrier products on the market, but WPI plans to include options
in its carrier that will make it easier to load bikes, skis, and suitcases. "Wire Car Top" is
also very easy to put on and take off of the car because of its light weight and
ease-of-use features. The concept tests are helping WPI analysts develop rough
estimates of costs, sales, and profits.
7) Another new product idea, tentatively called "Wire Tent," is being considered. It
would use laminated wires to create a portable tent frame. This product is currently
being evaluated to determine its fit with the company's objectives and external market
trends.
Rob is thinking about the product life cycle, where each product fits, and what he
should be doing as part of his marketing plan for each of these products.
In which stage of the product life cycle is "Wire Closet"?
A. Market development
B. Sales decline
C. Market maturity
D. Market introduction
E. Market growth
Answer:
A customer service rep's job could include:
A. understanding a customer's complaints.
B. finding a remedy when something goes wrong with a firm's marketing mix after a
purchase.
C. resolving a billing problem.
D. handling an exchange of a defective product.
E. all of these tasks could be included.
Answer:
Regarding measuring advertising effectiveness, which of the following statements is
FALSE?
A. Advertising effectiveness is easily measured by looking at the sales results.
B. Managers probably should pretest advertising rather than relying only on the
judgment of advertising "experts."
C. If specific advertising objectives are set, then marketing research can help evaluate
the effectiveness of ads.
D. Some advertisers are now demanding laboratory or market tests to evaluate
effectiveness.
E. No single research technique has proven most effective.
Answer:
"Unfair trade practice acts":
A. require different types of retailers to charge different retail prices.
B. make price fixing illegal.
C. eliminate price competition on manufacturers' brands.
D. prohibit intermediaries from taking excessive markups.
E. put a lower limit on prices, especially at the wholesale and retail levels.
Answer:
One way marketers can screen for opportunities that are good for society is to screen
based on the criteria of:
A. growth.
B. profitability.
C. sustainability.
D. return on investment.
E. business strengths.
Answer:
Focus groups:
A. Are usually composed of 15-25 people.
B. Yield results that are largely dependent on the viewpoint of the researcher.
C. Always do a good job of representing the broader target market.
D. Are expensive compared to other marketing research methods.
E. Are conducted in a formal group setting.
Answer:
In the customer-initiated communication process:
A. the marketer targets more of its promotion effort at specific individuals who respond
directly.
B. a firm relies on a CRM database to target specific prospects.
C. a customer initiates the communication process with a decision to search for
information in a particular message channel.
D. a seller initiates the communication process with a decision to search for information
in a particular message channel.
E. there is a transfer of information from higher-level management to production
workers.
Answer:
The president of a major airline makes telephone calls to the top executives of several
other airlines asking them to "hold the line" and refrain from offering discounts on fares
for several key routes in order to improve profit margins. This practice could easily be
considered:
A. dumping.
B. price discrimination.
C. price fixing.
D. zone pricing.
E. None of these is a good answer.
Answer:
Until recently, good PC software for producing digital videos was not available, but was
much in demand by businesses. The first companies to produce a specific type of
program had good sales even though they did little promotion and their programs were
not "user-friendly." It seems that many of these "innovators" operated as if they were in
the:
A. simple trade era.
B. marketing department era.
C. sales era.
D. marketing company era.
E. production era.
Answer:
Which of the following types of advertising would most likely be used by an oil
company that wished to improve its reputation after an oil spill?
A. Direct competitive advertising
B. Indirect competitive advertising
C. Pioneering advertising
D. Institutional advertising
E. Cooperative advertising
Answer:
Peter Janca noticed during a weekly grocery shopping that 7-Up was on sale. Even
though he could have saved money with the 7-Up, Peter bought Mountain Dew because
that's the brand his children prefer. Peter was responding to:
A. selective exposure.
B. dissonance.
C. marketing influence.
D. social influence.
E. a drive.
Answer:
Which of the following is an example of the "micro-macro dilemma?"
A. A homeowner purchases a ladder but falls off it because he didn't set up the ladder
according to the safety instructions posted on it.
B. A person gets a speeding ticket because she was talking on her cell phone while
driving and didn't notice a speed limit sign.
C. A person drives without fastening his seat belt even though a warning light and
chime remind him to "buckle up."
D. A person is injured while using a power lawn mower because of a small stone that is
hurled from the discharge chute.
E. A restaurant owner uses plastic containers to keep "take-out" food warm for
customers, but the containers cannot be reused or recycled.
Answer:
Acme Corporation is currently experiencing rising sales for a new product idea it
pioneered several months ago. Profits are also increasing, so other competitors are now
entering the market with similar products. The competitive situation is changing from
monopoly to monopolistic competition. In which stage of the product life cycle is Acme
Corporation operating?
A. Market establishment
B. Market introduction
C. Market growth
D. Market maturity
E. Sales decline
Answer:
During the purchase of new tooling at Acme Tool and Die, which of the following is an
example of a gatekeeper?
A. Sara, a purchasing manager, arranges the terms of the sale.
B. Ross, from research and development, supplies information for evaluating
alternatives.
C. Charlotte, in manufacturing, has the power to select or approve suppliers.
D. Andre, a research assistant, gathers and distributes information about alternatives.
E. Rita, from the manufacturing floor, will use the new tooling.
Answer:
Tyler Young sells a diverse line of conveyor systems to small manufacturers. He has
found that he is most successful when he uses the sales call to help the customer solve
some problem using one of his products. Tyler probably relies on
A. the missionary approach.
B. the prepared presentation approach.
C. the selling formula approach.
D. the consultative selling approach.
E. Any of these is equally likely.
Answer:
In the context of marketing research, the most common ethical issues concern:
A. distrusting data and analytics due to differences in judgment.
B. blowing minor findings out of proportion.
C. making decisions to withhold certain information about the research.
D. sharing the results of marketing research with everyone.
Answer:
Harley Owners Group connects motorcycle riders to one another. This group is focusing
on satisfying what level in the hierarchy of needs?
A. Safety
B. Physiological
C. Social
D. Personal
Answer:
In macro-marketing
A. no universal marketing function can be completely eliminated.
B. the objectives of the individual firm, rather than society, are most important.
C. functions should not be shifted or shared.
D. intermediaries are unnecessary.
E. the emphasis is on the activities of individual organizations.
Answer:
Which of the following is an individual need that can conflict with company's needs?
A. Product innovation
B. Financial turnover
C. Customer satisfaction
D. Share value maintenance
E. Career advancement
Answer:
From the Industrial Revolution until the 1920s, most companies were in the production
era.
Answer:
"Too much" aggregating in market segmenting
A. ignores the criterion that product-market segments should be substantial.
B. leaves the firm vulnerable to competitors.
C. is usually not a very serious error because it results in economies of scale.
D. usually makes segments more homogeneous.
E. None of these is true.
Answer:
The percent of people contacted in a survey who complete a questionnaire is the:
A. qualitative rate.
B. sample rate.
C. population rate.
D. response rate.
E. none of these choices is a good answer.
Answer:
Regarding what a "new product" is, your text says:
A. a product should be considered "new" if it is new in any way for the company
concerned.
B. that the FTC would not call an existing product new, even if it were changed in a
functionally significant way.
C. there is no legal limit on how long a product can be called "new."
D. a new product must be totally different before it can be called a "new product."
E. All of these alternatives are correct.
Answer:
Multiple buying influence is MOST likely to occur in which of the following
purchases?
A. Note pads
B. A voice-mail phone system
C. A replacement for a broken chair
D. Gasoline
E. Paper clips
Answer:
In the PSSP Hierarchy of Needs model, which level is illustrated by a Fidelity campaign
on TV that proclaims its IRA is a sound investment for the future?
A. Personal needs
B. Physiological needs
C. Social needs
D. Safety needs
Answer:
Which of the following best defines the goal of a sales-oriented pricing objective?
A. Increasing the target return on a product
B. Gaining the maximum profit on a product
C. Increasing the market share of a product
D. Stabilizing prices across different markets for a product
E. Gaining a greater return on the investment in a product
Answer:
