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A prepared sales presentation:
A. is the best approach for most selling situationssince the company can control what
the sales rep says.
B. usually involves many questions, to be sure each customer's needs are fully
understood.
C. is common with high value itemsto be sure the customer learns about all of the
technical details.
D. is best when a lot of time is available for a sales presentation.
E. None of these alternatives is correct.
Which of the following is most likely to be the encoding of a message in the
communication process?
A. An industrial chemical manufacturer advertises its products in industry magazines.
B. An industrial chemical manufacturer determines what information to include in its
ads.
C. A construction company executive reads about a chemical product in a trade
magazine.
D. A construction company executive asks his purchase department to order a new
product.
E. Certain industry magazines are chosen by a chemical manufacturer for placement of
its ads.
All of the following are the basic ideas included in the definition of the marketing
concept except
A. customer satisfaction.
B. total company effort.
C. profit, or another measure of long-term success, as an objective.
D. making whatever products are easy to produce and then trying to sell them.
E. giving customers what they need.
Food Lion (a large supermarket chain that emphasizes "low prices") sells a dealer brand
of frozen green beans. Here,
A. the producer of the green beans probably does a lot of advertising.
B. a trademark cannot be used.
C. a similar manufacturer brand is likely to be given less shelf space.
D. the price to the consumer will probably be higher than for competing manufacturer
brands.
E. None of these alternatives is correct.
Which of the following would be MOST LIKELY to use individual brands rather than a
family brand for its products?
A. Manufacturer of knives and scissors for "top quality" market.
B. Manufacturer of canned pet food and sandwich spread for final consumers.
C. Manufacturer of sweeping compounds, brooms, and mops for business firms.
D. Manufacturer of flour for the "mass market".
E. Manufacturer of packaged potato chips and crackers.
Segmenting international markets (as contrasted with domestic markets):
A. is more complicated because qualifying dimensions are not helpful.
B. may be more difficult because critical data may not be available or dependable.
C. usually involves less risk because more potential target markets are available.
D. usually involves fewer segmenting dimensions.
E. None of these alternatives is true.
Which of the characteristics of a good brand name is missing in the following proposed
name: "Gnucheo" candy?
A. Simple
B. Short
C. Not offensive
D. Always timely
E. Easy to pronounce
Which of the following is NOT a trend affecting marketing strategy planning in the area
of Channels and Logistics?
A. Growth of Internet selling.
B. More logistics outsourcing.
C. Less attention to distribution service.
D. More vertical marketing systems.
E. Growth of mass-merchandising.
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.
Extensive problem solving probably would NOT be required by young newly-marrieds
in the purchase of:
A. a stereo system.
B. soft drinks.
C. a home.
D. a DVD player.
E. a car.
Which of the following is the BEST example of a "generic market?"
A. The senior citizen recreation market
B. The designer shoes market
C. The frozen yogurt market
D. The transportation market
E. The Hispanic-American market
The 7-step approach to market segmentation used in the text shows that:
A. determining needs rarely change.
B. profit is the overall consideration beginning with Step 1.
C. it's useless to consider what people in each submarket do not want when so much is
known about what they do want.
D. submarkets are nicknamed based on their qualifying needs.
E. None of these is true.
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
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's main sales task is supporting?
A. Wilson Alvaro
B. Melissa Tran
C. Emily Winters
D. Ben Peterson
The regrouping activity which involves putting together a variety of products to give a
target market what it wants is called:
A. assorting.
B. bulk-breaking.
C. wholesaling.
D. accumulating.
E. sorting.
Gross national income (GNI) is the:
A. total market value of goods and services provided in an economy in a year by
residents of that country.
B. manufacturers' selling price of goods (but not services) produced in a year.
C. total market value of goods (but not services) produced in an economy in a year.
D. total market value of goods and services consumed in a year.
E. None of these definitions of GNI is correct.
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 wirecoated 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 step of the new-product development process is the "Wire Tent"?
A. Screening
B. Development
C. Idea evaluation
D. Idea generation
E. Commercialization
A marketing manager who wants to calculate the cost of marketing several products to
several target markets will probably have to:
A. read all requisitions very carefully.
B. allocate advertising expense to general overhead.
C. reorganize some of the company`s functional cost accounts to natural accounts.
D. reclassify all natural accounts into functional accounts.
E. None of theseit is impossible to link the costs of marketing to target markets.
Which of the following statements pertaining to the Hispanic Americans is FALSE?
A. Hispanic Americans are the largest and fastest-growing ethnic group.
B. In 2010, the Hispanic population made up 16 percent of the total population.
C. The Hispanic population tends to be older than the U.S. population as a whole.
D. In 2010, the Hispanic population in the U.S. spent nearly $1 trillion.
E. Recently the Hispanic American population has increased at a rate of about 1 million
per year.
Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby
and craft supplies. She bought the store after working there for 7 years. Carol has just
been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber
of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goodsmostly
men's and women's clothingwith the upscale Walden's brand name. Walden's primarily
relies on its own stores where knowledgeable salespeople offer great service. Walden
products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks
display racks for paperback books and magazines. Most retailers welcome the service
Audrey provides, in part because she does her own research to determine which
paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of
merchandise. The company used to concentrate its product mix on small appliancesbut
now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster
turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed
a contract with Games Unlimited and follows strict rules covering her store's operations
and the Games Unlimited marketing strategy. She pays that company a fee for
promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty
products to retailers and salons throughout the greater Centerville area. It owns the
goods it sells to these retailer customers, and it provides all the wholesaling functions
they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored
by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer
name are linked by contracts that include basic operating procedures, storefront designs,
and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding
in the Centerville area. It earns a commission from each manufacturer on the products it
sells for that manufacturer, but it does not take ownership of the equipment it sells nor
does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years
ago. After some success, the company moved into a nicer storefront, raised prices, and
now operates in the middle of the market.
Which of these businesses best fits the definition of a limited-function merchant
wholesaler?
A. Games Unlimited
B. Publisher's Helper
C. Reddy and Sons
D. Valu Grocer
E. Cuzco's
The text discusses the evolution of business through five "eras." Which of the following
is NOT one of these eras?
A. Simple trade era
B. Sales era
C. Facilitator era
D. Marketing department era
E. Production era
An economic buyer is a person who
A. logically compares choices to get the greatest satisfaction from spending time and
money.
B. makes buying decisions based only on price.
C. will not pay extra for convenience.
D. always buys products at the lowest price possible.
E. is averse to spending time and money.
Hewlett-Packard decided that too many other companies were attracting its customers
by advertising their computer printers as "having all of the features of
Hewlett-Packard's LaserJet." So Hewlett-Packard designed a new color printer with a
completely new set of features which no competitors' equipment offered.
Hewlett-Packard then introduced it to the same market with the hope that it could
develop a larger and more profitable share. This was an effort at:
A. market development.
B. diversification.
C. market penetration.
D. product development.
After seeing a 'sale" ad in a local newspaper, Ben Griffith went to a local pet supply
store and bought a year's supply of high protein dog food. Which marketing functionsif
anydid he perform?
A. Financing and risk taking.
B. Transporting and storing.
C. Market information.
D. Buying.
E. Ben performed all of these marketing functions.
It is not uncommon for sales personnel at The Electronics Showroom to use aggressive
sales tactics to encourage customers to buy Giant-Size brand televisions. Giant-Size has
encouraged this behavior by using:
A. advertising allowances.
B. push money allowances.
C. stocking allowances.
D. trade-in allowances.
E. slotting allowances.
Some customers encourage the use of ______________ by paying more attention to
supposed price discounts than to the actual prices (and values).
A. unchanging list prices
B. basic list prices
C. phony list prices
D. fair trade prices
A sales rep is paid a commission on each product sold. The commission is:
A. part of the total fixed cost.
B. part of the total variable cost.
C. not included in figuring average cost.
D. part of the total cost, but not specifically a fixed cost or a variable cost.
E. None of these alternatives is correct.
FlyFar Airlines uses marketing research to determine customer needs and assess how
well the company meets them. This suggests that FlyFar managers exhibit ________.
A. a marketing orientation
B. social responsibility
C. separation of information
D. the innovation concept
E. a production orientation
Which of the following is usually NOT true about business products?
A. The demand curve for a particular industry is usually inelastic.
B. Demand for consumer products is derived from business products.
C. The demand curve for individual sellers may be extremely elastic.
D. Each business product may be only a small part of the cost of a final product.
E. None of these, i.e., all ARE true.
Electronic data interchange (EDI):
A. Puts information in a standardized format that can be shared between different
computer systems.
B. Improves information flow between buyers and suppliers.
C. Allow customers to transmit orders directly to a supplier's computer.
D. Replaces many of the paper documents previously used for purchase orders and
shipping reports.
E. All of these alternatives about EDI are correct.
Which pricing policy would probably be best for a profit-oriented producer introducing
a really new product with a very inelastic demand curve?
A. Skimming pricing
B. Meeting competition pricing
C. Below-the-market pricing
D. Penetration pricing
E. Introductory price dealing
