The close relationship of Home Depot’s philanthropic initiatives and its business goals
is an example of:
a. strategic philanthropy.
b. strategic ethics.
c. cause-related marketing.
d. strategic marketing.
e. environmental philanthropy.
Marketing ethics goes beyond legal issues, although ethical disputes must sometimes be
resolved in court.
a. True
b. False
The effectiveness of a public relations program is usually measured in terms of sales.
a. True
b. False
Aggressive pricing is typical during the stage of the product life cycle.
a. decline
b. growth
c. introduction
d. plateau
e. stabilization
In response to the increase in demand for organic foods, Raego Inc., a regional
supermarket, recently created organic food departments within their large stores. The
creation of these departments was a result of:
a. a core competency.
b. a market opportunity.
c. the company’s sales orientation.
d. the company’s distribution plan.
e. a competitive advantage.
Luis Mayo is an accountant at Ralston Purina. However, he is currently working with a
group of experts to determine the feasibility of a new brand of hot breakfast cereal. Luis
and the experts are also developing a marketing strategy for the product. After the
product is launched, Luis will resume working in the accounting department. His
present position can be described as a:
a. product manager.
b. brand manager.
c. member of a consulting team.
d. member of a venture team.
e. market account manager.
If the product price is $100, average variable cost $40 per unit, and the total fixed costs
are $120,000, what is the break-even point?
a. 500 units
b. 2,000 units
c. 1,200 units
d. 300 units
e. 3,000 units
The frozen foods division of Swanson purchases food trays and boxes from the
packaging division. The form of pricing used to charge the frozen foods division is
called:
a. zone pricing.
b. base-point pricing.
c. business-unit pricing.
d. transfer pricing.
e. price discrimination.
Mia is pet sitting for a friend’s dog while he is on vacation. Her friend has given Mia all
sorts of information, including the veterinarian’s name and phone number, pet
emergency center location, and the dog’s favorite bedtime snack. The first evening of
the vacation, Mia realizes that her friend did not bring the dog’s food over, and she has
no idea what the dog eats. Her friend’s cell phone is ‘œout of range’ at the moment, so
Mia must go to the grocery store and shop for dog food, even though she has never
bought it before now. In this case, even though Mia is not a dog owner, she is likely to
be part of the market for dog food for all of the following reasons except .
a. she has the authority to purchase the dog food.
b. she possesses the buying power for purchasing dog food.
c. she has the need or desire for dog food.
d. her ability to purchase the dog food is questionable.
e. she is willing to use her buying power.
A store that offers a wide variety of shoes for men, women, and children would most
likely be considered a(n)
_____.
a. department store
b. traditional specialty retailer
c. category killer
d. off-price retailer
e. warehouse showroom
The distribution variable in a marketing mix is directed toward making products
available in the quantities desired to as many target market customers as possible and
keeping the total inventory, transportation, and storage costs as low as possible.
a. True
b. False
Because of the heterogeneity and intangibility of services, customers tend to believe
company-sponsored advertising rather than word-of-mouth communication while
gathering information about a service product.
a. True
b. False
To achieve the desired intensity of market coverage, distribution must correspond to
behavior patterns of buyers.
a. True
b. False
Scenario2.2
Use the following to answer the questions. EXperience Limited is a company which
offers tours and vacations that include participation in an extreme sport, such as
hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience
Limited’s owner, has just finished developing the strategic plan, including marketing
objective of growing his customer base by 15% during the coming year. He believes
that the best way of reaching that objective is to advertise to the college-aged student.
In the past, the majority of his sales have been to males under the age of 29,
participating in hang-gliding and bungee jumping at various tourist locations. He wants
to expand his skydiving and motocross tours, but isn’t sure whether or not the expansion
will be profitable. He currently has a database containing all the customers who have
gone on a hang-gliding or bungee jumping vacation with his company.
According to the BCG matrix, the hang-gliding and bungee jumping tours have been a
for EXperience Limited.
a. star
b. cash cow
c. problem child
d. dog
e. question mark
The market concept stresses that an organization can best achieve its objectives by
being customer-oriented.
a. True
b. False
The marketing environment is bestdescribed as being:
a. composed of controllable variables.
b. composed of variables independent of one another.
c. an indirect influence on the performance of marketing activities.
d. dynamic and changing.
e. slow, with infrequent fluctuations.