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The Sherman Act sought to:
A. prevent monopolies or conspiracies in restraint of trade.
B. establish the Federal Consumer Protection Agency.
C. eliminate price differences among different competing suppliers.
D. prevent fraud on the Internet.
E. restrict importing into the United States.
If a brand consistently delivers on a promise that purchasers consider important, those
purchasers are likely to develop a _______ for the brand.
A. disliking
B. trust
C. demand
D. mistrust
E. tolerance
A British firm selling in the U.S. prices its product at $100. The initial exchange rate is
0.80 pounds per dollar. If the new exchange rate is 0.75 pounds per dollar, the revenue
for the British firm from a single sale would drop by
A. 80 pounds.
B. 5 pounds.
C. 75 pounds.
D. 10 pounds.
E. 8 pounds.
Which of the following observations is NOT TRUE of monopolistic competition?
A. A number of different firms offer marketing mixes that at least some customers see
as different.
B. Marketing managers try to differentiate very similar products by relying on other
elements of the marketing mix.
C. Each competitor tries to get a monopoly in its own target market.
D. Most marketing managers in developed economies do not face monopolistic
competition.
E. Competition exists because some customers see various alternatives as substitutes.
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 stage of the product life cycle is "Wire Window"?
A. Market maturity
B. Market development
C. Sales decline
D. Market Growth
E. Market introduction
Wilbur Donald has had good experience using Crest toothpaste and is in the habit of
buying it. His level of brand familiarity for Crest is:
A. brand insistence.
B. brand preference.
C. brand desire.
D. brand recognition.
E. brand identity.
Communicating with customers is known as the ________________ portion of the
marketing mix.
A. Place
B. Positioning
C. Promotion
D. Pricing
E. Production
Corporate chains
A. have continued to growand now account for about half of all retail sales.
B. have an advantage relative to independent stores when it comes to promotion and use
of dealer brands.
C. increase their buying power by centralizing at least some of the buying for different
stores.
D. increase their efficiency by building their own distribution centers.
E. All of these alternatives are correct for corporate chains.
Which of the following statements about the transporting function is TRUE?
A. Among transportation modes, an advantage of air transport is its ability to handle a
variety of goods.
B. Because transportation costs are less than 1 percent of costs for most products,
marketing managers do not need to consider them when making strategy decisions.
C. Pipelines are generally one of the fastest modes of transportation.
D. In most countries, government plays little role in transportation.
E. Transporting costs can be a large part of the total cost for heavy products that are low
in value.
______________ is direct spoken communication between sellers and potential
customers.
A. Personal selling
B. Sales promotion
C. Advertising
D. Publicity
E. Mass selling
As a mode of transportation, railroad freight would be least suited for ____
A. iron ore.
B. sand.
C. fresh fruit.
D. automobiles.
E. coal.
The business strengths dimension of the GE grid focuses on:
A. market diversity.
B. the question: Does this product-market plan look like a good idea?
C. the ability of the company to pursue a product-market plan effectively.
D. industry profitability.
E. the social and legal environment.
A producer of country music CDs pays a share of local retailers' coststo 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.
With respect to consumer products, which of the following is the most common system
for distributing consumer products in the U.S.?
A. Direct channel systems.
B. Vertical marketing systems.
C. Traditional channel systems.
D. Horizontal marketing systems.
E. None of these is a good answer.
Glitter, Inc. advertises its "gold-tone" jewelry on TV, along with a toll free number and
the message that "operators are standing by now to take your credit card order." This is
an example of:
A. direct type competitive advertising.
B. pioneering advertising.
C. primary advertising.
D. comparative advertising.
E. indirect type competitive advertising.
The text's Toddler University example shows that TU's marketing plan included:
A. A detailed description of the marketing mix to be offered.
B. A description of the resources required to carry out the plan.
C. Expected results of the plan.
D. Control procedures.
E. All of these.
The Magnuson-Moss Act of 1975 focuses on which of the four Ps?
A. Price
B. Place
C. Promotion
D. People
E. Product
Relative to other promotion methods, _____ can usually be implemented quickly and
get results sooner.
A. mass selling
B. advertising
C. publicity
D. personal selling
E. sales promotion
A salesperson who earns the same gross pay each month is in what type of
compensation program?
A. Selling formula plan
B. Straight salary
C. Combination plan
D. Sales quota
E. Straight commission
Which of the following is a strategic decision area that is a part of the price component
of the marketing mix?
A. Physical good
B. Level over product life cycle
C. Salespeople selection and training
D. Warranty
E. Product lines
The railroad service which picks up truck trailers at a producer's location, loads them
onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's
door is:
A. truck service.
B. fast freight.
C. trailer service.
D. piggyback service.
E. pool car service.
During the sales era
A. families traded or sold their surplus output to local distributors.
B. characteristic management thinking said, "If we can make it, it will sell."
C. all marketing activities were brought under the control of one department.
D. increased competition made firms focus on winning customers.
E. marketing people did both short-run and long-run marketing planning.
Personal selling
A. involves direct spoken communication between sellers and potential customers.
B. is communicating with large numbers of potential customers at the same time.
C. is less flexible than mass selling.
D. is included in most marketing mixes as it is inexpensive.
E. involves advertising and publicity.
All of the following are true of brokers except
A. they bring buyers and sellers together.
B. they are especially useful when buyers and sellers do not come into the market very
often.
C. they usually have a permanent relationship with the buyer and seller.
D. the broker's product is information about what buyers need and what supplies are
available.
E. they earn commissions based on completion of transactions between buyers and
sellers.
The fact that many Americans want the convenience of driving gas-guzzling trucks and
sport utility vehicleswhich also contribute disproportionately to pollution and global
warmingis an example of
A. the micro-macro dilemma.
B. discrepancies in customer value.
C. marketing ethics.
D. the responsibilities of the marketer.
E. the marketing concept.
Kraft Foods recently increased its advertising and couponing to its present cheese
customers. It appears that Kraft is pursuing what kind of opportunity?
A. Market penetration
B. Product development
C. Market development
D. Mass marketing
E. Diversification
A local theater group that has adopted the marketing concept would be MOST likely to:
A. Promote the sale of subscriptions so that patrons can buy tickets at a reduced price
for several plays at one time.
B. Use publicity to announce upcoming plays.
C. Do a survey to find out what new shows patrons would like to see.
D. Sell tickets via the Internet.
Which of the following is a QUALITATIVE screening criterion for evaluating
opportunities?
A. Sales target for the firm.
B. Profit target for the firm.
C. Kind of business the firm wants to be in.
D. Return on investment (ROI) target for the firm.
E. None of these is a QUALITATIVE screening criterion.
Which of the following sales promotion activities is aimed primarily at a company's
own sales force?
A. Promotion allowances
B. Bonuses
C. Coupons
D. Free samples
E. Point-of-purchase materials
Which of the following statements about Place is FALSE?
A. Place variations are required when target markets have different needs.
B. Product classes suggest Place objectives.
C. Place decisions have relatively little impact on competition in a product-market.
D. Place decisions have longer-run implications than Price decisions.
E. Place decisions need to consider when customers want products.
Intermediaries are needed LEAST when the desired degree of market exposure is:
A. intensive.
B. ideal.
C. selective.
D. exclusive.
E. None of these choices is correct.
A marketing audit is necessary because:
A. it is a standard practice adopted by all companies worldwide.
B. managers may pursue certain strategies blindly, when other strategies might be more
effective.
C. regulators require marketing audits at the same time as accounting audits.
D. All of these are correct.
Eddie Falco went to a grocery store to buy his favorite brand of ice cream. However,
the store was temporarily out of that brand, so he looked over the other familiar brands
and decided to try a well advertised brand. This case illustrates:
A. Routinized response behavior.
B. Intensive problem solving.
C. Limited problem solving.
D. Extensive problem solving.
