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GE's planning grid approach
A. doesn't work because different managers usually come to different conclusions given
the subjective evaluations involved.
B. is really the same thing as the total profit approach.
C. overemphasizes short term profitability.
D. is superficial because it considers only size and expected market share, and ignores
other possibly important factors.
E. could be adapted easily by another firm with different objectives.
In the seven-step approach to market segmentation
A. the first step is to name the broad product-market.
B. small motels around a large urban area are the focus of the example.
C. the qualifying needs are identified before the determining needs.
D. the size of each submarket is not considered until Step 7.
E. All of these are true.
Marketers increasingly hire celebrities and even full-time bloggers to engage consumers
in social media discussions about new products. A person who is able to influence
followers to try products is:
A. a channel captain.
B. a consumer advocate.
C. a marketer.
D. a figurehead.
E. an opinion leader.
MASS SELLING, in contrast to personal selling:
A. is less expensive when the target customers are numerous and scattered.
B. doesn't provide immediate feedback.
C. is less flexible in adapting to customers' needs and attitudes.
D. All of these alternatives are correct.
Uniform delivered pricing:
A. usually results in higher delivered prices for everyone.
B. results in all buyers paying less than the actual transportation costs.
C. is most often used when transportation costs are relatively low.
D. is just an extension of F.O.B. pricing.
E. None of these alternatives is correct.
The production cost of an automobile component is $45. The producer takes a 10
percent markup and sells the product to the wholesaler. What is the wholesaler's cost?
A. $45
B. $5
C. $10
D. $50
E. $60
The first step in segmenting international markets is to:
A. develop a marketing mix.
B. treat all the countries in the "foreign market" as one segment.
C. segment by country or regionlooking at demographic, cultural, and other
characteristics.
D. list the suppliers who serve the market.
E. consider the number, size, kind, and location of business and organizational
customers.
Regarding accessory equipment, which of the following is NOT true?
A. Multiple buying influence is less important in the purchase of an installation than
with accessory equipment.
B. There are more customers for accessory equipment than for installations.
C. Specialized services are more important in the purchase of installations than
accessories.
D. There are more sellers of accessory equipment than of installations.
E. All of these statements ARE true.
All of the following products are in the market maturity stage of the product life cycle
except:
A. laundry detergents.
B. breakfast cereals.
C. solar roof cells for home electricity generation.
D. carbonated soft drinks.
E. gasoline-powered cars.
A "product" is best described as:
A. A purely physical entity.
B. An image in the mind of the consumer.
C. A need satisfying offering of a firm.
D. An intangible service.
E. All of the technical aspects of production.
The 7-step approach to market segmentation used in the text shows that:
A. qualifying needs can logically be identified once the determining needs are known.
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 determining needs.
E. recreational vehicles in the U.S. is a broad product-market with many submarkets.
Which of the following statements about secondary data is correct?
A. Secondary data is obtained only from sources outside of the firm.
B. Secondary data may be available much faster than primary data.
C. Results of "old" surveys are not secondary data.
D. Secondary data is usually more expensive to obtain than primary data.
E. None of these statements about secondary data is true.
The department within a company that is typically concerned with providing money to
invest in marketing plans and meet ongoing expenses is the:
A. Marketing department.
B. Production department.
C. Finance department.
D. Accounting department.
E. Human resources department.
A producer has a few territories where many big customers are concentrated, but most
of its target customers are spread all over the country.
A. The company should use manufacturers' agents in the best territories and sales
branches in the others, since good agents won't work in the smaller territories.
B. The company should use sales branches everywhere, since it will cost more to use
manufacturers' agents.
C. The company will probably have to rely only on manufacturers' agents, since they
will only be willing to take the widely scattered markets if they can have the good
territories too.
D. The company should use sales branches in the concentrated territories and
manufacturers' agents in the othersassuming the concentrated territories are large
enough to support sales branches.
E. All of these are good alternatives.
Rising costs and inflation are part of the uncontrollable ______________ environment.
A. technological
B. economic
C. competitive
D. legal
E. cultural and social
Customer service reps
A. work with customers to resolve problems that arise at the time of purchase.
B. work for producers calling on their intermediaries and their customers.
C. provide technical assistance to order-oriented salespeople.
D. work with customers to resolve problems that arise with a purchase, usually after the
purchase has been made.
E. are invaluable in working with business customers, but not final consumers.
In a generic market,
A. diverse types of products may compete for customers.
B. customers have broadly similar needs.
C. there may be many ways to satisfy customers' needs.
D. sellers may compete in different product-markets.
E. All of these are correct for a generic market.
A producer of household batteries for flashlights, radios, and other small electronic
devices wants to increase its sales relative to its competitors. The company enters into
an arrangement with a supplier of bicycles to develop an incentive for retail buyers to
order more batteries. Salespeople for the battery company tell each buyer that for every
20 cases of batteries ordered, the buyer will get a new bicycle. The buyer can keep the
bicycle, or use it as part of an in-store contest promotion. The battery company's
promotion effort aimed at retail buyers is:
A. Pushing in the channel.
B. Pulling by customers.
C. Integrated marketing communications.
D. Buyer-initiated communication.
E. None of these is a good answer.
The product life cycle:
A. Describes the stages a new product idea goes through from beginning to end.
B. Has five major stages.
C. Applies more to individual brands than to categories or types of products.
D. Shows that sales and profits tend to move together over time.
E. All of these alternatives are correct.
An intermediary seeking high profits should:
A. use the lowest markup that will still cover selling expenses.
B. use price lining.
C. use high markups.
D. choose the markup which maximizes turnover.
E. try to find the markup level related to the most profitable price.
In which quadrant of the SWOT analysis tool does the following fit? A firm has
adequate resources.
A. Strengths.
B. Weaknesses.
C. Opportunities.
D. Threats.
Which of the following statements about the combined target market approach is True?
A. Combiners feel that two or more segments are similar enough thattogetherthey can
be treated as one large target market.
B. Combiners try to extend their basic offering to satisfy customers from multiple
segments with a single marketing mix.
C. Combiners may fall victim to an innovative segmenter that offers a more attractive
marketing mix to a segment of the combined target market.
D. All of these statements about the combined target market approach are true.
Which of the following is NOT an example of sales promotion?
A. Establish frequent buyer programs
B. Run contests for its sales people
C. Secure favorable media coverage
D. Provide samples to its customers
E. Provide coupons for products
_____ is an outcome or event that a person anticipates or looks forward to.
A. A response
B. A need
C. A desire
D. An expectation
E. An attitude
Industry sales are highest in which of the following product life cycle stages?
A. Market growth.
B. Market development.
C. Market maturity.
D. Sales decline.
E. Market introduction.
_______ are the terms of sale offered by different suppliers in response to the purchase
specifications posted by the buyer.
A. Competitive bids
B. Purchasing rebuys
C. Legal bonds
D. Requisitions
E. Auctions
Regarding alternative transporting modes, which of the following statements is TRUE?
A. Waterways serve the most locations.
B. Airways offer the most expensive transporting mode.
C. Railways provide the lowest cost considering weight.
D. Trucks offer the fastest speed.
E. Pipelines in the U.S. are located mostly in the Northeast.
Marginal cost is:
A. always less than average variable cost.
B. more affected by fixed costs than by variable costs.
C. the change in total cost that results from producing one more unit.
D. the point where the firm's total cost will just equal total revenue.
E. the extra profit on the last unit.
As a project for her marketing class, Emily Washington is researching how five local
businesses price their products. The following are brief sketches of what she has learned
about each company.
At Bella Computers, Emily has discovered that the company earned a 6 percent return
on investment this year and wants to increase it to 9 percent next year. To its retailer
customers, Bella Computers gives cash discount terms of 2/10, net 30. It also gives
retailers a 3% reduction on the invoice amount for advertising Bella products locally.
Bella gives retailers' salespeople 2% of the sale price for each Bella Computer they sell.
At Ross Pharmaceuticals, she learned that the company has invested heavily in
developing a new product that recently received a patent. Because cash is tight, the
company wants to achieve a rapid return on its investment. The new patented product is
badly needed in the market, so a very inelastic demand curve is expected.
Digital Imaging makes photographic prints for wedding photographers. It is very
concerned about competitor reactions to its pricing, so it has selected prices that will not
draw the attention of the competition and not start a price war. Digital Imaging offers
customers an 8% discount if their purchases exceed $20,000 a year.
Jack's One Hour Cleaners recently opened for business. The company invested a lot of
money in new equipment, and feels that it has to quickly get "at least 10% market share
to stay in the game." This need obviously influences the company's pricing decisions.
Jack's also plans to offer customers 20% discounts on any order over $20.
National Printing Equipment (NPE) produces equipment that helps to print newspapers
and magazines. The company sells directly to printers and through wholesalers. Its
salespeople negotiate prices with individual customers and often have to match
competitors' prices. NPE has a new product, the Gutenberg NP201, with some
competitive advantages now, but competitors are expected to follow quickly with
similar products. The new product is being introduced into a market with elastic
demand. In regard to freight charges for its equipment, NPE's invoice reads, "Seller
pays the cost of loading equipment onto a common carrier. At the point of loading, title
to such products passes to the buyer, who assumes responsibility for damage in transit,
except as covered by the transportation agency."
National Printing Equipment has:
A. been violating the Sherman Act
B. been violating the Robinson Patman Act
C. a status quo pricing objective
D. a skimming price policy
E. a flexible pricing policy
Asa Meyer was just named FireFly Products sales manager, with responsibilities for all
marketing planning. FireFly's president told him that his job is to "outsell the
competition." Apparently, FireFly is operating in the ______________ era.
A. market-oriented
B. production
C. sales
D. marketing company
E. marketing department
Which of the following would NOT be paid for using working capital?
A. Employee salaries
B. What it costs to store inventory
C. What a firm owes suppliers
D. Purchase of new facilities
E. Advertising expense
Generating capital by means of debt financing:
A. Involves borrowing money, either from a bank loan or from the use of corporate
bonds.
B. Means that the firm borrowing the money will have to pay interest charges.
C. May be worth it if the borrowed money is used to implement a marketing plan that
earns a return greater than the cost of borrowing the money.
D. Means that the firm will have to put up some of its assets as a loan guarantee.
E. All of these.
Psychographics may also be called
A. personality analytics.
B. social group dynamics.
C. lifestyle analysis.
D. opinion insight.
E. attitude measures.
