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subject Type Homework Help
subject Pages 32
subject Words 5846
subject Authors E. Jerome Mccarthy, Joseph Cannon, William Perreault Jr.

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page-pf1
As in the Toddler University case, the needs of a target market virtually determine the
nature of an appropriate marketing mix.
Answer:
Expense items are depreciated over many years, while capital items are charged off as
they are used-usually in the year of purchase.
Answer:
International dimensions do not affect sales promotion decisions, because consumers
throughout the world have the same responses to sales promotion methods.
Answer:
page-pf2
A good S.W.O.T. analysis helps a manager focus on a strategy that takes advantages of
the firm's opportunities and strengths while avoiding its weaknesses and threats to its
success.
Answer:
The PD concept seeks to maximize the profit for a given customer service level.
Answer:
page-pf3
The supercenter retailing format began in the U.S. and then was exported to other
countries.
Answer:
Observing-as a method of collecting data-should focus on a well-defined problem.
Answer:
Using sales reps who are paid a straight commission is similar to using manufacturers'
reps.
Answer:
page-pf4
Agent wholesalers are very common in international marketing.
Answer:
Families with teenagers tend to spend more on durables than younger families.
Answer:
page-pf5
It's a common belief that half of the money spent on advertising and sales promotion is
wasted.
Answer:
Ideally, segmenters should start with the idea that each person is "one of a kind" and
can be described by a special set of dimensions that may be used to aggregate similar
customers together.
Answer:
Traditional channel systems are growing faster than vertical marketing systems.
page-pf6
Answer:
Prospect lists or a CRM database can help salespeople do a better job with prospecting.
Answer:
An opinion leader is usually wealthier and better educated than the people he or she
influences.
Answer:
page-pf7
Setting a low price for a firm's offering is a sure way of creating high customer value.
Answer:
Smaller producers always have a great advantage in competing with larger producers
because of their flexibility.
Answer:
Most direct marketing communications are designed to prompt immediate feedback.
Answer:
page-pf8
A firm's total cost increases only when its variable cost increases.
Answer:
Marketing strategy planning for a product depends on where the product is in its life
cycle and how fast it is moving to the next stage.
Answer:
The direct market environment includes customers, competitors, and the IRS.
page-pf9
Answer:
In general, top management support is needed for successful new-product development
efforts.
Answer:
Brokers usually have a long-term relationship with the buyers and sellers.
Answer:
page-pfa
A channel of distribution for a product involves more firms than a supply chain for the
same product.
Answer:
Managers are now applying a new screening criteria, sustainability, that reinforces the
importance of meeting present needs without compromising the ability of future
generations to meet their own needs.
Answer:
Copy thrust is what the words and illustrations of an advertisement should
communicate.
page-pfb
Answer:
Wants are the basic forces that motivate a person to do something.
Answer:
The best advertising medium is television, but some advertisers must use other media
because they do not have enough money for TV.
Answer:
page-pfc
In customer-initiated interactive communication, noise is no longer a factor.
Answer:
Micro-marketing efforts help the economy grow by stimulating innovation.
Answer:
At the macro level, consumer satisfaction can easily and objectively be measured using
practical economic methods.
Answer:
page-pfd
Average-sized business firms that are less specialized often fit in the category of
laggards.
Answer:
Only about 25 percent of marketing research spending is for syndicated research.
Answer:
Even though marketing managers might like more information, they must balance the
page-pfe
high cost of good research against its probable value to management.
Answer:
A manager shouldn't worry about making a financial return from money spent on a
quality program as long as customers recognize that the quality is high.
Answer:
Customer service is needed when a customer wants the seller to resolve a problem with
a purchase.
Answer:
page-pff
Differentiation means that the firm's marketing mix is similar to its competitors' mixes.
Answer:
A licensed brand can be used by only one company.
Answer:
The American Marketing Association has adopted a statement of ethics that sets
specific ethical standards for many aspects of the management job in marketing.
page-pf10
Answer:
The best marketing opportunity for a consumer products producer is in:
A. California.
B. Florida.
C. New York.
D. Texas.
E. It depends on the marketing strategy.
Answer:
Gross domestic product (GDP) is the:
A. total cost of producing all goods and services sold in a year.
B. total market value of goods and services provided in an economy in a year by both
residents and nonresidents of that country.
C. total market value of goods (but not services) consumed in an economy in a year.
page-pf11
D. total market value of goods and services consumed in a year.
E. total market value of goods (but not services) produced in an economy in a year.
Answer:
Use this information for question that refer to the Pricing 1 case. (WPI) case.
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
page-pf12
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. Regarding 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."
The 3% price reduction Bella Computers gives its retailers is an example of:
A. push money.
B. value pricing.
C. an advertising allowance.
D. everyday low pricing.
E. a cash discount.
Answer:
Which kind of advertising should a manufacturer of paper towels (that are basically
similar to competitive products) use if it wants to increase its market share?
A. Reminder
B. Competitive
C. Institutional
D. Primary demand
E. Pioneering
page-pf13
Answer:
"Social class" in the U.S. is usually measured in terms of:
A. race, religion, and occupation.
B. occupation, education, and type and location of housing.
C. income.
D. income, occupation, and education.
E. income, occupation, and religion.
Answer:
A "channel captain"
A. might be any member of the channel (that is, at any level in the channel).
B. views the members of the channel as a unit.
page-pf14
C. should help to make the channel more efficient by reducing conflict.
D. all of these alternatives are correct.
Answer:
Use this information for question that refer to the United Tools case.
Terry Harter is marketing manager for United Tools and Mike O'Reilly is the firm's
logistics manager. They work together to make decisions about how to get United's
hand and power tools to its customers-a mix of manufacturing plants and final
consumers (who buy United tools at a hardware store). United Tools does not own its
own transport facilities and it works with wholesalers to reach its business customers.
Together, Harter and O'Reilly try to coordinate transporting, storing, and product
handling activities to minimize cost while still achieving the customer service level
their customers and intermediaries want. This usually requires that United keep an
inventory of most of its products on hand, but demand for its products is fairly
consistent over time so inventory is easy to manage.
Harter has identified four options for physical distribution systems she could use to
reach two of her key wholesalers, Ralston Supply and Ricotta Tool Co. The total cost
for each option-and the distribution service levels that can be achieved-are as follows:
Ralston Supply expects a very high level (90 percent) of distribution customer service.
Ricotta Tool Co. is willing to settle for a 70 percent customer service level, even if that
means some products will occasionally be out of stock, if it gets products at a lower
price.
For its large retail hardware customers (like Home Depot), United regularly ships
smaller orders directly to individual stores or in some cases to the retail chain's
page-pf15
warehouses. Cross-country shipments usually go by rail while regional shipments
usually go by truck.
United ships to the regional distribution centers of one of the retail hardware chains that
it serves. The main advantage of the distribution centers for the retailer is likely to be
that they
A. can store a larger inventory than traditional warehouses.
B. eliminate the need for electronic communications between the distribution centers
and the individual stores.
C. speed the flow of tools from the factory to the stores.
D. none of these is an advantage of distribution centers.
Answer:
Which of the following is not a concern of organizational buyers?
A. Original cost and ongoing costs of purchase
B. Impact of purchase on productivity
C. Product quality
D. Seller's ability to provide speedy maintenance and repair
E. All of these are concerns for organizational buyers.
Answer:
page-pf16
A "marketing program":
A. blends all of a firm's marketing plans into one big plan.
B. is a description of a firm's marketing mix.
C. is a detailed plan of how to implement a strategy.
D. is a marketing strategy plus the time-related details.
E. None of these apply to a marketing program.
Answer:
A marketing manager might use the total quality management approach to:
A. reduce defects in goods produced in factories.
B. train better salespeople.
C. improve customer service.
D. make delivery schedules more reliable.
page-pf17
E. All of these alternatives are correct.
Answer:
Effectiveness of an advertising medium depends on all of the following except
A. promotion objectives.
B. funds available for advertising.
C. nature of the product.
D. markets targeted.
E. who the media reaches.
Answer:
Use this information for question that refer to the Pricing 1 case. (WPI) case.
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. Regarding 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."
Bella Computers' pricing objective is best described as:
A. target return.
B. status quo oriented.
C. profit oriented.
D. sales oriented.
E. none of these is a good answer.
page-pf19
Answer:
In the United States, warehouse clubs such as Sam's and Costco serve business
customers as:
A. Rack jobbers.
B. Cash-and-carry wholesalers.
C. Truck wholesalers.
D. Specialty wholesalers.
E. Manufacturers' agents.
Answer:
Using General Electric's 'strategic planning grid," an opportunity rated "medium" in
terms of industry attractiveness and "high" in terms of business strengths would be
evaluated as:
page-pf1a
A. yellow-borderline.
B. red-for no growth.
C. green-for growth.
D. could be yellow, red, or green-because the grid suggests that opportunities with
medium ratings need more analysis.
Answer:
Some sales reps try to get a prospect to do most of the talking at first-to help pinpoint
the potential customer's needs. After the sales rep feels that he understands the
customer's needs, he begins to enter more into the discussion, helping the customer
understand his own needs, showing how his product satisfies the customer's needs, and
then trying to close the sale. This type of sales presentation uses the:
A. selling formula approach.
B. target market presentation.
C. consultative selling approach.
D. prepared sales presentation.
E. None of these is a good answer.
Answer:
page-pf1b
Since music, movies, books, and TV programs now exist in digital form, such products:
A. have the same distribution methods as physical products.
B. have lower distribution costs.
C. do not require "intermediaries."
D. do not need distribution.
E. do not face discrepancies of quantity or assortment.
Answer:
Offering the same price to all customers who purchase products under essentially the
same conditions and in the same quantities is a ______________ policy.
A. penetration pricing
B. one-price
C. value pricing
page-pf1c
D. flexible-price
E. skimming pricing
Answer:
Amazon.com and eBay.com are both considered
A. Internet-based collaborators.
B. Internet-based producers.
C. Internet-based service providers.
D. Internet-based intermediaries.
E. Internet-based manufacturers.
Answer:
page-pf1d
Specialty products are consumer products which:
A. have elastic demand.
B. very few customers want or can afford to buy.
C. are relatively expensive and purchased only rarely.
D. consumers are willing to search for because they really want them.
E. All of these alternatives are correct.
Answer:
Which of the following statements about the cost and value of information is False?
A. Dependable information can be expensive.
B. Managers rarely get all the information they would like to have.
C. Money may be wasted if a manager ignores the facts revealed in a marketing
research study and bases his/her decisions on guesswork.
D. The cost of gathering additional information is always justified by its value.
E. All of these statements are False.
Answer:
page-pf1e
Marketing encourages research and ______________, the development and spread of
new ideas, goods and services.
A. analysis
B. assessment
C. evaluation
D. innovation
E. introspection
Answer:
Many Internet sites, such as Autobytel.com and Edmunds.com, have extensive
information about the prices of new and used vehicles that anyone can use for free. In
light of the availability of this information, what is the responsibility of consumers to
use it?
A. Consumers shouldn't use it because it gives them an unfair advantage over car
dealers.
B. Consumers have a responsibility to use the information and be smarter customers.
page-pf1f
C. Consumers can use it, but should not feel a responsibility to do so.
D. Consumers should not trust any information they receive from any source except the
government.
E. None of these alternatives is correct.
Answer:
Which of the following could be considered part of a retailer's "Product"?
A. Selection of brands
B. Width and depth of product assortment
C. Reputation for fairness
D. Helpfulness of salespeople
E. All of these are parts of a retailer's "Product."
Answer:
page-pf20
Which of the following population groups is the most techno-savvy?
A. Seniors
B. Gen X
C. Boomers
D. Busters
E. Gen Y
Answer:
"Unfair trade practice acts":
A. prohibit very high markups at the retail level.
B. allow manufacturers to set retail prices for branded products.
C. prohibit price fixing among retailers.
D. allow intermediaries to sell below cost.
E. protect certain limited-line retailers from "ruinous" price competition.
Answer:
page-pf21
Which of the following statements DOES NOT indicate that a marketing manager is
about to make a serious mistake?
A. "When it comes to my marketing strategy, if it ain't broke, don't fix it."
B. "International competition is just a fad. We can ignore it."
C. "I leave marketing applications of technology to the information technology staff.
There's no need for me to learn about them."
D. "I try to place myself in the position of the consumer and do unto others as I would
have them do unto me."
E. "My job is to sell products. If they happen to damage the environment because a
consumer doesn't dispose of them properly, that's not my problem."
Answer:
When Sony Corp., an electronics producer, purchased the Pebble Beach golf course in
California, it was pursuing what type of opportunity?
A. Diversification
page-pf22
B. Market development
C. Market penetration
D. Product development
Answer:
Regarding consumer motivation, the text states that:
A. wants are the basic forces which motivate people to do something.
B. all needs and wants are caused by drives.
C. wants are learned needs.
D. the terms "needs" and "wants" mean the same thing.
E. None of these alternatives is correct.
Answer:
page-pf23
All of the following publicity tools are examples of one-way communication from a
company to consumers or business customers EXCEPT:
A. videos.
B. blogs.
C. podcasts.
D. case studies.
E. games.
Answer:
"Promotion" may include:
A. personal selling to channel members.
B. point-of-purchase materials.
C. mail-order selling.
D. advertising on the Internet.
E. All of these may be included in Promotion.
Answer:
page-pf24
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 others-assuming the concentrated territories are large
enough to support sales branches.
E. All of these are good alternatives.
Answer:
Convenience products are products
A. a consumer needs but is not willing to spend much time or effort shopping for.
page-pf25
B. which consumers are aware of but not interested in.
C. meant for use in producing other products.
D. toward which consumer attitudes may be negative.
E. that consumers want because they are easy to use or consume.
Answer:
Over the past several years, like other auto manufacturers, General Motors (GM) has
introduced many new models of sport utility vehicles (SUVs) in all of its major
divisions. This proliferation of SUVs and an increase in gasoline prices have caused
sales to level off. In response, General Motors offered rebates of up to $5,000, or
no-interest financing, on selected models of SUVs. The largest rebates went to current
owners of GM vehicles, so that they would replace their current vehicles with a GM
model instead of switching to another brand. The rebates have been heavily advertised
on national television. Profit margins per vehicle have shrunk as a result of these costly
promotions. In what stage of the product life cycle is GM currently operating?
A. Market establishment
B. Market introduction
C. Market growth
D. Market maturity
E. Sales decline
Answer:
page-pf26
When a producer has won brand preference for its product-but is entering the sales
decline stage of its life cycle-it probably should use:
A. pioneering advertising.
B. competitive advertising.
C. primary advertising.
D. reminder advertising.
E. institutional advertising.
Answer:

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