A producer of alcoholic beverages produces four different brands of beer: BlackStar,
BlueStar, Grandeur, and Holmes. BlackStar is a standard brew, while BlueStar has low
alcohol content. Grandeur is low in calories, and Holmes has high alcohol content. In
this case, the manufacturer uses different brand names for each of its products to:
A. associate the image of one product with that of another.
B. increase consumer brand awareness.
C. enter a new product class.
D. target specific market segments more efficiently.
Answer:
With regard to the internal factors that can either facilitate or impede a company's
efforts to undertake a global approach to marketing strategies, which of the following
best describes management processes?
A. The ease of installing a centralized global authority and the absence of rifts between
present domestic and international divisions or operating units.
B. The ability to project a global versus national identity, a worldwide versus domestic
commitment to employees, and a willingness to tolerate interdependence among
business units.
C. The availability of employable foreign nationals and the willingness of current
employees to commit to multicounty careers, frequent travel, and having foreign
superiors.
D. The capabilities and resources available to perform global planning, budgeting, and
coordination activities.
Answer:
A company has to take a decision on what should be done with one of its strategic
business units (SBUs). The business strength of the SBU is medium and the industry
attractiveness is medium. According to the General Electric Portfolio Model, it would
be ideal for the company to _____.
A. hold share
B. harvest
C. build share
D. divest
Answer:
In which of the following situations would an organization most likely use a technical
sales specialist?
A. To sell a printing press that requires a seller to provide training for optimal user
experience
B. To convince pharmacies to promote a new cold remedy
C. To implement an advertisement campaign for a local used car dealer who claims to
sell at least 50 cars in a month at a good profit margin
D. To replace a couple of computers in a university computer laboratory
Answer:
Marketing research experiments are conducted in laboratories or simulated stores:
A. to carefully control other variables that could impact results.
B. because experiments cannot be administered in natural settings.
C. to identify beliefs, attitudes, and other unquantifiable data.
D. because respondents are more likely to be natural in laboratory settings.
Answer:
Axon Automobiles Ltd., an American automobile manufacturing company,
manufactures cars in left-hand drive configuration, in which the driving seat and
controls are positioned on the left hand side of the vehicle. On exporting its products to
select automobile dealers in India, the company witnessed a significant dip in its sales
as Indians require vehicles in right-hand drive configuration. This failure can be best
attributed to:
A. the lack of personal selling on the part of the sales force.
B. entering a domestic market without extensive product planning.
C. the lack of adequate pricing strategies in foreign markets.
D. problems encountered in effectively using census data.
Answer:
When contemplating a product deletion, a firm studies customer migration patterns to
determine:
A. the profit contribution of the product to the firm.
B. whether the product has outgrown its usefulness.
C. whether the product has reached a level of maturity and saturation in the market.
D. whether customers of the product would switch to other substitute products marketed
by the same firm.
Answer:
A manufacturer utilizing an intensive form of distribution coverage:
A. usually produces products that require certain specialized selling effort or investment
in unique facilities.
B. manufactures products that are characterized by low unit value and a high frequency
of purchase.
C. severely limits distribution and provides intermediaries with exclusive rights within
a territory.
D. limits the use of intermediaries to the ones believed to be the best available in the
geographic area.
Answer:
Establishing progress goals that facilitate the go or no-go decisions regarding
continuation of projects is an integral part of managing the _____ risk of new product
development.
A. strategic
B. competitive
C. internal
D. market
Answer:
Midas Corporation is a sporting goods manufacturer. Most of its energies and resources
are devoted to manufacturing and selling one line of sporting shoes that has been a
reasonable hit in the past. The company rarely undertakes any marketing research
studies to assess consumer wants and needs and seldom devises new advertising or
promotional strategies. The company is mostly exhibiting _____.
A. investor orientation
B. market orientation
C. customer orientation
D. production orientation
Answer:
"The Greedy Hand" is a book on the U.S. income tax system. Its publisher has targeted
people who hold Libertarian political beliefs and listen to conservative radio talk shows.
The publisher has used _____ segmentation in this scenario.
A. mass market
B. post hoc
C. psychographic
D. geodemographic
Answer:
Buyers who want to avoid the hassle of waiting in line to order a pizza at Grundel's
Pizza Joint can buy their pizzas sooner at a higher cost. Such costs are examples of
_____ costs.
A. psychological
B. quality
C. behavioral
D. time
Answer:
For high-involvement products that require extensive decision making, marketers
should provide consumers with:
A. eye-catching advertisements and in-store displays to encourage them to make a
purchase.
B. factual information that highlights competitive advantages of the products.
C. ready availability of the products in a variety of outlets and at competitive prices.
D. minimum information to encourage a quick purchasing process.
Answer:
In which of the following types of contractual vertical marketing systems does a group
of independent retailers unite and agree to pool buying and managerial resources to
improve competitive position?
A. Retail cooperative organizations
B. Wholesaler-sponsored voluntary chains
C. Retail franchising programs
D. Wholesaler corporate channel programs
Answer:
Feeling fatigued after a hard day's work, Carter decided to go to a restaurant to order a
large drink and a big piece of chocolate pie to feel energized. Which situational
influence most likely accounts for Carter's behavior?
A. Task features
B. Social features
C. Current conditions
D. Physical features
Answer:
Identify the correct statement about the percent of sales method of determining
advertising budget.
A. It is characterized by a set of complex calculations that lack simplicity.
B. It is based on the premise that advertising is needed to generate sales.
C. It attempts to determine retail prices by using production costs as a base.
D. It is most suitable for automobiles and appliances owing to its complicated
framework.
Answer:
In a _____, a manager is responsible for everything from marketing research and
package design to advertising for a single product or a very small group of new and
existing products.
A. marketing-manager system
B. category management system
C. traditional marketing system
D. brand-manager system
Answer:
Which of the following changes in an organization's environment will most likely result
in the organization becoming a drifting organization?
A. The organization hires new management executives who are expected to uphold and
maintain the organization's mission.
B. The organization has started manufacturing low-cost products as opposed to the
luxury products that were a part of its original plan.
C. The organization has successful operations in ten different countries and has decided
to open market in two additional countries.
D. The organization has decided to promote efficient employees that adhere to the
company's mission statement instead of hiring managers.
Answer:
To its line of canned tomato products, Value Foods introduces cans of readymade
diced-and-spiced tomatoes. In which of the following new product categories would
diced-and-spiced canned tomatoes fall?
A. New-to-the-world products
B. New-to-the-firm products
C. Additions to existing product lines
D. Improvements to industry product classes
Answer:
Which of the following is true of global distribution strategy?
A. Manufacturers have lesser control over distribution when they select agents and
distributors located in foreign markets.
B. Both agents and distributors perform dissimilar functions, and agents assume title to
the manufacturers' products, while wholesalers do not.
C. If manufacturers establish their own foreign branch, they greatly increase control
over their global distribution systems.
D. Manufacturers become less directly involved in the global distribution system when
they select agents and distributors located in foreign markets.
Answer:
Environmental factors include:
A. homogeneous market needs, global customers, shorter product life cycles,
transferable brands and advertising, and the ability to globalize distribution channels.
B. worldwide economies of scale in manufacturing and distribution, steep learning
curves, and worldwide sourcing efficiencies.
C. improving communications, favorable government policies, and the increasing speed
of technological change.
D. competitive interdependencies among countries, global moves of competitors, and
opportunities to preempt a competitor's global moves.
Answer:
In terms of consumption decisions, middle-class consumers:
A. purchase quality merchandise and prestige brands exclusively.
B. purchase what experts in the media recommend as good buys.
C. purchase basic goods with financial help from relatives to sustain themselves.
D. primarily purchase food, clothing, and other staples with governmental aid.
Answer:
Which of the following statements is true of the organizational buyer category of
producers?
A. Producers constitute the smallest segment of organizational buyers.
B. The primary function of producers is to purchase products from manufacturers and
distribute them to consumers and other organizational buyers.
C. Producers of goods tend to be larger and more geographically concentrated than
producers of services.
D. Producers are the only class of buyers who are excluded from the purview of
business-to-business marketing.
Answer:
Which of the following factors influencing pricing decisions pertains to the expected
consumption rates, the location, and the position of potential buyers?
A. Psychological factors
B. Environmental factors
C. Demographic factors
D. Price elasticity
Answer:
