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The product life cycle describes the stages a really new product idea goes through from
beginning to end.
Answer:
Sales and profits generally decrease continually throughout the product life cycle.
Answer:
The combined target market approach involves segmenting the market and choosing
two or more segments, then treating each as a separate target market needing a different
marketing mix.
Answer:
A product line is a set of individual products that are closely related.
Answer:
It is easy for marketing managers to predict how long a product or brand will stay in
each stage of the product life cycle.
Answer:
A major advantage of mass selling is that the source can receive immediate feedback
from the receiver.
Answer:
The letters in "S.W.O.T. analysis" are an abbreviation for the first letters of the words
'special weapons or tactics."
Answer:
The median income of U.S. families in 2010 was about $49,445.
Answer:
Most physical distribution decisions involve trade-offs between costs, the customer
service level, and sales.
Answer:
A certain item has a production cost of $24. The manufacturer takes a 25 percent
markup, the wholesaler takes a 20 percent markup, and the retailer takes a 50 percent
markup. Therefore, the item has a retail selling price of $80.
Answer:
Reference group influence is likely to be greater for products that will not be seen by
other individuals.
Answer:
Personal selling involves direct personal communication to get the sale, but personal
attention is seldom required after the sale.
Answer:
Products which a consumer needs but isn't willing to spend much time shopping for are
convenience products.
Answer:
Sales promotion may be aimed at final consumers, retailers, wholesalers, or a
company's own employees.
Answer:
In the observation method, researchers try to see or record what the subject does
naturally.
Answer:
When planning new products, managers need not be too concerned about safe design
because it is each consumer's responsibility to decide what products are safe to buy and
use.
Answer:
Technology is the application of voodoo to convert an economy's resources to output.
Answer:
The three basic ideas included in the definition of the marketing concept are: customer
satisfaction, a total company effort, and sales as an objective.
Answer:
The advantages of working with intermediaries increase as the number of producers and
customers, their distance apart, and the number and variety of competing products
increase.
Answer:
Total quality management applies when the firm's product is a physical good, but not if
it is a service.
Answer:
Sequential price reductions and clearance sales are the same thing.
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Integrated marketing communications means the intentional coordination of every
communication from a firm to a target customer to convey a consistent and complete
message.
Answer:
Total quality management can be used to improve any implementation effort.
Answer:
A manager shouldn't be criticized for making an unethical marketing decision unless the
ethical breach was intentional.
Answer:
CRM is a variation of the positioning approach.
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It is the job of the marketing manager to come up with an effective promotion blend.
Answer:
When a firm is doing similar research projects in different international markets, it
makes sense for the marketing manager to coordinate the efforts so that comparisons
across markets are possible.
Answer:
A wholesaler might help a producer by reducing the producer's need for market
research.
Answer:
Unless the problem is precisely defined, research effort may be wasted on the wrong
problem, and may lead to costly mistakes.
Answer:
In less-developed economies, retail shopkeepers typically use a one-price policy.
Answer:
"Economies of scale" means that as a company produces more of a product, the cost of
each unit produced goes down.
Answer:
The Internet changes how consumers shop and marketers market.
Answer:
A sales promotion manager's job is choosing the right media and developing the
advertisements.
Answer:
The "wheel of retailing" theory fails to explain some major retailing developments,
such as vending machines and convenience food stores, which did not enter the market
with a low-price emphasis.
Answer:
Door-to-door selling now accounts for less than 1 percent of retail sales in the United
States.
Answer:
Selling products manufactured in the United States to foreign customers-often without
any product changes-is called:
A. joint ventures.
B. licensing.
C. importing.
D. contract manufacturing.
E. exporting.
Answer:
In the short run at least, which of the following is usually beyond the control of the
marketing manager?
A. Political and legal environments.
B. Economic environment.
C. Cultural and social environment.
D. Competitive environment.
E. All of these environments are beyond the control of the marketing manager in the
short run.
Answer:
A potential supplier sending a brochure or product catalog, or a salesperson contacting
the buyer over the phone are means of submitting a(n) _____ in organizational buying.
A. proposal
B. portfolio
C. equity sheet
D. treaty
E. voucher
Answer:
Drop-shippers:
A. are used because it is cheaper for producers to ship to them by rail and let the
drop-shipper drop the products off at local retailers with small trucks.
B. never take title to the products they sell.
C. typically sell large shipments, e.g., rail carloads.
D. have very high operating expenses.
E. are full-service merchant wholesalers.
Answer:
Controlling is vital to the marketing management process because:
A. marketing managers need to control their subordinates.
B. controlling examines a firm's strengths, weaknesses, opportunities, and threats.
C. gathering feedback on a plan's results may lead to beneficial adjustments or entirely
new plans.
D. controlling involves identifying a target market.
E. controlling is part of the marketing mix.
Answer:
Use this information for question that refer to the "Salespeople" case.
Wilson Alvaro graduated with a marketing degree almost a year ago. Like many of his
friends, he took a job in sales and really enjoys it. A description of Wilson's job and
those of some of his friends are noted below.
Wilson Alvaro loves biking and has his dream job. He works for a wholesale company
that sells mountain bikes for a manufacturer. He works with a small group of people
who call on the buying offices for two large retail chains, Wal-Mart and Toys R Us. The
group includes a finance person and a production person, and they all work together to
meet the specific needs of these two big accounts; for example, sometimes they
recommend a model of bike that will be available from only that retailer's stores.
However, Wilson's main job focuses on building relationships and solving customer
problems. Only occasionally is he expected to try to persuade the retailers to buy more
bikes.
Amy Bowden sells life insurance. She calls on new parents and persuades them to buy
insurance products. It is difficult for a manager to control Amy's work, but she has
incentive to work hard because her job security and income depend on getting sales.
She is a confident self-starter, so she likes it that way.
Ben Peterson works for a fashionable men's clothing store. He enjoys spending time
with customers who come in, learning about their fashion needs, and helping them pick
clothes that really work for them. While the store manager can easily observe and direct
Ben's activities, the manager wants Ben to have the incentive to increase customer
purchases and satisfaction.
Emily Winters handles inside sales for a major industrial distributor. She deals with a
regular set of established customers, most of whom know what they want. Emily talks
to them on the phone and answers questions about products, delivery time, and pricing.
She sometimes works with outside sales reps who visit customers and help introduce
new products. Emily is the first person her customers call when there's a problem with a
purchase, so she spends a lot of time dealing with customer problems. As an inside
salesperson, Emily's work is easily supervised by a sales manager - and she has little
influence on how much her customers buy.
Melissa Tran works for a company that sells paper products (like napkins, paper towels,
and paper plates) primarily through small independent grocers. Most of the grocers are
regular customers, but sometimes she makes cold calls to new grocery stores. Melissa's
job is to develop goodwill and try to increase sales. For example, she often sets up
special promotional displays in stores. Her compensation plan gives her income
security, but she also can receive a bonus for sales growth in her territory.
Charlie Riggs is a telemarketer for an Internet service provider. He calls people on a list
provided by his firm and tries to sign them up for Internet service. Charlie relies heavily
on a presentation he learned during his training. Charlie is very good at what he does
and loves that the more success he has the more he earns.
Which salesperson's primary task is order taking?
A. Emily Winters
B. Melissa Tran
C. Amy Bowden
D. Wilson Alvaro
E. Charlie Riggs
Answer:
Sales promotion:
A. lets the salesperson adapt the firm's marketing mix to each potential customer.
B. is the main form of advertising.
C. tries to help the personal selling and mass selling people.
D. is free.
E. consists of both advertising and personal selling.
Answer:
Procedures that develop and analyze new information to help marketing managers make
decisions are called:
A. marketing research.
B. statistical techniques.
C. operational planning.
D. strategy planning.
E. sample building units (SBUs).
Answer:
"Promotion" is concerned with:
A. how suitable messages are communicated to target customers.
B. communicating information between seller and buyer or others in the channel to
influence attitudes and behavior.
C. informing customers that the right Product is available at the right Place at the right
Price.
D. blending personal selling, mass selling, and sales promotion.
E. All of these are parts of "Promotion."
Answer:
For a long time Jessica felt disappointment over a new pair of jeans that never fit quite
right. Jessica experienced
A. high involvement purchase.
B. dissonance.
C. post-purchase regret.
D. confirmation.
E. selective feedback.
Answer:
_____ in the marketplace are a rough measure of how society values particular goods
and services.
A. Inventories
B. Prices
C. Cost of labor and materials
D. The number of producers
E. Discrepancies of quantity
Answer:
When consumers use a problem-solving process to make purchase decisions, what is
the next step after they become aware of a problem?
A. Evaluating alternative solutions
B. Gathering information about possible solutions
C. Deciding on the appropriate solution
D. Evaluating the decision
E. Making the commitment to purchase a particular product or service
Answer:
Concerning marketing ethics:
A. Individuals develop moral standards based on their own values.
B. Opinions about what is right or wrong vary from one society to another.
C. The prevailing practice of most businesspeople is to be fair and honest.
D. Marketing ethics has its critics.
E. All of these are correct.
Answer:
Use this information for question that refer to the Yummy Ice Cream case.
Kelly Stich, marketing manager for Yummy Ice Cream Products, is thinking about some
of her products and her promotion plans for the coming year.
Yummy Ice Cream Products is introducing a new ice cream treat called PlanetSavers.
This treat uses ice cream produced with environmentally friendly processes that save
energy and protect the ozone. Yummy plans to send articles to magazines, local
newspapers, and environmental groups that explain the environmentally safer treat. The
product also has a unique texture and different flavor.
Stich wants to use counter cards and in-store signs to let people know about Cherry
Walrus, the company's new flavor. She is also developing sales training materials that
will teach ice cream scoopers in Yummy's ice cream stores to promote the product.
Right after Cherry Walrus is introduced each store will also hand out coupons that are
good for one day only.
Yummy Mondaes is a product that has been around for 25 years. It is Yummy's take on
the classic ice cream sundae, but white-brownie and coffee-flavored crumbles are added
to make it extra special. The company sells this product in one and two quart containers
through major grocery store chains. It relies on personal selling and price discounts to
retailers to move more of the product. The company does very little consumer
promotion for this product.
Yummy Fudge on a Stick is a new product of fudge-flavored ice cream on a stick.
Yummy plans to sell it through retail grocery stores and is launching an aggressive
advertising program that will use television, radio, newspaper, magazines, and the
Internet. Most of its promotion will be directed at consumers.
Two years ago, the company introduced Yummy Fruit on a Stick, an all-natural frozen
fruit product on a stick. The product category has been popular, continues to grow, and
is in the market growth stage of the product life cycle.
To get the most out of its promotion spending, Yummy should probably develop its
budget by:
A. allocating some fixed percentage of net sales.
B. matching expenditures with competitors.
C. allocating money to the needs of new products first, then use any leftover money for
other products.
D. using the "task method."
E. spending all available funds.
Answer:
Use the following information to answer question that refer to the Jewel Craft case.
Jewel Craft, Inc. is a leading producer in the United States' women's costume jewelry
and accessories market. Its brands are well known and are sold by department stores
and better women's stores. Several stores in a city may carry Jewel Craft's brands
because most of Jewel Craft's customers will not consider any other brand.
Jewel Craft's sales force calls on one wholesaler in each state. Gemco, Inc., of Boston,
Massachusetts, is the Jewel Craft distributor in that state. Gemco stocks and sells
women's accessories (noncompeting lines) for several manufacturers like Jewel Craft.
Wholesalers are allowed a 20 percent markup by Jewel Craft-but pay the freight
charges to their warehouses. Jewel Craft's policy of using one wholesaler per state
comes from its desire to control its distribution. Jewel Craft uses national magazine
advertising and also supports a cooperative ad program with retailers.
Jewel Craft's prices allow for a 40 percent retail markup-an attractive percent when one
considers that Jewel Craft's products require little in-store selling because of their
well-established reputation.
Recently, Jewel Craft was approached by a watch producer with the idea of expanding
to watches under the Jewel Craft name. It was argued that although national watch sales
have leveled off, Jewel Craft could enjoy growing sales for several years because of the
fine reputation the company has achieved. If watches are added, Jewel Craft will use its
present policies regarding distribution, pricing, and advertising. Further, it will offer the
wholesalers and retailers an attractive "package" deal as an incentive to carry Jewel
Craft watches. Intermediaries will be required to carry the watches if they wish to
handle the jewelry and accessories.
Jewel Craft's selling price for an item that retails for $10 would be:
A. $5.20.
B. $7.00.
C. $8.00.
D. $6.00.
E. $4.80.
Answer:
A producer that is selling all its products under one brand name is using
______________ brand.
A. a family
B. a generic
C. a licensed
D. a national
E. an individual
Answer:
Natalie Simopoulos, director of procurement at Grecian Glass Company must approve
every purchase order, and Anthony Markatos, purchasing manager, must authorize any
sales rep who wants to talk to a Grecian Glass employee. Natalie and Anthony are
acting as _____ and _____, respectively.
A. decider and gatekeeper
B. influencer and user
C. gatekeeper and influencer
D. buyer and decider
E. user and gatekeeper
Answer:
Which of the following has played a role in increasing competition within the
transportation industry in the U.S.?
A. Increasing costs of PD overall
B. Increasing costs of product storage
C. Increasing costs of transportation
D. Decreasing governmental regulations
E. Decreasing role of technology
Answer:
Supermarkets:
A. usually earn net profits that are at least 15 percent of sales.
B. were late adopters of the mass-merchandising concept.
C. usually carry about 100,000 product items per store.
D. are designed to maximize efficiency.
E. All of these alternatives are correct for supermarkets.
Answer:
Marketers cannot assume that a product that meets consumer needs in one country will
do so in another. This is because:
A. some people do not have physiological or safety needs.
B. many needs are culturally learned.
C. economic needs do not influence purchases in many regions of the world.
D. the purchase situations may be different.
E. family life cycles may be different.
Answer:
"Cooperative advertising" involves producers:
A. paying for intermediaries' total advertising costs.
B. agreeing with competitors to limit advertising spending.
C. doing some advertising and expecting their intermediaries to provide the rest of the
promotion blend.
D. and intermediaries sharing in the cost of advertising placed in national media.
E. and intermediaries sharing in the cost of local advertising.
Answer:
Which of the following is LEAST LIKELY to be in the "Something of Value" part of
the "price equation" for CHANNEL MEMBERS?
A. Service-repair facilities
B. Rebates
C. Price-level guarantees
D. Promotion aimed at customers
E. Convenient packaging for handling
Answer:
Compared with other promotion methods, PERSONAL SELLING:
A. is less expensive when the target customers are numerous and widespread.
B. is less effective in overcoming sales resistance.
C. is less flexible in adapting to customers' needs and attitudes.
D. provides more immediate feedback.
E. All of these alternatives are correct.
Answer:
The slogan from the GEICO ads, "15 minutes could save you 15 percent or more on
your car insurance" is an example of which of the following elements of the
communication process?
A. Message
B. Source
C. Receiver
D. Encoder
E. Feedback
Answer:
The following terms appeared on an invoice dated May 20 which was sent by a
manufacturer to a retail store: 2/10, net 30. The amount of the invoice was $2,000.
Assuming the retailer paid the invoice on May 30 (10 days after the products were
delivered), how much should he have paid?
A. $1,900
B. $1,800
C. $2,000
D. $1,960
E. $2,040
Answer:
Which of the following is NOT a level of brand familiarity?
A. Brand nonexistence
B. Brand rejection
C. Brand nonrecognition
D. Brand preference
E. Brand insistence
Answer:
Regarding organizational buying,
A. a "national accounts" sales force often makes sense when firms with many facilities
buy from a central location.
B. purchasing managers are more likely to be found in large organizations.
C. a geographically bound salesperson can be at a real disadvantage.
D. All of these alternatives regarding organizational buying are true.
Answer:
Teenagers and young adults with no income and few assets are sometimes prime targets
for credit card companies. In response, Congress in 2009 passed the Credit CARD Act,
which requires that anyone under age ____ must have a cosigner or prove they can
repay any debt.
A. 16
B. 18
C. 21
D. 23
E. 25
Answer:
Which of the following is not a part of the direct market environment for Starbucks?
A. McDonald's and its coffee.
B. Starbucks objective to open 50 new stores in the United States in 2014.
C. Rising interest rates worldwide.
D. High awareness of Starbucks brand name.
E. Growing interest in brewed cacao a prospective competitor for coffee.
Answer:
Which of the following is most consistent with the scientific method approach to
marketing research discussed in the text?
A. "We continually survey our customers because the results give us good ideas for
hypotheses."
B. "Once we interpret the data, we can define our problem."
C. "Our research is as precise as possible-because we want to be 100 percent accurate."
D. "Sometimes the answers from the early stages of the research process are good
enough so we stop the research and make our decisions."
E. None of these alternatives is correct.
Answer:
______ refers to processes that screen out or modify ideas, messages, and information
that conflict with previously learned attitudes and beliefs.
A. Selective exposure
B. Selective learning
C. Selective retention
D. Selective attention
E. Selective perception
Answer:
Hewlett-Packard sells personal computers through specialty computer stores,
electronics superstores, and its own Internet site. The marketing mix variable that is
being considered here is:
A. Price.
B. Promotion.
C. Personnel.
D. Product.
E. Place.
Answer:
The process of market segmentation involves:
A. identifying small target markets and expanding them into broad product markets.
B. identifying broad product markets and segmenting then into narrower target markets.
C. identifying target groups with the fewest potential customers.
D. selecting a marketing mix to reach everyone.
E. identifying target markets based on consumers' gender alone.
Answer:
