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In general, product life cycles appear to be getting longer in recent years.
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The Internet is a system for linking computers around the world.
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The marketing concept says that it is a firm's obligation to improve its positive effects
on society and reduce its negative effects.
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The most trusted sources of Promotion are forms of publicity, not advertising or sales
promotion.
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In nonprofit organizations, support may not come directly from satisfied customers.
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Efforts to reduce the environmental effects of transporting usually increase the firm's
distribution costs.
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The objectives of a firm should direct the operation of the marketing department, but
aren't important to the rest of the business.
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Clustering is a technique that divides a large group of people into smaller groups, so
that each small group is as diverse as the large group from which it was formed.
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Aggressive, market-oriented intermediaries are almost always available and eager to
handle the distribution of innovative, new products.
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The Internet gives large firms access to repeat customers, but it does little for small
firms trying to develop an initial base of customers.
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A firm may spend 50 percent or more of its total marketing dollars on PD activities.
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The "four Ps" of the marketing mix are: People, Products, Price, and Promotion.
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Segmentation is the process a manager goes through to decide which subgroups of
customers to select.
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A weakness of the canned approach is that it treats all potential customers differently.
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Just-in-time delivery reliably helps to get products and store them long before the
customer needs them.
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A generic market description looks at market broadly and from a customer's viewpoint.
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"Positioning" means using a map to show where a firm's products are distributed
geographically.
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International marketing typically requires less segmenting than domestic markets.
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A pushing effort might include sales promotion as well as personal selling.
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J.D. Power's surveys of customer satisfaction are a popular example of syndicated
research.
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Trade promotion usually stresses price-related matters.
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Product life cycles describe industry sales and profits within a particular
product-market, and not the sales and profits of individual brands.
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Cost-oriented approaches are the most common price setting approach.
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The "total cost approach" to physical distribution management involves evaluating all
the costs of alternative physical distribution systems, including transporting, storing,
and handling costs.
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Convenience food stores now compete with supermarkets, gas stations, and fast-food
outlets.
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Most M and M's are sold as consumer products, but M and M's printed with special
messages or brand logos have become an effective (and sweet) sales promotion tool for
business customers.
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A marketing dashboard displays up-to-the-minute marketing data in an easy-to-read
format.
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Consumer products that a customer feels are worth the time and effort to compare with
competing products are shopping products.
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Exchange rate changes can be an important factor even for a small firm that sells only
in its own local market.
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The Consumer Product Safety Commission tries to encourage safe product design, but
the commission has almost no power to deal with unsafe products.
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Good salespeople try to sell the customer, regardless of other factors.
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Use this information for question that refer to the Wire Products Inc. (WPI) case.
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 wire-coated 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.
Based on the text's recommendations for different stages in the product life cycle, for
which product does WPI most need to consider developing different markets?
A. Wire Window
B. Oil Wire
C. Wire Closet
D. It would be equally important to develop new markets for all of these products.
Answer:
Passage of the Consumer Product Safety Act means that:
A. some businesspeople may go to jail if they offer unsafe products.
B. consumers will be more willing to pay for safer products in the future.
C. product-related injuries will be eliminated in the future.
D. producers are no longer liable for an injury if it is the consumer's fault.
E. All of these alternatives are correct.
Answer:
Determining the blend of promotion methods is a strategy decision which is the
responsibility of the
A. brand ambassador.
B. finance manager.
C. personnel manager.
D. marketing manager.
E. recruitment manager.
Answer:
Identify the FALSE statement regarding promotion to intermediaries.
A. When suppliers offer similar products and compete for attention and shelf space,
intermediaries usually pay attention to the one with the best profit potential.
B. Sales managers handle most of the important communication with intermediaries
who do not want empty promises.
C. Sales promotions targeted at intermediaries usually focus on short-term
arrangements that will improve the intermediary's profits.
D. Trade ads usually encourage intermediaries to contact the supplier for more
information, and then a salesperson takes over.
E. During sales promotion, intermediaries want to know what they can expect in return
for their cooperation.
Answer:
A firm with a stockturn rate of 4 sells products that cost it $100,000. This requires
_____ worth of inventory.
A. $25,000
B. $20,000
C. $80,000
D. $400,000
E. $500,000
Answer:
______________ means target customers will generally choose a particular brand over
other brands-perhaps out of habit or past experience.
A. Brand nonrecognition
B. Brand preference
C. Brand insistence
D. Brand rejection
E. Brand recognition
Answer:
Considering the universal functions of marketing,
A. they may not be required in all macro-marketing systems.
B. not every firm must perform all of the marketing functions.
C. responsibility for performing them cannot be shifted or shared.
D. all goods and services require all the functions at every level of their production.
Answer:
A salesperson who seeks possible buyers with a well-organized sales presentation
designed to get new business is:
A. a technical specialist.
B. a supporting salesperson.
C. an order getter.
D. a missionary salesperson.
E. an order taker.
Answer:
When Sony manufactures and packages DVD players in Japan, stores them in large
8'x8'x20' "boxes," and then ships these boxes to Los Angeles by boat, this is an example
of:
A. containerization.
B. truck.
C. pipeline.
D. rail.
E. piggyback.
Answer:
The combined target market approach:
A. tends to focus on small, homogeneous market segments.
B. aims at several target markets and offers each target market a unique marketing mix.
C. tries to improve the general appeal of a firm's basic marketing mix rather than tailor
it to meet the strongly felt needs of some people.
D. works well only when each submarket of a product-market has a different demand
curve.
E. None of these alternatives is correct for the combined target market approach.
Answer:
About what percentage of marketing research spending is for syndicated research data?
A. 20 percent
B. 30 percent
C. 40 percent
D. 50 percent
E. 60 percent
Answer:
In the U.S., what percentage of total dollar value added by manufacturing comes from
large manufacturers employing 250 or more employees?
A. Just under 40 percent
B. Almost 60 percent
C. About 30 percent
D. Less than 5 percent
E. More than 80 percent
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.
If Yummy relies on a sales contest to stimulate sales of Cherry Walrus, this would be an
example of:
A. advertising.
B. personal selling.
C. sales training.
D. sales promotion.
E. publicity.
Answer:
A _____ is a dollar amount added to the cost of products to get the selling price.
A. markup
B. rebate
C. list price
D. spiff
E. deal
Answer:
Identify the traditional communication process.
A. Source-Encoding-Message channel-Decoding-Receiver-Feedback.
B. Source-Encoding-Message channel-Receiver-Feedback.
C. Source-Encoding-Message channel-Noise-Receiver-Feedback.
D. Source-Message channel-Decoding-Receiver-Feedback.
E. Source-Noise-Message channel-Receiver-Feedback.
Answer:
Target customers choosing a particular brand over other brands, because of habit or
favorable past experience have a brand familiarity level of
A. brand preference.
B. brand knowledge.
C. brand insistence.
D. brand recognition.
E. brand positioning.
Answer:
According to the FTC, for a producer to call a product "new," the product:
A. must be no more than two months old.
B. must have achieved brand insistence.
C. must be entirely new or changed in a functionally significant or substantial respect.
D. must have been changed in some way during the last year.
E. None of these alternatives is correct.
Answer:
Increased demand for new homes due to low interest rates is an example of the impact
of the ___________ environment.
A. technological
B. cultural
C. competitive
D. economic
E. social
Answer:
When PepsiCo asked its advertising agency to develop an advertising program for its
Mountain Dew soft drink, it gave the agency a statement describing the age and
fun-loving spirit of its target market and the one-of-a-kind citrus flavor of the new
product, what type of statement was this?
A. Clustering
B. Determining
C. Combining
D. Positioning
E. Qualifying
Answer:
If a producer wants to stabilize demand over time by encouraging repeat business, it
should probably use
A. uniform delivered pricing.
B. phony list prices.
C. a seasonal discount.
D. a cash discount.
E. a cumulative quantity discount.
Answer:
In the U.S., producers of soap and detergent spend about _____ percent of their sales
dollars on advertising.
A. 1
B. 4
C. 7
D. 10
E. 14
Answer:
Because of long-run effects, decisions about one of the four Ps are often harder to
change than the others. This P is:
A. Product.
B. Place.
C. Promotion.
D. Price.
Answer:
"Nationalism" is an issue in the ______________ environment.
A. competitive
B. political
C. economic
D. cultural
E. technological
Answer:
A type of vertical integration system that develops by acquiring firms at different levels
of channel activity is called:
A. Corporate
B. Traditional
C. Administered
D. Contractual
E. Technical
Answer:
What basic promotion objective should be sought by a producer whose Product is very
similar to its many competitors' Products?
A. Persuading
B. Promoting
C. Communicating
D. Informing
E. Reminding
Answer:
Secondary data:
A. may not be specific enough to answer the question under consideration.
B. should be considered before primary data is collected.
C. is often all that is needed to solve a problem.
D. is available both internally and outside the firm.
E. all of these alternatives are correct.
Answer:
A retailer's operational decision to hire new salespeople would best relate to the
marketing mix decision area of
A. product.
B. place.
C. promotion.
D. price.
E. people.
Answer:
Hewlett-Packard decided that too many other companies were attracting its customers
by advertising their computer printers as "having all of the features of
Hewlett-Packard's LaserJet." So Hewlett-Packard designed a new color printer with a
completely new set of features that no competitors' equipment offered. Hewlett-Packard
then introduced it to the same market with the hope that it could develop a larger and
more profitable share. This was an effort at:
A. market development.
B. diversification.
C. market penetration.
D. product development.
Answer:
A catalog merchant divides the country into regions. Every buyer in a particular region
pays the same average shipping charge. The shipping charges differ from region to
region, depending on how far the region is from the catalog merchant's main warehouse
facility. The catalog merchant is using:
A. F.O.B. pricing.
B. Zone pricing.
C. Freight absorption pricing.
D. None of these is a good answer.
Answer:
SouthFace Corporation just named Chloe Perry to a marketing management position.
One of the reasons she accepted a position with this company was its reputation for
market-oriented long-range planning. SouthFace Corp. is probably operating in the
______________ era.
A. planning
B. marketing company
C. marketing research
D. marketing department
E. none of these is a correct answer.
Answer:
Forecasts of the probable results of implementing whole strategic plans are needed to
apply quantitative screening criteria.
Answer:
Compared to other consumer products, the major distinguishing characteristic of
emergency products is the customer's:
A. desire to negotiate for a "deal."
B. urgency to get the need satisfied.
C. willingness to shop around for a lower price.
D. interest in the brand name.
E. willingness to shop and compare.
Answer:
Marketing information systems rely heavily on:
A. information gathered by salespeople.
B. customer surveys.
C. teamwork between IT experts and marketing managers.
D. direct observation of customers.
E. marketing research departments.
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 has a job where compensation is likely to be straight salary?
A. Ben Peterson
B. Amy Bowden
C. Melissa Tran
D. Emily Winters
E. Charlie Riggs
Answer:
