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Although advertising expenditures in the United States by 2013 were more than $220
billion, the major expense was for media time and space-not payroll expense to people
who worked in the advertising industry.
Answer:
As opposed to behavioral targeting, social targeting is not characterized by the delivery
of ads to consumers.
Answer:
A customer's effort to keep a salesperson from completing a sales presentation is called
a "close."
Answer:
Specialized search engines can help a business buyer search for products by inspection.
Answer:
Market segmentation is a two-step process that involves naming broad product-markets
and segmenting these broad product-markets in order to select target markets and
develop suitable marketing mixes.
Answer:
Most marketing managers think that the economic-buyer theory explains buyer
behavior very well.
Answer:
In 2010, half of all American households earned more than $75,442.
Answer:
Merchant wholesalers account for almost 85 percent of all wholesalers.
Answer:
Profit maximization objectives lead to high prices and monopolies-and are generally not
in the public interest.
Answer:
Franchising now accounts for about a third of all retail sales.
Answer:
A major difference between leader pricing and bait pricing is that bait pricing is
criticized as unethical while leader pricing is not.
Answer:
Direct-response promotion usually relies on a CRM database.
Answer:
The traditional view of promotion has focused on communication initiated by the seller.
Answer:
Positioning issues are especially important when competitors in a market appear to be
very similar.
Answer:
A service mark is the same as a trademark, except that it refers to a service offering.
Answer:
Competition needs to be considered when adding in overhead and profit for a bid price.
Answer:
Cash-and-carry wholesalers are more common in underdeveloped nations than in the
U.S.-where big warehouse clubs have taken much of the business.
Answer:
The two parts of a marketing strategy are an attractive opportunity and a target market.
Answer:
Break-even analysis is particularly accurate because it recognizes that the demand curve
is downward sloping.
Answer:
When it comes to customer value, it is the customer's view that matters, not the view of
the marketing manager.
Answer:
A "Product" should be thought of as potential customer satisfaction or benefits.
Answer:
Qualifying dimensions are those that actually affect the customer's purchase of a
specific brand in a product-market.
Answer:
A marketing manager who sets prices to achieve a given level of market share is using a
profit-oriented pricing objective.
Answer:
A marketing manager who is able to use qualifying dimensions in forming market
segments will not need to worry about determining dimensions.
Answer:
Today, about half of all computer hardware and software and a quarter of all books are
sold online.
Answer:
Price is the most important of the four Ps.
Answer:
The best way to increase customer equity is to find cost-effective ways to increase
earnings from current customers while bringing profitable new customers into the fold.
Answer:
In the U.S., ethnic submarkets are growing at a faster rate than the overall population.
Answer:
Technology affects marketing through new products and new processes.
Answer:
A good situation analysis is usually inexpensive compared with more formal research
efforts, such as a large scale survey.
Answer:
A firm's obligation to improve its positive effects on society and reduce its negative
effects is called fiscal responsibility.
Answer:
It is useful to think of the marketing strategy planning process as a narrowing-down
process.
Answer:
"Empty nesters" are people whose children are grown and who are now able to spend
their money in other ways.
Answer:
To share in the government market, it is advantageous to be on the list of approved
suppliers.
Answer:
An installment involves a single transaction.
Answer:
Sales and profits usually move together over time during the product life cycle.
Answer:
"Positioning" shows how proposed and/or present brands are located in a market-as
seen by customers.
Answer:
An extremely good plan might be carried out badly and still produce profits, while a
poor but well implemented plan can lose money.
Answer:
Advertising is any paid form of nonpersonal presentation of ideas, goods, or services by
an identified sponsor.
Answer:
Heritage Brick's marketing manager is setting her pricing policies to "increase market
share to 8%." Her pricing objective seems to be:
A. status quo oriented.
B. sales oriented.
C. profit oriented.
D. target return oriented.
E. None of these is a good answer.
Answer:
A disadvantage of direct-to-customer channels is that they
A. are not suitable when the number of transactions is small or when orders are large.
B. are illegal in business and organizational markets.
C. make it more difficult to serve buyers who want to lease rather than buy products.
D. require the producer to coordinate with many retailers.
E. None of these is a disadvantage of direct-to-customer channels.
Answer:
According to projections, the population of _____ is likely to grow by 14 percent
between 2010 and 2025.
A. Japan
B. Russia
C. United States
D. China
E. Egypt
Answer:
Heinz, in order to boost its sales, came up with ketchup in gross green and funky purple
colors. It packaged the ketchup in EZ Squirt dispensers molded to fit little hands. This
is an example of:
A. Product development
B. Market development
C. Diversification
D. Market penetration
Answer:
A _____ is an online group of participants joined together by a common interest, and
who participate in ongoing research.
A. experiment
B. mutual research network
C. family intercept
D. focus group
E. market research online community
Answer:
The transporting function adds value by:
A. making products available where they're needed.
B. making JIT the best approach.
C. making products available when they're needed.
D. making products available when AND where they're needed.
E. making the storage function obsolete.
Answer:
Allied Corp. has found that an effective salesperson should call on each account about
six times a year and spend about two hours per sales call. Every salesperson works a
40-hour week and takes off two weeks for vacation each year. A salesperson must spend
half of the time on travel and administration. Approximately how many salespeople
does Allied need to service 1000 accounts?
A. 12
B. 30
C. 2
D. 6
E. 24
Answer:
Which of the following observations about reference groups is FALSE?
A. Reference groups are people to whom an individual looks when forming attitudes
about a particular topic.
B. An individual usually has a single reference group for all topics.
C. An individual may make buying decisions based on what the group thinks.
D. Reference group influence is stronger for products that others 'see."
E. Reference group influence is stronger for products that relate to status in the group.
Answer:
EDI was developed in response to which of the following problems?
A. Firms using different transportation modes
B. International telecommunication difficulties
C. Differences in order fulfillment processes
D. Computer system differences among firms
E. Differences in product output and quality levels
Answer:
The legal obligation of sellers to pay damages to individuals who are injured by
defective or unsafely designed products is called:
A. product responsibility.
B. breach of warranty.
C. rule of reason.
D. product liability.
E. design enforcement.
Answer:
In the idea generation stage of the new-product development process:
A. Bad ideas should be discarded as soon as possible.
B. Using competitors as a source of ideas should be avoided.
C. Firms need a continuous flow of ideas.
D. Analysis of consumer complaints about current products is unlikely to generate any
new ideas.
E. None of these alternatives is correct.
Answer:
Good marketing strategy planners know that:
A. firms like Nabisco and Walmart are too large to aim at clearly defined target
markets.
B. target marketing does not limit one to small market segments.
C. mass marketing is often very desirable and effective.
D. the terms "mass marketing" and "mass marketer" mean basically the same thing.
E. target markets cannot be large and spread out.
Answer:
The amount of income a family has left after paying taxes and paying for its necessities
is called its ______________ income.
A. personal
B. discretionary
C. marginal
D. family
E. modified
Answer:
Use this information for question that refer to the Super Gaming Company and
Accessories (SGCA) case.
Kayla Jurgenson, marketing manager for Super Gaming Computers and Accessories
(SGCA), is reviewing her company's plans for the coming year.
SGCA sells its products through retail computer dealers and some specialty gaming
stores. Currently, SGCA is carried in 25 percent of all retail computer stores nationwide,
but in California is carried in only 10 percent of stores. So, Kayla has set an objective of
being in 25% of all retail computer stores in California within one year.
SGCA plans to introduce a new SuperDuperGamer model with special features that fits
its target market of teen and young adult gamers. The SuperDuperGamer uses a new
technology and is expected to be a breakthrough product, but it will be important to
build awareness for it to succeed. So, the advertising objective is for 40% of SGCA's
target market to be aware of the new SuperDuperGamer model within 3 months. SGCA
also wants to help its retailers reduce their current stock of SuperGamer computers
before the new model comes out in a month. The SuperGamer has been on the market
for two years and has been a top seller in the category. SGCA's advertising objective for
the SuperGamer computer is to reduce current dealer stock by 80% within the next
month.
SGCA is also introducing a SuperEnhancer sound card, which is designed to
significantly enhance the game-playing experience with older computers. Research with
gamers show that it is very well received, so the advertising objective for the
SuperEnhancer sound card is to gain 40% market share among all gaming-specific
sound cards in the next year. To help achieve that objective, Jurgenson is planning to
use an ad that shows the sound card and a game player being knocked off his chair by
the sound. The headline on the ad reads, "9 Out of 10 Gamers Say that the
SuperEnhancer Sound Beats All Others!"
In evaluating the copy thrust of its ad for the SuperEnhancer sound card, Jurgenson
should consider:
A. whether the ad gets attention.
B. the quality of the illustrations in the ad.
C. the media to be used.
D. the advertising objectives.
E. all of these should be considered.
Answer:
Regarding specialty products, which of the following is TRUE?
A. Branding does not play an important role in purchasing specialty products.
B. It is a customer's willingness to search that makes it a specialty product.
C. Shopping for a specialty product involves much comparing of products.
D. It is the extent of searching which the customer has to do that makes it a specialty
product.
E. All of these alternatives are TRUE.
Answer:
A product which becomes part of a buyer's final product and comes finished and ready
for assembly is called:
A. a raw material.
B. a component material.
C. a component part.
D. accessory equipment.
E. an installation.
Answer:
______ needs are concerned with things that involve a person's interaction with others.
A. Physiological
B. Safety
C. Biological
D. Personal
E. Social
Answer:
Which of the following is the BEST example of an advertising objective?
A. "We want 35 percent of our target customers to be aware of our new product within
the next two months."
B. "We want to generate enough interest in our product that intermediaries will be
willing to stock it."
C. "We want to make older consumers aware of our product-since they have the greatest
need."
D. "We want to increase profits-and that will require significantly expanding sales of
our product."
E. "We want to win an advertising industry artistic award for the creative effort on the
ad."
Answer:
Bart Thunderheart has an annual income of $75,000 a year. He pays $25,000 in taxes,
and spends another $15,000 on his home, car, food, and other "necessities." Last year,
he decided to really enjoy his annual vacation, so he spent $5,000 to go skiing in
Austria. What was Bart's discretionary income last year?
A. $20,000
B. $5,000
C. $35,000
D. $30,000
E. $50,000
Answer:
Communicating with customers is known as the ________________ portion of the
marketing mix.
A. Place
B. Positioning
C. Promotion
D. Pricing
E. Production
Answer:
It is usually the _________ job, perhaps with help from specialists in technology, to
decide what types of sales technology tools are needed and how they will be used.
A. sales manager's
B. procurement manager's
C. marketing executive's
D. purchasing manager's
E. product manager's
Answer:
In a ____ the individual decisions of the many producers and consumers make the
macro-level decisions for the whole economy.
A. mixed economy
B. command economy
C. market-directed economy
D. production-oriented economy
E. controlled economy
Answer:
Using advertising to develop selective demand:
A. may become necessary as a firm's product moves through its product life cycle.
B. should only be tried with selective distribution.
C. is needed when consumers do not know a new product is available.
D. is intended to produce immediate buying action.
E. is needed when a firm has a monopoly.
Answer:
U.S. based Myva Foods Inc. is expanding its business to the Asian market. Which of the
following will be an ineffective practice in the company's efforts to expand to
international markets?
A. The company will need to pay close attention to the cultural differences between its
home country and the host countries.
B. The company will be able to find out new ways to blend the four Ps of the marketing
mix in the new market by making an effort to understand the local culture.
C. The company can apply the same marketing mix it uses in the U.S. market to the
Asian market.
D. The company should put more effort into planning strategies for the international
markets, even though it has experienced success in the U.S. market.
Answer:
When identifying a company's market, managers need to avoid the mistake of:
A. finding out what customers need.
B. thinking of a market as a group of customers with similar needs who will exchange
money for goods and services that meet those needs.
C. trying to identify specific target markets within a general market.
D. describing their markets solely in terms of the products they sell.
E. thinking of the issue from the customer's point of view.
Answer:
Raw materials
A. are treated as expense items.
B. are unprocessed but eventually become part of a final physical good.
C. include both farm products and natural products.
D. move to the next production process with little handling.
E. All of these alternatives are correct.
Answer:
In which of the following orders are activities most likely to be performed on goods
arriving at a distribution center?
A. Sort into groups, retrieve from groups, stack on pallets, load for shipping
B. Put in long-term storage, retrieve from groups, stack on pallets, load for shipping
C. Sort into groups, put in long-term storage, retrieve from groups, load for shipping
D. Load for shipping, sort into groups, retrieve from groups, stack on pallets
E. Sort into groups, stack on pallets, load for shipping, retrieve from groups
Answer:
When Hallmark stores offer a product line that includes everything you need to have a
Spiderman theme birthday party, what is the primary segmenting dimension that
Hallmark is using?
A. Gender
B. Family size
C. Benefits sought
D. Rate of use
E. Size of city
Answer:
Emphasis on standardized e-commerce is appropriate for a business selling situation
that requires:
A. High relationship building and a high degree of standardized information exchange
B. Low relationship building and low degree of consumer product awareness
C. Low relationship building and high degree of standardized information exchange
D. High relationship building and high consumer technology understanding
E. Low relationship building and low degree of standardized information exchange
Answer:
A broker's "Product" is:
A. financial skills-and perhaps credit.
B. market contacts for new products.
C. information about what buyers need and what supplies are available.
D. good storage and transportation facilities.
E. All of these are included in a broker's "Product."
Answer:
A market-directed economy
A. ensures that voters and politicians agree which problem has to be solved first.
B. concentrates solely on profit generation.
C. guarantees that government aid programs are effective.
D. spreads income evenly among the population.
E. makes efficient use of resources.
Answer:
There are big shifts in demand from season to season for the lawn mowers produced by
GreenVision Co.- and its need for storage facilities also varies. GreenVision should
think about using:
A. piggyback service.
B. private warehousing facilities.
C. distribution centers.
D. public warehousing facilities.
E. None of these is a good answer.
Answer:
Which of the following is NOT one of the text's product life cycle stages?
A. Market maturity
B. Market penetration
C. Market introduction
D. Sales decline
E. Market growth
Answer:
Which of the following would NOT be favorable for successful branding?
A. The product is hard to identify by brand or trademark.
B. The product has widespread availability in the market.
C. The product has economies of scale in production and distribution.
D. The product offers the best value for the price.
E. Product quality is easy to maintain.
Answer:
