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When selling to government customers, competitive bids are common.
Answer:
Generally, the nations with the fastest growth in GDP are not the nations with the
largest GDPs.
Answer:
More money is spent on media costs for publicity each year than is spent on media
costs for advertising.
Answer:
According to the text, the U.S. social class system is usually measured in terms of
occupation, education, and housing arrangements.
Answer:
A marketing strategy is composed of two interrelated parts-planning and
implementation.
Answer:
Needs, benefits sought, attitudes, motivation, and even how a consumer selects certain
products all vary depending on the purchasing situation.
Answer:
The external marketing environment is shaped by these four areas: economics,
technology, politics/law, and culture/society.
Answer:
Some firms are adopting new software and hardware technologies to get a competitive
advantage in personal selling.
Answer:
An effective macro-marketing system matches heterogeneous supply with
heterogeneous demand.
Answer:
Retailing on the Internet already accounts for about 25 percent of all retail sales.
Answer:
Marketing does not occur unless there are two or more parties who want to exchange
something for something else.
Answer:
Organizational buyers are often referred to as the B2B market.
Answer:
The marketing concept applies to nonprofit organizations as well as to businesses.
Answer:
When a company includes videos on its website of how it has helped individual
business customers solve an important problem, this is an example of offering online
case studies.
Answer:
Marketing plays an essential role in creating customer satisfaction.
Answer:
The basic strategy planning decisions for advertising, publicity, and sales promotion are
the same regardless of where in the world the target market is located.
Answer:
Changes in technology can have major impacts on marketing strategy planning.
Answer:
Consumer product companies such as Tupperware that appear to be selling direct may
not be because their salespeople are independent distributors, not company employees.
Answer:
The sales and profits of an individual brand always follow the life-cycle pattern.
Answer:
Installations are long-lasting capital items such as buildings and land rights,
custom-made equipment, and standard equipment.
Answer:
Spoken communication with large numbers of customers at the same time is mass
selling.
Answer:
An economic system is the way an economy organizes to use scarce resources to
produce goods and services and distribute them for consumption among various people
and groups in the society.
Answer:
Spending on sales promotion exceeds spending on advertising.
Answer:
Pricing objectives need not be explicitly stated.
Answer:
In oligopoly situations, the only sensible policy is meeting competition.
Answer:
Like personal selling, blogs can enhance the relationship between a company and its
customers.
Answer:
Management contracting is a relatively low risk way of entering foreign markets, since
no commitment is made to fixed facilities.
Answer:
A fad cycle is shorter than a fashion cycle.
Answer:
A salesperson on a commission salary earns the same amount regardless of how he or
she spends time.
Answer:
The marketing manager's promotion job is to tell target customers that the right Product
is available at the right Place at the right Price.
Answer:
In a competitor analysis, a current (or planned) target market and marketing mix is
compared with what competitors are currently doing (or are likely to do).
Answer:
A lease requires a consumer to pay a monthly fee over a specified time period.
Answer:
Marketing is concerned with individual transactions rather than with building ongoing
relationships with customers because that is the job of people in the public relations
department.
Answer:
Words, symbols, or logos that are legally registered for use by a single company are:
A. Trademarks.
B. Brand names.
C. Brand marks.
D. Service marks.
E. Watermarks.
Answer:
Unsought products:
A. require wide distribution but little promotion.
B. are generally unprofitable.
C. should not be marketed.
D. are products consumers want but can't find.
E. None of these alternatives is correct.
Answer:
Identify the component of the marketing mix that involves advertising and hiring sales
people.
A. Price
B. Product
C. Place
D. Promotion
E. Production
Answer:
Regarding the marketing research process, defining the problem
A. means identifying the symptoms.
B. usually requires that problem specific data be collected and interpreted.
C. may have to wait until after a situation analysis has been completed.
D. All of these alternatives are true.
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."
What is Digital Imaging's pricing objective?
A. status quo oriented
B. sales oriented
C. profit oriented
D. target return
E. none of these is a good answer
Answer:
Alpine Auto Repair keeps a record of customer oil changes and sends a reminder
postcard to its customers when it's time for the next oil change. This is an example of a
______ system.
A. customer relationship management
B. qualifying dimensions
C. a positioning matrix
D. geographic targeting
E. clustering
Answer:
Billy Longstreet bought a new car and was a bit uncertain about whether or not he had
done the right thing. Two days after he purchased it, he decided to take it back to the
dealer for installation of some additional optional equipment. When Billy returned to
the dealership to pick up the car after the installation, the salesman who sold Billy the
car said, "You know, in the last two hours three different customers told me how much
they liked the looks of your new car. One of them even wanted to know if it was for
sale!" This attempt by the salesman to confirm the wisdom of Billy's purchase decision
seems to be aimed at reducing:
A. post-purchase regret.
B. reference group influence.
C. adoption jitters.
D. stimulus-response reaction.
E. dissonance.
Answer:
A manufacturer of which of the following product lines would be most likely to use a
specialty wholesaler?
A. Electric appliances
B. Hardware items
C. Lumber
D. Plastic materials
E. Industrial cleaning supplies
Answer:
A marketer will likely need to reposition a product if:
A. very few competitors offer similar products.
B. customers see the product as distinct from other products in the market.
C. marketers see the product as distinct from other products in the market.
D. customers see the product as very similar to other products in the market.
E. marketers see the product as very similar to other products in the market.
Answer:
With regard to the adoption process,
A. interest is the first step.
B. decision is the final step.
C. awareness follows interest.
D. evaluation precedes trial.
E. decision follows confirmation.
Answer:
With the "unification of Europe":
A. many of the taxes and rules that have limited trade among member countries of the
European Union were eliminated.
B. the need to adjust strategies to reach submarkets of European consumers
disappeared.
C. firms operating in Europe have harder access to large markets.
D. consumer prices rose.
Answer:
During the sales era
A. families traded or sold their surplus output to local distributors.
B. characteristic management thinking said, "If we can make it, it will sell."
C. all marketing activities were brought under the control of one department.
D. increased competition made firms focus on winning customers.
E. marketing people did both short-run and long-run marketing planning.
Answer:
When evaluating the effectiveness of the macro-marketing systems of different
countries:
A. the evaluation should be limited to basic economic objectives, which are common
across countries.
B. the best approach is to see if firms are making a profit.
C. it doesn't make sense to compare the effectiveness of systems for different nations
that have different objectives.
D. the evaluation should be based on how well each system satisfies consumers' needs
as they-the consumers-see them.
E. None of these alternatives is correct.
Answer:
Which of the following statements about world population trends is true?
A. In general, countries that have higher stages of development experience faster rates
of growth than less-developed countries.
B. The extent to which a country's population is clustered around urban areas does not
vary much from country to country.
C. People are moving from rural areas into urban areas.
D. The trend toward urbanization has made companies less interested in international
markets.
E. All of these statements about world population trends are true.
Answer:
The company's sales training program typically covers all the following areas except
A. company policies and practices.
B. product information.
C. building relationships with customer firms.
D. professional selling skills.
E. personnel attitudes and prospective client profiles.
Answer:
Setting prices by adding a "reasonable" markup to a firm's average cost is called:
A. break-even pricing.
B. add-on pricing.
C. target-return pricing.
D. average-cost pricing.
E. marginal analysis.
Answer:
By definition, a brand name may not include:
A. the company name.
B. the product name.
C. words.
D. groups of words.
E. symbols and pictures.
Answer:
When a consumer puts much effort into deciding how to satisfy a need, he engages in
A. extensive problem solving.
B. critical problem solving.
C. routinized response behavior.
D. limited problem solving.
E. intensive problem solving.
Answer:
The _____ is a qualitative research method in which an interviewer asks very broad
questions that encourage the interviewee to provide details.
A. data warehouse
B. non-directive interview
C. response rate
D. consumer panel
E. situation analysis
Answer:
Gross national income (GNI) is the:
A. total market value of goods and services provided in an economy in a year by
residents of that country.
B. manufacturers' selling price of goods (but not services) produced in a year.
C. total market value of goods (but not services) produced in an economy in a year.
D. total market value of goods and services consumed in a year.
E. None of these definitions of GNI is correct.
Answer:
With respect to consumer products, which of the following is the most common system
for distributing consumer products in the U.S.?
A. Direct channel systems
B. Vertical marketing systems
C. Traditional channel systems
D. Horizontal marketing systems
E. None of these is a good answer
Answer:
Regarding wholesalers, which of the following is the most numerous?
A. Service wholesalers
B. Agent wholesalers
C. Limited-function wholesalers
D. Manufacturers' sales branches
E. Merchant wholesalers
Answer:
A decision support system
A. focuses only on numerical data.
B. makes it easy for a marketing manager to get and use information as s/he is making
decisions.
C. organizes incoming information into a data warehouse.
D. is a place where databases are stored so that they are available when needed.
E. is a system for linking computers within a company.
Answer:
When Greenpeace sends a mail request for a financial contribution to someone who has
donated to its causes in the past, this is an example of:
A. direct marketing.
B. integration.
C. publicity.
D. indirect-response promotion.
E. mass selling.
Answer:
Which of the following most likely reflects the experience of a general store in the
post-Civil War south?
A. Its business declined due to decreased product demand.
B. Its business stayed level due to consumer loyalty.
C. Its business increased because it added locations.
D. Its business declined due to lack of variety of goods.
E. Its business increased due to reduced production costs.
Answer:
Point-of-purchase materials, coupons, trade shows, calendars, merchandising aids, and
sales training materials are all examples of:
A. publicity.
B. advertising.
C. mass selling.
D. sales promotion.
E. personal selling.
Answer:
A merchant wholesaler who wants to provide the most INCENTIVE in his sales force
payment plan should use:
A. salary plus commission.
B. straight commission.
C. the same level of pay for all salespeople.
D. salary plus bonus.
E. straight salary.
Answer:
MetroTech Corporation has been experiencing declining profits. The accounting
department blames the MetroTech marketing staff for "out of control" sales costs. The
salespeople blame the warehouse for being slow to fill orders. And the warehouse
manager says that the production department can't meet its schedule. MetroTech seems
to have
A. implemented the marketing concept.
B. a customer orientation.
C. a marketing orientation.
D. a sales orientation.
E. a production orientation.
Answer:
Which of the following is not one of the types of supplies?
A. Maintenance supplies
B. Repair supplies
C. Operating supplies
D. Professional supplies
Answer:
A pharmaceutical company spent a significant amount of money developing a new drug
to combat high blood pressure. The drug did not cause any of the typical side effects
usually associated with blood pressure medications. It was forecasted to be a
"blockbuster" medication that would achieve over $1 billion in sales. It would also be
difficult for other firms to duplicate, at least in the short-run, because of patent
protection and the substantial research and development costs required. The
introduction of this new drug would best be described as:
A. Diversification
B. Market development
C. A breakthrough opportunity
D. "Hit-or-miss" marketing
E. Market penetration
Answer:
Which of the following is a disadvantage of flexible pricing?
A. It allows a salesperson to adjust the price in response to competition.
B. It leaves opportunities for sales by not adjusting to customers.
C. It allows a salesperson to adjust the price depending on his customer.
D. It can cause discontent among customers who realize they have paid a higher price
than others.
E. It results in broadcasting a price that the competition can undercut.
Answer:
Which of the following countries has the lowest literacy rate?
A. United Kingdom
B. Italy
C. Bangladesh
D. France
E. Egypt
Answer:
