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Ford Motor Co. asks members of its target market to rate its cars and those of General
Motors and Chrysler on a 7-point scale in terms of two dimensions (comfortable seats
and engine power) so that it can establish a quadrant-grid map of these ratings. What
type of analysis is Ford conducting?
A. Positioning
B. Combining
C. Qualifying
D. Dimensional
E. Insight management
The monopolistic competition that is typical of the U.S. economy
A. always leads to higher prices, but it may not lead to higher consumer satisfaction.
B. is a problem because it does not result in products that reflect consumer's social
values.
C. is the result of consumer preferences.
D. is the result of manipulation of markets by business firms.
E. None of these alternatives is correct.
A producer wants to increase the amount of time its sales reps spend on supporting
activities. It also wishes to keep its sales reps motivated and aggressive, and also
provide some security. Which payment plan should the firm use?
A. Straight salary
B. Combination plan
C. Straight commission
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!"
All of SGCA's products are made from recycled material and the company wants to
promote its environmental practices. What kind of advertising would be most
appropriate to do this?
A. competitive advertising
B. comparative advertising
C. pioneering advertising
D. competive advertising
E. institutional advertising
"Pioneering advertising" tries to:
A. develop goodwill toward a company.
B. develop primary demand.
C. build a brand image.
D. develop selective demand.
E. build demand for a specific brand.
A main purpose of "unfair trade practice acts" is to:
A. prevent manufacturers from taking high markups.
B. eliminate price competition on manufacturers' brands.
C. require some minimum percentage markup on cost.
D. permit different types of retail outlets to charge different retail prices.
E. guarantee retailers some profit.
"Target marketing," in contrast to "mass marketing,"
A. ignores the need for the firm to obtain a competitive advantage.
B. ignores markets that are large and spread out.
C. is limited to small market segments.
D. assumes that all customers are basically the same.
E. None of these answers is correct.
The best way to break down and analyze sales data is:
A. by order size.
B. by geographic region.
C. by customer type.
D. by product, package, size, grade or color.
E. any of these are correct, depending on the situation.
When the manager of a RadioShack electronics store decides to offer a store credit card
(RadioShack VISA), this is a decision about:
A. Product.
B. Place.
C. Promotion.
D. Price.
When a company decides to use the same brand name for several products, it is a(n)
A. individual brand.
B. family brand.
C. dealer brand.
D. private brand.
E. select brand.
Emergency products:
A. need adequate representation in major shopping areas.
B. need widespread distribution but with assurance of preferred display.
C. can have limited availability as long as display is good.
D. need widespread distribution near probable points of use.
E. need widespread distribution at low cost.
According to the General Electric strategic planning grid, an opportunity which is low
on the "business strengths" dimension but high on the "industry attractiveness" should
be:
A. called a strategic business unit.
B. supported if it is an existing business, but probably not supported if it is a new
opportunity.
C. immediately supported with large investment.
D. sold off or discontinued.
E. viewed as a "green" (high growth) opportunity.
Compared to a public warehouse, a private warehouse
A. requires no fixed investment.
B. has lower unit costs.
C. has less flexibility.
D. works better when large volumes of goods must be stored irregularly.
E. tends to have less managerial control.
When a consumer has no idea what an RAV4 is, we say that this is an example of:
A. brand recognition.
B. brand nonrecognition.
C. brand insistence.
D. brand preference.
E. brand familiarity.
A company that sells equipment through independent wholesalers wants to find out why
sales are down in one region. An analyst is asked to interview the wholesaler in that
region. This seems to be
A. part of a situation analysis.
B. the beginning of a focus group interview.
C. gathering information that will be analyzed by a statistical package.
D. a bad practice, since the problem has not been defined yet.
E. None of these choices is correct.
When planning for the different stages of the product life cycle, managers should
remember that:
A. Sometimes, competitors can help to build customer interest in a new product idea.
B. The correct strategy depends on how quickly the new idea will be accepted by
consumers.
C. A firm that can change its strategy quickly may have an advantage over less flexible
competitors.
D. Not all new product ideas catch on with consumers or intermediaries.
E. All of these alternatives are true.
The most difficult and important step in the scientific approach to marketing research
is:
A. defining the problem.
B. interpreting the data.
C. solving the problem.
D. analyzing the situation.
E. getting problem-specific data.
The two basic decisions to be made in developing a compensation plan are the method
of payment and
A. designation of the salesperson.
B. level of compensation.
C. number of years of service.
D. number of client commendations received.
E. career advancement.
All of the following are examples of secondary data sources EXCEPT:
A. Statistical Abstract of the United States.
B. a phone survey this month of past customers.
C. library sources.
D. trade association studies.
E. government reports.
Edward Seaton owns a firm that manufactures custom-made carpets. He has a regular
sales force to call on smaller customers and an elite force to call on larger accounts. The
elite sales force is called:
A. customer service reps.
B. major accounts sales force.
C. technical specialists.
D. supporting salespeople.
E. missionary salespeople.
_____ as a mode of transport serves a very limited number of locations but has a high
dependability in meeting schedules.
A. Trucks
B. Railroads
C. Waterways
D. Airfreight
E. Pipelines
After evaluating all of its alternatives and the costs of each, Vegpro Kenya decided the
most efficient way to quickly get its fresh vegetables from Nairobi to European cities
was to use air freight. What approach did it use in making this decision?
A. Diagonal
B. Total cost
C. Piggyback
D. EDI
E. Layered
A convenience product would probably be sold using:
A. Intensive distribution.
B. Exclusive distribution.
C. Selective distribution.
D. Extensive distribution.
E. Sole-source distribution.
A small pet supply company assigns its sales manager to make the strategic decision
regarding what blend of promotion methods the company should use for the coming
year. Is the sales manager an appropriate choice for the role in this company?
A. Yes, because the sales manager is likely to have a great deal of experience in public
relations.
B. Yes, because the sales manager most likely functions as the company's marketing
manager.
C. No, because the sales manager is focused on managing the company's mass-selling
effort.
D. No, because the sales manager will likely hire an outside agency to develop
company ads.
E. No, because the sales manager is likely to be less experienced than other managers at
this job.
Effective marketing should begin with
A. an effort to persuade unwilling customers to buy the firm's products.
B. potential customer needs.
C. a decision about what the firm can produce efficiently.
D. evaluation of the effect of the firm's decisions on the MACRO-marketing system.
E. the marketing manager making important production, accounting, and financial
decisions for the firm.
Warranties inspire customer confidence and trust for all the following reasons except:
A. they make legally enforceable promises about product performance.
B. they show that marketers stand behind their products.
C. some reduce the responsibility a producer would have under common law.
D. they offer refunds or replacement for defective products.
E. they are clearly written and included with products for easy access.
Because firms must be developing new products all the time, which of the following
statements is true?
A. Competitors are likely to rapidly introduce product improvements in the market
growth stage.
B. The developed economies experience technological advances quicker than the
less-developed economies.
C. Although the life of different products varies, product life cycles are getting shorter.
D. One new invention may make possible many new products to replace old ones.
E. All of these statements are true.
Which of the following advertising media would be best for achieving the widest reach?
A. Newspaper.
B. Direct mail.
C. Television.
D. Outdoor.
E. Magazines.
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 also 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.
According to your textbook, with a new product like PlanetSavers, a marketing
manager should:
A. attempt to obtain publicity.
B. target initial communications toward innovators and early adopters.
C. use an informing promotional objective.
D. All of these alternatives are correct.
A Hewlett-Packard sales rep is making a presentation about a new printer product to a
group of purchasing agents when one of the agents withdraws to read a text message. In
the traditional communication model, the text-reading is the:
A. Source.
B. Receiver.
C. Noise.
D. Decoding.
E. Encoding.
When a firm tries to increase sales by selling its present products in new markets, this is
called:
A. product development.
B. diversification.
C. market penetration.
D. mass marketing.
E. market development.
