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A _____ is a systematic, critical, and unbiased review and appraisal of the basic
objectives and policies of the marketing function and of the organization, methods,
procedures, and people employed to implement the policies.
A. benchmarking study
B. marketing audit
C. sales analysis
D. full-cost assessment
E. marketing strategy survey
Voluntary chains are
A. firms that own and manage more than one store.
B. retailer-sponsored groups formed by independent retailers that run their own buying
organizations and conduct joint promotion efforts.
C. wholesaler-sponsored groups that work with "independent" retailers.
D. franchisors who develop good marketing strategies, and who carry out the strategy in
their own units.
E. firms that own a single-store but operate through multiple franchisors.
Quality Ceramic, Inc. (QCI) defined five submarkets within its broad product-market.
To obtain some economies of scale, QCI decided NOT to offer each of the submarkets a
different marketing mix. Instead, it selected two submarkets whose needs are fairly
similar, and is counting on promotion and minor product differences to make its one
basic marketing mix appeal to both submarkets. QCI is using the
A. combined target market approach.
B. single target market approach.
C. multiple target market approach.
D. mass marketing approach.
E. None of these is a good choice for Quality Ceramic.
Peter Janca noticed during a weekly grocery shopping that 7-Up was on sale. Even
though he could have saved money with the 7-Up, Peter bought Mountain Dew because
that's the brand his children prefer. Peter was responding to:
A. selective exposure.
B. dissonance.
C. marketing influence.
D. social influence.
E. a drive.
A producer using very aggressive promotion to get final consumers to ask
intermediaries for a new product has:
A. a pulling policy.
B. a target marketing policy.
C. a selective distribution policy.
D. a pushing policy.
E. an intensive distribution policy.
The right physical distribution system should be based primarily on
A. the desired customer service level.
B. how customers store the product.
C. the physical characteristics of the product.
D. what is the lowest cost method of transportation for the product.
E. the inventory level that allows the smoothest production runs.
The total fixed costs are $10,000, and the average variable cost per unit is $3. For a
production volume of 10,000 units, the average cost per unit is
A. $3.00
B. $1.00
C. $4.00
D. $3.30
E. $10.00
The purpose of the five-step marketing research process is to:
A. define and solve a problem.
B. design, implement, and control marketing plans and activities.
C. narrow down a broad generic market into useful target markets.
D. identify the main steps in the consumer decision process.
E. help marketers choose between consumer markets or B2B markets.
Specific adaptations are usually required when a buyer chooses _____, which is a
contract with an external firm to produce goods or services rather than the buyer
producing them internally.
A. gatekeeping
B. resident buying
C. competitive bidding
D. outsourcing
E. auctioning
Ad spending for magazines in the U.S. in 2010 was about:
A. $2 billion.
B. $11 billion.
C. $17 billion.
D. $29 billion.
E. $45 billion.
A firm that sets prices such that consumers will save 15% of their fuel costs by buying
its products is employing _____.
A. leader pricing
B. value in use pricing
C. odd-even pricing
D. price lining
E. product-bundle pricing
During the sales decline stage
A. price competition from dying products is reduced.
B. profits are non-existent.
C. new products replace the old.
D. profits increase and then decrease.
E. None of these alternatives is correct.
Terry Harter is marketing manager for United Tools and Mike O'Reilly is the firm's
logistics manager. They work together to make decisions about how to get United's
hand and power tools to its customersa mix of manufacturing plants and final
consumers (who buy United tools at a hardware store). United Tools does not own its
own transport facilities and it works with wholesalers to reach its business customers.
Together, Harter and O'Reilly try to coordinate transporting, storing, and product
handling activities to minimize cost while still achieving the customer service level
their customers and intermediaries want. This usually requires that United keep an
inventory of most of its products on hand, but demand for its products is fairly
consistent over time so inventory is easy to manage.
Harter has identified four options for physical distribution systems she could use to
reach two of her key wholesalers, Ralston Supply and Ricotta Tool Co. The total cost
for each optionand the distribution service levels that can be achievedare as follows:
Ralston Supply expects a very high level (90 percent) of distribution customer service.
Ricotta Tool Co. is willing to settle for a 70 percent customer service level, even if that
means some products will occasionally be out of stock, if it gets products at a lower
price.
For its large retail hardware customers (like Home Depot), United regularly ships
smaller orders directly to individual stores or in some cases to the retail chain's
warehouses. Cross-country shipments usually go by rail while regional shipments
usually go by truck.
Which physical distribution system should Harter choose for Ricotta Tool Co.?
A. Airfreight.
B. Inland waterways.
C. Truck.
D. Rail and warehouse.
E. Cannot be determined without more information.
Which of the following is a function that an intermediary is likely to provide for
customers?
A. reduce inventory costs
B. regroup products
C. provide delivery
D. grant credit
E. All of these are functions provided for customers.
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
Which of the following statements about the behavior of investors is True?
A. A company with a good strategy will attract investors in spite of any other conditions
in the economic environment.
B. Investors may have expectations for short-term profits, long-term profitability, or
both when considering companies in which they might invest.
C. Investors are not usually interested in detailed information about a firm's plans
before they invest.
D. Financial performance estimates that are provided to investors have no relationship
to estimates of demand, revenue, and expenses from the marketing manager.
E. None of these.
Which of the 4Ps in the marketing mix is most directly related to the publicity for a
B2B campaign?
A. Product
B. Place
C. Promotion
D. Price
It is toward the end of the _____ stage of the product life cycle when industry profits
begin to decline.
A. market maturity
B. market introduction
C. market growth
D. sales decline
E. market decline
Josh Adams runs a large cattle farm in Texas. In order to take advantage of higher prices
for beef in Europe compared to the United States, he has started selling cattle overseas
by using an agent wholesaler who specializes in finding European customers for U.S.
firms. He ships the cattle to Europe by water transport. Josh is involved in:
A. Exporting.
B. Management contracting.
C. Licensing.
D. Joint venturing.
E. Franchising.
Each of the following is likely to be experienced by a supplier using a JIT system
EXCEPT:
A. facilities near its customers.
B. infrequent truck deliveries.
C. small truck deliveries.
D. e-commerce order systems.
E. short order lead times.
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 wirecoated 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.
For which product does WPI need to build primary demand?
A. Wire Closet
B. Wire Fold-Fence
C. Oil Wire
D. Wire Window
E. Wire Locker
Persuasive promotion is especially important in which of the following product life
cycle stages?
A. Market maturity.
B. Sales decline.
C. Market introduction.
D. Market growth.
The "total cost approach" to physical distribution management:
A. seeks to eliminate the storing function.
B. seeks to minimize the cost of transportation.
C. might suggest a high-cost transporting mode if storing costs could be reduced
enough to lower total distribution costs.
D. ignores inventory carrying costs.
E. All of these alternatives for the "total cost approach" are correct.
A lawn care firm selling by phone to people listed in the telephone directory should use
which of the following sales presentations?
A. consultative selling approach.
B. selling formula approach.
C. prepared sales presentation.
D. target market presentation.
E. None of these is a good answer.
In the U.S., door-to-door shopping accounts for _____ percent of retail sales.
A. less than 1
B. 3
C. 5
D. 7
E. just over 10
A flexible-price policy is MOST LIKELY to be set by a retailer selling:
A. milk.
B. women's shoes.
C. golf balls.
D. t-shirts.
E. cars.
ADT commercials that advertise the value of having a home burglar alarm system
appeals to consumers':
A. personal needs.
B. economic needs.
C. social needs.
D. safety needs.
E. physiological needs.
Which of the following is NOT a trend affecting marketing strategy planning in the area
of Mass Selling?
A. Changing agency compensation
B. Decreasing role of publicity
C. Integrated marketing communications
D. Growth of interactive agencies
E. More targeted media
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.
Which of the following is a disadvantage of quantitative research (compared to
qualitative research)?
A. It is harder to get in-depth answers.
B. The conclusions are likely to vary more from analyst to analyst.
C. The results are harder to summarize.
D. It is not as fast for respondents.
E. None of these is a disadvantage of quantitative research.
