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Marketing ethics are the moral standards that guide marketing decisions and actions.
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Examples of personal needs include self-esteem, accomplishment, fun, freedom, and
relaxation.
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Almost 75 percent of all retail sales are made by the largest stores-those with sales of
over $5 million a year.
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Limited-function wholesalers provide only some of the wholesaling functions.
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If the prospects in some product-market are poor, a firm may need a "phase out"
strategy.
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Cumulative quantity discounts encourage repeat buying from the same seller, while
noncumulative quantity discounts encourage large individual orders.
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Agent wholesalers operate at relatively low cost-sometimes 2 to 6 percent of their
selling price.
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Emergency products are purchased only when the need is great and urgent, and
therefore price is usually not very important.
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In a licensing agreement, the licensee takes most of the risk because it must invest some
capital to use the right granted by the licensor.
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Pricing objectives and policies should flow from company-level objectives.
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A firm using sequential price reductions starts with a high price but plans to reduce that
price step-by-step until its product is sold out.
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The product life-cycle concept tells a manager how long each stage of the cycle will
last.
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Customers usually plan and shop for impulse products.
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Regional groupings of nations outside the United States have little effect on the
decisions of marketing managers whose firms are headquartered in the U.S.
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ISO 9000 is only relevant to international suppliers.
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"Pulling" a product through a channel of distribution focuses promotion efforts on
wholesalers and retailers to get them interested in a producer's marketing mix.
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The text credits L.L. Bean's success to its focus on customer satisfaction and good
customer value.
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Without promotion, unsought products will probably stay unsold.
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The marketing mix should be set before the best target market is selected.
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The selling formula approach starts with a prepared presentation outline.
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A manufacturer that uses several competing channels to reach the same target market is
using "multichannel distribution."
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A "distribution center" is a special kind of public warehouse designed specifically for
storing perishable products.
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In a market composed of service producers, most firms are small and geographically
dispersed.
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The greater the total expenditure, the less price sensitive customers are.
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Focus group interviews are a form of quantitative research.
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Firms that cooperate to build vertical marketing systems typically share a longer-term
commitment.
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Implementation means putting the marketing plan into operation.
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Most single-line and limited-line stores apply the retailing philosophy of buying low
and selling high.
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Auctions have not proved very effective in determining how much potential customers
will (or will not) pay for a product.
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Mass marketing means focusing on some specific customers, as opposed to assuming
that everyone is the same and will want whatever the firm offers.
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Many intermediaries seek advertising allowances from manufacturers to help them pay
the cost of advertising the products they sell.
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A cooperative advertising program can help a producer achieve coordination and
integration of ad messages in the channel of distribution.
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When considering international markets, income is usually not an important
demographic dimension.
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U.S. business manufacturing markets tend to be concentrated:
A. by industry.
B. with a relatively few large manufacturing plants.
C. by geographical location.
D. All of these are correct.
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When Hallmark designs its website so that a teenage girl can send a theme card to her
boyfriend's cell phone, what is the primary segmenting dimension that Hallmark is
using?
A. Rate of use
B. Age
C. Family size
D. Income
E. Education
Answer:
How PD functions are shared will have the greatest effect on which of the other three
Ps?
A. Price decisions.
B. Promotion decisions.
C. Product decisions.
D. Positioning decisions.
E. People decisions.
Answer:
Which of the following is not a key variable that marketers need to consider when
developing marketing mixes for manufacturers?
A. Size of manufacturers
B. CEOs of manufacturers
C. Geographic location of manufacturers
D. Buying procedures of manufacturers
E. Classifications of manufacturers
Answer:
In a television commercial for Maytag appliances, the spokesperson "Old Lonely" acts
bored because no one is calling him to schedule a repair of their appliances. What is the
primary economic need being illustrated in this TV ad?
A. Dependability in use
B. Convenience
C. Economy of purchase
D. Improvement of earnings
Answer:
Which of the following could be an example of a firm's product line?
A. Coffees.
B. Disposable diapers.
C. Snow skis.
D. Ski boots.
E. All of these could be examples of a firm's product line.
Answer:
When you are "in the market" for a new car, and are considering different brands to
purchase, what type of market is involved?
A. Product-market
B. Qualifying market
C. Generic market
D. Determining market
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Gross domestic product:
A. is the total market value of goods, but not services, produced in a year.
B. is an excellent basis for comparing consumer well-being across different cultures and
economies.
C. is a widely used measure of income for different countries.
D. is the total market value of services, but not goods, produced in a year.
E. All of these alternatives are true.
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Accessory equipment:
A. needs fair to widespread distribution for prompt delivery.
B. needs fairly widespread and numerous contacts by experienced and sometimes
technically trained personnel.
C. needs very widespread distribution for prompt delivery.
D. needs technical contacts to determine specifications required, but widespread
contacts usually are not necessary.
E. needs fairly widespread contacts with users.
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Even though the cost per person may be higher and the number of persons reached may
be smaller, specialized media is sometimes more effective than mass media.
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"Derived demand" is best illustrated by the demand for:
A. tea as a substitute for coffee.
B. brick because of increasing demand for new homes.
C. fresh raspberries during the winter months.
D. CD players because of increasing interest in CD audio discs.
E. all of these are good illustrations of derived demand.
Answer:
_____ is setting a few price levels for a product line and then marking all items at these
prices.
A. Price following
B. Bait pricing
C. Odd-even pricing
D. Price lining
E. Price leading
Answer:
In the market introduction stage
A. the main job is to persuade customers to buy, and keep buying, the company's
product.
B. the basic promotion objective is informing.
C. more competitors enter the market.
D. promotion emphasis shifts from building primary demand to stimulating selective
demand.
E. mass selling and sales promotion dominate the promotion blends of consumer
products firms.
Answer:
The big cost of poor quality is the cost of
A. replacing defective parts.
B. lost customers.
C. recalling defective goods.
D. rework and training.
E. induction training.
Answer:
Which country bans any advertising targeted directly at children?
A. USA
B. Canada
C. New Zealand
D. Japan
E. India
Answer:
Rosalinda's Steak House purchases 70 T-bone steaks every Friday-including last Friday.
Last Friday's order was an example of a
A. straight buy.
B. modified rebuy.
C. new-task buy.
D. straight rebuy.
E. simplified buy.
Answer:
Which of the following tips would help marketers find new B2B clients that are similar
to clients they already serve?
A. Ask a current customer to help identify new leads.
B. Look up firms that use automated systems for straight rebuying.
C. Conduct a vendor analysis.
D. Identify current customers' NAICS codes and then look at NAICS-coded lists for
related firms.
E. Research ISO 9000 certified companies.
Answer:
What is the best way to ship Spring tulips from Amsterdam, Netherlands, to Rome,
Italy?
A. Water
B. Truck
C. Air
D. Rail
E. Pipeline
Answer:
Gross national income (GNI) is the:
A. total cost of producing all goods and services sold in a year.
B. total market value of goods and services provided in an economy in a year by
residents of that country.
C. total market value of goods (but not services) consumed in an economy in a year.
D. total market value of goods and services consumed in a year.
E. total market value of goods (but not services) produced in an economy in a year.
Answer:
Which of the following is NOT an example of sales promotion?
A. A "10 cents off" coupon promotion
B. Point-of-purchase displays
C. Trade show exhibits
D. Free samples
E. A wholly new kind of ad
Answer:
For new-task buying, a good salesperson will try to contact the potential customer's:
A. deciders.
B. gatekeepers.
C. influencers.
D. buyers (purchasing managers).
E. All of these would be contacted for new-task buying.
Answer:
A salesperson who seeks possible buyers with a well-organized sales presentation
designed to sell a good, service, or idea is called a(n) ____________.
A. Influencer
B. Order-getter
C. Order taker
D. Order-generator
E. Gatekeeper
Answer:
A ski resort is considering a promotional campaign that emphasizes ads in national ski
magazines. Which of the following disadvantages would most likely affect this
campaign?
A. Inability to convey complex messages
B. Poor detail
C. Poor photo reproduction
D. Low reader involvement
E. Long lead times
Answer:
Use this information for question that refer to the Sunny Day Foods (SDF) Case.
For six months, Kim Wu has been working for Sunny Day Foods (SDF), a fast-growing
manufacturer of organic foods. After graduating college, she worked for four years as a
sales rep for a nationally known food company. But, she jumped at the chance when
SDF contacted her about becoming marketing manager for its breakfast foods division,
which sells dry cereals and a pancake mix.
Kim spent the first few months on the job trying to better understand SDF, its product
line, and marketing strategy. She reviewed the company's past marketing research,
commissioned new research, and talked to both consumers and retailers. Now, the CEO
of the company wants her thoughts on what the company's marketing strategy should be
for the next few years.
Her research indicates that among cereal customers, there are at least five segments of
customers who use SDF products.
a) One segment, the loyalists, has a strong preference for one or two of the SDF cereals.
These customers often go out of their way to visit a store with their favorite SDF cereal
and buy only that product at the store.
b) Another segment, the regulars, buys SDF cereals without much thought. For them it
is just part of their routine and, if you ask them why they pick the cereal, they'd say it's
just a habit.
c) A third segment, the deal prone, sees SDF cereals as just another organic cereal. They
view all organic cereals as pretty much the same and buy whichever brand seems to
offer the best deal that week.
d) A fourth segment, the politicos, consists of former buyers of SDF cereals. A few
years ago the company took a strong stand in a presidential race-and these customers
resented it. Now, they boycott all SDF foods because of that incident.
e) A fifth segment, SDF who?, is made up of consumers who buy organic cereals but
who don't have much awareness of particular organic brand names.
In reviewing how SDF currently brands its products, Kim sees that it is using several
different approaches. The Sunny Day Foods brand is used on most products the
company sells. But a few years ago the company brought out an instant organic oatmeal
with the Hot n Healthy name. SDF also makes cereal sold by a health food chain; the
package for that chain uses the store's own name, Nature's Foods, as the brand name for
the cereal.
Which of the following terms best describes the "Nature's Foods" brand?
A. Private brand
B. Generic product
C. Individual brand
D. Licensed brand
E. Manufacturer brand
Answer:
The selling formula approach:
A. starts with a prepared presentation outline, discovers each customer's specific needs,
and then leads the customer through some logical steps to a final close.
B. uses the same sales presentation with every potential customer.
C. usually requires a more skilled salesperson than the consultative selling approach.
D. is a problem-solving approach in which the customer and salesperson work together
to satisfy the customer's needs.
E. None of these are correct for the selling formula approach.
Answer:
A situation analysis is highly beneficial to marketers for all the following reasons
except:
A. it is very informative.
B. it requires little time.
C. it is inexpensive compared to formal research efforts.
D. it requires only a phone or Internet access.
E. it yields relevant primary data.
Answer:
Which of the following statements about the prepared sales presentation is False?
A. It may contain several attempts to close a sale.
B. It is not adapted to an individual customer's needs.
C. It makes sense for experienced salespeople to use it.
D. The salesperson does most of the talking.
E. It is not considered a good approach for complicated selling situations.
Answer:
Which of the following can a firm do to be more sustainable?
A. Produce light bulbs with raw materials that consume more energy
B. Manufacture textiles using chrome and ammonium solutions
C. Use ink-free recycled paperboard for making boxes
D. Fly the national sales force to a meeting instead of using teleconferencing
technology
E. Replace electric delivery vehicles with gas-powered ones
Answer:
Which of the following is a useful practice when making a marketing decision?
A. Managers should never apply their own judgment when interpreting analytical
findings.
B. Managers should avoid seeking input from a wide range of people.
C. Managers should selectively share only those results that support their own
viewpoints.
D. Managers should actively listen to opinions that differ from their own.
Answer:
__________ involves following all the leads in the target market to identify potential
customers.
A. Sales presentation
B. Prospecting
C. Closing
D. Sales quota
E. Marketing
Answer:
The shape, length, and current stage of a product life cycle may vary depending:
A. on how the market is defined.
B. on the nature of the competition.
C. on the nature of the products involved.
D. All of these alternatives are correct.
Answer:
Identify the correct sequence of the levels involved in building brand familiarity.
A. Brand activation, brand rejection, brand recognition, brand preference, brand
insistence.
B. Brand insistence, brand equity, brand evaluation, brand insistence, brand rejection.
C. Brand rejection, brand nonrecognition, brand recognition, brand preference, brand
insistence.
D. Brand evaluation, brand preference, brand recognition, brand rejection, brand
activation.
E. Brand rejection, brand nonrecognition, brand recognition, brand activation, brand
equity.
Answer:
Producers can positively manage channel conflict using all the following tactics except:
A. offer different products through different channels.
B. serve different market segments through different channels.
C. limit channel member relationships to buying and selling activity.
D. compensate participating channel members when conflict exists.
E. identify a channel captain.
Answer:
Which of the following observations concerning the product life cycle is not true?
A. Product life cycles describe industry sales and profits for a product idea within a
particular product-market.
B. The sales and profits of an individual brand follow the life-cycle pattern.
C. A product idea may be in a different life-cycle stage in different markets.
D. Managing Products over Their Life Cycles.
E. A given firm may introduce or drop a specific product during any stage of the
product life cycle.
Answer:
The standardization and grading function of marketing involves:
A. Looking for and evaluating goods and services.
B. Providing necessary cash and credit.
C. Promoting the product.
D. Sorting products according to size and quality.
E. None of these answers is correct.
Answer:
