Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
If a Universal computer monitor breaks while it is still under warranty, someone needs
to get it to the repair center. In this case, Universal will need:
A. reverse channels.
B. multichannels.
C. intensive distribution.
D. exclusive distribution.
E. selective distribution.
A retailer's target customers are young, well educated, and mobilewith many contacts
outside their local social group and community. They are eager to try new ideas and are
willing to take risks. These target customers are:
A. innovators.
B. laggards.
C. early adopters.
D. the late majority.
E. the early majority.
When deciding how far to carry the segmenting process,
A. profit should be the balancing pointdetermining how unique a marketing mix the
firm can offer to some target market.
B. it is easier to develop effective marketing mixes for larger, more heterogeneous
segments.
C. cost considerations encourage less aggregating.
D. the threat of potential competitors suggests more aggregating.
E. All of these alternatives are true.
In a firm's hierarchy of objectives, the top-level objectives that guide all other
objectives are known as:
A. R&D objectives.
B. company objectives.
C. price objectives.
D. personal selling objectives.
E. marketing objectives.
Ranked from lowest level to highest level, the "hierarchy of needs" model includes:
A. personal, social, safety, and physiological needs.
B. physiological, safety, social, and personal needs.
C. safety, personal, social, and physiological needs.
D. social, personal, safety, and physiological needs.
E. physiological, safety, personal, and social needs.
Since individual firms cannot perform all marketing functions, _____ often play a role
in the exchange process.
A. intermediaries
B. consumers
C. nonprofits
D. marketing managers
E. government regulators
A market in which sellers offer various, often diverse, ways of satisfying needs is called
a _____ market.
A. product
B. diverse
C. general
D. service
E. generic
A modified rebuy would be most likely when:
A. A railroad plans to change from steel to aluminum rail cars to cut weight.
B. A car producer is developing a sportier car which will require wider tires.
C. A bread producer is placing its weekly order for flour.
D. A computer producer is buying new assembly line equipment.
E. A shoe factory needs more glue to attach heels to its shoes.
Regarding alternative transporting modes:
A. trucks are good for speed, frequency, dependability, and number of locations served.
B. pipelines are slower and less dependable than water transport, but also less expensive
and able to serve more locations.
C. airways are faster, cheaper, and more dependable than railways.
D. waterways are slow, costly, and unable to handle a variety of shipments.
A disadvantage of average-cost pricing is that it
A. does not consider historical values.
B. is a highly complicated method of pricing.
C. is rarely a useful input to pricing decisions.
D. is easy to lose money with average-cost pricing.
E. does not help understand how costs operate at different levels of output.
Which of the following observations concerning debt financing is NOT TRUE?
A. The cost of borrowing money can be a real financial burden.
B. The impact of interest charges on prices is negligible.
C. Most commercial banks are conservative.
D. The greater the risk that the lender takes on, the greater the interest rate charge will
be.
E. It might involve a loan from a commercial bank or the use of corporate bonds.
Which of the following statements about operational decisions is FALSE?
A. They help to carry out a marketing strategy.
B. They are short-run decisions.
C. They are part of the implementation process.
D. They usually require ongoing changes in the basic strategy to be effective.
A marketing strategy specifies:
A. a marketing mix.
B. a target market and a related marketing mix.
C. a target market.
D. the resources needed to implement a marketing mix.
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.
Marketing information systems rely heavily on:
A. information gathered by salespeople.
B. customer surveys.
C. teamwork between IT experts and marketing managers.
D. direct observation of customers.
E. marketing research departments.
Identify the INCORRECT statement about the effect of marital status, age, and the age
of any children in the family, on how people spend their income.
A. Singles and young couples are more willing than older married people to try new
products and brands.
B. Younger people usually earn more than older consumers, but spend less on
discretionary items.
C. Only as children arrive and grow does family spending shift to soft goods and
services.
D. All of these statements are CORRECT.
When a consumer actually purchases a particular product it is the direct result of a
A. need.
B. want.
C. drive.
D. desire for physical well-being.
E. None of these is more true than the others.
Marketing managers should make specific strategy decisions about:
A. how many and what kind of salespeople are needed.
B. how salespeople should be compensated and motivated.
C. what kind of sales presentation should be used.
D. how salespeople should be selected and trained.
E. All of these alternatives are correct.
In a command economy
A. producers generally have little choice about what goods and services to produce.
B. the individual decisions of the many producers and consumers come together to
make the macro-level decisions.
C. consumers make a society's production decisions.
D. consumers decide what is to be produced and by whom through their dollar "votes."
E. the market adjusts itself.
Tropicana is trying to get its customers to drink orange juice more often with ads that
say "It's not just for breakfast anymore." What type of opportunity is the company
pursuing?
A. Market penetration
B. Diversification
C. Market development
D. Product development
E. Mass marketing
"Place" is NOT concerned with:
A. who handles storing and transporting.
B. when and where products are wanted.
C. kinds of intermediaries needed to reach customers.
D. telling the target market what products are available--and where.
E. channels of distribution.
Which of the following is the reason why an internally financed company selling its
products at a lower price can earn more profit than a competitor who is operating on
borrowed money?
A. Investors are more likely to purchase a company's stock if it is internally financed.
B. It is less expensive since no interest expense is involved.
C. The value of stock of an internally financed company is easier to predict.
D. Market forecast is more difficult if a company is operating on borrowed money.
E. Commercial banks do not allow a company to borrow money unless it can provide
collateral security.
Which of the following is not a concern of organizational buyers?
A. Original cost and ongoing costs of purchase
B. Impact of purchase on productivity
C. Product quality
D. Seller's ability to provide speedy maintenance and repair
E. All of these are concerns for organizational buyers.
Until recently, Emil Flores wouldn't buy any coffee except "Blue Mountain"a relatively
expensive type that few stores sell. He used to have to drive about 10 miles out of his
way to buy it at a small shop. Then he was at a friend's home and tried an inexpensive
brand of coffee sold by the local supermarket chain. Now he won't buy anything except
that brand. For him, the supermarket coffee is
A. an emergency product.
B. a specialty product.
C. a staple product.
D. an unsought product.
E. a heterogeneous shopping product.
"Installation" products:
A. are hardly ever leased because of the tax disadvantages.
B. do not include buildings and land rights.
C. justify multiple buying influence for custom-made equipment but not for standard
equipment.
D. such as custom-made equipment generally require special negotiations for each sale.
E. All of these alternatives are correct.
Which of the following is LEAST LIKELY to compete in the same generic market with
the others?
A. Long-stem roses
B. A tomato
C. Champagne
D. A greeting card
E. A telegram
Which of the following observations is true?
A. Market share objectives and straight sales growth objectives have similar limitations.
B. A larger market share, gained at whatever price, leads to sustainable competitive
advantage.
C. Market share objectives are not popular among modern managers.
D. Sales growth essentially means bigger profits.
E. A sales-oriented objective does not refer to profit.
Vision Co. manufactures and sells tea, coffee, desserts, shoes, and sporting goodsall
under the Vision brand name. These products are
A. the firm's product line.
B. dealer brands.
C. sold with a family brand.
D. specialty products.
E. generic products.
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
Agent wholesalers are:
A. mainly concerned with buying and selling.
B. used by small companies that want a wholesaler to assume all of the risk of carrying
inventory.
C. specialists in certain geographic areas, rather than specializing by product or
customer type.
D. at a disadvantage because manufacturers expect them to pay for products before they
are shipped.
E. None of these alternatives are correct for agent wholesalers.
Advertising spending as a percent of sales dollars is largest for:
A. soap and detergent.
B. perfumes and cosmetics.
C. sporting and athletic goods.
D. soft drinks and water.
E. motor vehicles.
The categories to which various costs are charged in the normal financial accounting
cycle are:
A. Natural accounts.
B. Functional accounts.
C. Cash accounts.
D. Expense accounts.
E. None of these.
Macy's is considered which type of organizational customer?
A. Producer.
B. Intermediary.
C. Government.
D. Nonprofit.
Regarding marketing strategy planning:
A. marketing managers seldom know everything they would like to know about the
needs and attitudes of their target markets.
B. marketing managers implement marketing STRATEGIESNOT marketing plans.
C. the market environment may force marketing managers to change target marketsbut
their marketing mixes usually are not affected.
D. it is easier in large firms because marketing managers can count on specialists to
plan each of the "four Ps."
E. All of these alternatives are correct.
