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As marketing managers do more promotion and selling over the Internet, it is critical
that information technology systems be robust from a security standpoint.
"Mass marketers" like Target usually try to aim at clearly defined target markets.
It's hazardous to rely on intuition in generalizing about cultural influences on consumer
behavior from one country to another.
Specialty wholesalers usually sell a very narrow range of products and compete with
other wholesalers who have a broader range of products by offering expert technical
help and/or service to their customers.
Sales analysis provides a simple listing of sales figures compared against standards.
The political environment may either block or promote new marketing opportunities.
Manufacturers' agents do not take title to the products they selland are paid a
commission on sales.
Logistics focuses on the handling of goods along a channel of distribution but not
within individual firms.
Personal selling involves direct personal communication to get the sale, but personal
attention is seldom required after the sale.
The U.S. government collects and publishes data by the NAICS codes.
The marketing manager needs to work with the human resources manageror with other
managerswho will participate in preparing the firm's personnel for changes required by
a new marketing strategy.
In customer-initiated communication, the customer decides how much information to
get.
A licensed brand can be used by only one company.
Digital communication and e-commerce offer speed and detail in obtaining information
needed for better control.
Unfortunately, no laws prevent a retailer from using a phony list priceto make a
consumer think that the price being charged offers a really big discount.
The more heterogeneous a firm's target market becomes, the more likely the firm will
see competition from an innovative segmenter.
Most "conventional" retailers are single-line or limited-line stores that have very low
expenses relative to sales.
Online communities are one way for buyers to connect with others who have already
dealt with a similar need.
Truck wholesalers may provide almost the same services as full service wholesalers,
but they usually specialize in perishable products that regular wholesalers prefer not to
carry.
Spoken communication with large numbers of customers at the same time is mass
selling.
When a firm's product has won loyal customers, it can be successful for a long
timeeven in a mature or declining market.
The full-cost approach to marketing cost analysis is likely to lead to arguments among
product managers about how costs are to be allocated.
Leader pricing is typically used with well-known, widely used items which are not
stocked heavily by consumers.
Cash-and-carry wholesalers are more common in underdeveloped nations than in the
U.S.where big warehouse clubs have taken much of the business.
Technology is the application of science to convert an economy's resources to output.
"Ideal market exposure" should make a product widely enough available to satisfy
target customers' needs, but not exceed them.
Forecasting the amount of cash that will be available after paying expenses is
straightforward because it's always equal to the firm's "bottom line"the net profit figure
shown on the operating statement.
To overcome the limitation of not being able to physically inspect a product before
purchasing online, many online retailers now provide photos and videos that
demonstrate the product.
A statistical package is likely to be used with quantitative research, but not with
qualitative research.
A S.W.O.T. analysis is not necessary if the firm is considering entering an established
market that is already served by competitors.
Coordinating the linkages between different functional areas is likely to be more
difficult and critical when a strategy involves development of a totally new product idea
rather than a minor change to an existing plan.
A warranty explains what the seller promises about its product.
Macro-marketing emphasizes how the whole system works, rather than the activities of
individual organizations.
In the seven-step approach, the basic comfort needs (heating and cooling, a good bed, a
clean bathroom) and other needs like a telephone and safety/security are the qualifying
needs, not the determining needs.
Use of family brands
A. may involve several firmsif one licenses its brand.
B. is common among both producers and intermediaries.
C. can provide customers with cues about the quality of new products.
D. can be efficient, since the brand name will carry over in the firm's advertising.
E. All of these alternatives are correct.
In ______ channel systems, ordering is routinized, inventory and sales information is
shared over computer networks, accounting is standardized, and promotion efforts are
coordinated.
A. contractual
B. traditional
C. administered
D. integrated
E. corporate
Which of the following is true of competitive advertising?
A. It informs potential customers about the new product and turns them into adopters.
B. It means making specific brand comparisons using actual product names.
C. It tries to develop selective demand for a specific brand.
D. It tries to keep the product's name before the public.
E. It is usually done in the early stages of the product life cycle.
Which of the following alternatives about telephone selling by an inside sales group is
FALSE?
A. saves time and money for the producer.
B. provides a way for the producer to get direct feedback from customers.
C. extends the personal selling effort to new target markets.
D. provides a way for the producer to find solutions to potential problems.
E. None of these alternatives is FALSE.
____ refers to a share in the ownership of a company.
A. Dividend
B. Stock
C. Overhead
D. Debt
E. Working capital
A manager who helps direct the activities of a whole channel and tries to avoid or solve
channel conflicts is a:
A. Channel director.
B. Channel coordinator.
C. Channel captain.
D. Channel ombudsman.
E. Channel troubleshooter.
In 2010, about ________ percent of ad spending in the U.S. was for magazine
advertising.
A. 1
B. 4
C. 9
D. 18
E. 25
The text's consumer product classes are based on:
A. the demand elasticity of the products.
B. the way people think about and shop for products.
C. the type of stores that sell the products.
D. the quantity in which products will be purchased or used.
E. how the sellers view the products.
What are the basic forces that motivate a person to do something?
A. Desires.
B. Drives.
C. Actions.
D. Aspirations.
E. Needs.
In 2010, about _______ percent of ad spending in the U.S. was for Internet advertising.
A. 3
B. 6
C. 9
D. 12
E. 19
Indirect competitive advertising seeks:
A. to develop primary demand.
B. immediate buying action.
C. to develop goodwill for a companyso target customers will eventually buy one or
more of its products.
D. to develop selective demandto affect future buying decisions.
E. None of these alternatives is correct.
The big difference between the consumer products market and the business products
market is
A. demand.
B. derived demand.
C. supply.
D. availability.
E. price sensitivity.
Final customers or users are normally asked to pay ______________ prices for
products they buy.
A. basic list
B. phony list
C. discounted
D. wholesale list
E. unchanging list
Large self-service retail stores that emphasize lower margins to get faster
turnoverespecially on 'soft goods"are called:
A. mass-merchandisers.
B. convenience food stores.
C. department stores.
D. specialty shops.
E. single-line stores.
Which of the following is NOT an explanation for why retailers continue to evolve and
change?
A. The emergence of automatic vending
B. Wheel of retailing theory
C. Data collected from technology
D. Scrambled merchandising
E. Product life cycle
Which of the following is the WORST example of a "generic market"?
A. The information storage market.
B. The recreation market.
C. The designer jeans market.
D. The home improvement market.
E. The entertainment market.
_________ are the two basic approaches to handling marketing cost allocation
problems.
A. The average-cost approach and the break-even approach
B. The performance-analysis approach and the sales-analysis approach
C. The revenues approach and the expenses approach
D. The gross margin approach and the net margin approach
E. The full-cost approach and the contribution-margin approach
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.
Which of the following is one of three basic marketing management jobs?
A. To direct the implementation of plans
B. To control the plans in actual operation
C. To plan marketing activities
D. All of these are basic marketing management jobs
The government market:
A. Is one of the smallest customer groups in the United States.
B. Often has a buying process that includes purchase specifications and competitive
bidding procedures.
C. Purchases a fairly narrow range of products dealing with public safety.
D. None of these alternatives is correct.
Which of the following statements about selling agents is FALSE?
A. They take over the whole marketing job for a producer.
B. They may handle the entire output of one or more producers, even competing
producers.
C. They may provide a producer with working capital.
D. They may even take over the affairs of the producer's whole business.
E. None of these statements about selling agents is FALSE.
Which of the following is an effective source of ideas at the idea generation stage of the
new-product development process?
A. Customer complaints.
B. Lead-users of the product.
C. Competitors' products.
D. Products found in overseas markets.
E. All of these would be effective sources of ideas.
The ____ prohibits exclusive dealing contracts.
A. Antimerger Act
B. Clayton Act
C. Magnuson-Moss Act
D. Wheeler-Lea Amendment
E. Federal Trade Commission Act
A group of male college students are watching a professional football game in a sports
barand socializing with each other during the commercials. In the traditional
communication model, the socializing during the commercials is the:
A. Source.
B. Receiver.
C. Noise.
D. Decoding.
E. Encoding.
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. Product life cycles don't relate to individual products.
E. A given firm may introduce or drop a specific product during any stage of the
product life cycle.
Which of the following is NOT included in a marketing plan?
A. The control procedures to be used
B. The costs involved
C. The results expected
D. What marketing mix is to be offered.
E. All of these should be included in a marketing plan.
Allan Clapp is a purchasing agent for Deep River Mfg. Co. He regularly buys items
such as nails, light bulbs, brooms, and sweeping compounds. In other words, he buys:
A. components.
B. supplies.
C. installations.
D. professional services.
E. accessory equipment.
When a new marketing plan is more successful than expected,
A. scarce supply may result in a waste of marketing resources, especially promotion
spending.
B. the firm may face problems finding enough well-trained people to handle the growth
that occurs.
C. the firm is more likely to be able to fund expansion through its own cash flow.
D. All of these are correct.
E. None of these is correct.
Which act prohibits price discrimination unless it is based on cost differences or the
need to meet competition?
A. Sherman Act
B. Federal Trade Commission Act
C. Robinson-Patman Act
D. Magnuson-Moss Act
E. Wheeler-Lea Act
As a percentage of selling price, transportation costs would most likely be highest for
which of the following?
A. Ammonia
B. Canned soup
C. HD television
D. Pain medication
E. Pea gravel
When Corey runs out of shampoo he buys whatever brand is on sale at his local CVS
drugstore. What is his level of involvement in the purchase decision for shampoo?
A. Extensive.
B. Limited.
C. Moderate.
D. Modest.
E. Routine.
