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Marketing discourages the development and spread of new ideas, goods, and services.
Answer:
According to the text, markup (percent) means percentage of cost unless otherwise
stated.
Answer:
In the example for the 7-step approach (discussed in the text), an important determining
need for the "resort seekers" is adult fun while the "family vacationers" want family
fun.
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Qualifying dimensions are those that actually affect the customer's purchase of a
specific brand in a product-market.
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The cultural and social environment affects how and why people live and behave as
they do.
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"Cooperative chains" like True Value Hardware are retailer-sponsored groups formed
by independent retailers to run their own buying organizations.
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The largest share of total advertising expenditures in the United States goes for
newspaper advertising.
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Homogeneous shopping products need order getters more than heterogeneous shopping
products.
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Maintaining the right level of inventory is easy now that there are tools to precisely
forecast and model demand.
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An insurance company might use institutional ads to highlight its concern for safe
driving.
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The pulling approach emphasizes the importance of securing the wholehearted
cooperation of channel members to promote the product in the channel and to the final
user.
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Motivation theory suggests that a consumer would not try to satisfy physiological and
safety needs until social and personal needs have been completely satisfied.
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The external market environment doesn't play a role in the marketing strategy planning
process because it exists outside of the company.
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Most industrial products tend to be near the "insensitive" end of the continuum of
environmental sensitivity.
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Warehouse clubs started the move to mass-merchandising.
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Value in use pricing considers what a customer will save by buying a product.
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Syndicated research is an economical approach for collecting specific research needed
by one firm for a specific problem.
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In the experimental method, researchers compare the responses of two or more groups
that are similar even on the characteristic being tested.
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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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A "channel captain" is a manager who helps direct the activities of a whole channel.
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Staples are consumer products which are sold in places like gourmet shops and health
food stores, because convenience is not important to the customer.
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A channel of distribution is any series of firms or individuals that participate in the flow
of products from producer to final user or consumer.
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A flexible-price policy is illegal in the U.S.
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As with any business, a nonprofit organization must take in as much money as it spends
or it won't survive.
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Marketing managers turn information into knowledge when they use their experience to
answer "how" and "why" questions.
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Retail sales on the Internet grew very rapidly at first, but now are expected to grow
slowly.
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Implementation puts plans into operation while control provides feedback.
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In the customer-initiated communication process, marketing managers should simply
ignore online information they do not create.
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Push money allowances are intended to make the retailers' salespeople sell particular
products very aggressively.
Answer:
With bid pricing, it is best for the bidder to use the same overhead and profit rates on all
jobs since that will make it easy to estimate costs and eventually will increase profits.
Answer:
Comparative advertising tries to keep the product's name before the public.
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Most firms operate in monopolistic competition, where products and whole marketing
mixes are not exactly the same.
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A salesperson's request for an order during a sales presentation is called a "close."
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Limited-function wholesalers provide all of the basic wholesaling functions, except that
they do not take title to the products they sell.
Answer:
The marketing management process consists of (1) planning marketing activities, (2)
directing the implementation of the plans, and (3) controlling these plans.
Answer:
Personal selling techniques vary very little from country to country.
Answer:
Compared to a warehouse, a DISTRIBUTION CENTER is:
A. designed to provide more efficient use of storage space.
B. concerned with eliminating the need for bulk-breaking.
C. designed to eliminate all storage.
D. set up to speed the flow of products toward the consumer.
E. a storage facility used by several intermediariesto share costs.
Answer:
Which of the following is NOT one of the text's product life cycle stages?
A. Market maturity
B. Market penetration
C. Market introduction
D. Sales decline
E. Market growth
Answer:
_____ distribution is commonly used for convenience products and business supplies.
A. Internal
B. Intensive
C. Selective
D. Specialized
E. Exclusive
Answer:
The source deciding what it wants to say and translating it into words or symbols that
will have the same meaning to the receiver is termed as
A. transmutation.
B. exposition.
C. decoding.
D. encoding.
E. recoding.
Answer:
Which of the following is an example of a cost-oriented price setting approach?
A. Negotiated prices
B. Price sensitivity
C. Value in use pricing
D. Markup pricing
E. Reference prices
Answer:
Point-of-purchase materials is a sales promotion activity aimed at
A. distributors.
B. company's own sales force.
C. intermediaries.
D. retailers.
E. final consumers.
Answer:
In 2010, about ________ percent of ad spending in the U.S. was for direct mail
advertising.
A. 4
B. 14
C. 24
D. 34
E. 44
Answer:
If Salesperson X had a performance index of 80 and Salesperson Y had a performance
index of 120, then:
A. Salesperson X may be having some problems and his sales performance should be
investigated.
B. the two would average out to 100and this would suggest that "all is well."
C. Salesperson X's performance should be investigated as a guide to improving
everyone's performance.
D. Salesperson Y probably should be fired.
E. Salesperson Y obviously had higher sales than Salesperson X.
Answer:
Selecting the most effective advertising media depends on the:
A. nature of the mediai.e. reach, frequency, impact and cost.
B. firm's target market.
C. funds available for advertising.
D. firm's promotion objectives.
E. All of these alternatives are correct.
Answer:
While planning a vacation, Betty Jo visited the website of a package tour provider and
closed a pop-up ad without even noticing what it was for. This is an example of
A. selective retention.
B. selective exposure.
C. selective perception.
D. selective learning.
E. selective action.
Answer:
Selecting "good, well-qualified" salespeople can be aided by:
A. multiple interviews with company executives.
B. systematic selection procedures.
C. good job descriptions.
D. background checks.
E. All of these alternatives are correct.
Answer:
For dieters, the highest quality potato chips are probably:
A. chips made from all natural ingredients.
B. chips with the best flavor.
C. Gourmet Cape Cod Kettle Chips.
D. chips that are low in fat and calories.
E. Lays brand potato chips.
Answer:
Consider the performance data about the four sales regions shown below. Which of the
four regions has the highest performance index?
A. North.
B. South.
C. East.
D. West.
E. Cannot be determined from the information given.
Answer:
____ refers to offering new or improved products for present markets.
A. Diversification
B. Market development
C. Differentiation
D. Market penetration
E. Product development
Answer:
Which of the following segmenting dimensions probably would be LEAST LIKELY to
result in segments that would meet the criteria that product-market segments should be
"operational?"
A. Geographic region.
B. Personality.
C. Family size.
D. Age.
E. Income level.
Answer:
____________ take over the whole marketing job of producers, not just the selling
function.
A. Brokers
B. Selling agents
C. Auction companies
D. Export and import brokers
E. Service wholesalers
Answer:
Which of the following statements about economic systems is NOT true?
A. Government has less of a role in market-directed economies than in command
economies.
B. A market-directed economy self-adjusts through producer and consumer choices.
C. Producers always make a profit in a market-directed system.
D. A command economy is more likely to work if the variety of goods and services is
small.
E. Both market-directed and command economies need a macro-marketing system.
Answer:
Customers are likely to be less price sensitive
A. the greater the total expenditure.
B. the greater their share of the cost.
C. the greater the significance of the end benefit.
D. the easier it is to compare prices.
E. None of these alternatives is correct.
Answer:
Two similar groups of consumers are shown different magazines which include the
same ad. Then each consumer is asked questions about the advertised product. This
seems to be a description of
A. the experimental method.
B. a set of focus group interviews.
C. a consumer panel research project.
D. a set of personal interviews.
E. None of these alternatives is a good answer.
Answer:
Oceanside Tools, Inc. of Newport, Rhode Island has agreed to work with a Thai
company to produce and sell chemicals in Thailand. The U.S. firm will provide
technical and marketing know-how, while its Thai partner will provide knowledge of
Thai markets and political connections. The partners will share the costs and profits
50/50. This type of international involvement is called:
A. direct investment.
B. management contracting.
C. licensing.
D. multinational marketing.
E. joint venturing.
Answer:
Which of the following pricing objectives is a producer seeking when the producer tries
to obtain some percent return on his investment?
A. Status quo
B. Meeting competition
C. Profit maximization
D. Target return
E. Growth in market share
Answer:
Firms that use mass customization
A. may target either business customers or final consumers.
B. may be able to take advantage of the Internet for orders.
C. may be able to give their customers more or better choices.
D. are likely to have higher costs than do firms who produce more standardized
products, but may earn better profit margins.
E. All of these
Answer:
Which of the following is likely to be part of a situation analysis?
A. A marketing analyst looks up data in Advertising Age magazine about expenditures
in the firm's market.
B. A marketing researcher asks a trade association for one of its reports.
C. A marketing manager searches data.gov.
D. All of these are good choices.
Answer:
Which of the following statements about world population trends is true?
A. In general, countries that have higher stages of development experience faster rates
of growth than less-developed countries.
B. The extent to which a country's population is clustered around urban areas does not
vary much from country to country.
C. People are moving from rural areas into urban areas.
D. The trend toward urbanization has made companies less interested in international
markets.
E. All of these statements about world population trends are true.
Answer:
A product-market is one in which
A. demand is inelastic.
B. products that are close substitutes for each other compete for customers by trying to
satisfy very similar needs.
C. breakthrough opportunities are no longer possible.
D. one seller has a patent for a superior product and other competitors try to imitate the
leader.
E. All of these alternatives are true.
Answer:
A magazine ad for GEICO car insurance shows the GEICO gecko lying down while the
copy reads, "Don't take high car insurance rates lying down." What primary economic
need is being satisfied in this magazine ad?
A. Convenience
B. Improvement of earnings
C. Dependability in use
D. Economy of purchase
Answer:
A consumer who seeks to purchase an HDTV for the first time for a home
entertainment theater is:
A. likely to use routinized response behavior.
B. likely to engage is limited problem solving.
C. likely to engage in extensive problem solving.
D. about to make a low-involvement purchase.
E. likely to seek the brand with the lowest prices.
Answer:
Ideas about potential new products should
A. be encouraged from any and all sources, since only a few ideas will develop into
successful products.
B. not be eliminated from consideration until they have been tested in the
commercialization stage.
C. come primarily from employees of the firmso that time won't be wasted evaluating
product ideas that are inconsistent with the firm's objectives and resources.
D. come from outside the firm, since studies show that really new ideas require a fresh
perspective.
E. None of these alternatives is correct.
Answer:
As a project for her marketing class, Emily Washington is researching how five local
businesses price their products. The following are brief sketches of what she has learned
about each company.
At Bella Computers, Emily has discovered that the company earned a 6 percent return
on investment this year and wants to increase it to 9 percent next year. To its retailer
customers, Bella Computers gives cash discount terms of 2/10, net 30. It also gives
retailers a 3% reduction on the invoice amount for advertising Bella products locally.
Bella gives retailers' salespeople 2% of the sale price for each Bella Computer they sell.
At Ross Pharmaceuticals, she learned that the company has invested heavily in
developing a new product that recently received a patent. Because cash is tight, the
company wants to achieve a rapid return on its investment. The new patented product is
badly needed in the market, so a very inelastic demand curve is expected.
Digital Imaging makes photographic prints for wedding photographers. It is very
concerned about competitor reactions to its pricing, so it has selected prices that will not
draw the attention of the competition and not start a price war. Digital Imaging offers
customers an 8% discount if their purchases exceed $20,000 a year.
Jack's One Hour Cleaners recently opened for business. The company invested a lot of
money in new equipment, and feels that it has to quickly get "at least 10% market share
to stay in the game." This need obviously influences the company's pricing decisions.
Jack's also plans to offer customers 20% discounts on any order over $20.
National Printing Equipment (NPE) produces equipment that helps to print newspapers
and magazines. The company sells directly to printers and through wholesalers. Its
salespeople negotiate prices with individual customers and often have to match
competitors' prices. NPE has a new product, the Gutenberg NP201, with some
competitive advantages now, but competitors are expected to follow quickly with
similar products. The new product is being introduced into a market with elastic
demand. In regard to freight charges for its equipment, NPE's invoice reads, "Seller
pays the cost of loading equipment onto a common carrier. At the point of loading, title
to such products passes to the buyer, who assumes responsibility for damage in transit,
except as covered by the transportation agency."
Which business offers a CUMULATIVE quantity discount?
A. Digital Imaging
B. Jack's One Hour Cleaners
C. National Printing Equipment
D. Ross Pharmaceuticals
E. Bella Computers
Answer:
Which of the following statements is True regarding positioning?
A. Positioning refers to how managers think about proposed or present brands in a
market.
B. Positioning issues are not important when competitors in a market appear to be very
similar.
C. Usually, the positions of products are related to six or seven product features that are
important to product managers.
D. None of these statements is true.
Answer:
Which of the following products is most likely to be sold by a drop-shipper?
A. Skis
B. Toothpaste
C. Greeting cards
D. Printing supplies
E. Coal
Answer:
A qualifying dimension for people who consider purchasing a pill for pain relief:
A. the region of the country in which they live.
B. income level.
C. physiological need.
D. ethnicity.
E. occupation.
Answer:
______________ means a brand is not recognized by final customers at all.
A. Brand nonrecognition
B. Brand rejection
C. Brand insistence
D. Brand recognition
E. Brand preference
Answer:
Which of the following organizations should apply the marketing concept?
A. National Park Service.
B. National Federation of the Blind.
C. Christian Children's Fund.
D. United States Postal Service.
E. All of these organizations should apply the marketing concept.
Answer:
