MK 43612

subject Type Homework Help
subject Pages 15
subject Words 3773
subject Authors E. Jerome Mccarthy, Joseph Cannon, William Perreault Jr.

Unlock document.

This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
page-pf1
Use the following information to answer question that refer to the Jewel Craft case.
Jewel Craft, Inc. is a leading producer in the United States' women's costume jewelry
and accessories market. Its brands are well known and are sold by department stores
and better women's stores. Several stores in a city may carry Jewel Craft's brands
because most of Jewel Craft's customers will not consider any other brand.
Jewel Craft's sales force calls on one wholesaler in each state. Gemco, Inc., of Boston,
Massachusetts, is the Jewel Craft distributor in that state. Gemco stocks and sells
women's accessories (noncompeting lines) for several manufacturers like Jewel Craft.
Wholesalers are allowed a 20 percent markup by Jewel Craft-but pay the freight
charges to their warehouses. Jewel Craft's policy of using one wholesaler per state
comes from its desire to control its distribution. Jewel Craft uses national magazine
advertising and also supports a cooperative ad program with retailers.
Jewel Craft's prices allow for a 40 percent retail markup-an attractive percent when one
considers that Jewel Craft's products require little in-store selling because of their
well-established reputation.
Recently, Jewel Craft was approached by a watch producer with the idea of expanding
to watches under the Jewel Craft name. It was argued that although national watch sales
have leveled off, Jewel Craft could enjoy growing sales for several years because of the
fine reputation the company has achieved. If watches are added, Jewel Craft will use its
present policies regarding distribution, pricing, and advertising. Further, it will offer the
wholesalers and retailers an attractive "package" deal as an incentive to carry Jewel
Craft watches. Intermediaries will be required to carry the watches if they wish to
handle the jewelry and accessories.
The degree of brand familiarity for Jewel Craft products-among its present consumer
buyers-is:
A. no brand recognition.
B. brand insistence.
C. brand preference.
D. brand rejection.
E. brand recognition.
Answer:
page-pf2
Given the U.S. economy's basic objective, the best measure of the effectiveness of the
U.S. macro-marketing system is:
A. GDP growth.
B. the equality of income distribution.
C. how efficiently resources are used.
D. how many new products are introduced.
E. the level of consumer satisfaction.
Answer:
One of the strategic policies of camera maker, Zoom Cameras, states: "We will
communicate the key benefits and value of our camera's unique zoom lenses and
demonstrate how they meet customer needs." This policy best fits which marketing mix
decision area?
A. Product
B. Place
C. Promotion
D. Price
E. People
page-pf3
Answer:
Higher profits
A. promote even allocation of resources.
B. encourage large-scale advertising.
C. increase social responsibility.
D. protect competitors from each other.
E. attract competition.
Answer:
Use this information to answer the following question that refer to the PSI case.
Pump Systems, Inc. (PSI) produces two major kinds of water pumps. The smaller
pumps range in price from $5-$30, and are used in drinking fountains and soft-drink
machines. Most of these pumps are bought by manufacturers of these machines and
page-pf4
built into their product. PSI also builds larger pumps used in swimming pools and
reservoirs. The prices of these items range from $250-$500. These are usually
purchased by contractors, who build the pools and reservoirs.
PSI sells nationally through sales reps located in the large industrial centers. These reps
handle the selling function for PSI in their geographic areas and provide market
information. They usually do the same thing for 10 to 20 similar manufacturers of
noncompeting products-and are paid on a commission basis.
There are no other producers of the smaller pumps in the United States-because PSI has
patent protection. As a result of this, management has decided to follow a policy of
pricing high-to maximize profits-while the patent lasts.
Several competitors are in the market for the larger pumps. Industry prices and profits
of these pumps have dropped in the past few years as a result of firms trying to increase
their market shares. The product design has remained fairly stable over the last few
years-and one firm dropped out as it saw that it would lose more money with its
"me-too" product. Industry sales are increasing-but at a very slow rate. The price of
these products is determined by adding a standard markup percentage to the variable
cost of the items-to cover fixed costs and profit. For instance, pump Z has variable costs
of $250 per unit, and a markup of 40 percent of this cost is added to the $250 to get its
selling price. Management has estimated that fixed costs applicable to this product are
$200,000 per year.
PSI publishes a product catalog which is revised annually. Also, it exhibits in most trade
shows. PSI follows a policy of charging the same price to all customers-so all will have
the same costs at their own plants. All purchases are shipped directly from PSI's factory
to its customers-and title passes at PSI's factory.
What is the contribution to fixed cost and profit of PSI's pump Z?
A. $100 per unit
B. $75 per unit
C. $50 per unit
D. $25,000
E. Cannot be determined unless you know the sales volume.
Answer:
page-pf5
A publisher needed one of its best-selling authors to fly from his home in Richmond,
Virginia to Chicago, Illinois in order to start a publicity campaign for the author's new
book. The author could have taken a flight to Detroit, Michigan, changed planes, and
then flew on to Chicago for about half the price of a non-stop flight from Richmond to
Chicago. However, he chose the non-stop flight. He became less price sensitive because
of:
A. the availability of substitutes.
B. the fact that someone else was paying the bill.
C. the significance of the end benefit.
D. the size of the total expenditure.
E. the sunken investment he had made.
Answer:
Developing a set of specific qualitative and quantitative screening criteria
A. increases the different opportunities-and strategy possibilities-in the market.
B. can make it difficult to zero in on the best target market and marketing mix.
page-pf6
C. cannot help eliminate potential strategies that are not well suited for the firm.
D. can help a manager define in which business and markets the firm wants to compete.
E. highlights advantages of a strategy but does not make it clear why you should select
that strategy.
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
page-pf7
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.
What best describes the level of brand familiarity that customers in "the politicos"
segment have with SDF?
A. Brand insistence
B. Brand rejection
C. Brand preference
D. Brand nonrecognition
E. Brand recognition
Answer:
Use this information to answer the following question that refer to the CPI case.
Conservo Products, Inc. (CPI), with annual sales of $200 million, is a well-known
producer of a variety of paper products, almost all of which are made from recycled
materials. Picnic plates account for about 70 percent of CPI's sales. The rest of the
page-pf8
firm's sales come from custom-designed materials-such as box liners and spacers, small
boxes, and disposable products-like trays, towels and napkins.
CPI's picnic plates are sold through 'sales reps" to grocery wholesalers and retail
grocery chains. The sales reps are paid a 5 percent commission on all sales in their
assigned territories. They usually handle related-but noncompeting-lines for several
other manufacturers. Along with their selling duties, the sales reps help CPI with local
advertising and sales promotion efforts. Orders for the custom products are obtained by
area managers who are paid a straight salary to call on business and institutional
customers. The area managers are trained paper specialists and often help their
customers design the products they order.
The picnic plates are priced to give CPI a 90 percent markup on the cost of producing
the product-with the cost figured by taking the total factory cost for the previous year
and dividing that total cost by the number of units produced and sold during that period.
The firm's invoices read "F.O.B.-Delivered" and "1/10, net 30." Customers are allowed
to deduct 3 percent from the face value of the invoice for buying plates in carload
quantities, and another 2 percent for advertising them locally.
The custom products are sold "F.O.B. mill"-with CPI offering a price for each job.
Competition is strong from many other manufacturers who are able to offer very similar
products which meet the customers' specifications.
CPI forecasts that sales will increase to $250 million by 2012. However, much of this
growth is tied to picnic plates-a market in which the firm has about a 7 percent market
share and faces aggressive price competition from many smaller firms with greater
brand familiarity. Further, CPI has been late with more than 50 percent of its plate
orders due to scheduling conflicts with orders for custom products.
CPI's sales forecasts for picnic plates are not likely to be achieved unless the firm can
improve its:
A. pioneering advertising.
B. paper coating machines.
C. below-average product quality.
D. customer service level.
E. above-the-market prices.
Answer:
page-pf9
Marketing will not happen unless:
A. e-commerce is flourishing.
B. collaborators are present to simplify exchange.
C. intermediaries are present to facilitate exchange.
D. two or more parties each have something they want to exchange for something else.
E. an economy is market-directed rather than command.
Answer:
The innovators are the group of customers who
A. have fewer contacts outside their own social group or community.
B. tend to have the greatest contact with salespeople.
C. tend to avoid risk and wait to consider a new idea after many early adopters have
tried it-and liked it.
D. tend to be older, less well educated, and cling to the status quo thinking it is the
safest way.
E. are likely to be mobile and have many contacts outside their local social group and
community.
page-pfa
Answer:
McGovern's Supply stocks electronic repair parts and related supplies and tools from
various producers. McGovern's sells primarily to small TV and electronic repair shops
throughout the country that only want to order one or two items at a time. Orders are
usually shipped out on UPS trucks. It appears that McGovern's is a
A. single-line wholesaler.
B. manufacturers' agent.
C. drop-shipper.
D. truck wholesaler.
E. rack jobber.
Answer:
page-pfb
MICRO-marketing will probably continue to cost too much as long as:
A. the marketing concept is not accepted.
B. firms fail to identify new opportunities.
C. firms do "mass marketing."
D. some managers believe that anyone can run a business successfully.
E. All of these are reasons why MICRO-marketing will probably continue to cost too
much.
Answer:
Good packaging:
A. Can make a product easier or safer to use.
B. Can be an important promotional tool.
C. Can lower distribution costs.
D. Can make products easier to handle and display.
E. All of these alternatives are correct.
Answer:
page-pfc
Ace Hardware is a multichannel retailer that integrates online and brick-and-mortar
stores (because its customers gather information online and then buy in a store or vice
versa).
Answer:
A pricing objective that seeks a specific level of profit is a:
A. profit maximization objective.
B. value objective.
C. sales-oriented objective.
D. target return objective.
E. status quo objective.
Answer:
page-pfd
Integrated direct-response promotion has expanded beyond direct-mail advertising to
include other media.
Answer:
Clearwater Office Supply sells frequently purchased office supplies to businesses in a
metropolitan area. It is a well-established company with a large share of the market. Its
promotion should probably focus on
A. reminding.
B. stimulating primary demand.
C. informing.
D. innovators.
E. making the demand curve less elastic.
Answer:
page-pfe
About what percentage of GDP do the developing economies in Latin America and
Africa spend on logistics-related costs?
A. 10 percent
B. 20 percent
C. 30 percent
D. 40 percent
E. 50 percent
Answer:
Which of the following observations about the use of a marketing information system
(MIS) is FALSE?
A. Not every firm has a complete MIS.
B. An MIS tends to focus on recurring information needs.
C. For most firms it pays to wait to until you have important questions you can't answer.
page-pff
D. It is the job of the MIS specialist to ask for the right information in the right form.
E. An MIS shouldn't be the only source of information for managers while making
decisions.
Answer:
Which of the following countries is likely to see a population decline from 2010-2025?
A. Germany
B. Somalia
C. United States
D. United Kingdom
E. China
Answer:
page-pf10
The total group a survey researcher is interested in is called the:
A. population.
B. sample.
C. study group.
D. representative group.
E. None of these choices is a good answer.
Answer:
At what stage of the product life cycle do industry profits start to decline?
A. Market maturity
B. Market introduction
C. Market growth
D. Stagnation
E. Sales decline
Answer:
page-pf11
A useful tool for organizing the competitor analysis is:
A. the table of competitive rivals.
B. rivals chart.
C. the oligopoly chart.
D. a competitor matrix.
E. the competitive summary.
Answer:
Dell, Inc. wants to offer customers televisions in addition to computers. This is a change
in its _____________________ strategy.
A. pricing
B. promotional
C. personnel
D. product
E. placement
page-pf12
Answer:
Which of the following would NOT be a source of primary data?
A. The Wall Street Journal
B. Market tests
C. Focus groups
D. Observation studies
E. Surveys
Answer:
Which of the following statements concerning "value pricing" is FALSE?
A. Value pricing tries to build customer loyalty.
page-pf13
B. Companies using value pricing guarantee what they offer.
C. Value pricing involves setting a fair price level for a marketing mix that meets
customers' needs.
D. Value pricing means using "budget" or "cheap" prices.
E. The focus of value pricing is on the customer's requirements-and the whole strategy.
Answer:
Product classes help marketing managers understand how much market exposure will
be needed in each geographic area.
Answer:
page-pf14
A company trying to market its products in a country that has a low literacy rate would
be well advised to:
A. Print its promotional messages in larger font (character) sizes.
B. Conduct marketing research using paper-and-pencil surveys.
C. Use symbols, colors, and other nonverbal means of communication.
D. All of these measures would be useful.
Answer:
_____ assume(s) that everyone is the same-and consider(s) everyone to be a potential
customer.
A. Mass marketers
B. Target marketing
C. Mass marketing
D. Target marketers
E. Objective marketing
Answer:

Trusted by Thousands of
Students

Here are what students say about us.

Copyright ©2022 All rights reserved. | CoursePaper is not sponsored or endorsed by any college or university.