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A firm that adopts the "marketing concept" will aim all its efforts at satisfying
customers, while trying to make a profit.
Answer:
It is easier for a marketer to work with existing attitudes than to try to change them.
Answer:
Consumer buying decisions are affected by social influences such as motivation,
perception, learning, attitudes, and personality.
Answer:
An attitude is a person's point of view about something, and usually involves liking or
disliking.
Answer:
Family brands may cut promotion costs because the goodwill attached to one or two
products may help the others.
Answer:
Good marketing managers put themselves in the customer's position.
Answer:
A good or service that doesn't meet a consumer's needs results in low customer value.
Answer:
According to the text, the consumer product classes are based on why consumers use
products.
Answer:
Brand familiarity means how well customers recognize and accept a company's brand.
Answer:
Marketers who want to aim at people within several different cultures usually will be
able to use the same marketing mix for all of them.
Answer:
A "Product" should be thought of as potential customer satisfaction or benefits.
Answer:
Most sales managers offer their salespeople a "combination plan" because this method
of compensation provides a balance between incentive and security.
Answer:
In consumer products, single-line wholesalers serve single-line and limited-line retail
stores.
Answer:
Manufacturers' agents are usually much less expensive than a company's own sales
force in market areas where sales potential is low.
Answer:
Most physical distribution decisions involve trade-offs between costs, the customer
service level, and sales.
Answer:
A firm's working capital may come from either internal sourcessuch as company
bondsor external sourcessuch as money paid by customers.
Answer:
Needs, benefits sought, attitudes, motivation, and even how a consumer selects certain
products all vary depending on the purchasing situation.
Answer:
The U.S. is one of only a few countries in the world where the government takes an
active role in deciding what kinds of advertising are allowable, fair, or appropriate.
Answer:
Micro-marketing efforts help the economy grow by stimulating innovation.
Answer:
Agent wholesalersparticularly manufacturers' agents and brokersare often order getters.
Answer:
The AIDA sequence can help a sales manager evaluate a possible sales presentation.
Answer:
Horizontal agreements to limit sales by territory or customer are always illegal
according to the Supreme Court.
Answer:
Federal Fair Packaging and Labeling Act requires that consumer goods be clearly
labeled in easy-to-understand terms to give consumers more information.
Answer:
The four groups of consumer products are: convenience products, shopping products,
specialty products, and unsought products.
Answer:
Offering superior customer value is especially important when competition is intense.
Answer:
Apple is a good example of a company that uses its own internal funds to research,
develop, and bring to market new products like the iPad, iPhone, and iPod.
Answer:
Purchasing managers seldom use purchasing specifications to buy on the Internet.
Answer:
Technology affects marketing through new products and new processes.
Answer:
During the last decade, the rate of advertising spending has increased in the U.S., but it
has decreased in the rest of the world.
Answer:
The message channel may be as important as the message itself in influencing the
receiver.
Answer:
Personal selling dominates the promotion mix in business markets. This is practical
since there are fewer of these customers and their purchases are typically larger.
Answer:
Attractive opportunities should make use of a firm's resources and its unique strengths.
Answer:
"Positioning" means using a map to show where a firm's products are distributed
geographically.
Answer:
Marketing is the performance of activities that seek to accomplish an organization's
objectives by anticipating customer or client needs and directing a flow of
need-satisfying goods and services from producer to customer or client.
Answer:
Consumersas well as business firmsshould behave in a more socially responsible
manner to improve the performance of our macro-marketing system.
Answer:
Market testing can be risky because it gives information to competitors, but not testing
may be even riskier.
Answer:
Making sure that the benefits a customer receives from a marketing mix exceed the
customer's costs of obtaining those benefits is one way to gain a competitive advantage.
Answer:
Effective market segmentation is a two-step process that starts with naming broad
product-markets and then goes on to segmenting these broad product-markets into more
homogeneous submarkets.
Answer:
Rob Rose sat back to review the portfolio of products his company, Wire Products Inc.
(WPI), has in its product line. The company specializes in making various products for
consumer and industrial uses from hard laminated wirecoated with special paints.
1) WPI's "Wire Closet" products have been on the market for 10 years. Consumers
install the wire shelves and closet rods themselves. The market leader, Closetmaid, has
been selling similar products for more than 20 years, but so far the sales volume and
profits for the market continue to grow. Recently, several new competitors have come
into the market.
2) Three months ago, WPI entered the lawn and garden market with folding fences
made with laminated wire and branded as "Wire Fold-Fence." Previously, WPI had
never made fences or been a player in the lawn and garden market-although other
companies have been making products in this market for years. However, Rob Rose has
discovered that recent sales of wire garden fencing have leveled off and profits are
declining overall. Still, WPI thinks it has some cost advantages and can grow its own
sales and profits in this market.
3) WPI has just developed "Oil Wire," a new concept for the environmental cleanup
market. Oil Wire is coated with a special material that cleans up oil spills. There has
never been a product like this and WPI wants to quickly get the word out about its
benefits. The product is now being rolled out in selective markets.
4) Another business product is "Wire Locker" used for secure storage by gymnasiums
or companies. This style of locker has now gone out of fashion and most customers are
finding better materials to use for lockers. Aggressive selling has helped Wire Locker's
sales stay flat, but the total market for wire style lockers is only half of what it was 10
years ago.
5) WPI's "Wire Window" product is used as a security product to protect glass
windows. It sells to homeowners and retailers looking for additional safety. WPI's sales
of this product have dropped in recent years because competitors have introduced
maintenance-free products. However, the overall market for this type of product
continues to show good growth.
6) WPI is running concept tests of a new wire car-top carrier called "Wire Car Top."
There are other car-top carrier products on the market, but WPI plans to include options
in its carrier that will make it easier to load bikes, skis, and suitcases. "Wire Car Top" is
also very easy to put on and take off of the car because of its light weight and
ease-of-use features. The concept tests are helping WPI analysts develop rough
estimates of costs, sales, and profits.
7) Another new product idea, tentatively called "Wire Tent," is being considered. It
would use laminated wires to create a portable tent frame. This product is currently
being evaluated to determine its fit with the company's objectives and external market
trends.
Rob is thinking about the product life cycle, where each product fits, and what he
should be doing as part of his marketing plan for each of these products.
In which step of the new-product development process is "Oil Wire"?
A. Screening
B. Development
C. Idea evaluation
D. Commercialization
E. Idea generation
Answer:
Wilson Alvaro graduated with a marketing degree almost a year ago. Like many of his
friends, he took a job in sales and really enjoys it. A description of Wilson's job and
those of some of his friends are noted below.
Wilson Alvaro loves biking and has his dream job. He works for a wholesale company
that sells mountain bikes for a manufacturer. He works with a small group of people
who call on the buying offices for two large retail chains, Wal-Mart and Toys R Us. The
group includes a finance person and a production person, and they all work together to
meet the specific needs of these two big accounts; for example, sometimes they
recommend a model of bike that will be available from only that retailer's stores.
However, Wilson's main job focuses on building relationships and solving customer
problems. Only occasionally is he expected to try to persuade the retailers to buy more
bikes.
Amy Bowden sells life insurance. She calls on new parents and persuades them to buy
insurance products. It is difficult for a manager to control Amy's work, but she has
incentive to work hard because her job security and income depend on getting sales.
She is a confident self-starter, so she likes it that way.
Ben Peterson works for a fashionable men's clothing store. He enjoys spending time
with customers who come in, learning about their fashion needs, and helping them pick
clothes that really work for them. While the store manager can easily observe and direct
Ben's activities, the manager wants Ben to have the incentive to increase customer
purchases and satisfaction.
Emily Winters handles inside sales for a major industrial distributor. She deals with a
regular set of established customers, most of whom know what they want. Emily talks
to them on the phone and answers questions about products, delivery time, and pricing.
She sometimes works with outside sales reps who visit customers and help introduce
new products. Emily is the first person her customers call when there's a problem with a
purchase, so she spends a lot of time dealing with customer problems. As an inside
salesperson, Emily's work is easily supervised by a sales manager-and she has little
influence on how much her customers buy.
Melissa Tran works for a company that sells paper products (like napkins, paper towels,
and paper plates) primarily through small independent grocers. Most of the grocers are
regular customers, but sometimes she makes cold calls to new grocery stores. Melissa's
job is to develop goodwill and try to increase sales. For example, she often sets up
special promotional displays in stores. Her compensation plan gives her income
security, but she also can receive a bonus for sales growth in her territory.
Charlie Riggs is a telemarketer for an Internet service provider. He calls people on a list
provided by his firm and tries to sign them up for Internet service. Charlie relies heavily
on a presentation he learned during his training. Charlie is very good at what he does
and loves that the more success he has the more he earns.
What type of sales presentation approach does Ben Peterson use?
A. Consultative selling approach.
B. Prepared sales presentation.
C. Missionary selling.
D. Selling formula approach.
E. Sales quota approach.
Answer:
Secondary data:
A. may not be specific enough to answer the question under consideration.
B. should be considered before primary data is collected.
C. is often all that is needed to solve a problem.
D. is available both internally and outside the firm.
E. All of these alternatives are correct.
Answer:
Which of the following must occur for marketing to happen?
A. Product
B. Place
C. Advertising
D. Price
E. Two or more parties exchange something of value for something else of value.
Answer:
The new-product development process discussed in the text
A. is based on the idea that a firm should eliminate potentially unprofitable product
ideas as early as possible.
B. seeks to take as many ideas to market as possible, hoping to find a breakthrough
opportunity.
C. relies solely on test marketing to decide whether to drop an idea or take it to market.
D. is especially important since it increases the number of new product ideas that get to
the commercialization stage.
E. None of these alternatives is true.
Answer:
In marketing, business and organizational customers are distinct from:
A. intermediaries
B. government units
C. final consumers
D. manufacturing and service firms
E. non-profit organizations
Answer:
For marketers who seek to sell to organizational customers, initial contact with the
customer is likely to be with a customer's:
A. most senior salesperson.
B. clerk who process paperwork.
C. purchasing manager.
D. accounting department.
E. Chief Executive Officer (CEO).
Answer:
When Herbal Essences tries to get shelf space in Target and Walmart because young
women frequently shop there for hair care products, this is an example of which of the
4Ps?
A. Price
B. Product
C. Promotion
D. Place
Answer:
A market-directed economic system implies that:
A. society lacks both political and economic freedom.
B. people have political freedom but economic objectives are determined by the
government.
C. political freedom and economic freedom go hand in hand.
D. the needs of consumers are not part of marketing objectives.
E. (which of the following components of the marketing mix) very little importance is
attached to customer satisfaction.
Answer:
Quantitative research:
A. Involves structured responses that can be summarized.
B. Is not a good method for measuring consumer attitudes and opinions.
C. Mainly uses small samples of respondents.
D. Is only possible by using a mail survey.
E. Relies on open-ended responses to survey questions instead of multiple-choice
responses.
Answer:
In the PSSP Hierarchy of Needs model, which level is illustrated by a "Got Milk?"
magazine campaign that encourages customers to drink more milk?
A. Physiological needs
B. Safety needs
C. Social needs
D. Personal needs
Answer:
Business professional services:
A. may not be purchased outside the firm if they are needed regularly.
B. support a firm's operations.
C. are offered by a growing number of specialists.
D. are generally treated as expense items.
E. All of these alternatives are correct.
Answer:
A wholesaler who takes over the whole marketing job NATIONALLY for one or a few
manufacturers is called a:
A. merchant wholesaler.
B. manufacturers' agent.
C. broker.
D. specialty wholesaler.
E. selling agent.
Answer:
Purchasing specifications
A. may simply include a brand name or part number when purchasing requirements are
complicated.
B. for services, as compared to goods, tend to be detailed because services are usually
performed before they're purchased.
C. for services, as compared to goods, tend to be detailed because services are more
standardized than goods.
D. are often simple for manufactured items with highly standardized quality.
E. None of these alternatives is correct.
Answer:
If the advertising objective is to convince potential customers that "Safeway Cleaners"
offers excellent dry-cleaning services, what medium would be best for reaching local
prospects?
A. Television
B. Magazines
C. Cinema
D. Internet
E. Newspapers
Answer:
A local copying service is buying a new kind of high speed color copier.
A. There will probably be more buying influences for the paper for the copier than for
the copier.
B. The copier is likely to be purchased with a new-task buying process.
C. The copier will be depreciated as an expense item.
D. The copier is a new unsought product.
E. None of these alternatives is correct.
Answer:
Sanders Beverages, Inc., is targeting non-juice drinkers with a new line of healthy fruit
juices. Identify the segmenting dimension most likely being used by Sanders
Beverages.
A. Geographic
B. Behavioral
C. Geodemographic
D. Demographic
E. Urgency to get need satisfied
Answer:
Harley Owners Group connects motorcycle riders to one another. This group is focusing
on satisfying what level in the hierarchy of needs?
A. Safety
B. Physiological
C. Social
D. Personal
Answer:
When Ford Motor Co. introduced its Escape hybrid SUV, it offered a $1,000 rebate as
an incentive to attract new buyers. This was an example of which aspect of the
marketing mix?
A. Price
B. Promotion
C. Place
D. Product
Answer:
The number of times an intermediary's average inventory is sold in a year is called the:
A. stockturn rate.
B. asset factor.
C. inventory ratio.
D. markup ratio.
E. ROI (return on inventory).
Answer:
After identifying its key customers in terms of profitability, a firm can look to see what
similar characteristics those current customers have. Then, it can try to find prospective
new customers who characteristics similar to its current customers. What type of
research analysis is most likely to prove fruitful in identifying these new prospects?
A. ISO 9000
B. Resident buyer codes
C. NAICS codes
D. Intermediary codes
E. JIT codes
Answer:
Typically, firms need a hierarchy of objectives. Which of the following best represents a
correct hierarchy of a firm's objectives?
A. Company objectives, sales promotion objectives, marketing objectives, promotion
objectives.
B. Marketing objectives, company objectives, promotion objectives, sales promotion
objectives.
C. Company objectives, marketing objectives, promotion objectives, sales promotion
objectives.
D. Marketing objectives, promotion objectives, sales promotion objectives, company
objectives.
E. Promotion objectives, sales promotion objectives, company objectives, marketing
objectives.
Answer:
Statistical packages are:
A. easy-to-use computer programs that analyze data.
B. syndicated research services that do quantitative research.
C. procedures used to be sure that a sample is representative.
D. product packages that make it possible to collect data at checkout counters.
E. None of these alternatives is a good answer.
Answer:
An instant noodles brand, upon the release of its product, attracted customers by
offering a 50 percent discount on the purchase of two family packs. Once the brand had
gained attention, this discount was removed and the product was priced similar to the
competing brands in the market. This pricing strategy is an example of _____.
A. introductory price dealing
B. F.O.B. pricing
C. skimming price policy
D. penetration pricing policy
E. negotiable price dealing
Answer:
In the United States, the _____ has the power to control unfair or deceptive business
practices, including deceptive advertising.
A. CPSC
B. FTC
C. FDA
D. OSHA
E. USDA
Answer:
Two keys to improving service quality are:
A. training and empowerment.
B. JIT delivery and supply chain management.
C. appraisals and rewards.
D. monitoring and control.
E. positive and negative reinforcement.
Answer:
Which of the following is NOT one of the text's business product classes?
A. Raw materials
B. Component parts and materials
C. Specialty products
D. Professional services
E. Installations
Answer:
Which of the following statements relating to sales quotas is FALSE?
A. Sales potential usually differs from one sales territory to another.
B. A salesperson's sales quota is the specific level of sales he or she achieved in the
previous sales period.
C. Unless the pay plan allows for territory differences, some sales reps may be
overworked and others may be underworked.
D. Unless the pay plan allows for territory differences, some sales reps may be
underpaid for the same amount of effort.
Answer:
Regarding a marketing information system (MIS):
A. The input of marketing managers is not needed in developing an MIS; marketers
should leave everything to information technology specialists.
B. Can be used to improve implementation and control.
C. A good MIS converts information into raw data.
D. An MIS provides an alternative to big data.
E. All of these statements about a marketing information system are correct.
Answer:
Each month the sales staff of Capital Plumbing Supplies, Inc., makes an average of 125
sales calls on prospective customers at a cost of about $3,500 (salary plus expenses).
What is the average cost of a sales call (to the nearest dollar amount)?
A. $22
B. $25
C. $28
D. $31
E. $34
Answer:
Some marketing managers have set up relationships with Internet companies whose ads
invite customers to 'set your own price." Such marketing managers
A. have given up on administering prices.
B. are carefully administering a flexible price.
C. are following a one-price policy.
D. make it easier for competition to undercut them.
E. are following a penetration pricing policy.
Answer:
If Salesperson A has a performance index of 80 and Salesperson B has a performance
index of 120:
A. Salesperson A's performance should be used as a model to improve everyone's
performance.
B. Salesperson B's performance should be improved to bring it up to "average."
C. Salesperson A may be having some problems.
D. Salesperson B should be fired.
E. the two average out to 100and "all is well."
Answer:
The amount of income a family has left after paying taxes and paying for its necessities
is called its ______________ income.
A. personal
B. discretionary
C. marginal
D. family
E. modified
Answer:
A catalog merchant divides the country into regions. Every buyer in a particular region
pays the same average shipping charge. The shipping charges differ from region to
region, depending on how far the region is from the catalog merchant's main warehouse
facility. The catalog merchant is using:
A. F.O.B. pricing.
B. Zone pricing.
C. Freight absorption pricing.
D. None of these is a good answer.
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:
