The definition of quality focuses on the producer.
Pricing a product sold in a foreign market lower than the cost of producing it is called
dumping.
Prospect lists or a CRM database can help salespeople do a better job with prospecting.
Price fixing is completely illegal in the United States.
Multichannel distribution occurs when a producer uses several competing channels to
reach the same target market perhaps using several intermediaries in addition to selling
directly.
A manufacturer may be forced to use multichannel distribution because a big retail
chain wants to deal directly with it instead of wholesalers.
Using the General Electric strategic planning grid, an opportunity rated “medium” in
terms of both industry attractiveness and business strengths is an opportunity that the
firm should always avoid.
One reason manufacturers’ sales branches handle over 25 percent of wholesale sales is
that they are located in the best market areas.
When a seller uses “zone pricing,” all customers who are in the same zone are charged
the same freight chargeeven if the actual shipping cost varies.
Marketing should begin with the production process.
When a seller uses “zone pricing,” the actual freight charge for delivering each order is
included in the price the buyer pays for the product.
Discretionary income is an elusive concept because the definition of necessities varies
from family to family and over time.
Like personal selling, blogs can enhance the relationship between a company and its
customers.
A flexible-price policy is most often used where products are not standardized and
where bargaining is common.
Specialty products are usually only purchased once-in-a-lifetime, so the customer must
search extensively before buying.
Discretionary income is what is left after paying taxes.
The legal environment sets the minimum standards of ethical behavior in a society.
Every firm should try to use the just-in-time approach to physical distribution.
Competitive advertising tries to develop selective demand for a specific brand.
Like final consumers, organizations make purchases to satisfy specific needs, but their
basic need is for goods and services that will help them satisfy their own customers or
clients.
Category killers is another name for single-line mass-merchandisers.
Even with specialized media, consumers may selectively tune out ads that don’t interest
them.
Consumer products that a customer really wants and is willing to make a special effort
to shop for and compare different possibilities are specialty products.
When Frito-Lay introduced Tostitos Gold, demand quickly outstripped supply resulting
in lost sales and wasted promotion spending.
In the seven-step approach, submarkets are nicknamed based on the qualifying
dimensions and a description of the customer types.
When a warehouse is rearranged to speed up order processing, “regrouping activities”
are being performed.
Spending on sales promotion exceeds spending on advertising.
Most retailers and wholesalers set prices by using a different markup percent for each
different product carried.
With the PD concept, firms decide what specific service level to provide their
customers.
Price is the most important of the four Ps.
A fad is an idea that is fashionable only to certain groups who are enthusiastic about it.
Assorting means separating products into grades and qualities desired by different target
markets.
According to the text, marketing means ‘selling” or “advertising.”
Brand managers manage specific products, often taking over the jobs formerly handled
by an advertising manager.
A buying center is generally thought of as all the people who participate in or influence
a purchase.
Producers with well-branded consumer products and well-established channels
typically emphasize personal sellingrather than advertisingin their promotion blends.
Enterprise resource planning systems are used to integrate internal and external
information management across the entire organization.
The technological environment includes such things as national income, economic
growth, and inflation.
The Place decisions are concerned with getting the right product to the target market at
the right time.
When Renault Motor Co. builds a new production facility in Venezuela and it is the sole
owner of the facility, this is an example of a(n) _________ investment approach.
A. indirect
B. management contracting
C. joint venture
D. licensing
E. direct
Teenagers and young adults with no income and few assets are sometimes prime targets
for credit card companies. In response, Congress in 2009 passed the Credit CARD Act
which requires that anyone under age ____ must have a cosigner or prove they can
repay any debt.
A. 16
B. 18
C. 21
D. 23
E. 25
World Tennis Ball Co. (WTB) makes tennis balls and sells them only in the U.S. Raul
Fernandez, the firm’s marketing manager, is comparing his firm’s distribution with two
major competitors.
1) WTB sells its products through four regional distributors who then sell to 22 sporting
goods wholesalers. The wholesalers sell to a total of 7,000 retail outlets. From its
website, WTB also sells directly to any customer who will purchase a minimum
quantity of 24 tennis balls. WTB cooperates with members of its channel, but maintains
some control through its economic power and leadership. It helps to direct the activities
of the whole channel and tries to avoid or resolve channel conflicts.
2) American Tennis Ball (ATB) is a competitor that sells through two distributorseach
with half the country. The distributors then sell through 6 sporting goods wholesalers,
and they, in turn, sell to 1,000 retail outlets (split between two national sporting goods
chains and two general merchandise stores). ATB and its channel make little effort to
work together. However, because of a relatively low level of competition between the
distributors, the wholesalers, or the retail stores, each member of the channel gives the
product special attention.
3) National Tennis Ball (NTB) sells its products through only three tennis specialty
wholesalers that sell only to tennis clubs. NTB actually owns the wholesale firms that
handle its products. NTB’s balls are only available at certain tennis clubs and NTB
limits coverage to only one club in a particular geographic area.
These three tennis ball producers all rely on retailers to reach consumers who want to
buy only a few balls at a time. Apparently they all think that this is an efficient way to
A. deal with sorting activities.
B. address discrepancies of quantity.
C. handle discrepancies of assortment.
D. minimize the potential for conflict in the channel.
E. achieve intensive distribution.
Compared with sales analysis, PERFORMANCE ANALYSIS:
A. shows which customers should be dropped.
B. looks for exceptions or variations from planned performance.
C. does not do as much comparing against standards.
D. shows how to improve performance.
E. All of these are correct.
A __________ is an organized way of continually gathering, accessing, and analyzing
information that marketing managers need to make ongoing decisions.
A. big data repository
B. data warehouse
C. marketing information system
D. research specialist network
E. marketing model
Exclusive distribution is selling through only one intermediary in each geographic area.
Missionary selling:
A. is another name for major accounts selling.
B. is the performance of personal selling activities for a nonprofit organization.
C. is the same as prospecting.
D. is often an entry position for higher level sales and marketing jobs.
E. is typically only used with a firm’s largest or most important customers.
When the Rosco International chain of restaurants enters foreign markets, locals own
the restaurant facilities, but look to Rosco to provide expertise in management and
marketing. Rosco uses the _______ approach to enter international markets.
A. management contracting
B. direct investment
C. exporting
D. joint venture
E. licensing
Marketing managers should insist that IT systems used be robust from a security
standpoint. Which of the following is likely to be a reason for this requirement?
A. Marketing managers are storing more personal customer data in CRM systems.
B. Cybercrime has been on the decline over the last few years.
C. Maintaining robust IT systems usually involves high maintenance costs.
D. Organizations with highly secure IT systems offer better products and services than
others.
E. Customers are willing to pay more for products when organizations have secure IT
systems.
During the situation analysis, a marketing researcher will evaluate primary data rather
than secondary data.
Which of the following statements about customer service is true?
A. A customer service rep may have to deal with a customer problem that is due to a
customer error, not just an error by the company.
B. Customer service is the service part of the benefit that a customer gets when
purchasing a physical good.
C. Customer service costs are likely to decrease a firm’s customer equity.
D. Customer service is more important for winning customers than for keeping
customers.
E. From a firm’s perspective, customer service is a necessary evil but isn’t likely to cost
the firm anything.
A generic market definition includes
A. customer (user) needs, customer types, geographic area, and product type.
B. customer (user) needs, customer types, and geographic area.
C. customer (user) needs, customer types, product design, and product type.
D. customer types, product design, and product type.
E. customer types, product design, product type, and customer needs.
A marketer considering a business opportunity in the U.S. health care market must first
evaluate new rules and regulations originating from:
A. the competitive environment.
B. the economic environment.
C. the technological environment.
D. the legal environment.
E. the cultural and social environment.
Which of the following is NOT a key dimension of buyer-seller relationships in
business markets?
A. legal bonds
B. relationship-specific adaptations
C. cooperation
D. operational linkages
E. bid rigging
“Place” is concerned with:
A. intermediaries.
B. transporting.
C. channel members.
D. storing.
E. all of these might be involved with Place.
A producer offers a retailer free merchandise to stock a new item. The retailer is
receiving a
A. spiff.
B. cash discount.
C. seasonal discount.
D. slotting allowance.
E. cumulative quantity discount.
Regarding the marketing research process, defining the problem
A. means identifying the symptoms.
B. usually requires that problem specific data be collected and interpreted.
C. may have to wait until after a situation analysis has been completed.
D. All of these alternatives are true.
The consumer decision process begins with
A. a routinized response.
B. need awareness.
C. information search.
D. problem solving.
E. alternative evaluation.
Which of the following is NOT a secondary data source?
A. Company files
B. Intranet reports
C. Libraries
D. Private research organizations
E. Panels
Michelin manufactures tires which truck producers buy and install on their trucks. This
company
A. sells installations for which multiple buying influence is likely to be quite important.
B. is likely to have few opportunities in the “aftermarket.”
C. is selling to the OEM market.
D. product quality is important but delivery reliability is not.
E. All of these alternatives are correct.
As the owner of a Bluetooth specialties store, Alicia Fountainbleau has an income of
$72,000. She pays $30,000 per year in taxes and another $22,000 per year in grocery
bills, house mortgage, and car payment. Last year she spent an additional $4,000 on a
two-week vacation at a Club Med in Rio de Janeiro. What was Alicia’s discretionary
income last year?
A. $20,000.
B. $4,000.
C. $42,000.
D. $26,000.
E. $50,000.
Which of the following is NOT a key dimension of buyer-seller relationships in
business markets?
A. legal bonds
B. relationship-specific recycling
C. cooperation
D. operational linkages
E. information sharing
A financial report that forecasts how much money will be available after paying
expenses is a(n):
A. Income statement.
B. Balance sheet.
C. Cash flow statement.
D. Capital report.
E. None of these.
The _____ dimension of the GE grid helps managers answer the question: Does this
product-market plan look like a good idea?
A. business strengths
B. quantitative criteria
C. industry attractiveness
D. relative positioning
E. qualitative criteria
Regarding an estimate from a survey, the range on either side of the survey result that is
likely to contain the “true” value of the relevant population is called:
A. sample range.
B. accuracy range.
C. confidence interval.
D. validity interval.
E. population estimate.
Full-scale market tests:
A. Are unrealistic because they do not test the whole marketing mix.
B. Are not expensive.
C. Should always be skipped if management is sure that it understands consumer
preferences.
D. May provide information to competitors.
E. Are used mostly for products that have high production costs and long lead times.
When an individual producer sets a price for its product to earn a certain profit while
consumers search for the product at the lowest price available from any producer, this is
an example of:
A. separation in time.
B. discrepancy of quantity.
C. separation in values.
D. discrepancy of assortment.
E. spatial separation.
A returning customer to a hotel chain books a room online. When she arrives, she finds
that the hotel has used its database of previous customer preferences to assign her a
room on the top floor with the type of pillow she prefers. What target market approach
is this chain using?
A. Segment of one
B. Combined
C. Multiple
D. Clustering
E. Single
_____ is an informal study of what information is already available in the problem area.
A. Qualitative research
B. Situation analysis
C. A focus group interview
D. Quantitative research
E. A marketing model
Advertising objectives should be:
A. more specific than personal selling objectives.
B. decided by the creative experts who work with advertising agencies.
C. quite general to allow for creativity.
D. set by the advertising managernot the marketing manager.
E. determined by the kind of advertising that is required.
Marketers cannot assume that a product that meets consumer needs in one country will
do so in another. This is because:
A. some people do not have physiological or safety needs.
B. many needs are culturally learned.
C. economic needs do not influence purchases in many regions of the world
D. the purchase situations may be different.
E. family life cycles may be different.