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Pushing (a product through a channel) means using normal promotion effort to help sell
the whole marketing mix to intermediaries.
While excess capacity can be costly, it can be a part of a sensible plan for preventing
lost sales if demand suddenly picks up.
Experts estimate that 80-95 percent of all new consumer packaged goods brands fail.
Although the marketing manager cannot control the competitive environment, he can
choose strategies that will avoid head-on situations.
Good salespeople try to help customers buy by presenting both the advantages and
disadvantages of a productand showing how it will satisfy the customer's needs.
The "80/20 rule" describes the relationship that 80 percent of an organization's business
often comes from only 20 percent of its products or customers.
When a firm's advertising says "our motorcycles will outperform any other brand," it is
using competitive advertising to develop selective demand.
In the market introduction stage, sales are low as a new idea is first introduced to a
market.
The contribution-margin approach ignores some costs to simplify comparing among
specific alternatives
Total advertising spending in other countries is lower than in the U.S.
The Consumer Product Safety Commission tries to encourage safe product design, but
the commission has almost no power to deal with unsafe products.
Marketing opportunities involving present products and present markets are called
"market penetration" opportunities.
It's usually possible for a consumer to get much more information about a product in a
retail store than on the Web.
The exchange rate affects what is a competitive price for products sold in international
markets, but not local markets.
In the seven-step approach to market segmentation, it is best to narrow down to smaller
product-markets BEFORE identifying the needs of all potential customers.
Negotiated contract buying would be used when the buyer knows precisely what he
wants and the requirements of the job aren't likely to change as the job is done.
When it comes to customer value, it is the customer's view that matters, not the view of
the marketing manager.
Because the advertising, sales, and sales promotion managers all have similar outlooks
and experiences, they usually work together very well to develop the right promotion
blend.
Hypotheses are educated guesses about the relationships between things or about what
will happen in the future.
The most important reason to use indirect channels is if intermediaries can help serve
customers better and at lower cost.
If the prospects in some product-market are poor, a firm may need a "phase out"
strategy.
"Copy thrust" refers to the choice of media to deliver a message to the target audience.
At least 75 percent of all U.S. freight moves, at least part of the way, by trucks.
A major advantage of mass selling is that the source can receive immediate feedback
from the receiver.
The "consultative selling" sales presentation is fast and requires little skill.
Many needs are culturally (or socially) learned.
Outsourcing production may increase a firm's flexibility in some ways, but it may also
make production costs higher and quality control more difficult.
One weakness of telephone interviews is that they do not allow an interviewer to probe
and really learn what the respondent is thinking.
A company with a successful marketing strategy has its own external source of
fundsprofits.
Business product classes are based on how buyers think about products and how the
products will be used.
A firm's total cost increases only when its variable cost increases.
A firm's working capital may come from either internal sourcessuch as sales revenue
and profitsor external sourcessuch as money from sales of stocks or bonds.
Although wholesalers no longer dominate channels in the U.S., they do provide a
necessary function and some of the biggest B2B e-commerce sites on the Internet are
wholesaler operations.
Identify the component of the marketing mix that involves advertising and hiring sales
people.
A. Price
B. Product
C. Place
D. Promotion
E. Production
Which of the following is most likely to spend less than 1/10 of 1 percent on
advertising as a percentage of sales?
A. A producer of games and toys that sells to retailers.
B. A company that sells plastics products to manufacturers.
C. A company that sells women's clothing to retail consumers.
D. A company that sells perfume and cosmetics to consumers.
E. A business products company that depends on e-commerce.
The ______________ method is an information gathering method in which the
responses of groups which are similarexcept on the characteristic being testedare
compared.
A. focus group
B. random
C. observing
D. experimental
E. qualitative questioning
From a marketing perspective, a high quality copy machine is one that:
A. does a good job satisfying a customer's requirements or needs.
B. offers the most features.
C. is produced with the best materials.
D. has the longest warranty.
E. is designed and manufactured to last the longest.
Regarding the competitive environment:
A. It is easy to find environments that are "competitor-free."
B. Monopoly situations are more common than are situations characterized by
monopolistic competition.
C. "Competitive rivals" are a firm's closest competitors.
D. Competitor analysis should begin with an identification of competitors from the
viewpoint of the manager, not the consumer.
The most popular sales force payment method is:
A. a combination plan.
B. the consultative selling method.
C. straight salary.
D. straight commission.
Convenience products are products
A. a consumer needs but is not willing to spend much time or effort shopping for.
B. which consumers are aware of but not interested in.
C. meant for use in producing other products.
D. toward which consumer attitudes may be negative.
E. that consumers want because they are easy to use or consume.
A first step in evaluating marketing opportunities is to:
A. decide which markets the firm wishes to enter.
B. consider the objectives and resources of the firm.
C. hire a "futurist" as a marketing consultant.
D. estimate market and sales potentials.
E. find out if potential competitors are larger.
Which of the following statements about Place is not true?
A. Most consumer products move from producer to intermediaries to final customer.
B. A series of participants in the flow of goods and services from producer to final
customer is called a channel of distribution.
C. There is always one Place arrangement that is "best" for a product.
D. Intermediaries develop to adjust discrepancies in quantity and assortment.
E. All of these statements about Place are true.
A decision support system
A. focuses only on numerical data.
B. makes it easy for a marketing manager to get and use information as s/he is making
decisions.
C. organizes incoming information into a data warehouse.
D. is a place where databases are stored so that they are available when needed.
E. is a system for linking computers within a company.
Time-pressured, dual-career families are a prime target market for
A. specialty shops.
B. department stores.
C. door-to-door selling.
D. cable TV shopping channels.
E. category killers.
When a customer orders a book at Amazon.com, the online retailer recommends related
books that have been purchased by other customers who bought that book. Amazon is
using a(n):
A. aggregating approach.
B. CRM database.
C. clustering approach.
D. disaggregating approach.
E. generic market.
"Nationalism" is an issue in the ______________ environment.
A. competitive
B. political
C. economic
D. cultural
E. technological
A one price policy:
A. means offering the same price on all its products irrespective of the manufacturing,
designing, and marketing costs.
B. means offering the same price to all customers who purchase products under the
same conditions and in the same quantities.
C. means offering the same price to customers, but the price depends on the store which
is selling the product.
D. means offering the same price to distributors, retailers, and customers.
E. means equating price with the per-unit cost of production.
When a Walmart clerk checks out a customer by scanning the bar codes of items in the
customer's shopping basket, this is an example of what type of research?
A. Observation
B. Experiment
C. Phone
D. Mail
E. Secondary
The marketing manager at Massimino and McCarthy, a chain of retail stores that sells
men's clothing, is reviewing marketing research data to try to determine if changes in
marketing strategy are needed. Which of the following sources of data would be a
secondary data source?
A. Looking through the company's marketing information system to see past sales
trends.
B. Reviewing videotapes of a recent focus group.
C. Making phone calls to some of the best customers to learn their interest in a new line
of clothing.
D. Spending time in stores observing customers' behavior.
E. Looking through the results of an online customer satisfaction survey.
The ____ ultimately determines a product's quality and value?
A. product designer
B. marketing manager
C. quality inspection team
D. retail manager
E. customer
Reference-group influence would be WEAKEST for determining which particular
______________ a person buys.
A. watch
B. cosmetics
C. clothing
D. laundry soap
E. car
Robert Jackson sells luxury automobiles at a dealership in an upscale section of a major
city. When he started out as a salesperson, he identified potential customers by visiting
office buildings near the dealership and examining the directories in the buildings'
lobbies. He discovered that there were several large law firms within a mile or two of
the dealership. He would copy down the names of the law firms and their attorneys
from the building directory. Then he would mail engraved invitations to each of the
attorneys inviting them to the dealership to test drive a new car. Deciding to focus on
attorneys exclusively, he purchased a directory of attorneys in the area and started
expanding his potential customer base. Robert is engaged in
A. The consultative selling approach.
B. Prospecting.
C. The selling formula approach.
D. Closing.
E. None of these is a good answer.
A company that sells a new type of meat grinder to big supermarket chains needs
someone to train workers in the stores' meat departments to use the machine properly
and efficiently. What type of salesperson is this?
A. Order getter
B. Missionary salesperson
C. New-account salesperson
D. Order taker
E. Consultative salesperson
A producer wants to reduce sales force turnover AND obtain a more aggressive sales
effort for its accessories. Which of the following sales force payment methods should it
use?
A. Straight salary
B. Selling formula plan
C. Combination plan
D. Straight commission
_____ means a product's ability to satisfy a customer's needs or requirements.
A. Quality
B. Service
C. Trademark
D. Derived demand
E. Assortment
San Oxana Insurance Company uses relatively untrained people to sell its life
insurance. The sales reps learn prepared sales presentations which help them describe
the firm's policies to potential customers, discover each customer's specific needs, and
then lead them through some logical steps to a final close. They are using a:
A. selling formula approach.
B. customer service approach.
C. target market presentation.
D. consultative selling approach.
E. prepared sales presentation.
"Too much" aggregating in market segmenting
A. ignores the criterion that product-market segments should be substantial.
B. leaves the firm vulnerable to competitors.
C. is usually not a very serious error because it results in economies of scale.
D. usually makes segments more homogeneous.
E. None of these is true.
Individual products:
A. are part of product lines but not product assortments.
B. may require their own marketing mixes.
C. are usually distinguished by brand only.
D. are part of product assortments but not product lines.
E. None of these alternatives is correct.
Which of the following is MOST LIKELY to be found in a production-oriented firm?
A. Agreements among departments about how to improve customer satisfaction.
B. Making products that are easy to produce.
C. Producing goods that exactly meet the customer's needs.
D. A focus on profit rather than sales.
E. None of these is likely to be found in a production-oriented firm.
All of the following are specific objectives a marketing manager might give an
advertising manager except
A. position the firm's brand or marketing mix by informing and persuading target
customers or intermediaries about its benefits.
B. introduce existing products to nonspecific target markets.
C. obtain desirable outlets and tell customers where they can buy a product.
D. maintain relationships with satisfied customers and encourage more purchases.
E. get immediate buying action.
Which of the following statements about marketing is FALSE?
A. Marketing concepts and techniques apply for nonprofit organizationsas well as for
profit-seeking organizations.
B. Marketing offers many rewarding career opportunities.
C. The cost of marketing is about 15 percent of the consumer's dollar.
D. Marketing affects almost every part of your daily life.
E. Marketing is vital for economic growth and development.
Which of the following is true about public warehouses?
A. They are leased by companies for their own use.
B. They are designed to speed the flow of goods.
C. They are very expensive.
D. They are useful for manufacturers that must maintain stock in many locations,
including foreign countries.
E. They are used by firms who must regularly store large volumes of goods.
Regarding consumer motivation, the text states that:
A. wants are the basic forces which motivate people to do something.
B. all needs and wants are caused by drives.
C. wants are learned needs.
D. the terms "needs" and "wants" mean the same thing.
E. None of these alternatives is correct.
When a company expands globally, this is an example of:
A. Market development.
B. Product development.
C. Diversification.
D. Market penetration.
E. Mass marketing.
___________ are basically manufacturers' agents who specialize in international trade.
A. Selling agents
B. Auction companies
C. Brokers
D. Export or import agents
E. Drop-shippers
A firm would prefer an administered channel system to a corporate channel system for
all the following reasons except:
A. Managing all manufacturing, wholesaling, and retailing functions in a channel is too
challenging.
B. Administered channel systems are more costly to operate than corporate systems.
C. Corporate channel systems offer more control over marketing activities than
administered systems.
D. Administered channel systems offer good enough channel cooperation for the firms'
distribution needs.
E. Administered channel systems have some of the same benefits of corporate channel
systems but without the expense.
Purchasing managers in business markets (compared to buyers in consumer markets)
are generally:
A. fewer in number.
B. more technically qualified.
C. less emotional in their buying motives.
D. more insistent on dependability and quality.
E. All of these alternatives are correct.
Regarding business products, which of the following is NOT true?
A. Availability may be more important than low price to a buyer of repair items.
B. Quality of service may be more important than low price to a buyer of professional
services.
C. A broad product assortment may be more important than low price to a buyer of
supply items.
D. Meeting specifications may be more important than low price to a buyer of
component parts.
E. All of these alternatives are true.
