The letters in “S.W.O.T. analysis” are an abbreviation for the first letters of the words
‘strengths, weaknesses, opportunities, and threats.”
Answer:
A channel of distribution is a series of firms or individuals participating in the flow of
products from the producer to the consumer.
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Airfreight generally increases both transporting cost and the total cost of distribution
because it tends to add to inventory costs, spoilage, theft, and damage.
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In addition to food, warehouse clubs carry homogeneous shopping goods.
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Sales-oriented pricing objectives don’t refer to profit.
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Personal selling involves direct spoken communication between sellers and potential
customers.
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Place decisions make goods and services available in the right quantities and locations,
when customers want them.
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Only the salespeople in a company actually do personal selling.
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Allowances are given to final consumers, business customers, or channel members for
accepting more of something.
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Although outright influence peddling is common in some international markets, it is not
allowed under the Foreign Corrupt Practices Act.
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Advertising can usually get sales results sooner than sales promotion.
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Manufacturers’ agents are mainly used as an inexpensive way to continue getting sales
for a product-once a company’s own sales force has successfully introduced it to the
market.
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The vast majority of advertising agencies are large (20 or more employees), but the
smaller, more creative agencies account for most of the billings.
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In a large company, the “buying center” refers to all of the purchasing managers who
work for the firm.
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By 2013, advertising expenditures in the United States were more than $220 billion.
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Over the long run, most product-markets tend toward monopolistic competition.
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It’s oversimplified to classify retailers and their strategies on the basis of a single
characteristic-such as sales volume, services, product assortment, etc.
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With the Internet, even very small specialized firms can draw customers from all over
the world.
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Family brands may cut promotion costs because the goodwill attached to one or two
products may help the others.
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At a procurement site, competition among sellers is likely to increase.
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Horizontal marketing systems are channel systems in which the whole channel focuses
on the same target market at the end of the channel.
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Both the birthrate and the buying power of ethnic groups in the U.S. are increasing.
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During the situation analysis, marketing researchers may talk to informed people within
the company, study internal records, search libraries for available information, or
browse the Internet with a search engine.
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Generation Z is described as “digital natives.”
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Experts estimate that 80-95 percent of all new consumer packaged goods brands fail.
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Managers who embrace the marketing concept realize that they cannot just define their
line of business in terms of the products they currently produce or sell.
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There are more pricing options in pure competition than in monopolistic competition.
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Secondary data is information that is already published or collected.
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Adopting the marketing concept rarely requires any change in a firm’s attitudes,
organization structure, or management methods and procedures.
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Order takers should work on improving the whole relationship with the customer, not
just on completing a single transaction.
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The Federal Trade Commission can require firms to use “corrective advertising” or
“affirmative disclosures,” if it decides a particular advertisement is unfair or deceptive.
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General Electric’s ‘strategic planning grid” is an approach for:
A. evaluating possible marketing objectives.
B. selecting target markets.
C. evaluating existing and possible plans.
D. developing new products.
E. developing marketing mixes.
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:
______________ means selling a product through all responsible and suitable
wholesalers or retailers who will stock or sell the product.
A. Selective distribution
B. Multichannel distribution
C. Exclusive distribution
D. Intensive distribution
E. Aggressive distribution
Answer:
Producers who know something about their target customers’ needs and attitudes often
supply their relatively untrained salespeople with a sales presentation in which (1) the
salesperson does most of the talking at the beginning, (2) then brings the customer into
the discussion to clarify the customer’s needs, and (3) tries to close the sale. They are
using a:
A. consultative selling approach.
B. quota system.
C. prepared sales presentation.
D. selling formula approach.
E. target market presentation.
Answer:
Physical distribution decisions may impact
A. location decisions.
B. target market selection.
C. price decisions.
D. channel of distribution decisions.
E. physical distribution decisions may impact all of these.
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During the market growth stage of the product life cycle, a producer would focus
promotional efforts on creating ___________ demand for its own brand.
A. Competitive
B. Customer
C. Selective
D. Discerning
E. Persuasive
Answer:
Which of the following statements about learning is NOT correct?
A. Satisfaction with a product purchase is reinforcement.
B. Repeated reinforcement is likely to lead to routine buying.
C. A marketing manager can use a package as a “cue.”
D. Reinforcement in the learning process weakens the relationship between a cue and a
response.
E. Almost all consumer behavior is learned.
Answer:
Benefits of focusing on a specific target market (with the aid of marketing
segmentation) include all the following except:
A. Marketers can finetune their marketing mixes, thus providing superior value to
customers.
B. Marketers can build a competitive advantage by effectively meeting customers’
needs.
C. Customers will view the firm’s offerings as uniquely suited to their preferences and
needs.
D. Managers can identify the best technology for improving production methods.
E. Managers will gain a clear, shared vision for how to proceed with marketing mix
decisions.
Answer:
Blending the firm’s promotion efforts to convey a complete and consistent message is
the goal of:
A. sales management communications.
B. sales promotion communications.
C. integrated promotional marketing.
D. integrated marketing communications.
E. integrated sales promotion.
Answer:
Total quality management:
A. requires that everyone in the organization be concerned with improving quality.
B. means more than just using statistical controls to reduce manufacturing defects.
C. views the cost of lost customers as an important result of quality problems.
D. applies to service producers as well as manufacturers.
E. All of these alternatives are correct.
Answer:
Regarding consumer product classes, a convenience product is to an emergency product
as
A. a staple is to an emergency product.
B. a shopping product is to a heterogeneous shopping product.
C. an unsought product is to a specialty product.
D. a new unsought product is to a regularly unsought product.
E. a specialty product is to a homogeneous shopping product.
Answer:
A producer’s price level decision is made by the market in:
A. a monopoly.
B. pure competition.
C. monopolistic competition.
D. an oligopoly.
E. None of these is a good answer.
Answer:
Suppose you were able to start new cities on a planet in outer space. Suppose also that
these cities will be self-supporting. Further, they will be democratic-with the objective
of maximizing consumer welfare-measured by the level of consumer satisfaction. The
economic decisions will be made through the “market mechanism.” Which of the
following statements might be made by some of the settlers?
A. “The price of food is too high.”
B. “Intermediaries should be eliminated.”
C. “Advertising expenditures are too high.”
D. “Marketing costs too much.”
E. All of these statements are likely to be made.
Answer:
Consumer satisfaction:
A. is a highly reliable standard for evaluating macro-marketing effectiveness.
B. is easy to measure because it is a highly personal concept.
C. is the objective of all macro-marketing systems.
D. depends on consumers’ level of expectation.
E. None of these alternatives is correct.
Answer:
Regarding opinion leadership, which of the following statements is TRUE?
A. Opinion leaders are easy to identify because people seek them out for advice on all
kinds of topics.
B. It is very important to reach the innovators-because this adopter group is the highest
in opinion leadership.
C. “Word of mouth” always does the real selling job-so Promotion is not necessary.
D. “Word of mouse” always does the real selling job online-so Promotion is not
necessary.
E. None of these statements about opinion leadership is true.
Answer:
Break-even charts usually assume that:
A. total cost and total revenue curves are straight lines.
B. profits will grow continually beyond the break-even point.
C. the break-even point is reached when total cost just equals total revenue.
D. any quantity can be sold at the assumed price.
E. All of these are assumptions of break-even charts.
Answer:
_______ is defined as the performance of activities that seek to accomplish an
organization’s objectives by anticipating customer needs and directing a flow of
need-satisfying goods and services from producer to customer.
A. Innovation
B. Advertising
C. Selling
D. Marketing
E. Sales promotion
Answer:
The most risky types of marketing opportunity to pursue usually involve
A. market development.
B. market penetration.
C. diversification.
D. product development.
E. All of these are equally risky.
Answer:
Channel specialists provide value to producers in the following circumstance:
A. when producers are located far from their customers and may not know how best to
reach them.
B. when the assortment and quantity of products customers want matches the
assortment and quantity of products companies produce.
C. when customers are well informed about their product choices.
D. when producers and customers exist in the same location.
E. when customers prefer online purchasing.
Answer:
A producer using very aggressive promotion to get final consumers to ask
intermediaries for a new product has:
A. a pulling policy.
B. a target marketing policy.
C. a selective distribution policy.
D. a pushing policy.
E. an intensive distribution policy.
Answer:
When a telemarketer calls a college student on the phone and offers a one-year
subscription to BUSINESS WEEK at a 50 percent discount, this is an example of:
A. Personal selling
B. Mass selling
C. Publicity
D. Sales promotion
E. Advertising
Answer:
The _____ type of competitive advertising aims for immediate buying action.
A. direct
B. interactive
C. indirect
D. strategic
E. identity
Answer:
If a producer’s marketing manager doesn’t know the shape of the demand curve for a
new product, the initial price level policy should probably be a(an) ______________
policy.
A. flexible-pricing
B. target-return pricing
C. introductory pricing
D. penetration price
E. skimming price
Answer:
The product line of a limited line retailer would best be described as:
A. including a wide assortment.
B. reflecting a narrow price range.
C. carrying inventory that comes from European sources.
D. popular products at low prices to get fast turnover.
E. a small range of one specific type of product.
Answer:
Which of the following strategies is most likely to be used in a push promotion to
intermediaries in a sales channel?
A. A retailer of flat-screen TVs runs ads in local newspapers
B. Consumers in a geographic area learn about a new flat-screen TV through television
ads
C. Consumers in a geographic area contact a TV retailer to ask about a specific model
of TV
D. A TV retailer provides free maintenance plans with every flat-screen TV a customer
buys
E. A TV wholesaler includes a free flat-screen TV with every ten TVs that a retailer
buys
Answer:
The marketing concept is a strategic way of approaching business that contrasts sharply
with ____.
A. the marketing orientation
B. the production orientation
C. the profit orientation
D. macro-marketing
E. the triple bottom line
Answer:
Which of the following is NOT a business product?
A. A roll of sheet metal
B. A metal shelf system for storing inventory
C. A custom-built robot for welding metal
D. A pad of paper
E. Any of these could be a business product
Answer:
Logistics costs vary little between developed economies like the U.S. and developing
economies like Africa.
Answer:
About ______________ percent of marketing research spending is for syndicated
research.
A. 10
B. 25
C. 40
D. 60
E. 75
Answer:
The difference between customer lifetime value and customer equity is:
A. customer equity takes a financial approach where customer lifetime value does not.
B. customer lifetime value looks at specific target markets.
C. customer equity takes into account a firm’s current and future customers and the
costs associated with each.
D. customer equity reflects the total stream of purchases that a customer could
contribute to a company over the length of the relationship.
E. customer lifetime value focuses on purchases over the next year, while customer
equity takes into account a longer time horizon.
Answer:
An industry’s sales have leveled off and profits are declining in oligopolistic
competition. Consumers see competing products as “homogeneous.” Several firms have
dropped out of the industry, but a new one entered recently. Firms in the industry are
trying to avoid price-cutting by spending on persuasive advertising. These firms are
competing in which stage of the product life cycle?
A. Market growth
B. Market maturity
C. Market development
D. Market introduction
E. Sales decline
Answer:
The Sherman Act sought to:
A. prevent monopolies or conspiracies in restraint of trade.
B. establish the Federal Consumer Protection Agency.
C. eliminate price differences among different competing suppliers.
D. prevent fraud on the Internet.
E. restrict importing into the United States.
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:
Which of the following observations concerning a phase-out strategy is incorrect?
A. If prospects are poor in a product-market, a phase-out strategy may be needed.
B. Phasing out a product may involve some difficult implementation problems.
C. Phase-out is also a strategy, and it must be market-oriented to cut losses.
D. The need for phasing out becomes more obvious as the market maturity stage
arrives.
E. It is sometimes better to phase out products gradually.
Answer: