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A hardware wholesaler that buys nails from a manufacturer and then sells them to retail
hardware stores is a merchant wholesaler.
The U.S. auto industry has become much more marketing-oriented since Henry Ford
introduced the Model T.
While face-to-face with prospects, a salesperson can adjust what he or she says or does
to take into consideration culture and other behavioral influences.
Most marketing managers think that the economic-buyer theory explains buyer
behavior very well.
At the point where marginal revenue (MR) equals marginal cost (MC), marginal profit
is near zero.
The development of department stores and supermarkets is explained by the "Wheel of
Retailing" theory.
The main difference between attitudes and beliefs is that beliefs always involve liking
or disliking, but attitudes don't necessarily involve liking or disliking.
The Federal Fair Packaging and Labeling Act of 1966 requires that consumer products
be clearly labeled in understandable terms.
Agent wholesalers operate at relatively low costsometimes 2 to 6 percent of their selling
price.
Negotiated contract buying means agreeing to contracts that allow for changes in the
purchase arrangements.
Department stores are stores which usually try to serve customers seeking a variety of
convenience products.
In nonprofit organizations, support may not come directly from satisfied customers.
In advanced societies, all goods and services can be produced with mass production and
its economies of scale.
It's oversimplified to classify retailers and their strategies on the basis of a single
characteristicsuch as sales volume, services, product assortment, etc.
Most companies implement only one marketing strategy at a time.
The Clayton Act focuses on practices which may substantially lessen competitionsuch
as tying contracts, exclusive dealing contracts and price discrimination by
manufacturers.
There are two broad groups of product classes based on the type of customer that will
use the product.
Routinized response behavior is typical for low-involvement purchases.
Sales promotion is generally used instead of other promotion methods.
Advertising allowances are price reductions given to firms further along in the channel
to encourage them to advertise or otherwise promote a producer's products locally.
In the traditional communication process, a receiver tries to deliver a message to a
source through a message channel.
Planning for cultural differences in international markets is easier than in domestic
markets.
A marketing manager can use a DSS to conduct sales and perform analyses that show a
more detailed breakdown of what's happening.
In the example for the 7-step approach (used in the text), it's important to consider what
people in each segment do NOT want as well as what they do want.
The correct number of submarkets in a broad product-market is usually obvious, so the
likelihood of managerial error is small.
Mass customization serves individual needs.
Vertical marketing systems are growing in the U.S., but declining in the rest of the
world.
Each possible price has its own break-even point.
Changes in technology can have major impacts on marketing strategy planning.
Pay-per-click advertising means advertisers pay only if the customer clicks on the ad
and links to the advertiser's website.
Product life cycles describe industry sales and profits within a particular
product-market, and not the sales and profits of individual brands.
Limited problem solving is used when the consumer has a lot of experience in meeting
a need and has no need for additional information.
The first step in marketing cost analysis is to reclassify all the dollar cost entries in the
natural accounts into functional cost accounts.
Customer satisfaction is the extent to which a firm fulfills a consumer's needs, desires,
and expectations.
Mass customization means using the principles of mass production to appeal to the
unique needs of individual customers and smaller segments of the market.
Marketing collaborators are any firms that provide the marketing functions of buying
and selling.
Door-to-door selling at consumers' homes:
A. meets some consumers' needs for convenience.
B. is gaining popularity in international markets.
C. started in the pioneer days.
D. is losing popularity in the United States.
E. All of these alternatives are true for door-to-door selling.
Customer equity is
A. simply the financial result achieved by a single marketing strategy.
B. the total difference between the benefits of a firm's whole marketing program and
total costs of obtaining those benefits, as the group of target customers sees it.
C. increased when a firm is able to increase the earnings stream expected from current
or prospective customers.
D. decreased whenever the firm's costs of offering a marketing mix increase.
E. the difference between the benefits of a firm's marketing mix and the cost of
obtaining those benefits--as a particular customer sees it.
Big Fizz Co., a manufacturer of cola-flavored drinks, wants to add packaged fruit juices
to its existing product line. Big Fizz needs to make some decisions regarding packaging
and branding of the fruit juices. These decisions would fall under which variable of the
marketing mix?
A. Product
B. Place
C. Promotion
D. Price
E. Personal selling.
Identify the incorrect statement regarding target marketing.
A. Target marketing is not mass marketing.
B. Mass marketers cannot do target marketing.
C. Target marketing can mean big markets and profits.
D. Marketing-oriented managers practice "target marketing."
E. It aims at a marketing mix that is tailored to fit specific target customers.
According to the text, consumer product classes:
A. are based on how consumers shop for products.
B. are interesting, but not helpful for planning marketing strategy.
C. are based on how the products will be used.
D. are based on the product features involved.
E. can be broken down into goods, services, and ideas.
Setting a few price levels for a product line and then marking all items at these price
levels is:
A. leader pricing.
B. price lining.
C. product-bundle pricing.
D. penetration pricing.
E. odd-even pricing.
Which of the following would be a source of primary data?
A. U.S. Census Bureau reports.
B. Company records on sales, costs, and advertising.
C. Market tests.
D. A Google search.
E. None of these is a good choice.
Regarding advertising and the AIDA model, which of the following is the best example
of advertising aimed at obtaining action?
A. A TV ad at 10:00 PM for the luncheon buffet at a local restaurant.
B. A car at an auto junk yardwith the operating hours painted on the side.
C. An ad for a restaurant in the Yellow Pages.
D. A classified ad in a newspaper with the word "SEX" in bold print and then the name
and telephone number of a dry cleaner.
E. None of these is a good example of advertising aimed at obtaining action.
Which of the following is NOT a trend affecting marketing strategy planning in the
Pricing area?
A. Overuse of sales and deals.
B. More attention to exchange rate effects.
C. Use of "free" as a price.
D. Increasing use of electronic bidding and auctions.
E. Decreasing use of value pricing.
In a command economy, government officials decide:
A. who is to produce and distribute what to whom.
B. how much is to be produced.
C. how much is to be distributed to whom.
D. what is to be produced.
E. government officials decide on all of these.
__________ involves following all the leads in the target market to identify potential
customers.
A. Sales presentation
B. Prospecting
C. Closing
D. Sales quota
E. Marketing
New-task buying
A. is a routine repurchase that may have been made many times before.
B. occurs when an organization has a new need and the customer wants a great deal of
information.
C. is an in-between process where some review of the buying situation is done.
D. occurs when an organization has a routine need and the customer wants only
minimal information.
E. involves no review of suppliers.
In a grocery store's "valued customer" program, every shopper gets a card that he/she
presents to the clerk in the checkout aisle. The card is scanned along with the customer's
groceries. The store's computer system tracks each shopper's purchases and
automatically provides special valued customer discounts. Every month, the customers
in the program receive a newsletter containing coupons that are based on the customer's
purchase history. For example, someone purchasing a lot of baby formula and
disposable diapers might get a coupon for a free box of baby wipes. This valued
customer program is based to a large extent on which of the following types of
research?
A. Questioning.
B. Experimentation.
C. Observation.
D. Online surveys.
E. Personal interviews.
Jazzy Tile Co. segmented its broad product-market and decided to aim at two different
segments, offering each segment a different marketing mix. Jazzy Tile Co. is following
the ______________ approach.
A. mass marketing
B. multiple target market
C. combined target market
D. single target market
E. None of these approaches is correct.
Which of the 4Ps in the marketing mix is most directly related to the selection and
training of salespeople for a B2B product?
A. Product
B. Place
C. Promotion
D. Price
The Internet is an excellent source for primary data, but not secondary data.
Selective distribution:
A. is likely to reduce high administrative expenses caused by a large proportion of
small orders.
B. may be suitable for all categories of products.
C. is becoming more popular.
D. is a good idea if some of the available intermediaries are not financially solid.
E. All of these alternatives are correct.
A S.W.O.T. analysis
A. seeks to reduce the risk of competitive surprises by scanning the market for 'signals,
warnings, omens, and tips."
B. focuses on what a firm plans to do to 'satisfy wishes of a target" customer.
C. summarizes a firm's 'strategy, wishes (of its customers), outlook, and tactics."
D. helps defend against potential competitors by developing a set of competitive
'safeguards, weapons, offensives, and tactics."
E. identifies a firm's 'strengths, weaknesses, opportunities, and threats."
Jeanne Bowman is an active, healthy, 80-year-old widow and mother of five grown
children who range in age from 42 to 60 years old. She is well-informed and very
conservative in her social and political views. Like many people in her age group, she is
cautious when it comes to high-technology products, but in the last three years, she has
purchased a cell phone and learned to use e-mail, mainly due to the urging of her
children and friends. She has just decided to purchase a DVD player because she
watched a DVD movie at her daughter's home and really liked the quality of the picture.
As was the case with her other high-tech purchases, a family member will accompany
her when she buys the DVD player. Regarding Jeanne's adoption of DVD technology,
she seems to be in the ________________ group.
A. Innovator
B. Early adopter
C. Early majority
D. Late majority
E. Laggard
"Positioning" is a marketing management aid which refers to:
A. how closely existing products match customers' ideal preferences.
B. how customers think about proposed and/or present brands in a market.
C. whether some products are viewed as very similar.
D. All of these are true.
Starbucks ran a full-page ad in THE WALL STREET JOURNAL proclaiming that its
baristas can make more than 87,000 possible combinations of an espresso coffee drink.
This is an example of:
A. Combined target market approach.
B. Mass customization.
C. Task transfer.
D. Diversification strategy.
E. Single target market approach.
What would be the best way for the marketing manager of a supermarket to find out
how consumers move through the store?
A. Have an interviewer go through the store with each customer.
B. Observe customers with hidden cameras.
C. Give customers a questionnaire after they have finished shopping.
D. Install checkout counters at the end of each aisle.
E. None of these alternatives would be very good.
Which of the following is the BEST example of "institutional advertising?"
A. "I'd walk a mile for a Pepsi"
B. "HP is THE standard for personal computers"
C. "Mobil gas makes your car perform better"
D. "Promise her anything but give her Obsession"
E. "Better living through pharmaceutical research"
A straight salary
A. offers the most security for the salesperson.
B. includes some salary and some commission.
C. offers the most incentive.
D. is tied to results actually achieved.
E. is based on the specific sales or profit objective a salesperson is expected to achieve.
Regarding the business (manufacturing) market, small firms (with fewer than 10
employees)
A. are not very numerous compared to the very large firms.
B. account for the vast majority of the total employment provided by all manufacturers.
C. are the majority of all firms, but account for less than 3 percent of "value added" by
manufacturing.
D. amount to nearly two million establishments.
E. None of these alternatives is true.
Dealer brands (private brands) have the following advantages over manufacturer brands
except:
A. dealer brands produce higher margins.
B. dealer brands receive special shelf position and promotion in stores.
C. dealer brands do not require advertising and promotion campaigns.
D. dealer brands are often viewed as cheap.
E. dealer brands do not incur costs associated with premium ingredients.
In a simple economy, one family may produce only cooking pots, but many of them.
Others may specialize in farming, making clothing, and building shelters. This
A. shows why "discrepancies of assortment" occur.
B. is so simple that the universal functions of marketing don't have to be done.
C. cannot work without an intermediary.
D. is an example of 'separation in values" since the different families choose to produce
different things.
If the promotion objective is to get attention and hold interest, which type of publicity
would work best?
A. Customer reviews
B. Articles in the press
C. White papers
D. Case studies
E. Webinars
Jonquil, Inc., located in Walla Walla, Washington, is a major manufacturer of class rings
for colleges. It is one of two ring companies trying to become the solely authorized
class ring distributor for Carter Glass University in Virginiaa large university of over
25,000 students. When invited to make a sales presentation to the buying group at
Carter Glass University, Jonquil sent the national vice-president of marketing, the
national customer service director, the national design director, the regional sales
manager, and the local sales representative in Virginia. During the sales presentation,
each person discussed what role he/she would have in serving the Carter Glass
University account. Jonquil, Inc. seems to be doing:
A. Joint problem solving.
B. Team selling.
C. Sales promotion.
D. Order taking.
E. Missionary selling.
In addition to snail mail, direct-response promotion may include:
A. broadcast.
B. telephone.
C. e-mail.
D. the Internet.
E. Any of these could be included in direct-response promotion.
The text's "Toddler University" example shows that:
A. parents are not price sensitive when it comes to assuring that their kids will get a
good college education.
B. the needs of a target market determine the nature of the appropriate marketing mix.
C. a small producer can't compete effectively against large competitors.
D. in the long run, a firm cannot make a profit without its own production facilities.
E. All of these are true.
Which of the following statements BEST reflects the point of view of the text with
respect to marketing research?
A. "We don't use computers, surveys and the like because marketing's information
needs are usually not that precise anyway."
B. "When we work with outside marketing research specialists, we expect them to take
the time to really understand the problem we are trying to solve."
C. "As marketing manager, I feel that the marketing researchers should be left alone to
do their researchsince they often come up with interesting suggestions."
D. "As marketing research director, I should know the marketing manager's position in
advance, so we can prove it is correct if possible."
E. "Our company is very small, but we should have our own marketing research
department anywayto get the information we need to make good decisions."
Specialty shops:
A. offer fewer services than the typical limited-line store.
B. have trouble deciding what to carry because it's hard for them to get to know what
their customers want.
C. rely heavily on knowledgeable salesclerks.
D. usually sell convenience products.
E. None of these alternatives are correct for specialty shops.
Some manufacturers give ______________ to retailers to pass on to the retailers'
salesclerks to encourage aggressive selling of specific items or lines.
A. advertising allowances
B. cash discounts
C. slotting allowances
D. "push money"
E. quantity discounts
Any distraction that reduces the effectiveness of the communication process is called
A. resonance.
B. static.
C. clutter.
D. interference.
E. noise.
