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An economic system in which government officials determine production levels is
known as:
A. pure subsistence.
B. macro-marketing.
C. market-directed.
D. production-oriented.
E. command.
Which of the following BEST describes what is necessary for a country's
MACRO-marketing system to be "fair and effective"?
A. No low quality or dangerous products are sold.
B. Product shortages never exist.
C. There is a big choice of goods and services.
D. All consumers get the same opportunity to enjoy a high standard of living.
E. There is not enough information to select an answer.
Which of the following statements about exporting is NOT TRUE?
A. Intermediaries can handle the arrangements as products are shipped outside the
country.
B. Channel relationships in international markets take time to build and shouldn't be
treated lightly.
C. Exporting requires a firm to establish permanent relationships with international
partners.
D. A firm often invests a minimum amount of time and money.
E. None of these; i.e. all of these statements about exporting are TRUE.
Which of the following is NOT an advantage of vertical integration?
A. Lower executive overhead.
B. Better control of distribution.
C. Easier adjustment of discrepancies of quantity and assortment.
D. Greater buying power.
E. Stable sources of supplies.
When AT and T advertises in The Wall Street Journal that smartphones using its
technology can make calls from more than 200 countries in the world, which market
opportunity is AT and T pursuing?
A. Market penetration
B. Product development
C. Diversification
D. Market development
Missionary salespeople
A. work with customers to resolve problems that arise at the time of purchase.
B. work for producers calling on their intermediaries and their customers.
C. provide technical assistance to order-oriented salespeople.
D. work with customers to resolve problems that arise with a purchase, usually after the
purchase has been made.
E. provide information about products, explain company policies, and even negotiate
prices or diagnose technical problems.
World Imports/Exports, Inc., is pricing a product sold in a foreign market below the
cost of producing it. It sells the same product at a higher price in its domestic market.
The company is engaging in
A. price dealing.
B. skimming.
C. dumping.
D. fair trade.
E. conscious parallel action.
How PD functions are shared will have the greatest effect on which of the other three
Ps?
A. Price decisions.
B. Promotion decisions.
C. Product decisions.
D. Positioning decisions.
E. People decisions.
Which of the following is NOT an important problem-solving step for a consumer
trying to satisfy a need?
A. search for information
B. identify alternatives
C. set criteria
D. evaluate alternatives
E. None of these (i.e., all are important steps).
When considering the advertising medium of magazines, which of the following
advantages and disadvantages apply?
A. Very targeted, good detail, good "pass along," but inflexible and long lead times.
B. Flexible, timely, local market, but may be expensive, have short life, and no "pass
along."
C. Flexible, repeat exposure, inexpensive, but "mass market" and very short exposure.
D. Selected audience, flexible, can be personalized, but relatively expensive per contact
and hard to retain attention.
E. Demonstrations, good attention, and wide reach, but expensive in total, has a lot of
clutter, and not always selective audience.
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.
Is it a good idea for a company like WPI to have several product managers?
A. No, because the company has several different product categories.
B. Yes, because the company would want to eliminate the job of advertising manager.
C. Yes, because the company has several different product categories.
D. No, because the company would need someone to give direction to the advertising
manager.
Product-market screening criteria should be:
A. quantitative.
B. qualitative.
C. realistic and achievable.
D. All of these are correct.
American legislative and economic thinking assumes that:
A. competition among many small firms helps the economy.
B. firms must have their prices approved by the Federal Trade Commission.
C. the free enterprise system is dying.
D. laws are needed to prevent firms from competing with similar ("me-too") products.
E. government officials are needed to run the economy.
Which of the following statements about a "marketing audit" is true?
A. A marketing audit should be conducted only when some crisis arises.
B. It probably should be conducted by someone inside the marketing department who is
familiar with the whole program.
C. A marketing audit should evaluate the company's whole marketing programnot just
some parts of it.
D. A marketing audit should be handled by the specialist most familiar with each of the
marketing plans in the program.
E. All of these are true statements.
If a producer wants to stabilize demand over time by encouraging repeat business, it
should probably use
A. uniform delivered pricing.
B. phony list prices.
C. a seasonal discount.
D. a cash discount.
E. a cumulative quantity discount.
Having segmented its broad product-market, Blue Chip, Inc. feels that three segments
are similar enough thattogetherthey can be treated as one large target market and
offered the same marketing mix. Blue Chip, Inc. is following the ______________
approach.
A. mass marketing
B. multiple target market
C. combined target market
D. single target market
E. None of these alternatives is correct.
A CVS drugstore that is trying to attract customers by advertising a special bargain
price on a popular brand of cold remedy during the cold season is using:
A. leader pricing.
B. bait pricing.
C. prestige pricing.
D. odd-even pricing.
E. price lining.
Gavan and Rebekah want to buy a flat-screen TV. They look at several brands in several
different stores before finally deciding on a Sharp. This set was the most expensive
model they saw, but they felt it had better colors and would be more reliable. In this
case, this TV is:
A. an impulse product.
B. a heterogeneous shopping product.
C. an emergency product.
D. a specialty product.
E. a homogeneous shopping product.
Which of the following is a DEMOGRAPHIC segmenting dimension?
A. Rate of use.
B. Brand familiarity.
C. Type of problem solving.
D. Benefits sought.
E. Family life cycle.
A large advertising agency is planning a national promotion to introduce a new type of
MP3 player. Which of the universal functions of marketing is it performing?
A. Risk-taking.
B. Financing.
C. Buying.
D. Selling.
E. It is performing none of the universal functions of marketing listed here.
Which of the following are meant for use in producing other products?
A. Consumer products
B. Staples
C. Business products
D. Convenience products
E. Shopping products
It is difficult to maintain consistent quality in services because
A. services are nonperishable.
B. as opposed to products, services are tangible in nature.
C. the service provider deals directly with the customer and often has to interpret each
customer's needs.
D. variability is reduced as more humans are involved in delivery.
E. it requires minimum human interaction.
The big advantage of qualitative research in marketing is:
A. ease of interpretation.
B. it provides a good basis for statistical analysis.
C. the in-depth responses it provides.
D. the analysis can be handled on a personal computer.
E. None of these is a good answer.
When Acme Tools was found guilty of giving one of its retailers lower prices on goods
of "like grade and quality" without any cost justification, the firm was charged with a
violation of the ___________.
A. Sherman Act
B. Clayton Act
C. Robinson-Patman Act
D. Antimerger Act
E. Wheeler-Lea Amendment
Which of the following advertising headlines is MOST oriented toward stimulating
PRIMARY demand?
A. "See your Hewlett Packard dealer to learn how an affordable portable printer can
make business travel easier."
B. "Panasonic is the value leader."
C. "IBM printers set the quality standard."
D. "Buy Quality. Buy from an authorized Epson dealer."
E. "Canon portable computers are lighter to carry than any other brand."
According to the FTC, for a producer to call a product "new," the product:
A. must be no more than two months old.
B. must have achieved brand insistence.
C. must be entirely new or changed in a functionally significant or substantial respect.
D. must have been changed in some way during the last year.
E. None of these alternatives is correct.
Wizard Toy Company's marketing researcher conducted a survey to find out the
percentage of customers who, after receiving a promotional mailing about a new toy,
actually went out and purchased the product. This is an example of
A. a response rate.
B. cross-tabulation.
C. personal interviews.
D. quantitative research.
E. an experimental method.
"Average-cost pricing":
A. will result in losses if actual sales are much higher than expected.
B. might cause a firm to charge too high or too low a priceand reduce its profits.
C. usually assumes the firm will sell a larger quantity than the year before.
D. cannot be profitablebecause it ignores demand.
E. All of these alternatives are correct.
With regard to bid pricing, a marketing manager should be aware that:
A. the same overhead charges and profit rates usually apply to all bids.
B. bids are usually based on inspection.
C. a big problem is estimating all the costsincluding the variable and fixed costs that
apply to a particular job.
D. e-commerce is of little use in bid pricing.
E. None of these alternatives is correct.
Which of the following statements is true?
A. Direct distribution approaches usually require less investment capital than indirect
approaches.
B. Intermediaries that pay for products when they purchase them and pay the costs of
carrying inventory help a producer's cash flow.
C. Public warehouses and transportation firms increase the capital needed for logistics
facilities.
D. More capital is needed when intermediaries take on responsibility for promotion.
E. Control is higher if indirect distribution is used.
The need-satisfying offering of a firm is its
A. promotion.
B. warranty.
C. brand.
D. product.
E. relative quality.
Public warehouses:
A. generally do not provide all the services that could be obtained in a company's own
branch warehouse.
B. are not usually responsible for the risk of damage in the warehouse.
C. provide flexibility because the user pays only for the space used.
D. are not very useful to manufacturers who must maintain stocks in many locations,
including foreign countries.
E. All of these alternatives are correct for public warehouses.
The sales manager for a producer of consumer convenience products should recognize
that the company may need:
A. order getters to sell its established line to regular wholesaler customers.
B. missionary salespeople to support its wholesalers.
C. order takers to open up new territories.
D. technical specialists to sell to purchasing agents.
E. All of these jobs may be needed.
Getting reactions from customers about how well a new-product idea fits their needs is
A. concept testing.
B. target marketing.
C. screening.
D. brand positioning.
E. product liability.
Logistics costs vary little between developed economies like the U.S. and developing
economies like Africa.
