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Different purchase situations may require different marketing mixes, even though the
same target market is involved.
A S.W.O.T. analysis identifies the 'special weapons or tactics" used by the competitor in
a product-market that has the most profitable marketing mix.
A marketing strategy that is focused on a real breakthrough opportunity will usually be
successful even if there are obstacles in getting help from other functional areas in the
firm.
The definition of a product-market includes a product type while the definition of a
generic market does not include a product type.
Although telephone selling by an inside sales group can save time and money in
business markets, it has been declining in recent years.
Often, attractive opportunities are fairly close to markets the firm already knows.
Exchange rate changes can be an important factor even for a small firm that sells only
in its own local market.
Multiple-buying influence means that the buyer shares the purchasing decision with
several people.
Ideally, a marketing audit should not be necessary.
When a firm tries to increase sales by offering new or improved products to its present
markets, this is called "product development."
Price fixing is not illegal unless it hurts a competitor.
Hispanic Americans are now the largest and fastest-growing ethnic group in the U.S.
Finding attractive opportunities and developing profitable marketing strategies are the
tasks included in the marketing manager's marketing strategy planning job.
Marketing plays an essential role in creating customer satisfaction.
The main advantage of performance indexes is that they make it easier to compare
numbers in a performance analysis.
A "markup chain" can be used to calculate the price structure in a whole channel.
Adding lemon scent to Pledge furniture polish is an example of using a positive cue.
Consumers use limited problem solving when they put MUCH effort into deciding how
to satisfy a need.
According to the text, a firm that sells a service rather than a physical good does not
have a product.
A marketing program may consist of several marketing plans.
Brokers usually have a temporary relationship with the buyer and seller.
With externally generated funding a firm's marketing program may be expected to "pay
its own way."
ISO 9000 is only relevant to domestic suppliers.
The purpose of an Internet banner ad is to encourage the target market to visit the
advertiser's website for more information.
A good order getter tries to sell solutions to the customer's problemsnot just physical
products.
For short distances and higher-value products, trucks may charge higher rates, but
provide slower service.
Favorable word-of-mouth information from opinion leaders can help a new product, but
a negative reaction by opinion leaders tends to have no effect.
Order getters complete most sales transactions.
Consumers who are innovators tend to be young and well educated.
Managers satisfied with their current market share and profits are most likely to adopt
sales growth oriented objectives.
The four "Ps" are: Product, Promotion, Price, and Personnel.
When Intuit, a tax and financial planning software company, created a website where its
QuickBooks customers could interact about problems facing their small businesses, this
was an example of an online community.
A retailer that buys from a rack jobber needs to have an employee who is a specialist in
the products the rack jobber handles.
The power of negative purchase experiences is greater than that of positive experiences.
When a firm tries to increase its total sales by offering new products to new markets, it's
pursuing:
A. diversification.
B. product development.
C. market development.
D. market penetration.
E. All of these.
Market segmentation:
A. means the same thing as marketing strategy planning.
B. assumes that most submarkets can be satisfied by the same marketing mix.
C. is the same thing as positioning.
D. tries to identify homogeneous submarkets within a product-market.
E. None of these choices regarding market segmentation is true.
Which of the following is NOT a franchise operation?
A. Subway (food).
B. H and R Block (tax work).
C. Kinko's (copy center).
D. 7-Eleven (convenience store).
E. All of these are franchise operations.
The buying function of marketing involves
A. risk-taking.
B. promoting the product.
C. looking for and evaluating goods and services.
D. the use of personal selling.
E. sorting products according to size and quality.
If a firm targets business and organizational markets,
A. NAICS codes may be helpful for segmenting potential customers.
B. each customer may need to be treated as a different segment.
C. competing manufacturers are often clustered in geographic locations.
D. All of these alternatives are true.
When developing a marketing mix, a marketing manager should remember that:
A. "Promotion" includes only personal selling and publicity.
B. A channel of distribution includes at least one intermediary.
C. "Price" includes markups, discounts, allowances, and geographic terms.
D. "Product" includes physical goods but not services.
Which of the following statements about purchasing by small service firms is NOT
TRUE?
A. Purchases by small service firms are often handled by whoever is in charge or their
administrative assistant.
B. Purchases by small service firms can add up and these smaller firms are now an
important target market.
C. Purchases by small service firms are usually handled by a person with full-time
responsibility for purchasing.
D. Small service firms may need much more help in buying than large corporations.
E. Small service companies often rely on e-commerce for purchases.
Which of the following statements about demographic changes in the United States is
not true.
A. Demographic changes like population groupings are difficult to anticipate.
B. Senior citizens will grow in number rapidly from 2005 to 2025.
C. The number of kids age 0-9 will grow from about 40 million to about 45 million
from 2005 to 2025.
D. In 2025 there will be fewer people over age 80 than under age 10.
E. In 2005, the number of kids 0-9 was about the same as the number of those in their
20s.
A(n) _____ is a blend of manufacturers' agent and selling agenthandling the entire
export function for several producers of similar but noncompeting lines.
A. import broker
B. auction company
C. export broker
D. combination export manager
E. export or import agent
When segmenting markets, why can't managers simply choose one or two demographic
characteristics around which to define their target group?
A. It puts marketers at risk of discrimination lawsuits.
B. Customer behavior is too complex to be explained in terms of just one or two
demographic characteristics.
C. Demographic characteristics do not influence buying behaviors.
D. It will fail to produce a homogeneous group.
E. Market segments must be based on three or more dimensions to be valid.
Wilson Alvaro graduated with a marketing degree almost a year ago. Like many of his
friends, he took a job in sales and really enjoys it. A description of Wilson's job and
those of some of his friends are noted below.
Wilson Alvaro loves biking and has his dream job. He works for a wholesale company
that sells mountain bikes for a manufacturer. He works with a small group of people
who call on the buying offices for two large retail chains, Wal-Mart and Toys R Us. The
group includes a finance person and a production person, and they all work together to
meet the specific needs of these two big accounts; for example, sometimes they
recommend a model of bike that will be available from only that retailer's stores.
However, Wilson's main job focuses on building relationships and solving customer
problems. Only occasionally is he expected to try to persuade the retailers to buy more
bikes.
Amy Bowden sells life insurance. She calls on new parents and persuades them to buy
insurance products. It is difficult for a manager to control Amy's work, but she has
incentive to work hard because her job security and income depend on getting sales.
She is a confident self-starter, so she likes it that way.
Ben Peterson works for a fashionable men's clothing store. He enjoys spending time
with customers who come in, learning about their fashion needs, and helping them pick
clothes that really work for them. While the store manager can easily observe and direct
Ben's activities, the manager wants Ben to have the incentive to increase customer
purchases and satisfaction.
Emily Winters handles inside sales for a major industrial distributor. She deals with a
regular set of established customers, most of whom know what they want. Emily talks
to them on the phone and answers questions about products, delivery time, and pricing.
She sometimes works with outside sales reps who visit customers and help introduce
new products. Emily is the first person her customers call when there's a problem with a
purchase, so she spends a lot of time dealing with customer problems. As an inside
salesperson, Emily's work is easily supervised by a sales manager-and she has little
influence on how much her customers buy.
Melissa Tran works for a company that sells paper products (like napkins, paper towels,
and paper plates) primarily through small independent grocers. Most of the grocers are
regular customers, but sometimes she makes cold calls to new grocery stores. Melissa's
job is to develop goodwill and try to increase sales. For example, she often sets up
special promotional displays in stores. Her compensation plan gives her income
security, but she also can receive a bonus for sales growth in her territory.
Charlie Riggs is a telemarketer for an Internet service provider. He calls people on a list
provided by his firm and tries to sign them up for Internet service. Charlie relies heavily
on a presentation he learned during his training. Charlie is very good at what he does
and loves that the more success he has the more he earns.
Which salesperson probably does the most prospecting?
A. Amy Bowden
B. Wilson Alvaro
C. Melissa Tran
D. Charlie Riggs
_____ is an economical way to inform large numbers of potential customers about a
firm's products.
A. Innovation
B. Production
C. Advertising
D. Pricing
E. Encirclement
Agent wholesalers:
A. Own the products they sell.
B. Provide more functions than merchant wholesalers.
C. Focus on buying and selling merchandise.
D. Have higher costs of operation than merchant wholesalers.
E. All of these alternatives are correct for agent wholesalers.
Business firms that sell to retailers and other merchants, and/or to industrial,
institutional, and commercial usersbut which do not sell in large amounts to final
consumersare:
A. retailers.
B. collaborators.
C. producers.
D. wholesalers.
E. intermediaries.
Regarding the "contribution-margin approach" to marketing cost analysis, which of the
following statements is TRUE?
A. The total net profit obtained with this approach is different from that obtained using
the "full-cost approach."
B. It is concerned with the amount contributed by a product or customer toward
covering variable costsafter fixed costs have been covered.
C. This approach stresses the need for evaluating fixed costs.
D. This approach may suggest a different action than the "full-cost approach."
E. All of these are true.
A grocery store chain has decided to sell a small assortment of fast moving auto repair
itemsbut is not certain what stock to carry in which stores and does not want to leave
the decision to the local store manager. The chain should probably get help from a
A. broker.
B. cash-and-carry wholesaler.
C. specialty wholesaler.
D. rack jobber.
E. manufacturers' agent.
Exclusive distribution
A. should generally be used only if it is not possible to generate intermediary interest in
intensive distribution.
B. is legal as long as it does not involve vertical channel arrangements.
C. arrangements between a producer and intermediary are illegal for most types of
products, and thus they are not very common in the U.S.
D. usually involves intermediaries who are willing to take over all responsibility for
promoting the producer's product.
E. None of these alternatives are correct.
At which stage of the product life cycle are VHS video recorders?
A. Stagnation
B. Market introduction
C. Sales decline
D. Market maturity
E. Market growth
Which of the following statements about doing a situation analysis is correct?
A. Libraries have good data on specific topics, but it is expensive to find.
B. It doesn't make sense to start a situation analysis until the problem has begun to
surface.
C. Much good data are available from the government, but expensive.
D. A good situation analysis is usually more expensive than collecting primary data.
E. None of these statements about doing a situation analysis is true.
Distribution agreements which limit sales by customer or territory:
A. are always illegal.
B. may be legal if they are horizontal agreements between producers and
intermediaries.
C. are definitely illegal if they are horizontal agreements among competing producers
or intermediaries, but may be legal if they are vertical agreements.
D. are definitely illegal if they are vertical agreements between producers and
intermediaries.
E. None of these alternatives is correct.
The primary function of a ______________ is to speed the flow of products and avoid
unnecessary storing costs.
A. commodity warehouse
B. distribution center
C. merchant wholesaler
D. public warehouse
E. private warehouse
Which of the following is the BEST example of management thinking during the
"production era"?
A. "The more we advertise a product, the more we can sell."
B. "We need to increase our sales effortto sell what we can produce."
C. "If we can produce it, customers will buy it."
D. "We need to be selective and produce what customers want."
E. "The lower we price a product, the more we can sell."
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.
National Tennis Ball's channel arrangement:
A. is called horizontal distribution.
B. is an example of intensive distribution.
C. illustrates a traditional channel system.
D. relies on exclusive distribution.
E. is likely to be characterized by a high level of conflict between channel members.
Which of the following is true?
A. The product "P" in the marketing mix stands for only physical goods.
B. The product "P" in the marketing mix stands for both physical goods and services.
C. The product "P" in the marketing mix stands for only tangible merchandise.
D. The product "P" in the marketing mix stands for both physical goods and tangible
merchandise.
About what percentage of the cost of hospital supplies in the U.S. are a result of
logistics?
A. 15 percent
B. 20 percent
C. 25 percent
D. 33 percent
E. 40 percent
Which of the following statements concerning reinforcement is FALSE?
A. Reinforcement of the learning process occurs when the response is followed by
satisfaction.
B. Reinforcement strengthens the relationship between the cue and the response.
C. Reinforcement leads to satisfaction and an increase in the drive.
D. Repeated reinforcement leads to development of a habit.
E. If an experience is satisfactory, positive reinforcement occurs.
Capital sources include:
A. bonds
B. profits
C. loans
D. stocks
E. All of these.
Trademarks
A. can be legally protected in the U.S. under the Lanham Act.
B. cannot be registered with a government agency in the U.S.
C. are legally protected in the United States, but not in any other countries.
D. and trademark infringement are aggressively policed by a special agency of the U.S.
Government.
E. None of these alternatives is correct.
The commission method of payment:
A. includes some salary and some commission.
B. offers the most security for the salesperson.
C. offers the most incentive for the salesperson.
D. is tied to results projected in the sales plan.
E. increases the amount of sales supervision needed.
Which of the following is NOT true about intermediaries?
A. They save time for other participants in a transaction.
B. They always increase total expenses for a product.
C. They play an important role in the exchange process.
D. They specialize in trade rather than production.
A salesperson for cold remedy products visits pharmacists during the cold season and
encourages them to use a special end-of-aisle display for his firm's cough syrup and
then helps set up the display. The salesperson is a(n) ____________.
A. Customer service representative
B. Order taker
C. Technical specialist
D. Missionary salesperson
E. Order getter
Vendor analysis is a(n)
A. analytic processing of requests to buy something from a vendor.
B. formal rating of suppliers on all relevant areas of performance.
C. analytic processing of requests to sell something to a vendor.
D. request to buy something.
E. written description of what the firm wants to buy.
