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Another term for direct marketing is:
A. integration.
B. mass communication.
C. publicity.
D. direct-response promotion.
E. sales promotion.
Manufacturer brands are also called ___________.
A. dealer brands
B. global brands
C. national brands
D. private brands
E. store brands
Regarding supermarkets, which of the following statements is TRUE?
A. It's best to think of supermarkets as "conventional retailers."
B. Supermarket net profits after taxes usually are about 1 percent of salesor less.
C. Worldwide, supermarkets make up the majority of food stores.
D. The early supermarkets were based on the premise that consumers would pay more
for better selection and service.
E. All of these statements about supermarkets are TRUE.
A retailer's "Promotion" may include:
A. publicity.
B. demonstrations and displays.
C. online videos and reviews.
D. number of salespeople.
E. All of these are included in a retailer's "Promotion."
When individual firms set their own pricessometimes holding them steady for long
periods of timerather than letting daily market forces determine prices, such prices are
called:
A. flexible prices.
B. parallel prices.
C. equilibrium prices.
D. administered prices.
E. fixed prices.
A marketing manager might use the total quality management approach to:
A. reduce defects in goods produced in factories.
B. train better salespeople.
C. improve customer service.
D. make delivery schedules more reliable.
E. All of these alternatives are correct.
Alex has to transport iron ore from New Orleans to Memphis. Which mode of transport
is he more likely to use?
A. Airways
B. Truck
C. Railroad
D. Inland waterways
E. Monorail
Regarding promotion blends, which of the following statements is TRUE?
A. Consumer products producers should rely almost completely on personal selling in
the market maturity stage.
B. Reminding becomes important in the market introduction stage.
C. More targeted promotion is needed during the sales decline stage of the product life
cycle.
D. Informing becomes important in the market growth stage.
E. None of these statements is TRUE.
Sebastian and Clere Franklin bought a tire recapping facility from a man who had
decided to retire. They were going to convert the building to a studio for dance
lessonsso they wanted to sell off the inventory of recapped tires and equipment for
whatever they could get. The Franklins don't know any buyers who might be interested
in these products. Which of the following types of wholesalers would be most helpful?
A. Rack jobbers
B. Brokers
C. Specialty wholesalers
D. Selling agents
E. Manufacturers' agents
Kelly Stich, marketing manager for Yummy Ice Cream Products, is thinking about some
of her products and her promotion plans for the coming year.
Yummy Ice Cream Products is introducing a new ice cream treat called PlanetSavers.
This treat uses ice cream produced with environmentally friendly processes that save
energy and protect the ozone. Yummy plans to send articles to magazines, local
newspapers, and environmental groups that explain the environmentally safer treat. The
product also has a unique texture and different flavor.
Stich wants to use counter cards and in-store signs to let people know about Cherry
Walrus, the company's new flavor. She is also developing sales training materials that
will teach ice cream scoopers in Yummy's ice cream stores to promote the product.
Right after Cherry Walrus is introduced each store will also hand out coupons that are
good for one day only.
Yummy Mondaes is a product that has been around for 25 years. It is Yummy's take on
the classic ice cream sundae, but white-brownie and coffee-flavored crumbles are added
to make it extra special. The company sells this product in one and two quart containers
through major grocery store chains. It relies on personal selling and price discounts to
retailers to move more of the product. The company does very little consumer
promotion for this product.
Yummy Fudge on a Stick is a new product of fudge-flavored ice cream on a stick.
Yummy plans to sell it through retail grocery stores also and is launching an aggressive
advertising program that will use television, radio, newspaper, magazines, and the
Internet. Most of its promotion will be directed at consumers.
Two years ago the company introduced Yummy Fruit on a Stick, an all-natural frozen
fruit product on a stick. The product category has been popular, continues to grow, and
is in the market growth stage of the product life cycle.
The promotion for Yummy Mondaes is a good example of:
A. pushing.
B. direct-response promotion.
C. pulling.
D. integrated marketing communications.
E. noise in the communication process.
Identify a weakness of the average-cost approach.
A. It ignores competitors' costs and prices.
B. It does not consider historical values.
C. It does not add a reasonable markup to the average cost of a product.
D. It is not commonly used.
E. It is a complex method.
If Wendy's decides to test market a hot dog in several stores to determine if it can make
more profit from this menu item than from a "Wendy's single," which market
opportunity is Wendy's pursuing?
A. Diversification
B. Market development
C. Market penetration
D. Product development
A "channel of distribution":
A. usually has three members--a manufacturer, a distributor, and a retailer.
B. is any series of firms (or individuals) from producer to final user or consumer.
C. should be as short as possible.
D. is not involved if a firm sells directly from its own website to final customers.
Organizational buyers purchase the same product from more than one source
A. if no supplier has a superior marketing mix.
B. to help ensure continuing supplies.
C. because a single vendor usually doesn't want all of the business.
D. if vendor analysis results in a "tie score" for the different suppliers.
E. None of these is true.
Of the many people involved in making an organizational purchase, the one with the
most power is usually the:
A. user.
B. influencer.
C. gatekeeper.
D. decider.
E. salesperson.
A consumer is most likely to want and expect help from a salesperson when shopping
for
A. a regularly unsought product.
B. an impulse product.
C. a staple.
D. a heterogeneous shopping product.
E. a homogeneous shopping product.
A company has three products (X, Y, and Z) that it sells, packs, and ships to its
customers. Because the products have different sizes they also have different packing
and shipping costs so we will use a new measurea packing/shipping unit. Because
Product Y is the smallest of the three products, we will assign it a value of 1
packing/shipping unit. Product X is twice as big as Product Y and Product Z is four
times as big as Product Y. If, on a monthly basis, this company sells an average of 1,500
units of Product X, 800 units of Product Y, and 60 units of Product Z, how many
packing/shipping units should it allocate to Product Z per month (to the nearest whole
number)?
A. 240
B. 424
C. 620
D. 800
E. 3,000
Which of the following statements about innovators is not true?
A. Innovators tend to rely on impersonal and scientific information sources, or other
innovators, rather than salespeople.
B. Innovators often search for information on the Internet, read articles in technical
publications, or look for informative ads in special interest magazines.
C. Innovators tend to be young and well educated and are eager to try a new idea.
D. Innovators need strong social pressure from their own peer group before they adopt a
new product.
E. Innovators are also constituted by specialized business firms who are willing to take
the risk of doing something new.
When an individual initiates the communication process by searching for information
about a business, which of the following search tools is he or she most likely to use?
A. Newspaper advertisement
B. Television advertisement
C. Business newsletter
D. Internet
E. Billboard advertisement
A detailed plan for handling transportation and storage of a new product that is now
being distributed to wholesalers nationwide is an aspect of which part of the 4Ps?
A. Place
B. Product
C. Promotion
D. Price
Airfreight
A. has rates one third the rates of trucks.
B. efficiently delivers all types of goods.
C. serves many more locations than trucks.
D. can reduce the cost of preparing goods for distribution.
E. can help reduce inventory costs.
For six months Kim Wu has been working for Sunny Day Foods (SDF), a fast-growing
manufacturer of organic foods. After graduating college, she worked for four years as a
sales rep for a nationally known food company. But, she jumped at the chance when
SDF contacted her about becoming marketing manager for its breakfast foods division,
which sells dry cereals and a pancake mix.
Kim spent the first few months on the job trying to better understand SDF, its product
line, and marketing strategy. She reviewed the company's past marketing research,
commissioned new research, and talked to both consumers and retailers. Now, the CEO
of the company wants her thoughts on what the company's marketing strategy should be
for the next few years.
Her research indicates that among cereal customers there are at least five segments of
customers who use SDF products.
a) One segment, the loyalists, has a strong preference for one or two of the SDF cereals.
These customers often go out of their way to visit a store with their favorite SDF cereal
and buy only that product at the store.
b) Another segment, the regulars, buys SDF cereals without much thought. For them it
is just part of their routine and, if you ask them why they pick the cereal, they'd say it's
just a habit.
c) A third segment, the deal prone, sees SDF cereals as just another organic cereal. They
view all organic cereals as pretty much the same and buy whichever brand seems to
offer the best deal that week.
d) A fourth segment, the politicos, consists of former buyers of SDF cereals. A few
years ago the company took a strong stand in a presidential race-and these customers
resented it. Now, they boycott all SDF foods because of that incident.
e) A fifth segment, SDF who?, is made up of consumers who buy organic cereals but
who don't have much awareness of particular organic brand names.
In reviewing how SDF currently brands its products, Kim sees that it is using several
different approaches. The Sunny Day Foods brand is used on most products the
company sells. But a few years ago the company brought out an instant organic oatmeal
with the Hot n Healthy name. SDF also makes cereal sold by a health food chain; the
package for that chain uses the store's own name, Nature's Foods, as the brand name for
the cereal.
Which product class best describes how regulars view SDF cereals?
A. Staples
B. Impulse product
C. Heterogeneous product
D. Specialty product
Which of the following statements concerning human resources is NOT true?
A. Most of the people affected by a new strategy are under the control of a marketing
manager.
B. Communication is very important because you can't expect people to pull together in
an organization-wide effort if they don't know what's going on.
C. People are one of a company's most important resources.
D. It is the marketing manager's job to communicate with others in the organization and
explain the new strategy, what needs to happen, and why.
E. All of these are true.
What is the first step in marketing cost analysis?
A. Allocating functional cost to customers.
B. Reallocating costs to evaluate profitability of profit centers.
C. Analyzing the results.
D. Reclassifying dollar cost entries into functional cost accounts.
E. Initiating a follow-up.
Raymond Weil, a European manufacturer of premium watches, is trying to compete in
the U.S. market with other fine watch brands. Its corporate website contains the
following notice: "RAYMOND WEIL products are sold by official dealers only. The
RAYMOND WEIL International Guarantee is offered exclusively to consumers in
possession of a watch purchased from an official dealer." In the United States,
Raymond Weil watches are not available in every jewelry or department store. For
example, in large cities such as Boston, Washington, D.C., and San Francisco, there are
only three retailers in each city that are official Raymond Weil dealers. Raymond Weil
seems to be using:
A. intensive distribution.
B. selective distribution.
C. exclusive distribution.
D. extensive distribution.
E. limited distribution.
The stockturn rate is
A. the firm's ability to meet its short-term financial obligations.
B. the number of days that credit sales remains in receivables.
C. the number of times the average inventory is sold in a year.
D. the difference between net sales and cost of goods sold.
E. the ratio of sales to inventory.
Using airfreight instead of some other mode of transporting may result in:
A. lower packing costs.
B. lower total cost of distribution.
C. less damage in transit.
D. higher transporting costs.
E. All of these alternatives are correct.
Specialty products:
A. have a number of close substitutes.
B. are brands customers request by name.
C. are generally high in price.
D. cannot be found using the Internet.
E. None of these alternatives is correct.
Which of the following countries have the HIGHEST GNI PER CAPITA?
A. Saudi Arabia and Iran
B. Mexico and Spain
C. United States and Switzerland
D. India and China
E. Japan and Germany
A firm's sales compensation plan should consider
A. the pay for other jobs in the firm.
B. the amount of direct control desired by the firm.
C. the amount of selling versus nonselling time.
D. what competitors pay salespeople.
E. All of these alternatives should be considered in a firm's sales compensation plan.
