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A marketing dashboard displays up-to-the-minute marketing data in an easy-to-read
format.
Facebook, FourSquare, and LinkedIn are all examples of publicity tools for interactive
communication between a company and final consumers or business customers.
Consumers do not usually see or hear all the stimuli that come their way.
Consumer products which a customer buys on sight as unplanned purchases, may have
bought the same way before, and wants "right now" are impulse products.
A strategy that's expected to "pay its own way" must be based on a plan that generates
the working capital needed to implement the plan.
A skimming policy does not involve price reduction over time.
Many Internet users in the U.S. spend more time surfing the Web than they do watching
television, listening to radio, or reading newspapers and magazines.
It is the job of the marketing manager to come up with an effective promotion blend.
In addition to food, warehouse clubs emphasize heterogeneous shopping goods.
Agent wholesalers are very common in international marketing.
Over time, use of the Internet will result in a larger number of brokers.
An advantage of average-cost pricing is that it considers competitors' costs and prices.
Average-cost pricing works best in situations where demand conditions do not change a
lot.
About 20 times more people are employed in selling than in advertising.
The main advantage of the prepared sales presentation approach is that it tends to work
equally well with different types of customers.
The U.S. government reports data on the number of firms, sales volume, and number of
employees by NAICS code.
In the confirmation stage of the adoption process, the adopter continues to rethink the
decision and searches for support for the decision.
Large sales volume and efficient operation are usually very important for supermarkets,
since net profits usually run 1 percent of sales or less.
The example for the seven-step approach (discussed in the text) uses apartment
buildings in cities with large student populations as its broad product-market.
The example for the seven-step approach (discussed in the text) uses small motels
around a large city as its broad product-market.
Reinforcement strengthens the relationship between the cue and the response.
The four promotion jobs of the AIDA model are to get Attention, to Inform, to eliminate
Doubt, and to change Attitudes.
A profit-oriented firm will usually want to continue aggregating potential customers
into larger submarkets until every consumer fits neatly into some segment.
Firms should try to show the value of unsought products through promotion because
people do not want them or know that they are available.
Expense items which have had more processing than raw materials and become part of
a finished product are component parts and materials.
"Value pricing" means setting a fair price level for a marketing mix that gives the target
market superior customer value.
When a salesperson considers not only the sale they are making today, but all potential
future sales to a customer, the salesperson recognizes a customer's lifetime value.
Brand equity is likely to be lower if customers insist on buying a product and retailers
are eager to stock it.
Because consumers are becoming less and less price-sensitive, the use of sales
promotion is increasing.
Retail order getters are usually needed for unsought consumer products, and are
desirable for heterogeneous shopping products as well.
Firms with high markups and low turnover rates may earn lower profits than firms with
low markups and high turnover rates.
Implementing a strategy is straightforward; there are usually only a limited number of
ways things can go wrong.
ISO 9000 is relevant to both domestic and international suppliers.
When it comes to marketing cost analysis, a sales rep is likely to favor the full-cost
approach over the contribution-margin approach.
In general, advertising media are becoming more targeted in that they aim for more
narrowly defined market segments.
A marketing audit evaluates the whole marketing program.
The promotion part of the marketing mix involves telling target customers that the right
product is available at the right place at the right price.
Cost advantages that are gained from economies of scale in production may later be lost
to inventory carrying costs.
New-task buying is an in-between process where some review of the buying situation is
done.
A marketing manager usually has responsibility for finding and allocating a firm's
capital.
The goal of vendor analysis is
A. just getting a low price from the supplier on a given part or service.
B. just satisfying the needs of the customer company.
C. lowering the total costs associated with purchases.
D. satisfying the needs of the individuals who influence the purchase.
E. focusing buyers and sellers on just the economic factors needed to reduce costs.
Missionary sales reps:
A. are order takers.
B. are sales reps in training.
C. are customer service reps who resolve problems after purchases have been made.
D. help train intermediaries' salespeople and set up retail displays.
E. do a lot of aggressive selling.
The basic objective of the U.S. market-directed economic system is to:
A. ensure the survival of business firms.
B. find a reasonable balance between consumer satisfaction and business profits.
C. reduce the cost of marketing activities.
D. satisfy consumer needs as the consumers themselves see them.
E. satisfy consumer needs as seen by marketing managers.
Accepting the "marketing concept" means that a firm should have a ______________
orientation.
A. production
B. sales
C. marketing
D. research
A firm with a stockturn rate of 5 sells products that cost it $100,000. Its annual
inventory carrying cost is about 20 percent of the inventory value. What is its annual
inventory carrying cost?
A. $5,000
B. $4,000
C. $8,000
D. $20,000
E. $100,000
To minimize its own risks, the Boomtown Petroleum Corp. of Houston, Texas, operates
a South American oil refinery that is owned by residents of that country. Boomtown is
engaged in an activity known as:
A. management contracting.
B. a joint venture.
C. exporting.
D. licensing.
E. direct investment.
Strategy planning for Price is concerned with:
A. to whom and when discounts and allowances will be given.
B. how transportation costs will be handled.
C. how flexible prices will be.
D. at what level prices will be set over the product life cycle.
E. All of these alternatives are correct.
Rico Paving Contractors enters into a contract with Valley Supply for the purchase of
100 bags of cement per week for the next 16 weeks at a price of $15 per bag. The
contract also includes a condition that allows prices to be revised if costs go up more
than $1 per bag. This purchase involves
A. an indefinite delivery contract.
B. negotiated contract buying.
C. a good faith purchase.
D. cost reimbursement contracting.
E. price allocation purchasing.
An integrated direct-response promotion is most likely to be effective if:
A. it is used by a nonprofit organization rather than a firm.
B. other elements of the promotion blend are not integrated.
C. it involves one-way communications between a firm and its target customer.
D. it relies on a CRM database to target specific individuals.
E. None of these is a good answer.
ESPN cable television offers numerous sports programs. What type of discrepancy does
this create for sports fans who want to watch only a few of the programs?
A. Discrepancy of assortment
B. Discrepancy of information
C. Discrepancy of quantity
D. Discrepancy of quality
E. Discrepancy of image
Which of the following statements is a strategy decision, rather than an operational
decision?
A. "We will change the colors of our selection of shirts at the end of the season."
B. "We will cut prices as needed to in order to protect our market share."
C. "We will increase the number of training sessions for new sales associates from two
to three."
D. "We will hire a merchandising specialist this month to help remodel our older
stores."
E. "We will place a special ad in the Sunday newspaper promoting our upcoming sale."
The main difference between the full-cost approach and the contribution-margin
approach to marketing cost analysis is:
A. The contribution-margin approach uses both mechanical and logical reasoning to
allocate marketing costs.
B. The full-cost approach allocates all costseven fixed coststo products, customers, or
other categories.
C. The contribution-margin approach allocates all costs to show how profitable various
customers are.
D. The full-cost approach focuses on variable costs rather than total costs.
About what percentage of marketing research spending is for syndicated research data?
A. 20 percent
B. 30 percent
C. 40 percent
D. 50 percent
E. 60 percent
Which of the following sources of buying information is likely to be trusted by the
greatest percentage of consumers?
A. Paid magazine ads
B. Brand websites
C. Personal recommendations
D. Online consumer opinions
E. Paid television ads
Transporting by water:
A. Is the fastest transporting mode.
B. Is the least expensive transporting mode for heavy freight.
C. Is only important for international transportation.
D. Is especially useful for lightweight goods.
E. None of these alternatives is correct.
A marketing manager made a speech in which he described his organization as having
"really embraced the marketing concept over ten years ago." A critic in the audience
argued that the manager didn't understand the 'socially conscious" view of the
marketing concept. Given the critic's argument, the marketing manager may work for:
A. a fruit processor.
B. the public library.
C. a firm that recycles aluminum cans.
D. a soap producer.
E. a motorcycle producer.
Regarding the choice between the "full-cost approach" and the "contribution margin
approach" to marketing cost analysis:
A. Top management tends to prefer the "full-cost approach."
B. The "full-cost" approach often leads to arguments within a company.
C. The choice of the method depends on the objectives of the analysis.
D. All of these are correct.
Institutional advertising:
A. tries to stimulate primary demand rather than selective demand.
B. involves no media costs.
C. tries to develop goodwill for a company or even an industry.
D. tries to keep a product's name before the public.
E. is always aimed at final consumers or users.
An automobile manufacturer charges a higher price for its "hybrid" car that runs on
both electricity and gasoline than it charges for a car that runs on only gasoline. The
manufacturer contends that the consumer will save money with the hybrid car in the
long run because the money saved on gasoline will more than cover the price
differential between the hybrid car and a regular car. This manufacturer is using:
A. Price leadership.
B. Price lining.
C. Value in use pricing.
D. Psychological pricing.
E. Reference pricing.
A motion picture studio that secures interviews in several national papers regarding
plans for its upcoming film releases is using which of the following promotion
methods?
A. Sales promotion
B. Personal selling
C. Advertising
D. Mass selling
E. Publicity
_____ are responsible for working with suppliers and arranging the terms of sale.
A. Gatekeepers
B. Deciders
C. Influencers
D. Users
E. Buyers
Ad spending for television in the U.S. in 2010 was about:
A. $20 billion.
B. $30 billion.
C. $40 billion.
D. $50 billion.
E. $60 billion.
Which of the following possible segmenting dimensions is a "demographic" dimension?
A. Benefits sought
B. Social class
C. Purchase relationship
D. Brand familiarity
E. Rate of use
Just-in-time (JIT) delivery:
A. Increases physical distribution costs for business customers.
B. Requires that a supplier be able to respond to the customer's production schedule.
C. Usually does not require e-commerce order systems and computer networks.
D. Means that deliveries are larger and less frequent.
E. Shifts greater responsibility for physical distribution activities from the supplier to
the business customer.
If Penn Hills Mfg. Corp. gives the Johnstown Distributing Co. the exclusive right to
distribute Penn Hills' products in Ohiowith the understanding that Johnstown can't sell
Penn Hills' products outside Ohio or to other wholesalers in Ohio, this arrangement:
A. WOULD DEFINITELY BE ILLEGAL because the courts have ruled that all vertical
arrangements between producers and intermediaries are illegal.
B. MAY OR MAY NOT BE LEGALthe courts would weigh the possible good effects
of this vertical arrangement against possible restrictions on competition.
C. WOULD DEFINITELY BE LEGAL because the courts have ruled that all vertical
arrangements between producers and intermediaries are legal.
D. WOULD DEFINITELY BE ILLEGAL because the courts have ruled that all
horizontal arrangements between competitors are illegal.
E. WOULD DEFINITELY BE LEGAL because the courts have ruled that all horizontal
arrangements between competitors are legal.
Which of the following statements about economic decision making is TRUE?
A. In a market-directed economy, the micro-level decisions of individual producers and
consumers determine the macro-level decisions.
B. Government planning usually works best when economies become more complex
and the variety of goods and services produced is fairly large.
C. The United States may be considered a pure market-directed economy.
D. Command economies usually rely on market forces to determine prices.
Kayla Jurgenson, marketing manager for Super Gaming Computers and Accessories
(SGCA), is reviewing her company's plans for the coming year.
SGCA sells its products through retail computer dealers and some specialty gaming
stores. Currently, SGCA is carried in 25 percent of all retail computer stores nationwide,
but in California is carried in only 10 percent of stores. So, Kayla has set an objective of
being in 25% of all retail computer stores in California within one year.
SGCA plans to introduce a new SuperDuperGamer model with special features that fits
its target market of teen and young adult gamers. The SuperDuperGamer uses a new
technology and is expected to be a breakthrough product, but it will be important to
build awareness for it to succeed. So, the advertising objective is for 40% of SGCA's
target market to be aware of the new SuperDuperGamer model within 3 months. SGCA
also wants to help its retailers reduce their current stock of SuperGamer computers
before the new model comes out in a month. The SuperGamer has been on the market
for two years and has been a top seller in the category. SGCA's advertising objective for
the SuperGamer computer is to reduce current dealer stock by 80% within the next
month.
SGCA is also introducing a SuperEnhancer sound card, which is designed to
significantly enhance the game-playing experience with older computers. Research with
gamers show that it is very well received, so the advertising objective for the
SuperEnhancer sound card is to gain 40% market share among all gaming-specific
sound cards in the next year. To help achieve that objective, Jurgenson is planning to
use an ad that shows the sound card and a game player being knocked off his chair by
the sound. The headline on the ad reads, "9 Out of 10 Gamers Say that the
SuperEnhancer Sound Beats All Others!"
In making her decisions about media, Jurgenson has to:
A. decide which target market(s) should be reached.
B. know the costs of alternative media.
C. decide on promotion objectives.
D. decide what must be said.
E. All of these alternatives are correct.
Identify the traditional communication process.
A. Source-Encoding-Message channel-Decoding-Receiver-Feedback.
B. Source-Encoding-Message channel-Receiver-Feedback.
C. Source-Encoding-Message channel-Noise-Receiver-Feedback.
D. Source-Message channel-Decoding-Receiver-Feedback.
E. Source-Noise-Message channel-Receiver-Feedback.
When a producer has won brand preference for its productbut is entering the sales
decline stage of its life cycleit probably should use:
A. pioneering advertising.
B. competitive advertising.
C. primary advertising.
D. reminder advertising.
E. institutional advertising.
Advertising expenditures by U.S. corporations:
A. average only about 2.5 percent of sales.
B. must be approved by an advertising agency that is registered with the Federal Trade
Commission.
C. are higher for newspaper advertising than television advertising.
D. are lower than in other countries.
E. are highest for business product companies (as a percent of sales).
Which of the following dimensions affect family spending?
A. income
B. age of children
C. age
D. marital status
E. All of these dimensions affect family spending.
In developing trails for hiking and biking to bring its winter ski customers back in the
summer, Mountain High Ski Resort is pursuing what type of opportunity?
A. Channel penetration.
B. Diversification.
C. Product development.
D. Market development.
E. Market penetration.
Why might the demand for business products be INELASTIC, while the demand facing
individual sellers of those products is extremely ELASTIC?
A. Because total demand for business products often exceeds supply.
B. Because most business producers use haggling in their buying.
C. Because the demand for business products is derived, and some industries have
many sellers of essentially homogeneous products.
D. Because the industry demand is rising.
E. None of these alternatives is correct.
Government buyers in the U.S. usually buy by:
A. specificationusing a mandatory bidding procedure.
B. inspection.
C. haggling.
D. influence peddling.
E. None of these are good choices.
