The main function of a “distribution center” is to speed the flow of goods and avoid
unnecessary storage.
According to the text, consumer buying decisions are influenced by economic needs,
psychological variables, social influences, and the purchase situation.
Marketing doesn’t occur unless two or more parties are willing to exchange one item for
another.
Buying, selling, transporting and storing are all universal marketing functions.
The Internet changes how consumers shop and marketers market.
Training is especially important during rapid growth of a company because it takes time
to hire people and get them up to speed.
Catalog wholesalers usually sell to business customers who don’t have a local
wholesaler or otherwise are not called on by other wholesalers.
Packaging can add value to a market offering by promoting, protecting, or enhancing
the product.
If a seller wanted to pay the delivery charges and keep title to the products until
delivered to a buyer, the seller could use “F.O.B. buyer’s factory” geographic pricing
terms.
Sales promotion is special advertising or personal selling that is aimed at intermediaries
in the channel.
The four promotion jobs of the AIDA model are to get Attention, to hold Interest, to
arouse Desire, and to obtain Action.
Capital items which are more expensive and longer-lived than installations are called
accessory equipment.
A skimming price policy usually involves a slow reduction in price over time.
Voluntary chains like SuperValu in groceries are wholesaler-sponsored groups that work
with “independent” retailers.
Younger families with no children are a good market for durable goods such as
automobiles and furniture.
A marketing information system (MIS) is an organized way of continually gathering,
accessing, and analyzing information that marketing managers need to make ongoing
decisions.
The physical distribution concept is based on the idea that selecting the lowest cost
transporting alternative and the lowest cost storing alternative will result in the lowest
total distribution cost.
The seven-step approach to market segmentation does not estimate the size of each
submarket until Step 7.
Customer service reps are more useful for “keeping” customers, rather than “winning”
new customers.
In business markets, buyer-seller relationships tend to be an “all-or-nothing”
arrangementeither very close or not at all close.
Regarding sales force compensation, straight salary gives the most security for a
salesperson, while straight commission gives the most incentive.
A company that provides its sales reps with information technology tools should expect
that reps will do a better job with administrative tasks but that they will be less effective
in their actual sales calls.
Firms should try to develop marketing mixes that make the most of the market growth
stage of the product life cyclewhen profits are highest.
Digital products cost more to distribute than physical products.
Achieving effective marketing in an advanced economy is simplified by the fact that
producers are separated from consumers in only two ways: time and space.
Discrepancies of quantity and assortment occur because individual producers find it
economical to produce and sell small quantities of a large assortment of products while
individual consumers prefer to buy large quantities of a small assortment of products.
In a market-directed economy, profit is guaranteed.
The scientific method is a research process which consists of five stages: observation,
developing hypotheses, predicting the future, collecting data, and using statistical
methods of analysis.
In addition to mail, direct-response promotion may include telephone, videos, e-mail,
and the Internet.
Product-market screening criteria should be mainly quantitative in nature, because
qualitative criteria are too subjective.
Price discrimination is illegal according to the provisions of the Robinson-Patman Act.
When RedBox rents DVD movies from vending machines at McDonald’s, it is acting as
a channel captain, not a retailer.
From a marketing management perspective, it’s best to think of customer service as part
of Promotion, not part of Product.
Total quality management applies when the firm’s product is a physical good, but not if
it is a service.
The most COMMON method of budgeting for marketing expenses is to:
A. match competitors’ spending.
B. allocate any funds not already allocated to other functions.
C. allocate enough to completely eliminate the cost of lost customers.
D. allocate for the job that needs to be done.
E. allow a percentage of either past or forecasted sales.
Alpine Auto Repair keeps a record of customer oil changes and sends a reminder
postcard to its customers when it’s time for the next oil change. This is an example of a
______ system.
A. customer relationship management
B. qualifying dimensions
C. a positioning matrix
D. geographic targeting
E. clustering
Compared to other consumer products, the major distinguishing characteristic of
emergency products is the customer’s:
A. desire to negotiate for a “deal.”
B. urgency to get the need satisfied.
C. willingness to shop around for a lower price.
D. interest in the brand name.
E. willingness to shop and compare.
Regarding capital:
A. Few firms have a separate financial manager who works with top management on
major financial decisions.
B. In most firms, different possible opportunities compete for capital.
C. The marketing manager should leave all decisions about a marketing plan’s budget to
the firm’s financial manager.
D. Marketing managers do not consider financial measures as screening criteria when
evaluating opportunities.
E. None of these.
Which of the following statements is NOT accurate concerning the five step approach?
A. Step 1 defines the problem.
B. Step 2 is early identification of solution.
C. Step 3 gathers problem-specific data.
D. Step 4 interprets data.
E. All of these are correct.
Sales promotion activities:
A. can usually be implemented quickly and get results sooner than advertising.
B. may be aimed at final consumers, intermediaries, and/or a firm’s own sales force.
C. cost more than the total expenditures on advertising.
D. are currently a weak spot in many firms’ marketing strategies.
E. All of these alternatives are correct.
Alex’s Knot Shop prices its ties at $5 intervals from $10 to $25 because most customers
find these prices appealing and easier to compare. This is:
A. prestige pricing.
B. penetration pricing.
C. price lining.
D. odd-even pricing.
E. value in use pricing.
The Robinson-Patman Act says that to be legal, price differences must be based on:
A. a need to meet competition and cost differences
B. a reasonable profit margin as determined by the FTC
C. freight costs
D. transportation differences
E. None of these alternatives is correct.
Each of the following types of activities is likely to occur at a distribution center
EXCEPT:
A. moving products to loading docks
B. sorting of goods mid-shipment
C. placing products on transport vehicles
D. regrouping of products in transit
E. long-term storage of inventory before shipping
Seeking to stop declining sales for an established mouthwash, a sales manager suggests
that new coloring be added to the product and a major promotion effort be started for
the “new” product. The Federal Trade Commission would:
A. be concerned about the possibility of the firm getting a monopoly.
B. allow the company to call the product “new” for only six months.
C. probably not approve of this at all because the product doesn’t meet the FTC’s
definition of “new.”
D. allow the promotion effort if it felt that consumers would think the coloring made it
“new.”
E. None of these alternatives is correct.
The first step in market segmentation should be:
A. deciding what new product you could develop.
B. evaluating what segment(s) you currently serve.
C. finding a demographic group likely to use your products.
D. listing features of your current products.
E. defining some broad product-markets where you may be able to operate profitably.
“Qualitative research” involves:
A. talks with the firm’s own managers.
B. questioning to obtain in-depth open-ended responses.
C. “yes-no” questionnaires.
D. studying secondary data.
E. None of these is a good choice.
As a product moves from the early to the later stages of the product life cycle:
A. distribution moves toward being more intensive.
B. firms either cut prices or just meet competition.
C. promotion becomes frantically competitive.
D. products tend to become more similar.
E. All of these alternatives are correct.
Which of the following is NOT primarily an example of the influence of technology on
the external market environment?
A. A camera producer finds a way to enable a camera to store digital pictureswithout
film.
B. Machines are developed to assemble defect-free electronic components.
C. Robots on a production line make it possible to lower cost.
D. A manufacturer of frozen food is finding that consumers prefer containers that can
go from the freezer direct to a microwave oven.
E. The government passes a law that prohibits use of cell phones while driving a
vehicle.
By law, a firm may call a new product “new” for only six months. This regulation, and
many similar product regulations, are established by the:
A. Environmental Protection Agency (EPA)
B. Federal Trade Commission (FTC)
C. Consumer Product Safety Commission (CPSC)
D. Food and Drug Administration (FDA)
E. U.S. Department of Justice (DOJ)
A merchant wholesaler is considering four physical distribution systems and estimates
the total cost and customer service level for each as follows:
The best alternative is:
A. truck.
B. airfreight.
C. rail and warehouse.
D. inland waterways.
E. Cannot be determined without knowing how the target customers feel about the
customer service level.
When planning a marketing strategy, managers have control over:
A. the political and legal environment.
B. the cultural and social environment.
C. the economic environment.
D. their response to forces in the external market environment.
E. consumers.
Which of the following would NOT be a source of primary data?
A. The Wall Street Journal
B. Market tests
C. Focus groups
D. Observation studies
E. Surveys
Even though the cost per person may be higher and the number of persons reached may
be smaller, specialized media is sometimes more effective than mass media.
“Breakthrough opportunities” are opportunities that:
A. help innovators develop hard-to-copy marketing strategies.
B. may be turned into marketing strategies that will be profitable for a long time.
C. help the firm develop a “competitive advantage.”
D. help a firm satisfy customers better than some competitor.
E. All of these apply to breakthrough opportunities.
According to projections, the population of _____ is likely to grow by 15 percent
between 2010 and 2025.
A. Japan
B. Russia
C. United States
D. China
E. Egypt
“Positioning” might cause a marketing manager to:
A. introduce a new product for a segment with unsatisfied needs.
B. change a product’s promotion to make its image fit more closely with the needs and
attitudes of the target market.
C. shift attention to another market segment where competition is weaker.
D. physically change his or her product to compete more effectively with a competitor
aiming at the same target market.
E. Any of these could be true.
Product-market screening criteria should:
A. be qualitative.
B. summarize in one place what the firm wants to accomplish.
C. be achievable.
D. be stated in quantitative terms.
E. All of these are correct.
In a generic market
A. sellers offer various, often diverse, ways of satisfying broadly similar needs.
B. consumers are offered various close substitute ways of satisfying needs.
C. everything is the same as in a product-market.
D. customers have very diverse needs.
E. sellers produce unbranded products.
Which of the following is NOT an example of sales promotion?
A. A “10 cents off” coupon promotion.
B. Point-of-purchase displays.
C. Trade show exhibits.
D. Free samples.
E. A wholly new kind of ad.
A firm needs _____ to pay for short-term expenses such as employee salaries,
advertising, marketing research, inventory storing costs, and what the firm owes
suppliers.
A. debt financing
B. current asset
C. prepaid expense
D. working capital
E. overhead
Which section of a formal marketing plan for a new product is most directly related to
deciding which segmenting dimensions are most important in choosing a target market?
A. Packaging
B. Customer analysis
C. Price
D. Implementation and control
E. Place
U.S. manufacturers:
A. all employ many workers.
B. are evenly spread throughout the country.
C. tend to concentrate by industry.
D. do not locate close to competitors.
E. None of these alternatives is correct.
A wholesaler has been offering his customers payment terms of 3/10, net 60. He wants
to tighten his terms because interest rates have gone up. He could change his terms to:
A. 3/10, net 90.
B. 3/20, net 60.
C. 4/10, net 60.
D. 3/10, net 30.
E. None of these is a good answer.
________ ads are small rectangular boxes that usually include text, graphics, and
sometimes video to create interest.
A. Pop-up
B. Banner
C. Pop-under
D. Hover
E. Virtual
A widely used measure of income in most countries is:
A. gross domestic product.
B. total consumption expenditures.
C. disposable personal product.
D. population times GDP.
E. socio-economic product.
The California Dairy Association promotes its milk campaign with the popular tagline,
“Got milk?” Here, the California Dairy Association’s marketing effort focuses on
satisfying what level in the hierarchy of needs?
A. Social
B. Safety
C. Physiological
D. Personal