A company that sets its goals and strategies based on what its current equipment can
produce, what products engineering can design, and what the company itself can do
best, has a(n) _____ orientation.
a. marketplace
b. sales
c. market
d. exchange
e. production
Answer:
Kimberly-Clark has outfitted consumers with mini video cameras mounted to visors to
watch consumers doing chores and shopping. Using this research approach, known as
____ research, Kimberly-Clark learned that mothers had trouble using Huggies Baby
Wash to bathe their infants. The problem was that the women liked to keep one hand on
their infant at all times while the Baby Wash bottle required two hands to open and
dispense.
a. ethnographic
b. dichotomous
c. experiment
d. survey
e. open-ended
Answer:
Imagine that you are the research director of a major industrial marketing firm. You
need to select an NAICS code that defines the most homogeneous group of companies
in a particular group of highly competitive companies. Which of the following codes
might you use?
a. 7432
b. 532
c. 19
d. 7
e. 999
Answer:
Club Penguin is an online role-playing game for kids aged 6 to 14 operated by the Walt
Disney Company. Players pay a monthly fee to gain access to all of Club Penguin’s
feature, although free memberships with limited access to games is also available.
Disney offers free membership to Club Penguin in the hope that kids who like the game
will ask their parents to pay for the full version. Disney is using which sales promotion
tool?
a. Sponsorship
b. Sampling
c. Trade promotions
d. In-pack couponing
e. Premiums
Answer:
The three categories of pricing objectives for services are:
a. sales-, quality-, and location oriented
b. quality-, value-, and consumer oriented
c. revenue-, operations-, and patronage oriented
d. turnover-, volume-, and capacity oriented
e. equity-, cost-, and revenue oriented
Answer:
General Motors is offering the sales force at Meers Furniture Emporium a $100 reward
for each Chevy Volt sold in the next 30 days. What type of trade sales promotion is the
$100?
a. A trade allowance
b. Push money
c. A selling deal
d. Premium payment
e. A direct commission
Answer:
Acme Lawnmowers sells its mowers to retailers at different prices, depending on
whether they are independent stores or members of a national chain. It uses:
a. unfair trade practices.
b. price fixing.
c. price discrimination.
d. predatory pricing.
e. bait pricing.
Answer:
____ is the strategy of increasing sales by introducing new products into new markets.
a. Product penetration
b. Product development
c. Market penetration
d. Market development
e. Diversification
Answer:
____ show costs declining at a predictable rate as experience with a product increases.
a. Liquidity growth curves
b. EOQ graphs
c. Break-even analyses
d. Experience curves
e. Supply/demand curves
Answer:
With a ______, a firm produces standardized products to be sold the same way all over
the world.
a. traditional marketing strategy
b. global marketing standardization approach
c. product extension approach
d. culturally based marketing strategy
e. synergistic approach to marketing
Answer:
Which of the following statements about a typical sales-oriented business is TRUE?
a. The company develops its products to meet the needs of specific groups of people.
b. The primary goal of the company is profit through customer satisfaction.
c. The company invests the majority of its resources in promoting its products and
services.
d. The company is in business to satisfy customer wants and needs and deliver superior
value.
e. the company focuses on what it is good at making.
Answer:
Nestl
When consumers think of Nestl, they probably think of chocolate. Historically, though,
Nestl’s confectionary business is its weakest area. Based in Switzerland, it is the world’s
largest food company, with a brand arsenal of Nescaf, Jenny Craig, Perrier, Purina, and
PowerBar, just to name a few of its 30 product lines. Nestl is hoping to become the
“world’s leading health, nutrition, and wellness firm” by spending billions of dollars on
research and development of functional foods””foods that have pharmaceuticallike
capabilities to enhance energy and heart, bone, gut, and other health. Nestl wants
consumers to see chocolate as a pharmaceutical product rather than just a treat. Part of
this new focus includes streamlining the product mix by selling underperforming items
or lines that do not fit its new direction. Critics claim that this new focus could hurt the
company’s existing brands if the new products fail. Additionally, it may be an uphill
battle convincing consumers that a company known for indulgence is now a wellness
company.
Refer to Nestl. What adjustment to its product mix is Nestl doing when it removes
underperforming items from the market?
a. Product line extension
b. Product line contraction
c. Product pruning
d. Product line retraction
e. Functional modification
Answer:
According to the criterion of ____ , a selected segment must be large enough to warrant
developing and maintaining a special marketing mix. Serving the specific needs of this
segment must be commercially viable, even if the number of potential customers is
small.
a. causality
b. accountability
c. responsiveness
d. accessibility
e. substantiality
Answer:
For a powerful sales presentation, salespeople must do all of the following EXCEPT:
a. ask close-ended questions.
b. incorporate visual elements that impart valuable information.
c. practice.
d. use direct eye contact.
e. use hand gestures and voice inflections.
Answer:
The International Monetary Fund (IMF) was founded in 1945 to:
a. create a safe working environment for workers throughout the world.
b. promote trade through financial cooperation and eliminate trade barriers in the
process.
c. create knowledge databases on a wide range of subjects for developing nations.
d. uncover economic fraud and corruption worldwide.
e. found “microbanks” in developing nations.
Answer:
A winery that makes a huge profit on merlot wines may lower its price on pinot noir
wines to cause damage to wineries that only produce pinot noir. This is an example of
predatory pricing.
a. True
b. False
Answer:
BoutiqueHotels
In an industry where guests are tired of cookie-cutter hotels, some consumers are
looking for personalized service, which can be found in boutique hotels. Boutique
hotels cater to their guests’ sense of their personal image as being discriminating, more
sophisticated, and more hip. Frequently, these guests don”t want to be where the crowds
are. This is a small but growing market niche. There are no generally recognized rules
for boutique hotels, but they tend to be small and service oriented, with high-style decor
and top-notch restaurants. Employees are called cast members. Amenities include
cordless phones, DVR players hooked up to HD televisions, Aveda brand bath and hair
products, and down comforters and pillows.
Refer to Boutique Hotels. Which type of processing occurs most often at a hotel that
wants to provide personalized service?
a. People processing
b. Possession processing
c. Information processing
d. Equipment processing
e. Supplementary processing
Answer:
KraftFoods
Kraft Foods has established dedicated teams to focus on their business with many of
their largest customers. With “Team Kroger,” Kraft has combined with Nabisco selling
organizations in order to bring more unique shopper insights to Kroger supermarkets.
This helps Kroger understand their shoppers and customize their programs to grow
even more. At the same time, Kraft has strengthened its relationship with Kroger by
gaining a better understanding of the supermarket’s needs and how it can help support
Kroger’s business objectives concurrently with its own.
Refer to Kraft Foods. is the identification of those firms and people most likely to buy
Kraft products.
a. Prospecting
b. Lead qualification
c. The sales presentation
d. The close procedure
e. The sales approach
Answer:
For every home built by Habitat for Humanity, Whirlpool Corporation has given and
continues to give free kitchen appliances to the deserving family. This donation of
appliances is an example of how companies assume their:
a. corporate social responsibility
b. ethical conveyance
c. duty to engage in cause marketing
d. right to engage in social marketing
e. multiculturalism
Answer:
Which of the following professions likely requires an individual to make sales?
a. Salesperson
b. Chemist
c. Marketing manager
d. Engineer
e. All of the above.
Answer:
SherwinWilliams’ Dutch Boy paint has packaging that is getting rave reviews. The new
Twist & Pour paint is packaged in an all-plastic gallon container with an easy twist-off
lid, comfortable side handle, and even a pouring spout. There’s no other paint product
like it on the market. This innovative packaging was most likely designed for which of
the following functions?
a. To facilitate product use and convenience
b. To contain and protect the product
c. To reduce environmental damage
d. To facilitate recycling
e. To promote the product
Answer:
The growers of Vidalia onions have determined that their chief priority for choosing a
transportation mode within the United States is transit time. However, this must be
tempered by practical cost considerations. In light of these considerations, Vidalia onion
growers should use ___ to ship their onions.
a. railroads
b. motor carriers (trucks)
c. airplanes
d. water transportation
e. pipelines
Answer:
Social commerce combines social media with the basics of e-commerce.
a. True
b. False
Answer:
The market for turkey products is large. If a major producer of turkeys were to
introduce a boneless fresh turkey wrapped around savory dressing, most of the large
market for this new product would be aware of its existence. The market is price
sensitive, and there is some potential competition. The appropriate strategy would be:
a. price skimming.
b. penetration pricing.
c. status quo.
d. cost bundling.
e. price lining.
Answer:
Coca-Cola vending machines are found all over the world. The newest machines have
an interactive screen that runs advertisements and allows users to obtain free photos of
themselves and ringtones after they have bought a drink. Critics of these new vending
machines are concerned that entertaining technology is being used to market sugary
products. In terms of a SWOT analysis, this concern would be an example of a(n):
a. weakness
b. strength
c. advantage
d. opportunity
e. threat
Answer:
A code of ethics can be an effective internal control on behavior, which is more
desirable than external controls such as government regulation.
a. True
b. False
Answer:
In the ____ stage of new-product development, the technical feasibility of
manufacturing the new product is examined as a prototype is produced.
a. screening
b. development
c. market testing
d. concept testing
e. business analysis
Answer:
A company using market share pricing has a _____pricing objective.
a. profit-oriented
b. sales-oriented
c. demand-oriented
d. supply-oriented
e. status quo
Answer:
GrizzlyWatching
Have you ever wanted to spend your vacation up close and personal with a grizzly
bear? Great Bear Nature Tours is one of the many lodges that provide such a service.
Great Bear, located in British Columbia, is actually a lodge built on a floating barge.
The lodge can handle up to ten guests in what the WallStreet Journalcalls rustic but
upscale accommodations in double rooms that begin at a rate of $1,418 per night,
including bear-watching tours. Although bear hunting still brings tourists to Canada,
bear watching is a growing attraction. On a bear-watching tour, the guide, who is often
unarmed, will take you close enough to get a good view of a grizzly in the wild. In fact,
one of the favorite tours allows you to watch bears swipe at salmon as they swim
upstream to spawning grounds. While bear watching sounds dangerous, bear attacks are
not common. However, just to be careful, many tour guides carry pepper spray. Tour
guides say they are able to keep tour members safe by watching the bears and reading
their body movements.
Refer to Grizzly Watching. The height of the bear-watching season is in the fall during
salmon spawning season. Tourists love to watch bears capturing salmon as the salmon
swim upstream to spawn. If a bear-watching tour lodge raises its prices during this
season, it is practicing:
a. revenue-oriented pricing
b. operations-oriented pricing
c. target market pricing
d. patronage-oriented pricing
e. cumulative pricing
Answer:
_____is a process of finding out about potential clients from friends, business contacts,
coworkers, acquaintances, and fellow members in professional or civic organizations.
a. People surfing
b. Networking
c. Co-opting
d. Lead intermediation
e. Looking for the golden parachute
Answer:
TeslaMotors
“Going green” doesn”t have to be boring. The Tesla Roadster Sport is an electric car
that goes from 0 to 60 in four seconds and drives more like a race car than an
environmentally friendly ride. But that level of performance will set you back
$128,500. As of 2009, Silicon Valley”based Tesla Motors, Inc. was the only company
offering highway compatible electric cars. Most Roadster Sport buyers are car
enthusiasts and are buying them for the “fun toy” aspect of having an electric car rather
than for environmental reasons.
Refer to Tesla Motors. If Tesla had assets of $5 million and net profits after taxes of
$550,000, what is Tesla’s return on investment?
a. 1 percent
b. 9 percent
c. 11 percent
d. $14,135
e. $4,450,000
Answer:
Currency markets operate under a system in which the prices of different currencies
move up or down based on the demand for and supply of each currency. This practice is
called:
a. Countertrading.
b. floating exchange rates.
c. variable purchasing power.
d. flexible monetary policies.
e. purchasing power elasticity.
Answer:
Guilden Corporation has instructed its new salesperson that she is responsible for
selling five display cases with infrared heating capability per week, plus calling on five
current and 10 potential customers. These objectives comprise her:
a. promotion goal
b. fulfillment
c. quota
d. contribution
e. potentiality
Answer:
What is the marketing concept? According to the marketing concept, what determines if
a sale will actually occur?
Answer:
Discuss three issues relating to target markets that are unique to nonprofit organizations.
Provide an example of each issue.
Answer:
What is the basic definition of communication? What are two forms of communication?
Give specific examples of these two forms and indicate how a company could use each
of them.
Answer:
One component of the external environment marketing managers must understand and
react to is the economic environment. Briefly describe the three economic areas of
greatest concern to U.S. marketers and the marketing implications of trends in these
three areas.
Answer:
Relationship marketing can be practiced at three levels, with each level adding a new
kind of bond with the customer. Name and describe each of these levels, using a legal
service to illustrate each level.
Answer:
Describe the reseller market. Why do businesses use the services of business product
distributors?
Answer:
Explain the differences among the terms brand, brandname, brandmark, trademark,
and servicemark.
Answer:
When the economy is characterized by high inflation, special pricing tactics are often
necessary. One popular cost- oriented tactic is culling low-profit margin products from
the product line. Why might this tactic backfire? What two other cost-oriented tactics
can be used to guard against inflation? Describe these tactics.
Answer:
List and describe the six stages involved in creating an effective social media plan.
Answer:
Explain the marketing concept and market orientation. What three requirements are
included in the marketing concept?
Answer:
What is the most significant recent trend that has affected television advertising?
Describe the trend and how it impacts television networks, and explain how television
networks have been dealing with it.
Answer:
List the advantages personal selling offers over other forms of promotion.
Answer:
What is promotion? Why is it a vital part of a company’s marketing mix?
Answer:
Assume that you have decided to purchase a new automobile. Describe your internal
information search. Then name the two types of external information sources. For each
source, give two specific examples of information sources you might use.
Answer:
There are four promotional strategies for dealing with the unique features of services.
Name these strategies and give examples of each, using American Airlines (or another
air carrier you are familiar with) as your example service.
Answer:
List the three categories of pricing objectives and then two specific strategies in each
category that a marketer could implement to achieve those objectives.
Answer:
You are given the following limited information about a market consisting of ten
people. Describe all the possible ways to segment this market.
Answer:
What is the customer service management process? List five activities that may be
considered part of this process.
Answer:
List and describe the four basic values that have strongly influenced American attitudes
and lifestyles.
Answer:
Consider the following statement: “Relationship marketing is not possible in a firm
embracing a production orientation.” Do you agree or disagree with this statement?
Explain your answer.
Answer: