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Marketing managers should be able to explain the kinds of problems they are facing
and the kinds of marketing research information that will help them make decisions.
Answer:
A major advantage of mass selling is that the source-the seller-can get immediate
feedback from the receiver.
Answer:
Companies that consider the triple bottom line measure economic, social, and political
outcomes.
Answer:
Saying that a market segment is 'substantial" means that it contains customers from a
variety of demographic variables.
Answer:
The exchange rate affects what is a competitive price for products sold in international
markets, but not local markets.
Answer:
One way to increase customer equity is to find cost-effective ways to add new
customers for the firm's products.
Answer:
Direct investment in a foreign market involves the biggest commitment and the biggest
risk.
Answer:
Compared to intensive distribution, selective distribution gives a producer a greater
opportunity for profit but usually makes it more difficult for intermediaries to make a
profit.
Answer:
A straight rebuy is a routine repurchase that may have been made many times before.
Answer:
Marketing strategy planning is the process of deciding how best to sell the products the
firm produces.
Answer:
Average-cost pricing works best in situations where demand conditions do not change a
lot.
Answer:
Market testing can be risky because it gives information to competitors, but not testing
may be even riskier.
Answer:
Changes in the cultural and social environment tend to come about quickly.
Answer:
Because of different advertising rules in different countries, it's best for a marketing
manager to get help from local advertising experts.
Answer:
"Economies of scale" means that as a company produces larger numbers of a particular
product, the cost for each unit of the product goes down.
Answer:
Most industrial products tend to be near the "insensitive" end of the continuum of
environmental sensitivity.
Answer:
Private warehouses (compared to public warehouses) are most appropriate when a firm
has a regular need to store a large quantity of goods.
Answer:
A channel of distribution is any series of firms or individuals that participate in the flow
of products from producer to final user or consumer.
Answer:
The more heterogeneous a firm's target market becomes, the more likely the firm will
see competition from an innovative segmenter.
Answer:
Only a few of the principles normally associated with advertising also apply to
publicity.
Answer:
It isn't necessary for marketing managers to be involved with marketing research
specialists, since research requires statistical skills which managers usually don't have.
Answer:
General Motors (GM), a U.S. automotive manufacturer, has an arrangement with Isuzu
Motors of Japan in which the Isuzu Ascender is produced at the same GM
manufacturing plant as the Chevrolet TrailBlazer and GMC Envoy. All three vehicles
use the same basic platform and engine. This is an example of licensing.
Answer:
Good packaging can provide a product with an important competitive advantage.
Answer:
Specialized search engines like Blogdex and Google Groups can locate websites that
allow marketing managers to listen in or ask questions as customers chat about
companies and brands.
Answer:
The inflation rate experienced by the United States in recent years was just about the
highest in the world.
Answer:
When a firm's product has won loyal customers, it can be successful for a long
time-even in a mature or declining market.
Answer:
A marketing manager should never increase the total cost of distribution-even if this
would result in a better customer service level for his target market.
Answer:
Goods that might become separated or damaged during transport can benefit from
containerization in shipping.
Answer:
That "new car" smell that includes an aroma of leather and wood is an example of using
a positive cue.
Answer:
The Japanese success showed that one of the biggest costs of poor quality is lost
customers.
Answer:
A salesperson's request for an order during a sales presentation is called a "close."
Answer:
An attitude is:
A. the same as an "intention to buy."
B. a person's point of view about something.
C. easy to change.
D. the same as a belief.
E. All of these alternatives are correct.
Answer:
Which of the following orderings suggests the amount of effort (from little to much)
that consumers are willing to spend in searching for the "right" product?
A. Heterogeneous shopping products, specialty products, unsought products
B. Convenience products, homogeneous shopping products, specialty products
C. Unsought products, homogeneous shopping products, convenience products
D. Staples, heterogeneous shopping products, unsought products
E. Homogeneous shopping products, heterogeneous shopping products, staples
Answer:
Regarding the competitive environment, a marketing manager usually can:
A. choose strategies to avoid head-on competition.
B. control it with the help of the legal environment.
C. control it in the short run.
D. control it with the help of the political environment.
E. control it in the long run.
Answer:
A marketing manager may choose a pricing objective that is:
A. sales oriented.
B. status quo oriented.
C. profit oriented.
D. any of these-depending on the situation.
Answer:
"Comparative advertising":
A. is usually ignored by consumers.
B. is illegal-according to the FTC.
C. should be supported by research evidence.
D. must focus on major consumer benefits to be legal.
E. None of these alternatives is correct.
Answer:
Good marketing managers know that:
A. most salespeople are "bags of wind."
B. good salespeople try to help customers buy.
C. the role of the salesperson has been down-graded in business marketing.
D. organizational buyers have little use for salespeople.
E. the salesperson's job is to "get rid of the product."
Answer:
_____ prefer to do things the way they have been done in the past and are very
suspicious of new ideas.
A. Innovators
B. Early adopters
C. Laggards or nonadopters
D. Late majority customer group
E. Opinion leaders
Answer:
Consumer product classes
A. are based on how the product will be used.
B. are based primarily on how much effort is actually involved in making a purchase.
C. suggest the type of marketing mix that should be used, but business product classes
have little to do with the marketing mix that should be used.
D. are based on how consumers think about and shop for products.
E. None of these alternatives is correct.
Answer:
Which of the following statements about direct channel systems is FALSE?
A. There is no reliance on independent intermediaries whose objectives may be
different from the producer's objectives.
B. Suitable intermediaries are always available even when they're needed at the last
minute.
C. The producer can be more aware of changes in customer attitudes.
D. Direct channels are more typical with business products than with consumer
products.
E. None of these statements about direct channel systems is FALSE.
Answer:
When selecting among possible product-market strategic plans,
A. the total profit approach tends to support plans that will be profitable in the short
term even if longer term profits would be higher with another plan.
B. the total profit approach requires estimates of sales, costs, and profits.
C. the total profit approach compares plans that require the same investment.
D. None of these statements is true.
Answer:
Customer service reps:
A. are order getters who sell service products.
B. usually work with missionary salespeople.
C. resolve problems after a purchase has been made.
D. usually install technical products for customers.
E. hire professional services personnel.
Answer:
When a previous visitor to Amazon.com returns to the site, the online retailer will
instantly know whether that visitor made a previous purchase based on the
___________ it placed on the visitor's computer during the first visit.
A. institution
B. reminder
C. cooperative
D. cookie
E. allowance
Answer:
Splash World Pool Supplies wants its salespeople to call on pool wholesalers five times
per year and to spend two hours on each sales call. Every salesperson works a 40-hour
week and takes off two weeks for vacation each year. A salesperson must spend half of
the time on travel and administration. Approximately how many salespeople does
Splash World need to service 1000 accounts?
A. 10
B. 20
C. 8
D. 2
E. 24
Answer:
An organization practicing ______ aims all its efforts at satisfying its customers-at a
profit.
A. the sales concept
B. a production orientation
C. in the marketing department era
D. profit maximization economics
E. the marketing concept
Answer:
A _____ is a strong stimulus that encourages action to reduce or satisfy a need.
A. want
B. motivation
C. drive
D. desire
E. deed
Answer:
A computer store regularly advertises a very low price for a well-known brand of disks.
When the customers come in, however, the salespeople point out the disadvantages of
this particular brand and try to persuade them to buy other disks at much higher prices.
This retailer is using:
A. bait pricing.
B. odd-even pricing.
C. psychological pricing.
D. leader pricing.
E. price lining.
Answer:
Which of the following statements would be most likely to be made by a manager with
a status quo pricing objective?
A. "A price of $10.00 will penetrate the market."
B. "A price of $10.00 will not start a price war with our competitors."
C. "A price of $10.00 should maximize profits."
D. "A price of $10.00 will provide a 30% return on investment."
E. "A price of $10.00 should result in a 9% increase in sales."
Answer:
Industry sales are highest in which of the following product life cycle stages?
A. Market growth
B. Market development
C. Market maturity
D. Sales decline
E. Market introduction
Answer:
GEICO's aggressive advertising campaign of the late 1990s was designed to accomplish
which of the following objectives?
A. Target the low-risk market of federal employees
B. Win customers away from established competitors
C. Target the high-risk market of military personnel
D. Enable the company to avoid filing bankruptcy
E. Continue widespread recognition of the brand
Answer:
Which of the following are NOT true about a firm practicing the marketing concept?
A. Everyone in the organization focuses on satisfying customers.
B. Offering superior customer value attracts customers.
C. Satisfying customers leads to customers defecting to the competition.
D. Firms build profitable customer relationships.
E. All of these are true.
Answer:
The best way to reach INNOVATORS is through:
A. the mass media.
B. salespeople.
C. local opinion leaders.
D. impersonal and scientific information sources.
E. salespeople and the mass media.
Answer:
The marketing manager for a producer of mattresses and box springs distributes its
products through discount stores (like Costco), department stores, furniture stores, and
specialty bedding stores. To avoid conflict with channel members, the manager
A. should offer purchase discounts based on the quantity of mattresses that the retailer
sells.
B. assume that all channel members have a common commitment to target consumers at
the end of the channel.
C. trust retailers to emphasize sales of his brand rather than the brand of some other
manufacturer.
D. develop different brands or product lines for different channels.
E. expect one of the large retail chains to step up to the responsibilities of being the
channel captain.
Answer:
According to the text, product quality means that:
A. products are designed to meet demanding specifications.
B. a product satisfies a customer's requirements or needs.
C. there are no errors in the production process.
D. the product won't ever break.
E. None of these choices is correct.
Answer:
Franchise operations:
A. generally have very loose ties between the franchisor and franchise holders.
B. are expected to decline in the future because the service sector of the economy is
failing.
C. currently account for about a third of all retail sales.
D. do not form chains.
E. None of these alternatives is true.
Answer:
A "product" might include:
A. a brand name, a package, and a warranty.
B. instructions.
C. a service which does not include a physical good at all.
D. some physical item and its related features.
E. All of these choices are good answers.
Answer:
Which of the following is NOT an example of the micro-macro dilemma?
A. Many people like beer and wine, but drunk driving is a big social problem.
B. Some people like to eat a lot, but later feel guilty about eating too much.
C. A "good" lawn mower can be produced cheaply, but its price must be higher if its
design must be safe for "ignorant" users.
D. A smoker may enjoy a cigar, but the smell can make other people sick.
E. Downhill snow skiing is fun, but really quite dangerous.
Answer:
Kyra Hanover is an order getter for a modern wholesaler. Kyra is LEAST likely to be
involved with:
A. repairing products returned to retailers by customers.
B. conducting demonstrations for retailers' salespeople and customers.
C. checking stock to determine what retailers should order.
D. helping to plan special promotions and advertising for retailers.
E. serving as a marketing advisor to her retailers.
Answer:
Which of the following is true of a producer-led channel system?
A. The intermediaries do not support the producer at any stage.
B. The system is implemented when producers are small.
C. Intermediaries select the target market, while producers develop the product.
D. The system is effective when a producer's brand requires penetration pricing.
E. Producers fix the prices of their offerings.
Answer:
MICRO-marketing effectiveness can be measured by:
A. the profits of business firms.
B. the opinions of intermediaries.
C. consumer complaints.
D. attitude research studies.
E. All of these are good measurements for MICRO-marketing.
Answer:
Use this information for question that refer to the Centerville Retailers and Wholesalers
case.
Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby
and craft supplies. She bought the store after working there for 7 years. Carol has just
been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber
of Commerce. The most active chamber members in her group are described below:
Walden's Leather is part of a regional chain of stores that sells leather goods-mostly
men's and women's clothing-with the upscale Walden's brand name. Walden's primarily
relies on its own stores where knowledgeable salespeople offer great service. Walden
products are also sold, on a limited basis, in some fine department stores.
Publisher's Helper is a small business started by Audrey Yang that provides and stocks
display racks for paperback books and magazines. Most retailers welcome the service
Audrey provides, in part because she does her own research to determine which
paperback books and magazines sell best in Centerville.
Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of
merchandise. The company used to concentrate its product mix on small appliances-but
now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster
turnovers and higher sales volumes.
Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed
a contract with Games Unlimited and follows strict rules covering her store's operations
and the Games Unlimited marketing strategy. She pays that company a fee for
promotion it provides as well as commissions on her sales.
Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty
products to retailers and salons throughout the greater Centerville area. It owns the
goods it sells to these retailer customers, and it provides all the wholesaling functions
they need.
Valu Grocer is an independent grocery store that belongs to an organization sponsored
by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer
name are linked by contracts that include basic operating procedures, storefront designs,
and joint promotion efforts.
Reddy and Sons sells equipment for several different manufacturers of plastic molding
in the Centerville area. It earns a commission from each manufacturer on the products it
sells for that manufacturer, but it does not take ownership of the equipment it sells nor
does it install the equipment.
Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years
ago. After some success, the company moved into a nicer storefront, raised prices, and
now operates in the middle of the market.
Which of these businesses has followed the wheel of retailing theory?
A. Games Unlimited
B. Katrina's Salon
C. Walden's Leather
D. Valu Grocer
Answer:
