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By differentiating the marketing mix to do a better job meeting customers' needs, the
firm builds a competitive advantage.
A consumer's total cost of shopping on the Internet includes delivery costs in addition to
purchase price.
"Breakthrough opportunities" are ones that help innovators develop hard-to-copy
marketing strategies that will be profitable for a long time.
There are more final consumers than business and organizational customers, so more is
purchased by final consumers.
Goods are intangible and services are tangible.
To guarantee good media selection, the advertiser must specify its target market and
then choose media that will reach these target customers.
The mass-merchandising concept means that retailers can succeed by selling a large
volume of merchandise to a target market at low prices.
Marketing ethics are the moral standards that guide marketing decisions and actions.
A manufacturer that uses several competing channels to reach the same target market is
using "multichannel distribution."
In the example for the 7-step approach (discussed in the text), the "resort seekers" and
the "executives" should be combined because both groups have high incomes.
Computing a percentage of either past sales or sales expected in the future is the most
common method of budgeting for promotion expenditures.
Much of the sales promotion aimed at final consumers or users tries to increase
demand, perhaps temporarily, or speed up the time of purchase.
The three general promotion objectives of informing, persuading, and reminding are all
concerned with providing more information.
Nationalism may affect marketing strategy planning by determining to whom and how
much a firm may sell.
There are usually more different strategy possibilities than a firm can pursue.
A marketing researcher using the scientific method develops and tests hypotheses about
the relationships between things or about what will happen in the future.
A selling agent takes over the whole marketing job of producers, not just the selling
function.
Digital self-service lowers costs.
A new channel is more likely to prompt conflict if it focuses on segments not already
served by current channels.
A good marketing plan will work well throughout the different stages of the product life
cycle.
The seven-step approach to segmenting product-markets (discussed in the text) helps
narrow down from a broad set of opportunities to a specific target market and marketing
strategy.
In the market growth stage, sales promotion is targeted at salespeople or channel
members to get them interested in selling the new product.
In a recent Nielsen online survey of over 25,000 Internet consumers from 50 countries,
over 60 percent of respondents said they trusted television advertising as an information
source.
Planning Place and Promotion elements of a marketing mix is especially difficult if the
dimensions of a product-market are not operational.
Good salespeople try to sell the customer, regardless of other factors.
Organizational buyers are often referred to as the B2B market.
Most manufacturers are quite small, with 250 or fewer employees.
Consumers use extensive problem solving when they put SOME effort into deciding
how to satisfy a need.
In the United States, the basic objective of our market-directed economic system has
been to satisfy consumer needs as they, the consumers, see them.
In total, advertising costs less than sales promotion.
There is no real reason for a firm to use individual brands rather than a family
brandexcept to avoid confusion.
In a large company, the "buying center" refers to all of the purchasing managers who
work for the firm.
Managers who embrace the marketing concept realize that they cannot just define their
line of business in terms of the products they currently produce or sell.
A marketing-oriented firm would try to produce what customers want, while a
production-oriented firm would try to get customers to buy what the firm has produced.
In cooperative relationships in a business market, the buyer and seller work together to
jointly achieve both mutual and individual objectives.
According to the General Electric strategic planning grid, a business that is the
strongest in its industry:
A. should still be considered as a "no-growth" prospect unless the industry
attractiveness is high.
B. is a good prospect, provided the industry has at least medium attractiveness.
C. should automatically receive a large investment.
D. All of these alternatives about GE's strategic planning grid are true.
A firm with a stockturn rate of 4 sells products that cost it $100,000. This requires
_____ worth of inventory.
A. $25,000
B. $20,000
C. $80,000
D. $400,000
E. $500,000
When Hewlett-Packard sends an e-mail to key business customers announcing a special
low price on a new type of printer that is faster and produces better-quality color
documents than any of its current printers, this is an example of:
A. direct-response promotion.
B. integration.
C. publicity.
D. indirect-response promotion.
E. mass selling.
Sales promotion for frequently purchased consumer products usually has to change in
mature markets. Why is this the case?
A. Demand for more support for manufacturer brands.
B. Increased competition from dealer brands in large, powerful retail chains.
C. Greater price sensitivity among consumers.
D. Limitations on shelf space in retail stores.
E. All of these alternatives are correct.
"Retailing" refers to:
A. the sale of products to final consumers.
B. the sale of both business and consumer products.
C. the sale of consumer products to wholesalers, retailers, or final consumers.
D. the performance of regrouping activities.
E. None of these is a good answer.
The fact that US car companies are located in the upper Midwest while their customers
are located throughout the U.S. is an example of:
A. separation in values.
B. discrepancies of assortment.
C. separation of information.
D. spatial separation.
E. separation in time.
Complete acceptance of the "marketing concept" would require:
A. making sure that all departments focus their efforts on satisfying customer needs.
B. having all production, finance, accounting, and personnel managers report directly to
the marketing manager.
C. placing less emphasis on profit as the objective of the firm.
D. trying to satisfy the needs of each and every customer.
Which of the following is a possible danger when using a combining approach to target
marketing?
A. Competitors may do a better job appealing to submarkets.
B. Coordinating the different marketing mixes for the different segments is difficult.
C. The target market may become larger over time.
D. Economies of scale may develop.
E. All are dangers.
"Logistics" is concerned with:
A. reducing spatial separations between producers and consumers.
B. transporting, storing, and handling of physical goods along channel systems.
C. transporting, storing, and handling of physical goods within individual firms.
D. physical distribution.
E. All of these are included in Logistics.
A sales manager has just discovered that one of his sales reps has sales about 20 percent
below his quota. The sales manager should conclude:
A. that the sales rep's quota was set too high.
B. that the sales rep lacks the desire to succeed.
C. that "all is well" because other salespeople had sales that were at least 20 percent
over their quotas.
D. that the salesperson's performance index is 4 (i.e., 80:20).
E. nothing thus farbecause of the "iceberg principle."
Which of the following is not a type of service wholesaler?
A. General merchandise
B. Cash-and-carry
C. Specialty
D. Single-line
E. General-line
If a retailer's annual stockturn rate shifted to 20 from 5, then selling products costing
$100,000 would require ______________ rather than $20,000 in working capital to
carry the needed inventory.
A. $10,000
B. $80,000
C. $8,000
D. $500
E. $5,000
The two basic methods for obtaining primary information about customers are
A. defining and analyzing.
B. questioning and observing.
C. intranet and data from private research organizations.
D. marketing information systems and cost data.
E. Internet search and library search.
Which of the following countries is most likely to have the largest percentage of
consumers who regularly purchase online?
A. United Kingdom
B. Argentina
C. Poland
D. India
E. Turkey
______________ are capital items that cost less and are shorter-lived than installations.
A. Supplies
B. Staples
C. Component parts
D. Component materials
E. Accessory equipment
A manufacturers' agent:
A. sells noncompeting products for several manufacturers in a limited territory.
B. is often replaced by a manufacturer's own sales force when sales rise.
C. is paid a commission on sales.
D. can be especially useful to a small manufacturer with a narrow line of new products.
E. All of these alternatives are correct for a manufacturers' agent.
Regarding message planning:
A. a specific message usually can be used for several target markets.
B. communication may be poor if there is not a common frame of reference.
C. behavioral research shows that most consumers cannot "tune out" advertising
messages.
D. advertising is more suitable for changing behavior than attitudes.
E. All of these alternatives are correct.
A vendor is LEAST LIKELY to make a sale if the buyer has not bought from the vendor
before and is doing:
A. straight rebuy buying.
B. selective buying.
C. new-task buying.
D. selective task buying.
E. modified rebuy buying.
Positioning maps are based on:
A. the actual objective characteristics of products.
B. the opinions of the marketing managers.
C. the potential places where a product may be sold and purchased.
D. the prices of competing products.
E. customers' perceptions of products.
To maximize its profit, a producer should set a price (and produce that related output)
where:
A. marginal cost is just less than or equal to marginal revenue.
B. marginal cost is at its minimum.
C. price is as high as possible.
D. total revenue equals total cost.
E. marginal revenue is zero.
The city of St. Louis is encouraging its residents to drink tap water instead of filling its
landfills with plastic water bottles, even though some consumers prefer the convenience
of plastic water bottles. This is an example of:
A. customer value.
B. economies of scale.
C. the storing function.
D. innovation.
E. the micro-macro dilemma.
_____ means selling the right to use some process, trademark, patent, or other right for
a fee or royalty.
A. Licensing
B. Management contracting
C. Joint venturing
D. Exporting
E. Direct investment
Which of the following observations about reference groups is FALSE?
A. Reference groups are people to whom an individual looks when forming attitudes
about a particular topic.
B. An individual usually has a single reference group for all topics.
C. An individual may make buying decisions based on what the group thinks.
D. Reference group influence is stronger for products that others 'see."
E. Reference group influence is stronger for products that relate to status in the group.
Procedures that develop and analyze new information to help marketing managers make
decisions are called:
A. strategy planning.
B. operational planning.
C. analytical research.
D. marketing research.
E. statistical techniques.
World Tennis Ball Co. (WTB) makes tennis balls and sells them only in the U.S. Raul
Fernandez, the firm's marketing manager, is comparing his firm's distribution with two
major competitors.
1) WTB sells its products through four regional distributors who then sell to 22 sporting
goods wholesalers. The wholesalers sell to a total of 7,000 retail outlets. From its
website, WTB also sells directly to any customer who will purchase a minimum
quantity of 24 tennis balls. WTB cooperates with members of its channel, but maintains
some control through its economic power and leadership. It helps to direct the activities
of the whole channel and tries to avoid or resolve channel conflicts.
2) American Tennis Ball (ATB) is a competitor that sells through two distributorseach
with half the country. The distributors then sell through 6 sporting goods wholesalers,
and they, in turn, sell to 1,000 retail outlets (split between two national sporting goods
chains and two general merchandise stores). ATB and its channel make little effort to
work together. However, because of a relatively low level of competition between the
distributors, the wholesalers, or the retail stores, each member of the channel gives the
product special attention.
3) National Tennis Ball (NTB) sells its products through only three tennis specialty
wholesalers that sell only to tennis clubs. NTB actually owns the wholesale firms that
handle its products. NTB's balls are only available at certain tennis clubs and NTB
limits coverage to only one club in a particular geographic area.
A wholesaler for American Tennis Ball is likely to perform which of the following
regrouping activities:
A. Accumulating.
B. Bulk-breaking.
C. Assorting.
D. All of these alternatives are correct.
In an oligopoly situation, a wise marketing manager will probably set the firm's price
level:
A. at the competitive level.
B. on a negotiated basisthat is, customer by customer.
C. above competitors' prices.
D. at least 10 percent below the price leader's price.
Regarding the size of manufacturing concerns, large firms (with more than 250
employees)
A. outnumber small firms more than two to one.
B. account for nearly half of all the manufacturing establishments.
C. are few in number but their employees account for about 44 percent of production
workers.
D. provide no more "value added" than the many small firms.
E. None of these alternatives is true.
Purchasing managers rely on Internet ______________ ______________ to quickly
identify new supplies.
A. Procurement engines
B. Online communities
C. Purchasing sites
D. Search engines
The basic promotion objective of informing consumers corresponds to which stage(s) of
the AIDA model?
A. Getting attention.
B. Holding interest.
C. Getting attention and holding interest.
D. Getting attention and arousing desire.
E. Obtaining action.
When an advertiser pays a fixed amount (e.g. 70 cents) each time a Web surfer clicks on
the advertiser's ad and links to the advertiser's website, this process is called a(n):
A. copy thrust.
B. pay-per-view.
C. pioneering ad.
D. pay-per-click.
E. advertising allowance.
Which of the following are sales promotion activities aimed at the company's own sales
force?
A. Aisle displays
B. Bonuses
C. Point-of-purchase materials
D. Trade shows
E. Frequent buyer programs
In addition to mail, direct-response promotion may include websites, broadcast, e-mail,
and interactive media.
