Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Salespeople usually earn more than top management.
Answer:
Customer lifetime value involves a financial analysis that considers all of a customer's
purchases over their lifetime.
Answer:
According to the text, the U.S. social class system is much more rigid than those in
most countries.
Answer:
Direct-response promotion usually relies on a CRM database.
Answer:
Break-even analysis evaluates whether the firm will be able to cover all its costs with a
particular price.
Answer:
Sales promotion may be aimed at final consumers, retailers, wholesalers, or a
company's own employees.
Answer:
The basic idea behind integrated marketing communications is that it is critical for all
of the different firms in a channel of distribution for a product to have an input in
developing the advertising campaign for the product.
Answer:
It is always in the best interest of the market pioneer for competitors to stay out of the
market.
Answer:
The basic job of pioneering advertising is to persuade, not inform.
Answer:
It is the chief executive's job to communicate with others in the organization and
explain the new marketing strategy, what needs to happen, and why.
Answer:
Accumulating involves dividing larger quantities into smaller quantities as products get
closer to the final market.
Answer:
Generally the nations with the fastest growth in GDP are not the nations with the largest
GDPs.
Answer:
Indirect distribution usually requires less investment capital than direct approaches.
Answer:
Manufacturers' sales branches are warehouses that producers set up at separate locations
away from their factories.
Answer:
Some firms are forced to use direct distribution when they can't find intermediaries
willing to carry innovative, new products.
Answer:
Samsung's placement of charging stations in airports and on college campuses is a good
example of a company offering its customers "branded services."
Answer:
A marketing program blends all of the firm's marketing plans into one "big" plan and is
the responsibility of the whole company.
Answer:
Sequential price reductions and clearance sales are the same thing.
Answer:
The Consumer Product Safety Act provides for the creation of safety standards but has
no power to set penalties for failure to meet these standards.
Answer:
Relationship-specific adaptations involve changes in a firm's product or procedures that
are unique to the needs or capabilities of a relationship partner.
Answer:
Purchases by small service firms are often handled by whoever is in charge or their
administrative assistant.
Answer:
Key countries in Europe have moved to the euro, a new unified money system for the
European Union.
Answer:
Cost analysis and performance analysis are the same thing.
Answer:
If a product-market segment is "homogeneous within," it is called a 'substantial" target
market.
Answer:
In general, sales promotion tries to spark immediate interest, trial, or purchase.
Answer:
The product life cycle shows that sales of an individual firm's brand follows a general
patternwhich is very useful for marketing strategy planning.
Answer:
Purchasing managers are buying specialists for organizations and may have a lot of
power.
Answer:
"Good" market segments should be heterogeneous within and homogeneous between.
Answer:
Changes in total cost depend on variations in total variable cost, since total fixed cost
stays the same.
Answer:
Pricing a product sold in a foreign market higher than in its domestic market is referred
to as dumping.
Answer:
The "battle of the brands" is the competition between dealer brands and manufacturer
brands.
Answer:
Team selling occurs when different people work together on a specific account.
Answer:
Firms that operate on the Internet are at a disadvantage when it comes to using
approaches like CRM.
Answer:
Economic needs are concerned only with getting the best quality at the lowest price.
Answer:
In the observation method, researchers try to see or record what the subject does
naturally.
Answer:
A service logo refers to a type of trademark used for a service offering.
Answer:
Merchant wholesalers account for almost 85 percent of all wholesalers.
Answer:
Manufacturers are sometimes forced to use "multichannel distribution" because their
present channels are doing a poor job or are not reaching some potential customers.
Answer:
A seller's marketing mix should satisfy BOTH the needs of the customer company and
the needs of individuals in the buying center.
Answer:
Consumer products which customers see as basically the same and want to buy at the
lowest price are called:
A. heterogeneous shopping products.
B. homogeneous shopping products.
C. comparison products.
D. unsought products.
E. convenience products.
Answer:
Identify the incorrect statement pertaining to the GNI per capita.
A. The GNI per capita in the United States is the highest in the world.
B. The GNI per capita is quite high in the United States, Japan, and Germany.
C. The GNI per capita gives some idea of the income level of people in the country.
D. Many managers see great potential in countries where GNI per capita is low.
E. Managers see less competition where GNI per capita is low.
Answer:
Pill Makers Pharmaceuticals extensively tests all of its drugs to assure that it follows
the ____.
A. Sherman Act
B. Pure Food and Drug Act
C. Federal Trade Commission Act
D. Magnuson-Moss Act
E. Clayton Act
Answer:
__________ are a type of limited-function wholesaler that owns products they sell, but
do not actually handle, stock, or deliver them.
A. Rack jobbers
B. Catalog wholesalers
C. Drop-shippers
D. Truck wholesalers
E. Cash-and-carry wholesalers
Answer:
An electronic goods manufacturer launched a promotional campaign which involved a
flat twenty percent discount on all purchases made on the manufacturer's website. This
campaign became very popular. However, the large number of simultaneous purchases
on the website caused it to crash. Which of the following statements can definitely be
concluded from this information?
A. The company's website was not secure, which made hacking easy.
B. The online sales resulting from this promotional campaign generated more revenue
than its retail outlets during the same period.
C. Promotional campaigns involving a discount generally result in a loss rather than an
increase in profit.
D. The company's website did not have the capacity to handle such a high load.
E. Sales at the manufacturer's retail stores were at an all-time low prior to the
promotional campaign.
Answer:
A live-at-home college student is watching a "Mad Men" TV program, but walks to the
refrigerator to get a soft drink during a commercial. In the traditional communication
model, the walk to the refrigerator is the:
A. Source.
B. Receiver.
C. Noise.
D. Decoding.
E. Encoding.
Answer:
Managers who think of customers existing to buy the firm's output rather than of firms
existing to serve customers andmore broadlythe needs of society, have a
A. marketing orientation.
B. production orientation.
C. selling orientation.
D. dynamic orientation.
E. customer orientation.
Answer:
Hallmark advertises its gift items with the popular tagline, "When you care enough to
send the very best." Here, Hallmark's marketing effort focuses on satisfying what level
in the hierarchy of needs?
A. Social
B. Safety
C. Physiological
D. Personal
Answer:
Regarding the challenges facing marketers, the text suggests that:
A. government planners should play a major role in deciding what product choices
consumers should have.
B. continued growth of GDP is one favorable change in our macro-marketing system
that a marketing manager can count on.
C. there is likely to be much less regulation of marketing in the future, especially in
regard to consumer privacy.
D. marketers should look for ways to improve a strategy even before there's reason to
believe that something needs to be fixed.
E. All of these alternatives are correct.
Answer:
Sales promotion can be aimed at:
A. intermediaries.
B. a company's own sales force.
C. final consumers or users.
D. Any or all of these is correct.
Answer:
Sunkist sells foreign companies the right to use the Sunkist brand on soft drinks and
citrus juices sold outside the United States. Sunkist gets both an initial fee and a royalty
on the sale of goods bearing its brand name. Sunkist is engaged in:
A. Exporting.
B. Management contracting.
C. Licensing.
D. Joint venturing.
E. None of these is a good answer.
Answer:
Radio Shack is an example of what type of organizational customer?
A. Retailer
B. Producer
C. Government
D. Nonprofit
E. Wholesaler
Answer:
For six months Kim Wu has been working for Sunny Day Foods (SDF), a fast-growing
manufacturer of organic foods. After graduating college, she worked for four years as a
sales rep for a nationally known food company. But, she jumped at the chance when
SDF contacted her about becoming marketing manager for its breakfast foods division,
which sells dry cereals and a pancake mix.
Kim spent the first few months on the job trying to better understand SDF, its product
line, and marketing strategy. She reviewed the company's past marketing research,
commissioned new research, and talked to both consumers and retailers. Now, the CEO
of the company wants her thoughts on what the company's marketing strategy should be
for the next few years.
Her research indicates that among cereal customers there are at least five segments of
customers who use SDF products.
a) One segment, the loyalists, has a strong preference for one or two of the SDF cereals.
These customers often go out of their way to visit a store with their favorite SDF cereal
and buy only that product at the store.
b) Another segment, the regulars, buys SDF cereals without much thought. For them it
is just part of their routine and, if you ask them why they pick the cereal, they'd say it's
just a habit.
c) A third segment, the deal prone, sees SDF cereals as just another organic cereal. They
view all organic cereals as pretty much the same and buy whichever brand seems to
offer the best deal that week.
d) A fourth segment, the politicos, consists of former buyers of SDF cereals. A few
years ago the company took a strong stand in a presidential race-and these customers
resented it. Now, they boycott all SDF foods because of that incident.
e) A fifth segment, SDF who?, is made up of consumers who buy organic cereals but
who don't have much awareness of particular organic brand names.
In reviewing how SDF currently brands its products, Kim sees that it is using several
different approaches. The Sunny Day Foods brand is used on most products the
company sells. But a few years ago the company brought out an instant organic oatmeal
with the Hot n Healthy name. SDF also makes cereal sold by a health food chain; the
package for that chain uses the store's own name, Nature's Foods, as the brand name for
the cereal.
What best describes the level of brand familiarity that customers in "the loyalists"
segment have with SDF?
A. Brand rejection
B. Nonrecognition
C. Brand recognition
D. Brand preference
E. Brand insistence
Answer:
Good marketing strategy planners know that:
A. firms like Nabisco and Wal-Mart are too large to aim at clearly defined target
markets.
B. target marketing does not limit one to small market segments.
C. mass marketing is often very desirable and effective.
D. the terms "mass marketing" and "mass marketer" mean basically the same thing.
E. target markets cannot be large and spread out.
Answer:
A supply chain:
A. focuses on making services available whereas a channel of distribution focuses on
making goods available.
B. may involve many firms, but only one manufacturer.
C. includes all the activities involved in procuring materials, transforming them into
products, and distributing them to customers.
D. is easier to coordinate than a channel of distribution.
E. None of these alternatives about a supply chain is correct.
Answer:
The text says "markup" means percent of:
A. "mark-on."
B. selling priceunless otherwise stated.
C. fixed cost.
D. delivered costunless otherwise stated.
E. cost of sales.
Answer:
Prices are called "administered" when:
A. they are determined through negotiations between buyers and sellers.
B. they fall below the 'suggested list price."
C. a marketing manager has to change the strategy every time a customer asks about the
price.
D. government intervenes to ensure that prices fluctuate freely in response to market
forces.
E. firms set their own prices for some period of timerather than letting daily market
forces determine their prices.
Answer:
When consumers decide to purchase a music CD from Amazon.com, the company's
website often suggests that consumers purchase an additional CD by the same artist for
a combined price that is lower than the two CDs would sell for separately. Amazon.com
is using:
A. Product-bundle pricing.
B. Complementary product pricing.
C. Full-line pricing.
D. Bid pricing.
E. Demand-backward pricing.
Answer:
When doing "positioning," a marketing manager should:
A. avoid targeting strategies.
B. focus on specific product features of all generic competitors.
C. rely on how customers think about proposed and/or existing brands in a market.
D. plan physical product changes rather than image changes.
E. None of these is a good choice.
Answer:
Personal selling techniques include all of the following EXCEPT:
A. searching for prospects.
B. making sales presentations.
C. planning sales presentations.
D. preparing job descriptions.
E. following up after the sale.
Answer:
The "full-cost approach" to marketing cost analysis:
A. Allocates all costs, except fixed costs, to products, customers, or other categories.
B. Is designed so that customers, products, or other categories are always allocated an
equal amount of costs.
C. Requires that difficult-to-allocate costs be split in some way.
D. Should always be avoided.
E. None of these are correct.
Answer:
200 units of a good were produced at a total cost of $4,000. Given that total fixed cost
was equal to $1,800, the average total cost per unit will be equal to _____.
A. $29
B. $11
C. $20
D. $9
E. $36
Answer:
The U.S. government would NOT publish NAICS data that gives:
A. the total sales volume of the four steel manufacturers in a geographic area.
B. the number of employees for similar two-digit industry groups.
C. the total sales volume of the only textile equipment manufacturer in a state.
D. the sales volumes of similar two-digit industry groups.
E. the number of establishments for various industry groups.
Answer:
Given the nature of marketingand the kinds of criticism it typically getsmarketing
should be evaluated:
A. at both the micro and the macro level.
B. mainly at the macro level.
C. mainly at the micro level.
D. None of these alternatives is correct.
Answer:
Producers do cooperative advertising with retailers because:
A. media rate structures give national firms lower rates than local firms.
B. the FTC requires it.
C. retailers create better ads than producers.
D. retailers are more likely to follow through when they are paying a share of the cost.
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:
"Promotion" is concerned with:
A. how suitable messages are communicated to target customers.
B. communicating information between seller and buyer or others in the channel to
influence attitudes and behavior.
C. informing customers that the right Product is available at the right Place at the right
Price.
D. blending personal selling, mass selling, and sales promotion.
E. All of these are parts of "Promotion."
Answer:
The main difference between a "marketing strategy" and a "marketing plan" is that:
A. time-related details are included in a marketing plan.
B. a marketing plan includes several marketing strategies.
C. a marketing strategy provides more detail.
D. a marketing strategy omits pricing plans.
E. a marketing plan does not include a target market.
Answer:
Cross-functional challenges are greatest
A. when minor changes are made to an existing strategy.
B. in routine established operations.
C. to a plan that the firm is already implementing.
D. when developing completely new marketing strategies.
E. when competition is nonexistent.
Answer:
A reduction from list price given to retailers to get shelf space for a product is a:
A. shelf allocation.
B. brokerage allowance.
C. trade allowance.
D. slotting allowance.
E. push money allowance.
Answer:
Natasha Talbott was interested in a new set of golf clubs. She discussed the various
types with some knowledgeable friends and relied on their advice. Natasha's friends
were acting as:
A. an economic influence.
B. routinized decision-makers.
C. a social class.
D. a lifestyle group.
E. a reference group.
Answer:
In a firm operating as a total 'system" to implement the marketing concept:
A. the whole company is customer-oriented.
B. there are no departments.
C. product planning is under the control of the production or engineering departments.
D. the marketing manager directs and controls all company activities.
E. None of these is true.
Answer:
"Product life cycles" are concerned with sales and profits:
A. in generic marketsnot individual product-markets.
B. of a firm's individual products or brands.
C. of goods but not services.
D. in a product-market.
E. None of these alternatives is a good answer.
Answer:
