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Gloria Highnote works for CD Wholesale. She helps CD's retailer-customers set up
their cooperative advertising, helps train the retailer's salespeople, and gives CD
feedback on how sales promotion ideas are working. Gloria is:
A. a technical specialist.
B. a customer service rep.
C. an order getter.
D. an order taker.
E. a missionary salesperson.
Answer:
VoiceSys, Inc. produces voice-mail switchboard systems used in large office buildings,
hotels, and other facilities. VoiceSys is short of cash, but its products are so profitable
and are selling so well that it has decided to buy more production equipment from one
of the many suppliers that serve its industry. This example illustrates:
A. how installations are a boom-or-bust industry.
B. why installations may have to be leased or rented.
C. derived demand.
D. All of these alternatives are correct.
Answer:
A total profit approach to evaluating product-market strategic plans
A. will not work if the plans are for the same number of years.
B. will be most useful when the plans require very different levels of investment.
C. may support a particular plan even if it generates poor profits in some years.
D. does not include sales and costs incurred in the first year of the plan.
E. None of these are good answers.
Answer:
The process of naming broad product-markets and then segmenting them in order to
select target markets and develop suitable marketing mixes is called:
A. Market penetration.
B. Market segmentation.
C. Market development.
D. Market research.
E. Market pioneering.
Answer:
Which of the following do firms using value pricing tend to avoid?
A. Setting a high price only because consumers already know the brand name
B. Building a relationship with a customer which raises their expectations
C. Delivering unexpected services which haven't been stated to the customer
D. Establishing a price level that gives the target market superior customer value
E. Focusing on customer requirements and adopting a relevant marketing mix
Answer:
Which of the following criticisms focuses most directly on a macro view of marketing,
rather than a micro view?
A. Products often wear our right after the warranty expires.
B. Much TV advertising is annoying.
C. Marketing exploits the poor and the uneducated.
D. Prices for very similar products vary a lot from store to store.
E. Door-to-door salespeople are trained to be pushy.
Answer:
Identify the incorrect statement about sales promotions.
A. Sales promotions have increased because of competition in emerging markets.
B. Sales promotions can be used as tools to overcome consumer price resistance.
C. Changes in technology have made sales promotions more efficient.
D. The availability of more ad agencies and specialists has spurred growth in sales
promotions.
E. An appropriate sales promotion depends on the situation and objectives.
Answer:
A _____ explains what the seller promises about its product.
A. copyright
B. trademark
C. brand
D. service mark
E. warranty
Answer:
Segmenting dimensions
A. are useful for segmenting consumer markets, but not business markets.
B. help guide marketing mix planning.
C. are always demographic or geographic.
D. fall into two general categories: qualifying and purchasing.
E. may be called qualifying or non-qualifying.
Answer:
In which of the external environments changes usually occur most slowly?
A. Cultural and social environment
B. Political and legal environments
C. Resources and objectives of the firm
D. Competitive environment
E. Economic and technological environments
Answer:
Product-market screening criteria should be:
A. quantitative.
B. qualitative.
C. realistic and achievable.
D. all of these are correct.
Answer:
Which of the following is the BEST example of management thinking during the
"production era"?
A. "The more we advertise a product, the more we can sell."
B. "We need to increase our sales effort-to sell what we can produce."
C. "If we can produce it, customers will buy it."
D. "We need to be selective and produce what customers want."
E. "The lower we price a product, the more we can sell."
Answer:
If the promotion objective is to arouse desire and obtain action, which type of publicity
would work best?
A. Blogs
B. Direct-to-consumer press releases
C. Podcasts
D. Case studies
E. Facebook
Answer:
TopKnotch Mfg. Co. has a production cost of $280. It sells its product to a wholesaler
for $400. The wholesaler then sells the item to retailers for $500 and the retailers sell
the item for $1,000. Which of the following is true about this "markup chain?"
A. The wholesaler's markup is 25 percent.
B. The manufacturer is taking a markup of 30 percent.
C. The retailers' markup is 100 percent.
D. None of these alternatives is true for this markup chain.
Answer:
The first step of the marketing research process-defining the problem-is the most
important because:
A. it comes first.
B. it involves qualitative research.
C. failure to correctly define the problem will cause all subsequent steps to be wasted
effort.
D. many problems go away once they are clearly defined.
E. it's easy to confuse problems with symptoms at this stage.
Answer:
Which of the following statements about electronic data interchange is FALSE?
A. Inventory information is automatically updated.
B. EDI has not yet spread to international markets.
C. A customer transmits its order information directly to the supplier's computer.
D. EDI is very common in the United States.
E. EDI puts information into a standardized format.
Answer:
The Magnuson-Moss Act:
A. requires that all warranties be "full."
B. says that all firms must offer written warranties for all products.
C. requires that all warranties cover at least a one-year period.
D. says that producers must provide a clearly written warranty if they choose to offer
any warranty.
E. All of these alternatives are correct.
Answer:
Concerning the product life cycle:
A. profits and sales begin to decline in the maturity stage.
B. individual products may enter and leave the market at any stage.
C. a successful introduction almost guarantees that the product will remain a success
over the life cycle.
D. phasing out a dying product is not a strategy.
E. None of these alternatives is true.
Answer:
A cluster analysis of the "toothpaste market" would probably show that:
A. the broad product-market can be served effectively with one marketing mix.
B. most consumers are mainly concerned about brightness of teeth.
C. factors such as taste, price, and 'sex appeal" are not important.
D. different market segments seek different product benefits.
E. None of these alternatives is correct.
Answer:
Which of the following is not a product?
A. An automobile
B. A movie
C. A visit to the dentist
D. An iPad
E. Microsoft
Answer:
Which of the following are meant for use in producing other products?
A. Consumer products
B. Staples
C. Business products
D. Convenience products
E. Shopping products
Answer:
Salespeople are likely to be responsible for:
A. providing market information to the firm.
B. providing technical support.
C. attaining sales goals.
D. maintaining customer relations.
E. Any or all of these are correct.
Answer:
A specialty product
A. may not require much searching to find it, but the customer would be willing to
search if necessary.
B. may carry a well-recognized brand.
C. may be frequently purchased.
D. need not be an expensive item.
E. All of these alternatives are correct.
Answer:
Consumer products which consumers do not yet want or know they can buy-and
probably would not buy without special promotion even if they saw them-are called:
A. new brands of well-accepted staples.
B. unsought products.
C. heterogeneous shopping products.
D. emergency products.
E. homogeneous shopping products.
Answer:
A retailer's "Promotion" may include:
A. publicity.
B. demonstrations and displays.
C. online videos and reviews.
D. number of salespeople.
E. all of these are included in a retailer's "Promotion."
Answer:
"Place" is NOT concerned with:
A. who handles storing and transporting.
B. when and where products are wanted.
C. kinds of intermediaries needed to reach customers.
D. telling the target market what products are available-and where.
E. channels of distribution.
Answer:
When planning channels of distribution, a marketing manager should know that
A. vertically integrated systems are seldom used-because of the difficulty of
maintaining control.
B. a contractual system offers both flexibility and stability for its members.
C. the disadvantage of a corporate channel system is reduced control over distribution
activities.
D. the disadvantage of an administered system is that it is a very formal arrangement.
E. none of these alternatives is correct.
Answer:
The term "economies of scale" means that:
A. The largest producers are always the most efficient.
B. The cost of a product goes down as a company produces larger numbers of it.
C. The more one produces, the greater the profit.
D. It is more efficient for an economy to have a large number of transactions.
E. None of these is correct.
Answer:
Unlike a business firm, a nonprofit organization
A. needs resources and support to survive and achieve its objectives.
B. must take in as much money as it spends or it won't survive.
C. does not measure "profit" in the same way.
D. faces competition for customers.
E. gets support directly from those who receive the benefits.
Answer:
Use this information for question that refer to the Sporting Products, Inc. (SPI) case.
Randy Todd, marketing manager for Sporting Products, Inc. (SPI), is thinking about
how changes taking place among retailers in his channel might impact his strategy.
SPI sells the products it produces through wholesalers and retailers. For example, SPI
sells basketballs to Wholesale Supply for $8.00. Wholesale Supply uses a 20 percent
markup and most of its 'sport shop" retailer customers, like Robinson's Sporting Goods,
use a 33 percent markup to arrive at the price they charge final consumers. However,
one fast growing retail chain, Sports Depot, only uses a 20 percent markup for
basketballs, even though it pays Wholesale Supply the same price as other retailers.
Furthermore, Sports Depot occasionally lowers the price of basketballs and sells them
at cost-to draw customers into its stores and stimulate sales of its pricey basketball
shoes.
Sports Depot is also using other pricing approaches that are different from the sports
shops that usually handle SPI products. For example, Sports Depot prices all of its
baseball gloves at $20, $40, or $60-with no prices in between. There are three big bins -
one for each price point.
Todd is also curious about how Sports Depot's new strategy to increase sales of tennis
balls will work out. The basic idea is to sell tennis balls in large quantities to nonprofit
groups who resell the balls to raise money. For example, a service organization at a
local college bought 2,000 tennis balls printed with the college logo. Sports Depot
charged $.50 each for the tennis balls-plus a $500 one-time charge for the stamp to print
the logo. The service group plans to resell the tennis balls for $2.50 each and contribute
the profits to a shelter for the homeless.
Todd is not certain if Sports Depot ideas will affect SPI's plans. For example, SPI is
considering adding tennis racquets to the lines it produces. This would require a
$500,000 addition to its factory as well as the purchase of new equipment that costs
$1,000,000. The variable cost to produce a tennis racquet would be $20, but Todd
thinks that SPI could sell the racquet at a wholesale price of $40 each. That would allow
most retailers to add their normal markup and make a profit. However, if Sports Depot
sells the racquet at a lower than normal price other retailers might decide to carry it.
How many of the printed tennis balls must the service organization sell to cover the
$500 fixed printing charge?
A. 250
B. 400
C. 500
D. 1000
E. 2000
Answer:
This advertising type may be useful when the product has achieved brand preference or
insistence, perhaps in the market maturity or sales decline stages.
A. Comparative advertising
B. Pioneering advertising
C. Competitive advertising
D. Reminder advertising
E. Institutional advertising
Answer:
Sellers pay a fee to use the "Sunkist" brand on more than 400 products in 30 countries.
Sunkist is a(n) ___________ brand.
A. manufacturer's
B. individual
C. dealer
D. licensed
E. specialty
Answer:
An appropriate marketing mix should be determined primarily by
A. what has worked for the company in the past.
B. the needs of a target market.
C. the budget available to spend.
D. the past experiences of the marketing manager.
E. what product the firm can produce with economies of scale.
Answer:
A manager who helps direct the activities of a whole channel and tries to avoid or solve
channel conflicts is a:
A. Channel director.
B. Channel coordinator.
C. Channel captain.
D. Channel ombudsman.
E. Channel troubleshooter.
Answer:
All of the following are product-based advertising except
A. institutional advertising.
B. cooperative advertising.
C. pioneering advertising.
D. comparative advertising.
E. competitive advertising.
Answer:
