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More money (in the U.S.) is spent on advertising than on sales promotion.
Fad products are characterized by popular styles and they appeal to the mass market.
Selling direct-to-customer is more common with business products than consumer
products.
The universal functions of marketing are performed in the same way in all nations and
economic systems.
A firm may introduce or withdraw a product during any stage of the product life cycle.
Turning a strategy into a profitable business usually requires money, people, and other
resources, such as production capacity, as well as a marketing plan.
Demand-backward pricing is commonly used by producers of consumer products,
especially shopping products such as women's clothing and appliances.
When finances are tight, it's sensible to look for strategy alternatives that get a better
return on money that is already invested.
Sales-oriented pricing objectives don't refer to profit.
Macro-marketing emphasizes how the whole marketing system works.
Institutional advertising emphasizes a particular product and plays down the name of
the company.
Reminder advertising is most likely to be useful in the market maturity or sales decline
stages of the product life cycleespecially when the product has achieved brand
insistence or brand preference.
Consumers have a responsibility to preserve an effective macro-marketing system.
Personal selling involves direct spoken communication between sellers and potential
customers.
A close buyer-seller relationship in a business market may reduce a firm's flexibility.
If a trademark is to be used in foreign markets, it is wise to register it under the Lanham
Act.
Whenever Product includes a physical good, Place requires logistics decisions.
A good S.W.O.T. analysis helps a manager focus on a strategy that takes advantages of
the firm's opportunities and strengths while avoiding its weaknesses and threats to its
success.
Marketing managers should set overall advertising objectives, but then it's usually the
advertising manager's job to set specific objectives for each ad.
Finding "competitive advantages" is important because they are needed for survival in
increasingly competitive markets.
"Working capital" is the money needed to pay for short term expenses--such as
employee salaries, advertising, and marketing research--as they occur.
A firm's initial sales training program should cover company policies, product
information, building relationships with customers, and selling skills.
A market is a group of two or more sellers who offer substitute ways of satisfying
customer needs.
The "marketing department era" is a time when all marketing activities are brought
under the control of one department.
Advertising can be useful in a marketing strategy for getting attention, holding interest,
arousing desire, and obtaining action.
Many nonprofit organizations try to set a price level that will earn a target return figure
of zero.
Capital is the financial term for the amount of cash that a firm has in a bank checking
account or other readily available form.
The process of organizational buying is entirely different from consumer buying.
In a market-directed economy, government officials decide what and how much is to be
produced and distributed by whom, when, to whom, and why.
In-store shopping varies a lot from country to country, but online shopping does not.
Coke's logo greeting a consumer when they open the refrigerator and see the can is an
example of enhancing the product.
The General Electric 'strategic planning grid" forces company managers to make
three-part judgments (high, medium, and low) about the business strengths and industry
attractiveness of all proposed or existing product-market plans.
Technology is the application of voodoo to convert an economy's resources to output.
CRM is a variation of the positioning approach.
In a pure subsistence economywhen each family unit produces everything it
consumesno marketing is involved.
When both regrouping and storing are needed, a firm should add a distribution center.
According to the text discussion on setting a marketing budget,
A. the most objective approach is to use "pushing" approaches.
B. the only practical alternative is to match what competitors are spending.
C. the most sensible approach is to determine the cost of the tasks to be accomplished.
D. the task method is likely to result in too low a budget when sales are going well.
E. it is generally best to simply use some predetermined percentage of past or forecast
sales.
When firms promote products to their own employees as part of an internal marketing
effort, they are using a
A. digital marketing approach.
B. pulling approach.
C. personal selling approach.
D. telemarketing approach.
E. pushing approach.
_______ means that the marketing mix is distinct from and better than what is available
from a competitor.
A. Operational
B. Visible
C. Differentiation
D. Competitive
E. None of these is correct
Keith McPherson earned $20,000 last year as a carpenter. He paid $6,000 for food, rent,
medical expenses and other "necessities." There was little construction work in
February, so he took a trip to the Caribbean and spent $4,000. What was Keith's
discretionary income last year?
A. $4,000
B. $20,000
C. $10,000
D. $12,000
E. There is not enough information to determine Keith's discretionary income.
If a firm targets business and organizational markets,
A. the geographic location of the customer is likely to be less important than in
segmenting consumer markets.
B. NAICS codes may help in segmenting manufacturers but not producers of services.
C. each customer may need to be treated as a different segment.
D. All of these alternatives are correct.
In measuring consumer satisfaction, marketing managers should remember that:
A. Customer satisfaction is a highly personal concept.
B. Consumer expectations and aspirations tend to remain the same over time.
C. Looking at the average level of satisfaction for a whole society provides a precise
description of macro-marketing effectiveness.
D. Evaluations of macro-marketing effectiveness are purely objective in that they are
based on tabulated survey results.
E. All of these alternatives are correct.
Sony manufactures clock radios in quantities of more than 100,000 in a given time
periodbut the average consumer wants only one clock radio at a time. This difference is
an example of
A. a regrouping activities.
B. a discrepancy of assortment.
C. a discrepancy of quantity.
D. a sorting error.
E. re-assorting.
The physical distribution ________________________ is how rapidly and dependably
a firm can deliver merchandise in demand through the appropriate channels.
A. product service level
B. trade-offs service level
C. customer service level
D. standard service level
E. efficiency service level
The "wheel of retailing" theory says that:
A. retailers go through cycles from high costs and prices to lower costs and profits.
B. general stores will dominate U.S. retailing again in the next century.
C. new types of retailers enter as low-status, low-margin, low-price operators and
eventually offer more services and charge higher prices.
D. None of these alternatives about the "wheel of retailing" is correct.
According to your text, critics of advertising
A. argue that it lowers consumer pricesand thus results in "less than satisfactory" profits
for firms.
B. often overrate the positive effect that monopolistic competition can have on the
economy.
C. who think that a lot of advertising is annoying simply don't know what they're
talking about.
D. claim that firms use clever ads to persuade consumers to buy whatever the firms
want to sell.
E. base their evaluation on fears that advertising increases economies of scale.
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.
When the manager of a local electronics store decides to offer its customers a
gift-wrapping service for the holidays, this is a decision about:
A. Product.
B. Place.
C. Promotion.
D. Price.
Micro-marketing:
A. is concerned with whether the whole economic system is fair and effective.
B. applies only to profit organizations.
C. consists only of personal selling and advertising.
D. is a social process only.
E. tries to anticipate and satisfy customer needs and accomplish an organization's
objectives.
The Lanham Act:
A. Provides legal guidelines for product warranties.
B. Forces all companies to register their brands.
C. Describes the kinds of marks that can be protected and the methods for doing so.
D. Deals with deceptive product claims and advertisements.
E. Protects consumers against unsafe products.
Specialty products are consumer products which:
A. have elastic demand.
B. very few customers want or can afford to buy.
C. are relatively expensive and purchased only rarely.
D. consumers are willing to search for because they really want them.
E. All of these alternatives are correct.
Which of the following statements about economic systems is true?
A. Consumers usually have more freedom of choice in a market-directed economy.
B. Command economies are most effective for countries with large and complicated
varieties of goods and services.
C. Branding is less common in a market-directed economy than in a command
economy.
D. The United States is a good example of a command economy.
E. None of these statements is true.
The way in which an economy's resources are converted to output is part of the
_______________ environment.
A. competitive
B. economic
C. political
D. technological
E. social
Total fixed cost:
A. is the sum of all expenses which are closely related to output.
B. is the sum of those costs which do not change in total no matter how much is
produced.
C. may vary in the short runbut is more or less fixed in the long run.
D. is the sum of all costs of manufacturing and distributing a product.
E. would be zero if the quantity produced were zero.
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.
If American Tennis Ball adds more retail outlets, which of the following would help it
to manage channel conflict:
A. assign the channel captain role to the largest retail chain.
B. sell a different brand of tennis ball through the new retailers than what it sells
through current retailers.
C. select new retail outlets that target the same customers as those who buy from its
current retailers.
D. choose new retailers in the same geographic market as its current retailers but who
sell at lower prices.
E. drop its national advertising and leave it to retailers to promote its tennis balls.
In which quadrant of the SWOT analysis tool does the following fit? A firm is in a
fast-growing industry.
A. Strengths.
B. Weaknesses.
C. Opportunities.
D. Threats.
Which of the following statements about a market-directed economic system is True?
A. Consumers enjoy substantial freedom of choice.
B. Profit, growth and survival are guaranteed.
C. Government has no role.
D. There is very little interaction between producers and consumers.
Few people in Europe diet. So the same soft drink that PepsiCo sells in the U.S. under
the brand name of "Diet Pepsi" is sold in England under the brand name of "Pepsi
MAX." This is an example of which part of the external market environment?
A. Competitive
B. Legal
C. Cultural and social
D. Political
E. Economic
Kira Johannson's salary as a sales rep was reduced to $32,000 last year, but she earned
an additional $10,000 in sales commissions. Her tax bill was $14,000 and bills covering
other necessities such as food, housing, and transportation amounted to $11,000. Kira's
discretionary income last year was:
A. $17,000.
B. $11,000.
C. $32,000.
D. $28,000.
E. $42,000.
In a ____ the individual decisions of the many producers and consumers make the
macro-level decisions for the whole economy.
A. mixed economy
B. command economy
C. market-directed economy
D. production-oriented economy
E. controlled economy
U.S. Census data show that:
A. retailers are more numerous than manufacturers and wholesalers combined.
B. only about 15 percent of all retailers have annual sales over $5 million.
C. over half of all retailers have annual sales less than $1 million.
D. there are over 1 million retailers.
E. All of these alternatives are correct.
When setting a price level policy, a good marketing manager knows that:
A. introductory price dealing usually does not increase sales.
B. a penetration price makes the most sense when there is a large "elite" market.
C. a 'skimming" price may lead to low profits if demand is very elastic.
D. it's easy to raise prices if the initial price is too low.
E. None of these alternatives is correct.
A marketing researcher wants to do a survey to probe in-depth consumer attitudes about
their experiences with the company's products. He is LEAST likely to get what he
wants if he uses:
A. personal interviews.
B. online focus groups.
C. telephone interviews.
D. a mail survey.
E. None of these choices is very useful for getting in-depth information about consumer
attitudes.
Which of the following is NOT an agent wholesaler?
A. A drop-shipper
B. An auction company
C. A selling agent
D. A broker
E. A manufacturers' agent
The major difference between a sales analysis and a performance analysis is that:
A. performance analysis looks at variations from planned performance, while sales
analysis shows what happened.
B. sales analysis looks at individual transactions, while performance analysis groups
them into categories.
C. sales analysis is a control procedure, while performance analysis is part of
implementation.
D. sales analysis is concerned with expected sales, while performance analysis is
concerned with past sales.
E. sales analysis is used to find profitable sales patterns, while performance analysis
seeks unprofitable patterns.
All of the following products are in the market maturity stage of the product life cycle
except:
A. laundry detergents.
B. breakfast cereals.
C. streaming video movies.
D. carbonated soft drinks.
E. gasoline-powered cars.
