The buildup approach measure of sales potential:
a. starts with broad estimates of general economic activity.
b. ends with an estimate of a single firm’s sales of a specific product.
c. starts with forecasts about demand for a specific product within a relatively small
area.
d. does not use sales estimates.
e. is seldom employed by industrial firms.
Ralph Lauren is planning a promotion where it will showcase all of its clothing lines to
buyers at retail stores. It also plans to develop a direct marketing campaign that will use
social media to introduce its new seasonal styles. Ralph Lauren is
using_____________with the retail showcase.
a. embedded marketing
b. a pull policy
c. a push policy
d. guerilla marketing
e. loyalty marketing
What is the primary difference between an agent and a broker?
a. An agent gets compensated based on commission, while a broker generally charges
fees for his services.
b. A broker works only for a seller, whereas an agent can represent a buyer or a seller.
c. An agent represents a company on a permanent basis, while a broker is employed
temporarily.
d. An agent has much more extensive knowledge about the products he deals with than
a broker does.
e. Brokers have long-term relationships with their customers, while an agent’s
relationships are generally short- lived.
Scenario 8.1
Use the following to answer the questions.
Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of the
four sites. With a large number of its bikes sold in markets all around the world, it still
retains the manufacturing close to the headquarters for several reasons, one being that
its management wants to keep close watch on the quality of its products. However, for
all the accessories, apparel, and other riding gear, Harley-Davidson engages other
manufacturers to produce the items with the Harley name and logo. Some of these
items, particularly the apparel, are made in China. Lately, some members of the Harley
Owners’ Group (HOG) have been complaining to the company about this practice,
citing that “everything Harley should be made in America.” Harley-Davidson’s practice
of having establishments in China produce apparel items with the Harley logo is an
example of_____ .
a. contract manufacturing
b. globalization
c. direct ownership
d. joint venture
e. exporting
Which of the following statements about social responsibility is true?
a. Social responsibility dimensions do not include philanthropic concerns.
b. Social responsibility does not deal with the total effect of all marketing decisions on
society.
c. Social responsibility refers to a company’s obligation to maximize its positive impact
and minimize its negative impact on society.
d. Social responsibility dimensions do not include economic concerns.
e. Social responsibility refers to principles and standards that define acceptable conduct
in marketing as determined by various stakeholders.
When marketers emphasize price as an issue and match or beat the prices of other
companies, they are engaging in:
a. price competition.
b. non-price competition.
c. comparative pricing strategies.
d. demand-based pricing.
e. supply-based pricing.
In many developing countries around the world, technology is enabling opportunities to
“leapfrog” existing technology. Which of the following best describes this statement?
a. These countries are able to forgo current technological advances in order to wait for
even better technology to be developed.
b. More advanced technology is reaching these countries even though they lack
technological infrastructures.
c. Technological advances are often offered at prices considerably lower than in
well-developed countries.
d. The technology in developing countries is rapidly surpassing the technology in
well-developed countries.
e. Advances in technology have made international marketing much easier in
developing countries.
Marketing research is a process designed to gather information:
a. exclusively about a company’s customers.
b. from the company’s database.
c. not currently available to decision makers.
d. about the needs and desires of employees.
e. concerning the interpretation of the company’s sales goals.
Promotion can help keep prices lower because:
a. demand for the product does not increase.
b. promotion of prices intensifies price competition.
c. promotion discourages materialism.
d. promotion tends to reduce consumers’ price sensitivity.
e. promotion tends to stabilize a product’s price elasticity of demand.
Cover Girl believes that sales of one of its lipstick lines have fallen due to the
introduction of a new color palette. However, in order to best determine the impact of
the color palette, Cover Girl should conduct a(n)_____before proceeding with this
tentative hypothesis.
a. experimental research
b. hypothesis testing
c. exploratory research
d. conclusive research
e. descriptive research
When Hershey Dark Chocolate Kisses were introduced, Hershey promoted directly to
consumers and told them to ask for the product at their favorite stores. This is an
example of a________policy.
a. reseller promotional
b. push
c. sales promotion
d. pull
e. pioneer promotion
Scenario 4.2
Use the following to answer the questions.
Colin Jackson recently purchased Blue Waters Adventures, a kayak and canoeing rental
business near the Chatsworth River in Arizona. Blue Waters Adventures had been in
operation for five years and was located in an ideal area. Even though the winters in the
area can be cold, kayaking and canoeing activities are generally popular year-round.
After two months of operation, it became clear why the previous owners had sold the
business. While the business appeared to be ideally located, sales were extremely
disappointing.
Besides administering the questionnaire, Colin observed people who went kayaking and
canoeing on the Chatsworth River, making notes about their appearances and behavior.
The type of data he collected is data.
a. indirect
b. mechanical
c. secondary
d. primary
e. direct
Why would a company use the undifferentiated strategy?
a. The needs of individual consumers are dissimilar, and distinctive marketing mixes
are required to satisfy them.
b. The undifferentiated strategy is the one strategy that provides maximum satisfaction
to the whole market.
c. The needs of individual consumers in the target market for a specific product are
similar, so the organization can satisfy most customers with a single marketing mix.
d. The undifferentiated strategy is expensive to implement but tends to produce the
most sales.
e. The undifferentiated strategy requires less time and fewer resources.
Regardless of one’s experience, firms always put new employees through a training
program geared for their specific firm.
a. True
b. False
Per-unit gross margins on convenience products are relatively high.
a. True
b. False
A cereal company advertises that its newly launched product can lower cholesterol
although the company cannot provide evidence to substantiate this claim. This situation
involves an ethical issue related to which element of the marketing mix?
a. Product
b. Pricing
c. Promotion
d. Distribution
e. Production
A product is a price leader when:
a. it is sold at the highest price.
b. its price maximizes profits.
c. an increase or decrease in price leads to increased revenue or lower costs.
d. it is sold at a lower cost in the hope that sales of other products will increase.
e. its price leads the industry in sales.
Which of the following statements about markup pricing is correct?
a. The use of similar markups reduces price competition.
b. Markup pricing is inconvenient to use.
c. Markup pricing results in a high price when demand is high and a low price when
demand is low.
d. Markup pricing is a demand-based pricing method.
e. Using markups makes pricing a time-consuming, difficult process.
What situations would benefit from using a selling agent?
Discuss how reference groups and opinion leaders influence purchase behavior.
Would a person’s political views be an effective variable in the process of market
segmentation? Why or why not?
Identify the various transportation modes and describe in detail two modes of
transportation.
What is integrated marketing communications? Explain its purpose.
Describe the various stages of the business buying decision process.
List three major types of sales force compensation methods. What are the advantages
and disadvantages of each?