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The letters in "S.W.O.T. analysis" are an abbreviation for the first letters of the words
'strengths, weaknesses, opportunities, and threats."
Answer:
Shopping for a specialty product involves comparing the special features of different
brands.
Answer:
In a market-directed economy, consumers enjoy complete freedom of choice.
Answer:
Product advertising is aimed at final consumers; institutional advertising is aimed at
intermediaries.
Answer:
Quantity discounts encourage customers to buy in larger amounts.
Answer:
Reference groups are more important when others will be able to 'see" which product or
brand we're using.
Answer:
To guarantee good media selection, the advertiser first must clearly specify its target
market.
Answer:
The purpose of an Internet banner ad is to encourage the target market to visit the
advertiser's website for more information.
Answer:
Adding lemon scent to Pledge furniture polish is an example of using a positive cue.
Answer:
The micro view of marketing sees it as the performance of activities that seek to
accomplish an organization's objectives by anticipating customer or client needs and
directing a flow of need-satisfying goods and services from producer to customer or
client.
Answer:
When Cadillac added a new sports utility vehicle called Escalade to the
"luxury-oriented" selection at its existing dealers, it was seeking "market development"
opportunities.
Answer:
The least risky-but most challenging-marketing opportunities are diversification
opportunities.
Answer:
Technology provides new opportunities and new challenges for marketers.
Answer:
All marketing research projects are worthwhile because they gather new
information-even if the research doesn't have action implications.
Answer:
ISO 9000 is relevant to both domestic and international suppliers.
Answer:
Primary demand is demand for a company's own brand.
Answer:
Apple's Genius Bar is a good example of a company offering its customers "branded
services."
Answer:
Of the five basic kinds of involvement in international marketing, exporting is the least
permanent.
Answer:
In a market-directed economy, profit is guaranteed.
Answer:
The adoption curve shows that it is important to keep the promotion effort the same as
time passes-so consumers won't be confused.
Answer:
In the total profit approach, management forecasts potential sales and costs during the
life of the plan to estimate likely profitability.
Answer:
The consumer decision process begins when a consumer becomes aware of an unmet
need.
Answer:
Most wholesalers and retailers pay very close attention to each item they handle,
treating most products as new-task purchases.
Answer:
The job of integrating the four Ps strategy decisions is the responsibility of the company
controller since the money to do so must be available.
Answer:
Selling agents avoid working for a manufacturer that is having financial trouble because
of the high risk.
Answer:
"Empty nesters" is a term that refers to young couples with no children.
Answer:
The GE 'stop-light" evaluation method is a very objective approach because GE feels
there are too many possible errors if it tries to use subjective criteria for judging
"attractiveness" or 'strength."
Answer:
Transport costs per pound for less-than-full carloads are less than for full loads.
Answer:
Walmart, one of the largest mass-merchandisers in the U.S., handles 30 percent or more
of the total national sales for whole categories of products.
Answer:
If the objective of an ad is to inform, telling a detailed story and using precise pictures,
then print advertising is right.
Answer:
Specialty shops are limited-line stores; they aim at a carefully defined target market
with a unique product assortment, good service, and knowledgeable salespeople.
Answer:
Only large firms have their own intranets.
Answer:
A low penetration price discourages competitors from entering the market.
Answer:
Single-line stores that used to carry anything they could sell in reasonable volume were
the main retailers in the United States.
Answer:
The legal environment sets the minimum standards of ethical behavior in a society.
Answer:
Market penetration means trying to increase sales of a firm's present products in its
present markets-probably through a more aggressive marketing mix.
Answer:
Better information flows make it easier to coordinate activities, improve efficiency, and
add value for the customer.
Answer:
Short-run decisions that stay within the overall guidelines set during strategy planning
are called implementation decisions.
Answer:
Communication often breaks down because the receiver's decoded message is different
than the message the source encoded.
Answer:
Cost-oriented selling price per unit is obtained by adding a firm's desired profit per unit
to the average total cost.
Answer:
Which of the following is true of product liability?
A. Product liability is a consideration, but it's not important until the development stage
of the new-product development process.
B. Relative to most other countries, U.S. courts enforce a very strict product liability
standard.
C. Sellers are usually not held responsible for injuries related to their products
especially when the items are well designed.
D. None of these statements is true.
Answer:
A large advertising agency is planning a national promotion to introduce a new type of
MP3 player. Which of the universal functions of marketing is it performing?
A. Risk-taking.
B. Financing.
C. Buying.
D. Selling.
E. It is performing none of the universal functions of marketing listed here.
Answer:
Which of the following is an example of the micro-macro dilemma?
A. Disposable packages are convenient, but contribute to environmental problems.
B. Children like to ride bicycles, but accidents are common.
C. Sulfites help to keep restaurant salads looking fresh, but some people have a
dangerous allergic reaction to sulfites.
D. Jet skis can be fun but can also be dangerous to the driver and others.
E. All of these are examples of the micro-macro dilemma.
Answer:
Price is a rough measure of ___________________.
A. company profit
B. customer value
C. market supply
D. company costs
E. economic inflation
Answer:
Use this information to answer the following question that refer to the CPI case.
Conservo Products, Inc. (CPI), with annual sales of $200 million, is a well-known
producer of a variety of paper products, almost all of which are made from recycled
materials. Picnic plates account for about 70 percent of CPI's sales. The rest of the
firm's sales come from custom-designed materials-such as box liners and spacers, small
boxes, and disposable products-like trays, towels and napkins.
CPI's picnic plates are sold through 'sales reps" to grocery wholesalers and retail
grocery chains. The sales reps are paid a 5 percent commission on all sales in their
assigned territories. They usually handle related-but noncompeting-lines for several
other manufacturers. Along with their selling duties, the sales reps help CPI with local
advertising and sales promotion efforts. Orders for the custom products are obtained by
area managers who are paid a straight salary to call on business and institutional
customers. The area managers are trained paper specialists and often help their
customers design the products they order.
The picnic plates are priced to give CPI a 90 percent markup on the cost of producing
the product-with the cost figured by taking the total factory cost for the previous year
and dividing that total cost by the number of units produced and sold during that period.
The firm's invoices read "F.O.B.-Delivered" and "1/10, net 30." Customers are allowed
to deduct 3 percent from the face value of the invoice for buying plates in carload
quantities, and another 2 percent for advertising them locally.
The custom products are sold "F.O.B. mill"-with CPI offering a price for each job.
Competition is strong from many other manufacturers who are able to offer very similar
products which meet the customers' specifications.
CPI forecasts that sales will increase to $250 million by 2012. However, much of this
growth is tied to picnic plates-a market in which the firm has about a 7 percent market
share and faces aggressive price competition from many smaller firms with greater
brand familiarity. Further, CPI has been late with more than 50 percent of its plate
orders due to scheduling conflicts with orders for custom products.
CPI's picnic plates seem to be in the ______________ stage of the product life cycle.
A. market maturity
B. market growth
C. market introduction
D. sales decline
Answer:
Which of the following would be a convenience product for most consumers?
A. Gold jewelry
B. Butter
C. Stereo TVs
D. Dress shoes
E. Bicycles
Answer:
An intermediary seeking high profits should:
A. use the lowest markup that will still cover selling expenses.
B. use price lining.
C. use high markups.
D. choose the markup which maximizes turnover.
E. try to find the markup level related to the most profitable price.
Answer:
Vendor analysis
A. emphasizes the emotional factors in a purchase decision.
B. is a formal procedure used by a vendor's salespeople to be certain that all members
of a buying center have been contacted.
C. is used less now that multiple buying influence is more common.
D. is likely to favor a vendor that offers the customer the lowest total cost associated
with the purchase.
E. None of these alternatives about vendor analysis is true.
Answer:
The "business-to-business" market (B2B market) is comprised of:
A. nonprofit organizations only.
B. wholesalers and retailers only.
C. manufacturers only.
D. all businesses, governments, and nonprofits.
E. government units only.
Answer:
Regarding the laws that place limits on marketing activity:
A. managers who ignore consumer attitudes may cause new laws to be enacted or
existing laws to be modified.
B. some existing laws may need to be modified or enforced more carefully instead of
adding new laws.
C. strict enforcement of existing laws and heavy penalties could have far-reaching
effects on the macro-marketing system.
D. laws set the minimum standards for ethical behavior as defined in a society.
E. all of these alternatives are correct.
Answer:
Which of the following statements is(are) TRUE regarding government's role in
regulating advertising?
A. Canada bans any advertising targeted directly at children.
B. Japan limits the use of cartoon characters in ads to children.
C. Switzerland does not allow an actor to represent a consumer in an ad.
D. New Zealand limits political ads on TV.
E. All of these statements are TRUE.
Answer:
_____ is a type of innovative product that requires customers adopting the innovation to
significantly change their behavior.
A. Fad innovation
B. Dynamically continuous innovation
C. Discontinuous innovation
D. Continuous innovation
E. Behavior-change innovation
Answer:
The total market value of goods and services provided in a country's economy per year
by both residents and nonresidents of that country is:
A. Gross domestic product.
B. Gross national product.
C. Gross national income.
D. Gross domestic income.
E. Gross disposable income.
Answer:
To compete more successfully with its many competitors offering packaged cookies,
Famous Amos added its own line of "extra chunky" premium cookies. This seems to be
an effort at:
A. combination.
B. market penetration.
C. market development.
D. product development.
E. diversification.
Answer:
Use this information to answer the following question that refer to the CPI case.
Conservo Products, Inc. (CPI), with annual sales of $200 million, is a well-known
producer of a variety of paper products, almost all of which are made from recycled
materials. Picnic plates account for about 70 percent of CPI's sales. The rest of the
firm's sales come from custom-designed materials-such as box liners and spacers, small
boxes, and disposable products-like trays, towels and napkins.
CPI's picnic plates are sold through 'sales reps" to grocery wholesalers and retail
grocery chains. The sales reps are paid a 5 percent commission on all sales in their
assigned territories. They usually handle related-but noncompeting-lines for several
other manufacturers. Along with their selling duties, the sales reps help CPI with local
advertising and sales promotion efforts. Orders for the custom products are obtained by
area managers who are paid a straight salary to call on business and institutional
customers. The area managers are trained paper specialists and often help their
customers design the products they order.
The picnic plates are priced to give CPI a 90 percent markup on the cost of producing
the product-with the cost figured by taking the total factory cost for the previous year
and dividing that total cost by the number of units produced and sold during that period.
The firm's invoices read "F.O.B.-Delivered" and "1/10, net 30." Customers are allowed
to deduct 3 percent from the face value of the invoice for buying plates in carload
quantities, and another 2 percent for advertising them locally.
The custom products are sold "F.O.B. mill"-with CPI offering a price for each job.
Competition is strong from many other manufacturers who are able to offer very similar
products which meet the customers' specifications.
CPI forecasts that sales will increase to $250 million by 2012. However, much of this
growth is tied to picnic plates-a market in which the firm has about a 7 percent market
share and faces aggressive price competition from many smaller firms with greater
brand familiarity. Further, CPI has been late with more than 50 percent of its plate
orders due to scheduling conflicts with orders for custom products.
CPI offers the grocery wholesalers and retail chains:
A. cumulative quantity discounts.
B. cash discounts for paying their bills quickly.
C. P.M.'s
D. advertising allowances.
E. All of these alternatives are correct.
Answer:
The ______ area of the marketing mix is concerned with decisions about getting the
"right" product to the target market when and where it's wanted.
A. product
B. people
C. promotion
D. price
E. place
Answer:
Strategy "Place" decisions would NOT include:
A. geographic pricing policy.
B. type of channel of distribution.
C. type of intermediaries/collaborators.
D. type of physical distribution facilities.
E. degree of market exposure desired.
Answer:
When making business buying decisions, it is important to remember that:
A. capital item purchases can't be fully charged off to the current year's expenses.
B. expense items are depreciated over several years.
C. large purchases must be expensed in one year.
D. capital items are expensed in one year-making them less risky to buy.
E. expense items are very risky since they cannot be depreciated.
Answer:
Average fixed costs:
A. increase as the quantity produced increases.
B. decline for a while as output increases and then begin to rise again.
C. decrease steadily as output increases.
D. are less than average variable costs at all output levels.
E. None of these alternatives is correct.
Answer:
Comparative ads for a product work best in which stage of the adoption process?
A. Awareness
B. Interest
C. Evaluation and trial
D. Decision
E. Confirmation
Answer:
As a firm moves from the sales era to the marketing department era it is likely to:
A. have marketing people who develop long range plans-sometimes 5 or more years
ahead.
B. begin to integrate all the firm's marketing activities.
C. place less emphasis on earning a profit and more emphasis on what customers will
buy.
D. adopt a more narrow view of marketing.
E. be more concerned with its ability to produce enough to meet demand.
Answer:
______________ advertising tries to develop goodwill for a company or even an
industry-instead of a specific product.
A. Primary demand
B. Selective demand
C. Institutional
D. Persuading
E. Pioneering
Answer:
Marginal analysis
A. reveals the range of prices that should be profitable.
B. can be used to set prices, but it does not give you any idea what quantity might be
sold at that price.
C. does not need an estimate of the demand curve.
D. usually suggests the same price as break-even analysis.
E. None of these alternatives is correct.
Answer:
Quantitative marketing research
A. usually makes it easier and faster for respondents to answer the questions (compared
to qualitative research).
B. can use a large, representative sample.
C. data can be collected by mail, e-mail, online, telephone, or personal interviews.
D. makes it easier for the research analyst to summarize answers.
E. All of these choices are correct.
Answer:
Which of the following is NOT an economic need of consumers?
A. Convenience.
B. Dependability in use.
C. Economy of purchase.
D. Efficiency.
E. Hunger.
Answer:
A number of independent drugstores are working with a wholesaler to obtain economies
of scale in buying. They were organized by this wholesaler after a recent meeting to
discuss ways of competing with corporate chains. These drugstores are now part of a:
A. corporate chain.
B. voluntary chain.
C. consumer cooperative.
D. cooperative chain.
E. franchise chain.
Answer:
When the need for a product or service is urgent, customers are:
A. less inclined to evaluate a range of options.
B. more likely to downplay convenience.
C. less likely to be stimulated by impulse.
D. more likely to be involved in extensive problem solving.
E. more likely to extend the adoption process.
Answer:
Regarding geographic pricing policies:
A. uniform delivered pricing tends to decrease the size of a firm's market.
B. F.O.B. pricing tends to increase the size of a firm's market.
C. freight absorption pricing tends to increase the size of a firm's market.
D. zone pricing encourages large orders.
E. None of these alternatives is correct.
Answer:
Between 2005 and 2025, the largest projected increase in the U.S. population is
projected to occur in the:
A. 50-59 age group.
B. 65 or over age group.
C. 10-19 age group.
D. 0-9 age group.
E. 40-49 age group.
Answer:
Reminder ads come under which stage of the adoption process in advertising?
A. Awareness
B. Interest
C. Evaluation and trial
D. Confirmation
E. Decision
Answer:
Retailers of which of the following products would probably have the highest stockturn
rate?
A. furniture
B. women's clothing
C. hardware
D. fresh seafood
E. bowling balls
Answer:
