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Direct-response promotion usually relies on a customer relationship management
database to target specific prospects.
The mass-customization approach is not useful if a firm wants to focus on a particular
market segment.
The micro-macro dilemma occurs when a firm focuses its efforts on satisfying some
consumers to achieve its objectives, possibly causing negative societal outcomes.
Mass selling and sales promotion dominate the promotion blends of consumer products
firms in the market maturity stage.
The function of marketing research is to develop and analyze new information to help
marketing managers make better decisions.
A seasonal discount encourages buyers to stock products earlier than present demand
requires.
Online interactive communication enables retailer websites to remember individual
customers and automatically recall their past purchases.
Defining the problem is the first step in the marketing research processand is usually
the easiest job for the researcher.
The majority of all retailers in the U.S. have annual average sales of less than $1
million.
A generic market description includes customer needs and product-type terms.
The "hierarchy of needs" model suggests that most products must fill more than one
need at the same time.
Macro-marketing is a set of activities that direct an economy's flow of goods and
services from producers to consumers in a way which effectively matches supply and
demand and accomplishes the objectives of society.
It is the sole responsibility of the sales manager to decide what types of tools are needed
and how they will be used.
The market maturity stage of the product life cycle rarely lasts more than one or two
months.
Copy thrust is what the words and illustrations should communicate.
A channel of distribution must include several kinds of intermediaries and
collaborators.
In comparison with other promotion methods, sales promotion can neither be
implemented quickly, nor get results quickly.
Auctions have not proved very effective in determining how much potential customers
will (or will not) pay for a product.
Most traditional channel systems don't have a channel captain.
Some wholesalers have higher operating costs because of the strategies they select,
including the special services they offer to some customers.
The term "3/10, net 30" means that a 3 percent discount off the face value of the invoice
is allowed if the invoice is paid within 10 days, and that otherwise the full face value is
due within 30 days.
Marketing opportunities that involve moving into totally different lines of business are
"diversification" opportunities.
In most countries, small limited-line retailers still account for the majority of all
retailers.
The three basic sales tasks are order-getting, order-taking, and sales prospecting.
In a licensing agreement, the licensee takes most of the risk because it must invest some
capital to use the right granted by the licensor.
When a firm is doing similar research projects in different international markets, it
makes sense for the marketing manager to coordinate the efforts so that comparisons
across markets are possible.
Sales promotion can involve point-of-purchase materials, store signs, contests, catalogs,
and circulars.
Getting attention to a particular advertisement is always easy.
The greater the total expenditure, the less price sensitive customers are.
"Sorting" means separating products into grades and qualities desired by different target
markets.
Some banks work aggressively to attract business customers who want loans, but most
commercial lenders like to avoid risk and making loans that are not secured with assets.
International marketing typically requires less segmenting than domestic markets.
Many intermediaries seek advertising allowances from manufacturers to help them pay
the cost of advertising the products they sell.
Motivation theory suggests that only one need can be satisfied at a time.
For professional services which are needed only occasionally and require special skills,
it is usually better for a firm to have its own employees provide them than to use
outsiders.
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.
Compared to installations, accessory equipment
A. is usually less standardized.
B. involves more multiple-buying influence.
C. is an expense item instead of a capital item.
D. is sold to more target markets.
E. becomes part of the buyer's final product.
Sales training:
A. usually isn't necessary if a new salesperson has had similar selling experience calling
on the same customers for a competing company.
B. programs should focus on product and company informationsince research shows
that training is not effective in developing selling skills.
C. is usually needed only for new salespeople.
D. should include on-the-job observation, but classroom and web-based learning is
rarely needed.
E. None of these alternatives about sales training is true.
During the purchase of new tooling at Acme Tool and Die, which of the following is an
example of a gatekeeper?
A. Sara, a purchasing manager, arranges the terms of the sale.
B. Ross, from research and development, supplies information for evaluating
alternatives.
C. Charlotte, in manufacturing, has the power to select or approve suppliers.
D. Andre, a research assistant, gathers and distributes information about alternatives.
E. Rita, from the manufacturing floor, will use the new tooling.
All of the following observations concerning markups are true except
A. they guide pricing by intermediaries.
B. they are used by most retailers and wholesalers to set prices.
C. they are a cost-oriented price setting approach.
D. they are usually stated as dollar amounts.
E. they are related to selling price for convenience.
The text considers five "eras" of marketing evolution. These five eras in their logical
order are:
A. Simple trade, production, sales, marketing company, marketing department
B. Subsistence, production, sales, entrepreneurial, marketing company
C. Simple trade, production, sales, marketing department, international trading
D. Simple trade, production, sales, entrepreneurial, marketing company
E. Simple trade, production, sales, marketing department, marketing company
The marketing mix
A. includes four variables -- People, Place, Promotion, and Price.
B. includes the target market.
C. helps to organize the marketing strategy decision areas.
D. includes four variables -- advertising, personal selling, customer service, and sales
promotion.
E. does not focus on target customers.
Which of the following statements is not true of the product life cycle?
A. How long a whole product life cycle takes, and the length of each stage, varies a lot
across products.
B. Although the life of different products varies, on average product life cycles are
getting longer.
C. The greater the comparative advantage of a new product over those already on the
market, the more rapidly its sales will grow.
D. If the product can be tried on a limited basis, without a lot of risk to the customer, it
can usually be introduced more quickly.
E. A product idea may be in a different life-cycle stage in different markets.
Clustering techniques try to find similar patterns within sets of data.
A drop-shipper is an example of a(n)
A. limited-function merchant wholesaler.
B. service merchant wholesaler.
C. agent wholesaler.
D. producer.
E. manufacturer's agent.
______ is the total stream of purchases that a customer could contribute to the company
over the length of the relationship.
A. Customer value
B. Return on customer
C. Customer equity
D. Target return
E. Customer lifetime value
_____ is a written or electronic description of what the firm wants to buy.
A. An estimate
B. A negotiated contract
C. A new market order
D. A purchase order
E. A set of purchasing specifications
If a company plans to sell its products to a market segment consisting of "outgoing
personalities," this would NOT be a good market segment primarily because of which
of the following criteria?
A. Homogeneous within
B. Heterogeneous between
C. Generic
D. Operational
E. Substantial
Which of the following would be a type of advertising used in the evaluation and trial
stage of the adoption process?
A. Competitive ads
B. Flash ads
C. Informative "why" ads
D. Pioneering ads
E. Viral advertising
The part of the relevant population that is surveyed by a researcher is called the:
A. representative group.
B. focal group.
C. target population.
D. sample.
E. research group.
If a producer wants title to pass to a buyer immediatelybut still wants to pay the freight
billthe invoice should read:
A. F.O.B. buyer's factory.
B. F.O.B. shipping point.
C. F.O.B. delivered.
D. F.O.B. seller's factoryfreight prepaid.
E. F.O.B. mill.
Sears advertises its "DieHard" auto batteries as "even better than your original battery."
The ads tell possible customers to get a DieHard at their Sears auto center the next time
they need one. This is an example of
A. institutional advertising.
B. the indirect type of competitive advertising.
C. the direct type of competitive advertising.
D. comparative advertising.
E. reminder advertising.
Which of the following is NOT one of the steps of the "adoption process?"
A. Involvement
B. Awareness
C. Interest
D. Evaluation
E. Trial
Most physical distribution decisions involve trade-offs between
A. the total cost of physical distribution and consumer service levels only.
B. transportation costs and inventory carrying costs only.
C. costs, consumer service levels, and sales.
D. sales and consumer service levels only.
E. availability and speed of delivery only.
According to the _____, much good information is hidden in summary data.
A. iceberg principle
B. sales paradox
C. 80/20 rule
D. summary definition
E. fishbone rule
Target marketers who are 'segmenters":
A. increase the size of their target markets by combining two or more segments.
B. use one marketing mix to appeal to multiple submarkets, even though the submarkets
have some distinct differences.
C. believe that one marketing mix works well enough with multiple submarkets, even
though the target groups have some distinct differences.
D. use one single marketing mix to appeal to an individual market segment and do not
attempt to combine or merge segments together.
E. are called mass marketers.
Rizzo Shoes sells through ________ channel system. Rizzo has informal agreements
with its wholesalers and retailersthey cooperate pretty well by placing orders, and
sharing inventory and sales information over a computer network.
A. a contractual
B. a traditional
C. a power leadership
D. a corporate
E. an administered
The customer equity concept
A. encourages a manager to consider both the costs and the revenue from a marketing
strategy.
B. recognizes that customers are satisfied at a cost--and it is basically an estimate of a
firm's future earnings.
C. applies even to firms that pursue several different strategies.
D. focuses on earnings as well as sales.
E. all of these are part of the customer equity concept.
According to the text, product quality means that:
A. products are designed to meet demanding specifications.
B. a product satisfies a customer's requirements or needs.
C. there are no errors in the production process.
D. the product won't ever break.
E. None of these choices is correct.
A study revealed that when consumers are dissatisfied with a product or an individual
business
A. most of their complaints are fully resolvedif they are just reported.
B. a majority of their complaints are never reported.
C. a marketing manager should just ignore most complaints because they are the result
of dealing with consumers.
D. All of these alternatives are correct.
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 deal prone"
segment have with SDF?
A. Brand nonrecognition
B. Brand recognition
C. Brand rejection
D. Brand preference
E. Brand insistence
Wujin Chu, marketing manager for Innovative Electronics Products, reviews a S.W.O.T.
analysis to help him evaluate four new product ideas his company is currently
considering. Chu is operating in the ____ step of the new-product development process.
A. idea evaluation
B. development
C. commercialization
D. screening
E. idea generation
X-Brand Bikes, a manufacturer of off-road bicycles, carefully developed a strategy for
moving into South America. The strategy had poor results after interest rates and
inflation rose rapidly in most of its South American markets, demonstrating the
influence of the _____ on marketing strategy.
A. economic environment
B. technological environment
C. social environment
D. legal environment
E. political environment
Based on averages, which of the following businesses is likely to have the highest costs
as a percent of sales?
A. Manufacturer's agent for textile producers
B. Broker for industrial machinery
C. General merchandise wholesaler based in the U.S.
D. Export agent for American-made furniture
E. Import agent for specialty items from China
Regarding the competitive environment, a marketing manager usually can:
A. choose strategies to avoid head-on competition.
B. control it with the help of the legal environment.
C. control it in the short run.
D. control it with the help of the political environment.
E. control it in the long run.
Regarding "full-line pricing," which of the following statements is TRUE?
A. A good marketing manager usually tries to price products in a line so that the prices
will seem logically related and make sense to target customers.
B. The marketing manager should try to cover all costs on the whole product line.
C. Most customers seem to feel that prices in a product line should be somewhat related
to cost.
D. Not all companies that make a line of products must use full-line pricing.
E. All of these statements about "full-line pricing" are TRUE.
Which of the following is NOT a trend affecting marketing strategy planning in the
Product area?
A. More attention to quality.
B. Slower new-product development.
C. More attention to service technologies.
D. Research and development teams with market-driven focus.
E. More attention to sustainable design.
Which of the following statements best describes the modern view of marketing?
A. Marketing is only necessary for profit-oriented firms.
B. Marketing consists mainly of advertising and personal selling.
C. Marketing anticipates customer needs.
D. Marketing begins as soon as products are produced.
E. Firms that don't rely on e-commerce should put more emphasis on marketing.
Roscoe Hardware carries stock on the complete line of Ever-Green Push Lawn Mowers.
Its competitor down the street sells the same mowers at a special price by special order
but does not carry any inventory. This situation creates
A. vertical conflict.
B. exclusive distribution rights.
C. competitive discrepancy.
D. horizontal conflict.
E. reverse channels.
Which of the following aspects of production capacity should be considered in
marketing planning?
A. A firm can produce only limited quantities of its current product without a major
investment in new facilities.
B. Other firms are available to handle production on a contract or supplier basis.
C. A firm's production capacity allows it to produce some products quickly but not
others.
D. A firm has more production capacity than it can use.
E. All of these.
