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To initiate the CRM cycle, a company must first:
a. establish marketing objectives.
b. capture relevant customer data on interactions.
c. identify customer relationships with the organization.
d. understand the interactions the company has with current customers.
e. decide on a segmentation strategy.
Answer:
One pharmaceutical manufacturer did not price a new antiulcer drug by adding up the
costs of developing and manufacturing the medication and tacking on the amount of
profit it wanted to make. Instead, the company justified a higher price than it might
otherwise have been able to get from medical insurers by using studies that showed the
new drug could help patients avoid expensive surgery and save the insurance companies
money. The pharmaceutical company used:
a. value-based pricing.
b. noncumulative pricing.
c. CRM pricing.
d. price bundling.
e. market concept pricing.
Answer:
Quantity discounts are most often used to:
a. reward the buyer who pays in cash.
b. encourage buying in multiple units.
c. increase supply for a specific raw material.
d. reward a channel intermediary for performing some service.
e. shift the storage function backward to the supplier.
Answer:
By working closely with its suppliers and listening to its customers, Target has
improved the service encounter to a level that was not thought possible in mass
retailing. This is an example of which of the eight critical processes performed by
supply managers?
a. Manufacturing flow management
b. Customer service management
c. Product development and commercialization
d. Order fulfillment
e. Demand management
Answer:
An article in the WallStreet Journal about GM's turnaround strategy and new upcoming
product, the Volt, would be an example of:
a. direct selling
b. news marketing
c. publicity
d. event marketing
e. direct marketing
Answer:
If a manufacturer designates a shipping point from which to calculate all freight charges
and charges customers the freight costs from that point (even if the goods were shipped
from another location), the manufacturer is using _____ pricing.
a. freight absorption
b. uniform delivered
c. zone
d. FOB origin
e. basing-point
Answer:
When a greenhouse plant grower sells plants to nursery retailers, the grower is selling
____ products.
a. specialty
b. consumer
c. convenience
d. business
e. unsought
Answer:
How do public relations professionals use Internet Web sites?
a. To introduce new products
b. To promote existing products
c. To obtain consumer feedback
d. To showcase upcoming events
e. To do all of these things
Answer:
Pacific Gas and Electric (PG&E) Company has donated almost $300,000 to 58 local
governments and community- based organizations for local economic development
projects. Recipients of these grants include the San Benito County Economic
Development Corporation's Business Outreach Program, the San Jose Conservation
Corps' Hennessy Place Affordable SingleFamily Housing Project, and Mariposa
County's Business Development Training
Program. This sort of donation indicates PG&E was operating at a(n)_____
responsibility level of the pyramid of corporate social responsibility.
a. legal
b. philanthropic
c. ethical
d. economic
e. cultural
Answer:
Which of the following entails placing two or more brand names on a product or its
package?
a. Family branding
b. Private branding
c. Dual-code branding
d. Co-branding
e. Complementary branding
Answer:
A multinational company that makes a labor-intensive product would be interested in
the ____ makeup of countries. Factors such as median age, gender, and literacy rates
would determine the success of its global expansion.
a. demographic
b. lifestyle
c. natural
d. cultural
e. economic
Answer:
For most people, social media is a marketing experience.
a. True
b. False
Answer:
One reason marketers use market segmentation as a tool is that once completed, the
process need not be repeated.
a. True
b. False
Answer:
A pediatrician's office noticed that fewer parents are bringing their children in for their
vaccinations and routine checkups. The office sent out a questionnaire to parents whose
children are behind in their shots. The questionnaire included the question "Why are
you reluctant to have your child vaccinated?" This would be an example of a(n):
a. dichotomous response
b. sampling frame question
c. scaled-response question
d. closed-ended question
e. open-ended question
Answer:
The consumer product classification system is based on:
a. how the market is segmented
b. the way the products are manufactured
c. the way products are used
d. the physical attributes of the product
e. the amount of effort consumers spend to acquire the product
Answer:
The two techniques considered most useful for generating new-product ideas are
customer-generation and competitive imitation.
a. True
b. False
Answer:
Novartis
Novartis, a Swiss drug maker, is planning to purchase a majority stake in Zhejiang
Tianyuan Bio-Pharmaceutical Company, a Chinese vaccine maker. Novartis has agreed
to pay $125 million for the company, which holds a 3 percent share of China's $1
billion vaccines market. The market for vaccines is growing 20 percent or more in the
developing nations of Asia, Africa, and Australasia. In the past, vaccine use has been
limited to basic shots against diseases such as polio, tuberculosis, and measles, but as
the economies of these countries grow, government and private healthcare spending
focuses on preventing diseases such as hepatitis B, cholera and rotavirus, tetanus, and
others. Some critics are against the acquisition, claiming that prices will increase.
Novartis claims it is not interested in raising prices but rather in expanding Tianyuan's
product offerings.
Refer to Novartis. Tianyuan has a relatively small market share of a high-growth market
in Chin
a. How would this company be classified in the Novartis portfolio matrix?
a. Problem child
b. Star
c. Cash cow
d. Dog
e. Emergent
Answer:
An insurance company's advertisement poses the question, "Will your family survive if
you die uninsured?" This is an example of a health appeal.
a. True
b. False
Answer:
The person who called Alisa last night and tried to sell her double-paned windows for
her home was using outbound telemarketing.
a. True
b. False
Answer:
While many economic indicators have been negative during the first half of 2009, the
WallStreetJournalrecently reported that U.S. retail sales were actually up in April. In
fact, the performance of 61 percent of the retailers in the study topped analysts'
expectations. If Costco used this report as factor in their expansion plans, they would be
using data.
a. secondary
b. primary
c. dichotomous
d. convenience
e. observation
Answer:
SpecialtyCakes
Imagine that you"re planning an aftersymphony fundraising party, and you need a
lifesize grand piano cake. Or, you are a developer proposing a new shopping center to a
group of investors, and you want to serve a cake shaped like an architectural rendition
of the center. Is this impossible? No, you just need to contact Cecilia Villaveces Cakes.
She actually built a life-size grand piano for a gala in Macon, Georgia. You can expect
to pay anywhere from $75 to $10,000 for one of Cecilia's artistic creations, depending
on complexity of design and size. She uses only the best ingredients, and no two cakes
are ever quite alike.
Refer to Specialty Cakes. To set the price of her cakes, Cecilia simply doubles her costs,
which often include several hours of labor and expensive raw materials. This method of
price setting is called:
a. mark-on pricing.
b. premium pricing.
c. keystoning.
d. add-on pricing.
e. superimposed pricing.
Answer:
_____ is an extra allotment of inventory that companies sometimes choose to hold in
the event that demand spikes, or if forecasts regarding the amount of demand are too
low.
a. Cycle stock
b. In-transit inventory
c. Seasonal Inventory
d. Safety stock
e. None of these
Answer:
DigitalCookware
Digital Cookware has developed a new kind of skillet that should make cooking easier
for many non-chefs. The skillet has a display on its handle that beeps to alert the cook
when the pan's target temperature is reached. The skillet, with the aid of an
accompanying cookbook, will take much of the guesswork out of cooking. Digital
Cookware is a small company, and it has invested considerable money in developing
this new technology, which it eventually hopes to use in an entire line of pots and pans.
It has run some small ads for the new skillet in cooking magazines and has been
featured on some morning talk shows. It needs a quick infusion of cash to maintain its
current operational level and to develop the rest of the cookware line. Digital Cookware
is considering some kind of sales promotion.
Refer to Digital Cookware. Digital Cookware is offering retailers a price reduction for
allocating space for special displays of its products. This type of trade sales promotion
is called:
a. push money.
b. a trade allowance.
c. an event sponsorship.
d. a store demonstration.
e. a trade show.
Answer:
______ is one of the potential disadvantages associated with a multisegment strategy.
a. Inadequate demand
b. Demarketing
c. Lower profits
d. Cannibalization
e. Loss of synergy
Answer:
When a florist shop begins to sell burial caskets to its customers, it is engaged in
product development.
a. True
b. False
Answer:
Which marketing management philosophy is often adopted by organizations that sell
unsought products such as life insurance, retirement plans, and preplanned funeral
services?
a. Sales orientation
b. Production orientation
c. Marketing orientation
d. Product orientation
e. Customer orientation
Answer:
Sometimes the compensation plan alone is not enough to motivate a sales team to
produce the volume of sales or the profit margin required by management. Which of the
following can be used to further motivate a sales team?
a. vacations
b. recognition at annual sales meeting
c. pay raises
d. cash bonuses
e. all of these
Answer:
Single-price selling:
a. removes price comparisons from the buyer's decisionmaking process.
b. does not benefit the retailer.
c. is most effective when used during an inflationary period.
d. encourages clerical errors.
e. is accurately described by none of these choices.
Answer:
Yard Whimzees, a Statesboro, Georgia, sign business, began by making wooden signs
for residential use to announce births, anniversaries, and such. The company then
turned to the business market by making signs for businesses. Creating signs for a new
market is an implementation of a strategy.
a. market development
b. market penetration
c. product penetration
d. product development
e. diversification
Answer:
Companies that rely on the marketing concept and that have implemented a market
orientation strategy recognize that:
a. price is the most important variable for customers
b. sales depend predominantly on an aggressive sales force
c. what the customer thinks he or she is buying is what is important
d. a company has to apply scientific management techniques to survive
e. selling and marketing are essentially the same thing
Answer:
The typical break-even model assumes a given fixed cost and a:
a. variable per unit cost.
b. constant inventory turnover.
c. markup cost attained through keystoning.
d. constant production schedule.
e. constant average variable cost.
Answer:
