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Looking at sales volume is usually the easiest and best method of determining the
degree of success for an advertising campaign.
Answer:
"Homogeneous within" means that the customers in a market segment should be as
similar as possible with respect to their likely responses to marketing mix variables and
their segmenting dimensions.
Answer:
If the risks of getting into international marketing are difficult to evaluate, it may be
wise to start with exporting.
Answer:
The three general promotion objectives of informing, persuading, and reminding are all
concerned with providing more information.
Answer:
Purchasing specifications may be very simple (with only a brand name or part number)
or very detailed (as with services).
Answer:
Firms should try to show the value of unsought products through promotion because
people do not want them or know that they are available.
Answer:
Purchasing managers are buying specialists for organizations and may have a lot of
power.
Answer:
Order getters complete most sales transactions.
Answer:
An attitude is a person's point of view about something, and usually involves liking or
disliking.
Answer:
An intranet works like the Internet but access is limited to a company's employees.
Answer:
It is possible for a firm with a mature product in the U.S. to experience new growth
with the same product in international markets.
Answer:
New York is the state with the largest population, and California is a distant second.
Answer:
The "hierarchy of needs" model suggests that most products must fill more than one
need at the same time.
Answer:
The Internet is making it faster and easier for organizational buyers to use competitive
bidding procedures.
Answer:
Raw materials are short-lived capital items.
Answer:
Advertising in the U.S. accounts for about 35 percent of worldwide advertising
spending.
Answer:
A warranty explains what the seller promises about its product.
Answer:
Items with lower markups may be more profitable-if the stockturn is higher.
Answer:
In Argentina, Israel, and Singapore, for example, less than 20 percent of people live in
urban areas.
Answer:
A seasonal discount encourages buyers to stock products earlier than present demand
requires.
Answer:
A major advantage of dealer brands is that the intermediary usually earns a better
margin than the intermediary would earn with manufacturer brands.
Answer:
A large chain like Kohl's uses its website to supplement the product assortment in its
brick-and-mortar stores.
Answer:
As output increases, a firm's average fixed cost probably will go down.
Answer:
When a warehouse is rearranged to speed up order processing, "regrouping activities"
are being performed.
Answer:
There are over 310 million people living in the United States.
Answer:
Because of their higher margins, faster turnover, and narrower assortments,
convenience food stores have the potential to be more profitable than supermarkets.
Answer:
Most "conventional" retailers are single-line or limited-line stores that have very low
expenses relative to sales.
Answer:
The basic job of pioneering advertising is to persuade, not inform.
Answer:
A new-product development process helps make sure that new ideas for products are
carefully studied and good ideas are marketed profitably.
Answer:
A major advantage of average-cost pricing is that it assumes costs remain constant at
different levels of output.
Answer:
If a company raises its price per unit, but keeps total fixed cost and variable cost per
unit the same, the break-even point will be lower.
Answer:
The Federal Fair Packaging and Labeling Act of 1966 requires that consumer products
be clearly labeled in understandable terms.
Answer:
Use this information for question that refer to the Sunny Day Foods (SDF) Case.
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 regulars"
segment have with SDF?
A. Brand rejection
B. Brand insistence
C. Brand preference
D. Brand nonrecognition
E. Brand recognition
Answer:
Government buyers in the U.S. usually buy by:
A. specification-using a mandatory bidding procedure.
B. inspection.
C. haggling.
D. influence peddling.
E. None of these are good choices.
Answer:
A major difference between reminder advertising and pioneering advertising is that:
A. reminder advertising focuses on selective demand, while pioneering advertising tries
to develop primary demand.
B. reminder advertising is less likely to use 'soft sell" ads.
C. reminder advertising is emphasized in the early stages of the product life cycle.
D. pioneering advertising is emphasized in the later stages of the product life cycle.
E. None of these alternatives is true.
Answer:
Use this information to answer the following question that refer to the EI (Electech Inc.)
case.
Electech, Inc. (EI) produces a line of semiconductors for electronics products
manufacturers. These items range in price from $5-$100 and are used in products the
buyer is producing. EI also designs and builds computer networking equipment. The
prices of these items range from $5,000 to $100,000. These are used to control
production equipment. Usually, they are custom-made to the specifications of the
buyer-the firm that will use the product in its own production process.
EI sells nationally through independent sales reps-paid on commission-who work in the
large industrial centers across the country. EI is more concerned with the quality of
these reps than with the number of them. All of them also sell other lines. EI also uses
five full-time salaried salespeople who work out of its corporate headquarters under a
sales manager.
The home office salespeople are "technical specialists" who sell almost all the
networking equipment, while the "reps" mostly sell the semiconductors. Sometimes,
however, the reps will send in leads to customers who want networking equipment. EI
also sells some of its semiconductors through a Los Angeles wholesaler who carries
stock for West Coast customers.
There are many producers and importers of semiconductors in the U.S.-but several
firms have captured large shares of the networking equipment market. EI has held its
own, and in fact, over the past five years has increased its market share of these
products to over 25 percent-because of its better technical designs.
Industry-wide prices of the more or less homogeneous semiconductors have been
forced further and further down over the last seven years-as have industry profits. The
price of networking equipment is set by adding a standard markup percent to the direct
cost of the items-for overhead and for profit. Following industry practice, all prices are
quoted at the seller's factory.
EI publishes a catalog, which is revised periodically. Also, it exhibits in most equipment
trade shows.
EI's independent sales reps are:
A. selling agents.
B. rack jobbers.
C. specialty wholesalers.
D. manufacturers' agents.
E. desk jobbers.
Answer:
The sum of those costs that do not change in total-no matter how much is produced-is
called:
A. total fixed cost.
B. total cost.
C. total variable cost.
D. total direct cost.
E. None of these is a good answer.
Answer:
Which of the following statements regarding marketing's influence on values is False?
A. Many companies refuse to use ads that would be offensive to their target customers.
B. Marketing never elevates the wrong values.
C. Many companies work hard to determine their customers' beliefs and values.
D. Marketing tends to reflect social values in the short run.
E. Marketing tends to reinforce and enhance social values in the long run.
Answer:
If a retailer's annual stockturn rate shifted to 20 from 5, then selling products costing
$100,000 would require ______________ rather than $20,000 in working capital to
carry the needed inventory.
A. $10,000
B. $80,000
C. $8,000
D. $500
E. $5,000
Answer:
Department stores:
A. are large stores which emphasize depth and distinctiveness rather than variety.
B. have declined since the 1970s because of competition from well-run limited-line
stores and mass-merchandisers.
C. are usually weak in customer service.
D. usually emphasize specialty products.
E. All of these alternatives are true for department stores.
Answer:
A formal marketing research project usually involves gathering primary data.
Answer:
Piggyback service means
A. loading truck trailers on railcars to increase flexibility.
B. linking truck trailers to save fuel.
C. providing door-to-door service in cities.
D. special handling of important farm equipment.
E. combining small shipments of many shippers into more economical quantities.
Answer:
A breakdown in any element of the marketing mix can result in a requirement for
A. customer service.
B. additional sales promotion.
C. reimbursement.
D. replacing the salesperson.
E. technical specialists.
Answer:
The transporting cost as a percentage of selling price is highest for:
A. factory machinery.
B. electronic equipment.
C. cabbage.
D. manufactured food.
E. sand and gravel.
Answer:
Which of the following is best illustrated by a supermarket that carries Nintendo video
games?
A. The superstore concept
B. Scrambled merchandising
C. The wheel of retailing
D. Target marketing
E. Mass merchandising
Answer:
Regarding wholesalers, which of the following types has the LOWEST costs as a
percent of sales?
A. Specialty wholesalers
B. Merchant wholesalers
C. Manufacturers' sales branches
D. Agent wholesalers
E. Service wholesalers
Answer:
Which of the following statements about telemarketing is False?
A. Customer response to telemarketing is the same in both business markets and final
consumer markets.
B. Telemarketing can extend personal selling efforts to new target markets.
C. Telemarketing can save time and money for the seller.
D. Telemarketing can increase the frequency of contact with current customers.
E. Telemarketing can provide needed support for customers in e-commerce situations.
Answer:
The marketing management team for Dada Motors brainstormed a variety of solutions
to the problem of how to transport people in the world. This process came during the
____ step in the market segmentation process.
A. disaggregating
B. market definition
C. segmenting
D. aggregating
E. approach selection
Answer:
Which of the following is MOST LIKELY to be a DETERMINING dimension with
respect to purchase of a particular brand of coffee?
A. Taste.
B. Income.
C. Age.
D. Sex.
E. None of these is likely to be a DETERMINING dimension in this situation.
Answer:
A regional manager for a chain of auto parts stores visits one of the stores in the chain.
He looks in the store's warehouse and finds about 100 cases of motor oil that have been
sitting in the warehouse for over one year. Upon inspection, he finds that in each case,
one of the twelve cans of oil has leaked, thus soaking through the box and making the
case unfit for sale. The regional manager instructs the store manager to unpack all of the
cases, discard the leaking cans, clean up the remaining cans, and to contact the oil
company for new boxes. He tells the store manager to repackage the remaining cans in
the new boxes and to sell the cases to customers at the retailer's cost with no added
markup. He explains to the store manager that moving this inventory will not result in
immediate profit, but that it will benefit the store by improving the:
A. markup.
B. markup rate.
C. markup percent.
D. stockturn rate.
E. break-even point.
Answer:
Comparing GDP for foreign countries can help a marketing manager evaluate potential
markets if the manager remembers that:
A. GDP measures show people's tendency to buy particular products.
B. income tends to be evenly distributed among consumers in most countries.
C. GDP estimates may not be very accurate for very different cultures and economies.
D. GDP measures show the degree of competition in a market.
E. GDP shows which brands will achieve the greatest sales.
Answer:
Which of the following is NOT a reason the marketing program should build customer
equity?
A. Marketing strategies do not contribute to customer equity.
B. Expected profits depend on customer equity.
C. Firms expect financial returns.
D. Profit growth comes from customers.
E. Customers are the source of revenue.
Answer:
All of the following are true of institutional advertising except it
A. focuses on the name and prestige of an organization or industry.
B. seeks to inform, persuade, or remind.
C. tries to keep the product's name before the public.
D. develops goodwill or improves an organization's relations with various groups.
E. advocates a specific cause or idea.
Answer:
Identify the incorrect statement about population density and population growth.
A. Population density is important to marketers.
B. In Bangladesh and Kenya more than 85 percent of people live in urban areas.
C. People everywhere are moving from rural areas to urban areas.
D. Population is very spread out in many of the African countries.
E. Population growth rate is higher in the United States than in China.
Answer:
The text's Toddler University example shows that TU's marketing plan included:
A. A detailed description of the marketing mix to be offered.
B. A description of the resources required to carry out the plan.
C. Expected results of the plan.
D. Control procedures.
E. All of these.
Answer:
Economists' economic-buyer theory assumes that:
A. income data are very useful for predicting consumer behavior.
B. buyers logically compare choices in order to maximize their satisfaction.
C. consumers should purchase only low-priced products.
D. buyers focus primarily on price.
E. None of these is correct.
Answer:
_____ is a social influence that affects a person's buying behavior.
A. Perception
B. Family
C. Motivation
D. Learning
E. Attitude
Answer:
Corporate chains
A. have continued to grow-and now account for about half of all retail sales.
B. have an advantage relative to independent stores when it comes to promotion and use
of dealer brands.
C. increase their buying power by centralizing at least some of the buying for different
stores.
D. increase their efficiency by building their own distribution centers.
E. all of these alternatives are correct for corporate chains.
Answer:
The Federal Fair Packaging and Labeling Act:
A. says that producers must provide a clearly written warranty if they choose to offer a
warranty.
B. requires that consumer goods be clearly labeled to give consumers more information.
C. spells out what kinds of marks (including brand names) can be protected and the
exact method of protecting them.
D. requires food manufacturers to use a labeling format that allows consumers to
compare the nutritional value of different products.
E. ensures that all labels list the "green benefits" of using the product.
Answer:
A consumer product that a customer really wants-and is willing to make a special
shopping effort to find-is
A. a staple product.
B. a convenience product.
C. a heterogeneous shopping product.
D. a specialty product.
E. an emergency product.
Answer:
Which of the following is NOT a limited function merchant wholesaler?
A. A truck wholesaler
B. A general-line wholesaler
C. A rack jobber
D. A drop-shipper
E. A catalog wholesaler
Answer:
Regarding the market composed of manufacturers in the United States:
A. Most manufacturers are quite large.
B. Manufacturers tend to be concentrated in specific areas.
C. There are a large number of manufacturers compared to the number of final
consumers.
D. Small manufacturers account for most of the "value added" by manufacturing.
E. All of these alternatives are correct.
Answer:
