BA 303 Practice Questions – Flashcards
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Costs that do not vary with production or sales level are referred to as ________ costs. A) fixed B) target C) unit D) total E) variable
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A
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________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks. A) Skimming B) Fixed cost C) Cost-based D) Variable E) Value-based
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C
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Break-even pricing, or a variation called ________, is when the firm tries to determine the price at which it will break even or make the profit it is seeking. A) value-based pricing B) target return pricing C) fixed cost D) competition-based pricing E) customer-based pricing
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B
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Which of the following presents the strongest reason that markup pricing generally does NOT make sense? A) When all firms in the industry use this pricing method, prices tend to be similar. B) This method ignores demand. C) By tying the price to cost, sellers simplify pricing. D) With a standard markup, consumers know when they are being overcharged. E) Sellers earn a fair return on their investment.
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B
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________ involves charging a constant low price with few or no temporary price discounts. A) Everyday low pricing (EDLP) B) Target return pricing C) Penetration pricing D) High-low pricing E) Cost-plus pricing
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A
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Consumer perceptions of the product's value set the ________ for prices. A) demand curve B) image C) ceiling D) variable cost E) floor
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C
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Which of the following is an external factor that affects pricing decisions? A) overall pricing objectives B) the salaries of production management C) competition D) the salaries of finance management E) the company's overall marketing strategy
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C
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Of the following, a company would be LEAST likely to set prices low to ________. A) create excitement for a product B) stabilize the market C) prevent competition from entering the market D) match a competitor E) prepare for an easy exit from a market
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E
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Value-based pricing is the reverse process of ________ pricing. A) good-value B) variable cost C) cost-based D) value-added E) cost-plus
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C
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The company designs what it considers to be a good product, totals the expenses of making the product, and sets a price that adds a standard mark-up to the cost of the product. This approach to pricing is called ________ pricing. A) skimming B) variable C) fixed cost D) cost-plus E) value-based
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D
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________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing. A) Value-based pricing B) Target return pricing C) Price elasticity D) Variable costs E) Product image
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A
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Measuring ________ can be difficult. A company might conduct surveys or experiments to test this in the different products they offer. A) target returns B) fixed costs C) break-even pricing D) perceived value E) variable costs
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D
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________ is the amount of money charged for a product or service. A) Experience curve B) Salary C) Demand curve D) Price E) Wage
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D
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Rent, electricity, and executive salaries are examples of ________ costs. A) variable B) marketing C) total D) accumulated E) fixed
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E
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Price setting is usually determined by ________ in small companies. A) cross-functional teams B) sales departments C) divisional managers D) marketing departments E) top management
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E
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Distribution channel decisions are integrated into decisions about other variables within the marketing mix. In what way, however, are distribution decisions different from other mix decisions? A) Distribution channel decisions tend to be long term when compared to decisions about other mix variables. B) Decisions can be changed more easily than the advertising strategy. C) The firm can find alternative channels of distribution easily. D) New products development operates independent of channel decisions. E) Firms pay too much attention to channel decisions.
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A
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Coach products are sold in a carefully controlled number of locations across the world. Some locations are owned and managed by the firm and some are managed through other retailers. Which type of distribution strategy is Coach using? A) Selective distribution B) Intensive distribution C) Exclusive distribution D) Franchise E) A contractual VMS
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C
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There are many ways in which intermediaries in the marketing channel add value to the flow from raw materials to the final consumer. Why would the marketing manager avoid additional intermediaries in the channel structure? A) Intermediaries transform the goods into assortments that customers want. B) Intermediaries make the transaction less expensive. C) Intermediaries broaden the assortment offered to customers. D) Intermediaries reduce the amount of work that must be done. E) Intermediaries buy in bulk and break into smaller, more manageable amounts for consumers.
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B
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One of the largest firms in the world is Coca-Cola, which sells its products all over the world in a variety of locations by controlling the manufacture of the syrup, and then selling it only to licensed bottlers. Which type of vertical marketing system is this? A) Administered VMS B) Horizontal marketing system C) Contractual VMS the manufacturer-sponsored retailer franchise system D) Contractual VMS service-firm-sponsored retailer franchise system E) Contractual VMS manufacturer-sponsored wholesaler franchise system
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E
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In setting the channel objectives, they should be stated in terms of targeted levels of customer service. There are many elements that influence how those objectives are set. Which of the following factors does the marketing manager typically avoid when determining the firm's channel objectives? A) The nature of the company B) The nature of the products and their perishability C) Economic conditions D) The nature of the marketing intermediaries E) Maximization of total channel cost
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E
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All members of the channel help to create and perpetuate flow in many ways through to the final customer. Which of the following is an element of flow the marketing manager would avoid when using a longer channel? A) Physical flow B) Promotional flow C) Ownership flow D) Manufacturing flow E) Payment flow
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D
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Choosing to use multiple forms of resellers can add value to the consumer's purchase. However, increasingly more firms are looking to disintermediate the channel because longer channels can cause problems. Which of the following issues is an advantage of using the longer channel structure? A) It is more difficult to control the channel flow. B) It is more difficult for the producer to control marketing of the product. C) It creates potential conflict between channel members. D) It tends to focus the targeting. E) It will cost more.
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D
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Originally consumers went to bookstores like Borders and B. Dalton to buy books. Amazon started shipping books to buyers who bought online, and then invented the Kindle to electronically "ship" books to the reader's device. This technology is defined as A) indirect marketing B) disintermediation C) flow D) intensive distribution E) a franchise
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B
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In a channel, one or more independent producers, wholesalers, and retailers is a separate business seeking to maximize its own profits, perhaps even at the expense of the system as a whole. This type of channel is described as what kind of distribution system? A) Horizontal B) Contractual VMS C) Conventional D) Administered VMS E) Corporate VMS
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C
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Once a firm has defined its channel objectives, it should next identify its major channel alternatives in three dimensions. Those dimensions include the types of intermediaries, the channel member. A) image B) economic condition C) cost D) number E) longevity
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D
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Apple Computer sells its products such as iTunes and iMovies online, and sells its hardware through its own stores and through other retailers, such as Best Buy and Costco, and through vending machines. How is the Apple distribution system described? A) A contractual VMS B) Multichannel marketing C) Horizontal marketing system D) Franchise E) Contractual VMS manufacturer-sponsored wholesaler franchise
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B
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A company designs a logistics system that will minimize the cost of attaining the firm's distribution objectives. There are traditionally four major functions of the logistics systems. From the following, identify the function that plays a role in decision making other than logistics design. A) Warehousing B) Transportation C) Pricing the products D) Logistics management information E) Inventory management
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C
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Apple uses selective distribution for several reasons such as the ability to develop good working relationships with selected channel members and for what other reason? A) It can expect a better-than-average selling effort from the channel member. B) It provides maximum brand exposure. C) It provides consumer convenience. D) It yields better dealer support and customer service. E) It enhances a distinctive positioning.
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A
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Most companies see their intermediaries as first-line customers and then subsequently partners in the creation of a value delivery system that meets the needs of both the company and its marketing partners. What is the system advised for long-term arrangements with channel members? A) Partner relationship management B) Exclusive territorial agreement C) Full-line forcing D) Tying agreement E) Exclusive dealing
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A
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Because logistics is complicated and viewed as a hassle by many firms, increasingly a growing number of firms now outsource some or all of their logistics to firms such as Ryder, Penske Logistics, BAX Global, DHL Logistics, FedEx Logistics, and UPS Business Solutions. What are firms like Ryder and FedEx called? A) Shared projects B) Vendor-managed inventory (VMI) C) Integrated logistics management D) Third-party logistics (3PL) providers E) Cross-functional, cross-company teams
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D
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In which of the following situations is the channel a direct marketing channel? A) A consumer stops at Dunkin Donuts on the way to work to buy a dozen donuts for the office. B) Pandora charm bracelets sell the basic bracelet and individual charms at department stores, jewelry stores, and at kiosks in the mall. C) A consumer buys a new Toyota at the dealership in her town. D) Walmart sells a variety of products from fresh produce to electronic merchandise. E) Mattresses Plus sells Serta, Sealy, and private label brand mattresses to customers.
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A
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Producing a product or service and making it available to buyers requires building relationships with upstream and downstream partners, which are known together as the A) distribution channel B) demand chain C) supply chain D) value delivery network E) market channel
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C
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American Standard Plumbing Supplies makes bathtubs, washbowls, toilets, and other items for the bathroom. To expand the firm's reach and offer greater service, it relies on wholesalers, retailers, and other resellers to help move the product toward the consumer. What are these intermediaries called? A) Marketing channels B) Indirect marketing channels C) Suppliers D) Direct marketing channels E) Value delivery network
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A
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Companies can design their distribution channels as long or as short as they choose to make products and services available to customers in different ways. There are two players that are always part of the channel that delivers value. What are those two player roles? A) The producer and the financier B) The consumer and the financier C) The producer and the final consumer D) The negotiator and the financier E) The consumer and the reseller
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C
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Intermediaries provide customers with greater utility in what manner when they shape offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging? A) Contacting B) Matching C) Financing D) Negotiation E) Promoting
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B
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Which of the following is a function of an integrated marketing communications system? A) designing products using environmentally-friendly techniques B) delivering a consistent message on the product to each brand contact C) controlling production levels by feedback received from customers D) allowing suppliers or vendors to manage the inventory of products E) sharing company forecasting details with shareholders
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B
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Pearl Sands Resort and Spa is a popular summer attraction located in hilly town of Rockten. They usually attract customers in the summer. During the pre-summer period, Pearl Sands Resort began sponsoring shows on TV, and putting up billboards around Rockten and the surrounding towns advertising the resort. The ads hinted at the coming summer, and how the resort has always been the place to go for a welcome break from everyday life. Which of the following approaches has Pearl Sands Resort used? A) push strategy B) vertical integration C) publish-subscribe method D) direct marketing E) pull strategy
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E
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A company advertising discounts on a product is using ________ advertising. A) informative B) persuasive C) classified D) reminder E) personal
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B
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A company using a press release to explain the resignation of its former CEO who was involved in a scandal is an example of a company using ________ to maintain its company image. A) public relations B) personal selling C) direct marketing D) sales promotion E) advertising
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A
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Which of the following promotion mix approaches involves the producer promoting the product to different channel members who in turn promote the product to customers? A) vertical integration B) pull strategy C) push strategy D) direct marketing E) publish-subscribe method
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C
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In a promotion mix, ________ refers to any short-term incentives to encourage the purchase or sale of a product or service. A) public relations B) Crowdsourcing C) personal selling D) sales promotion E) advertising
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D
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A company that allows consumers to use monthly installment plans for buyers to pay for products is using the promotional tool of ________. A) direct marketing B) sales promotion C) public relations D) advertising E) personal selling
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B
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Advertainment is an example of a ________ advertising technique. A) covert B) Madison & Vine C) public service D) surrogate E) social
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B
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Which of the following promotion tools would best suit to reach a mass audience that is geographically dispersed in a short period of time? A) door-to-door selling B) direct mailing C) television advertisements D) telephone marketing E) discount promotions
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C
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Which of the following is true of direct marketing? A) It does not involve any direct interaction between the company and its customers. B) It meets the needs of mass buyers who are geographically spread out simultaneously. C) It is brought out it in the form of company news rather than as a sales-directed communication. D) Its marketing message is fixed and does not change according to the customer's requirements. E) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships.
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E
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Which of the following is a similarity between personal selling and direct marketing? A) Both are used to meet a mass audience simultaneously. B) Both are not sales-directed forms of communication. C) Both are involved in personal interactions with customers. D) Both are only used in cases of product promotions. E) Both are impersonal and lack direct persuasiveness of company salespeople.
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C
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Which of the following would be an example of narrowcasting using advertisements? A) showing video game ads at a video game Expo B) showing ads for diapers to would-be mothers in hospitals C) handing out promotional leaflets for a new restaurant to passers-by D) putting up a movie ads on online streaming sites like YouTube E) running an ad for a new line of cars on cable TV
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B
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In a promotion mix, ________ occurs when firm's sales force make individual presentations to consumers for the purpose of making sales and building customer relationships. A) advertising B) crowdsourcing C) branding D) public relations E) personal selling
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E
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In the promotion mix, ________ performs the functions of building a good report with entities outside the company, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. A) public relations B) personal selling C) Crowdsourcing D) sales promotion E) advertising
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A
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Which of the following types of promotion tools requires the most interaction with a customer? A) sales promotion B) direct marketing C) public relations D) advertising E) personal selling
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E
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Which of the following types of advertising budgets is directly set based on company profits? A) the adaptive control method B) the objective-and-task method C) the percentage-of-sales method D) the affordable method E) the competitive-parity method
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C
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How is spending on advertising calculated in the affordable method of setting an advertising budget? A) based on an amount remaining after operating expenses and capital outlays are deducted from total revenues B) based on the company's objectives set for accomplishment C) based on a certain percentage of current or forecasted sales D) based on a percentage of the unit sales price E) based on matching a competitors advertising outlays
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A
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Which of the following is true as a difference between digital media advertising and TV advertising in the United States? A) Less advertising money is spent on digital media than on TV advertising. B) Digital media force-feeds mass messages to customers, while TV advertising targets more defined micromarkets. C) More of the promotion budget is spent on digital advertising than on TV advertising. D) TV advertising is more interactive than digital media techniques. E) Digital media advertising reaches mass audiences whereas TV advertising reaches only limited audiences.
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A
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Which of the following has been a major change in market structures in recent times? A) the rise of print media as a major marketing channel B) the formation of a global mass market C) the fragmentation of mass markets D) the shift towards using less technology in micromarketing E) the increased use of mass-media communications techniques in marketing
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C
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Which of the following techniques do companies use to deliver a unified and consistent image about their organizations and brands to consumers? A) logistics information management B) market segmentation C) warehouse management system D) inventory control system E) integrated marketing communications
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E
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In Da Houz is a bar which mostly plays trance music, and has a dedicated day every week for local bands to perform. In Da Houz tries to build strong customer relations and patronage by gathering feedback from customers and asking the customers to provide their mobile numbers. Knowing the target customers, In Da Houz sends text messages to potential customers, telling them about happy hours, introducing a new drink, bands that are playing that week, dedicated genre nights, and other activities at the bar. Which of the following promotion mix tools does In Da Houz employ to reach target customers? A) direct marketing B) Crowdcasting C) public relations D) retailing E) personal selling
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A
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Pearl Sands Resort and Spa is a popular summer attraction located in hilly town of Rockten. The spa usually attracts customers in the summer. During the pre-summer period, Pearl Sands Resort began sponsoring shows on TV, and putting up billboards around Rockten and surrounding towns advertising the resort. The ads hinted at the coming summer, and how the resort has always been the place to go for a welcome break from everyday life. Which of the following types of advertising did Pearl Sands Resort use? A) classified advertising B) comparative advertising C) personalized advertising D) persuasive advertising E) reminder advertising
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E
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Which of the following is true of mass-media communications techniques in the new marketing communications model? A) Digital media are undercutting spending on mass-media. B) Television advertising has lost its dominance as an advertising medium. C) Audience levels exposed to mass-media are increasing. D) The costs of advertising on traditional media are decreasing as marketers shift online. E) Ad spends on major TV channels are steadily rising.
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A
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Which of the following is true of consumers in the new marketing communications model? A) They are less powerful than before in having direct effects on the way a company markets its products. B) They are more reliant on traditional methods of marketing for product information. C) They are better equipped to find product and brand information on their own. D) They are less informed than before about company and product marketing techniques. E) They are more reliant on mass media marketing methods for product information.
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C
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________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A) Public relations B) Sales promotion C) Advertising D) Direct marketing E) Personal selling
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C
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A firm whose aim is to highlight its organization as supporting cause-related marketing efforts would use _____ as the primary element of the public relations toolkit. A) annual reports B) websites C) brochures D) press kits E) public service announcements
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E
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HGTV and Home and Gardens magazine fall into which of the following categories of media? A) Specialty media B) DIY media C) Niche media D) Utilitarian media E) Mass media
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C
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When a company wants to create and build brand awareness, it would use _____ advertising. A) push B) pull C) persuasive D) informative E) reminder
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D
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Bowflex and Jenny Craig develop advertisements featuring celebrities to address its target market's need for self-esteem. This is an example of which of the following? A) emotional appeal B) informational appeal C) relational appeal D) social appeal E) utilitarian appeal
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A
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Exxon Mobil uses a(n) _____ when it explains technical aspects of its products, such as lithium ion batteries, hydrogen technology, biofuels, and CO2 capture technologies. A) candid appeal B) emotional appeal C) informational appeal D) contemporary appeal E) engineering appeal
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C
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Although they stimulate demand, allowing the direct tracing of sales, _____ have a fairly high cost relative to their redemption rate. A) premiums B) sweepstakes C) coupons D) deals E) rebates
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C
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As a product in the maturity stage of its life cycle, chewing gum brands would most likely require the use of _____ to prompt purchases. A) reminder B) informative C) push D) pull E) persuasive
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A
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IKEA advertises throughout the year, but significantly increases its advertising during the back-to-school time frame, thus implementing a(n) _____ advertising schedule. A) steady B) flighting C) pulsing D) status quo E) continuous
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C
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Most advertising would qualify as _____. A) institutional advertising B) attribute-based advertising C) product-focused advertising D) social marketing E) public service advertising
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C
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Which of the following is the first step in planning and executing an advertising campaign? A) Identify the target market B) Convey the message C) Create the advertisements D) Set the advertising objectives E) Determine the advertising budget
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A
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After gaining the desired level of awareness, firms would typically move to producing _____ advertising to motivate consumers to action. A) informative B) persuasive C) pull D) push E) reminder
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B
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Direct-to-consumer advertising by pharmaceutical manufacturers is an example of a highly controversial use of _____ strategies by marketers, which is criticized for diminishing the trained expertise of the doctor in the decision making process. A) push B) reminder C) pull D) persuasive E) informative
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C
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It is in the _____ step of the process of developing an advertising campaign that the metrics are articulated against which advertising success or failure of the campaign is measured. A) Determine the advertising budget B) Convey the message C) Set the advertising objectives D) Identify the target market E) Create the advertisements
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C
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To achieve its goal of raising awareness about the need to plan and save for long-term personal financial security, Choose to Save® produced and ran a series of television and radio advertisements for broadcast on commercial stations, which is a form of _____. A) attribute-based advertising B) institutional advertising C) relational advertising D) product-focused advertising E) public service advertising
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E
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As a type of sales promotion, _____ encourage trial and reduce consumer risk, although they may negatively impact perceptions of brand value. A) samples B) premiums C) coupons D) deals E) rebates
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D
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The "Got Milk" campaign to encourage milk consumption is an example of _____. A) attribute-based advertising B) relational advertising C) institutional advertising (does not sell a particular product) D) public service advertising E) product-focused advertising
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C
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Coppertone uses a(n) _____ advertising schedule, where it advertises heavily in the months leading up to and during the summer, with no advertising after the season ends. A) status quo B) seasonal C) pulsing D) flighting E) continuous
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D
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When introducing new products, Quaker Oats uses a _____ by offering retailers discounts on the products along with point-of-purchase displays to motivate them to highlight the product. A) push strategy B) pull strategy C) reminder strategy D) persuasive strategy E) informative strategy
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A
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Which of the following is the primary enforcement agency for most mass media advertising? A) The Federal Communications Commission B) The Federal Communications Committee C) The Federal Trade Commission D) The Bureau of Alcohol, Tobacco and Firearms E) The U.S. Postal Service
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C
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As a means to reach large numbers of anonymous audience members, USA Today newspapers are considered to be which of the following types of media? A) mass media B) transatlantic media C) utilitarian media D) niche media E) emotional media
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A
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Which of the following is the first step in the selling process? A) handling objections B) determining call objectives C) presentation and demonstration D) prospecting and qualifying E) pre-approach
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D
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________ is the sales step in which the salesperson seeks out, clarifies, and overcomes any customer disapproval to buying. A) Prospecting and qualifying B) Preapproach C) Handling objections D) Closing E) Follow-up
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C
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Vintage is one of the largest companies in the country. Vintage produces a vast range of goods which includes cars, cameras, home appliances, personal-care products, and food items. The company also competes vigorously in the services market as it runs hotels, hospitals, and schools. Vintage entered the real-estate industry in the last decade and proved to be successful in this field too. Which of the following would classify as a business promotion tool used by Vintage? A) a display allowance for those retailers who feature the manufacturer's product B) a free "well-woman" check up at Vintage clinics for any recent customer who purchased merchandise above $200 at Vintage retail stores C) a trade show depicting the new villas and condominiums that are being developed under the Well Homes project D) a sweepstakes program inviting customers to submit their names and gain a chance to win the new Vintage car, VTG 412 E) a toaster being sold at half its list price for any consumer who buys a Vintage oven or food processor
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C
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La Viva, a chain of clubs and resorts, is known to be one of most preferred options for consumers seeking hospitality of a good standard. La Viva follows a mission which stresses long-term relationship building. It does not offer customers frequent price discounts which do increase footfalls, but fail to add value to the company. Which of the following statements, if true, strengthens the argument that La Viva uses the relationship-building approach over the transaction-oriented approach? A) The sales force at La Viva is trained rigorously in the selling process that begins with the step of prospecting and terminates with the step of follow-through. B) The managers at La Viva are suffering from a situation that reflects promotion clutter. C) The largest proportion of customers coming to La Viva are holders of a "Lifetime with La Viva" card or have been referred by satisfied customers. D) The consumer promotion activities at La Viva are centered around providing customers with a free package during the off-season. E) The facilities for recreation at La Viva are not significantly greater than its key competitor, Aurora clubs and resorts.
answer
C
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Which of the following examples represents a product sales force structure? A) Cartlon Computers sells its highly specialized computers through special teams which have received training in the configuration, uses, and USPs of a single model of its computers. B) AmWeb produces an expensive brand of herbal cosmetics called "Green You" that are sold in select boutiques and parlors by selling teams assigned to serve small groups of these key customers. C) Venson's produces frozen dinners at its factory in Ohio and sells them across the country through a network of sales representatives organized into regional and territorial tiers. D) Verra Designers operates from its landmark store in uptown New York and customers from world over come to this store to buy original merchandise at steep prices. E) Nutters, producers of cookies and other bakery products, markets its products throughout the country through a network of area and regional sales officers.
answer
A
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Which of the following statements is true of salespersons? A) They represent a company to customers by communicating and selling. B) Click-only companies have maximum number of salespersons. C) They do not work with wholesalers and retailers. D) They represent a new class of professionals who have emerged as part of the steep rise in retailing. E) They do not represent the customers to the company.
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A
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Easy Life manufactures a wide range of home appliances, healthcare products, and cosmetics. It sells its products to many types of customers but in a single geographic location. Its complex sales force structure combines which of the following two sales force structures? A) geographic and market B) product and market C) geographic and product D) territorial and market E) product and territorial
answer
B
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If a company assigns individual teams of salespeople to big retail customers, it is most likely to have a ________ sales force structure. A) territorial B) product C) geographical D) market E) demographic
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D
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Which of the following is true of the stage of presentation in the selling process? A) It involves the final meeting with the customer to close the deal. B) It involves learning as much as possible about the organization and its buyers prior to the approach stage. C) It involves the act of cold calling in the absence of potential leads. D) It involves clarifying customer objections to buying with a positive approach. E) It shows how the company's offer solves the customer's problem.
answer
E
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Which of the following is an advantage of an outside sales force? A) It provides face-to-face collaboration and relationship building. B) It essentially provides daily access and support. C) It can make more decision-maker contacts a day as compared to the inside sales force. D) It is the most effective way to provide technical sales support to buyers. E) It is less expensive than the inside sales force.
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A
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Which of the following is the last step in the selling process? A) prospecting B) follow-up C) closing D) handling objections E) presentation
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B
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Which of the following is a supervision tool used by managers for their salespeople? A) sales quota B) straight commission plan C) bonus plan D) call plan E) sales contest
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D
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Carmalax is the country's largest vendor of printers and digital imaging services. Carmalax is known for its highly-trained and experienced sales force which has provided the company with exemplary service for decades. Much of the success Carmalax enjoys has been attributed to the fact that the management of Carmalax treats its sales division with respect and recognition. Which of the following statements, if true, would reflect this positive approach to managing the sales force that is practised by Carmalax? A) The salespeople at Carmalax are encouraged to use trade and business promotions, rather than customer promotions. B) The salespeople at Carmalax are invited to frequent sales meetings to voice their concerns and rewarded well for individual and group performance. C) The salespeople at Carmalax are encouraged to focus on the transaction-oriented selling process, rather than the value selling approach. D) The salespeople at Carmalax typically face the threat of many punitive measures, including unemployment, for poor performance. E) The salespeople at Carmalax work under extreme supervision and managers are aware of the activities of their salespeople on field at all times.
answer
B
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Sales people from the inside sales force typically ________. A) work only on the relationship-building process B) provide daily access and support C) work independently of the outside sales force D) cannot conduct business on their own E) travel to call on customers in the field
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B
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Which of the following is a disadvantage of the territorial sales force structure? A) Salesperson's job and accountability are not clearly defined. B) It does not lead to building local customer relationships. C) Travel expenses are relatively larger than any other sales force structure. D) It is not useful in a company with a number of product lines in different industries. E) It does not involve geographic specialization.
answer
D
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Oolay Inc., a U.S. based cosmetics manufacturer, sells its products in France, China, Russia, and India. To manage its sales, it has appointed a number of sales representatives for each location who report to area managers. These area managers coordinate sales for their respective areas and report to regional managers. From the information provided in the scenario, we can infer that Oolay Inc. has adopted a ________. A) client sales force structure B) territorial sales force structure C) customer sales force structure D) market sales force structure E) product sales force structure
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B
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________ are offers of a trial amount of a product. A) Samples B) Coupons C) Cash refunds D) Rebates E) Price packs
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A
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________ are certificates that save buyers money while they purchase specified products. A) Samples B) Coupons. C) Price packs D) Rebates E) Premiums
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B
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Sales reports primarily contain ________. A) weekly or monthly work plans B) details of the expenses and overheads incurred C) schedules for sales meetings D) call plans developed by supervisors for salespeople E) details of sales contests and the incentives they carry
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A
question
ABM Connect is one of the largest providers of Internet services in the country. The company operates through a network of thousands of employees who manage its functions in their respective capacities. With the entry of new service providers in the industry, ABM Connect has also enhanced its sales and marketing efforts to retain its position as the market leader. Which of the following statements, if true, would indicate that ABM Connect adopts the transaction-oriented approach? A) The salespeople at ABM Connect have been cutting prices drastically to meet targets after the entry of many competing firms in the market. B) The salespeople at ABM Connect typically use business promotions, rather than trade or consumer promotion measures. C) The salespeople at ABM Connect have recently been promoting the "Connect for Life" program which gives its long-time consumers added benefits at no extra costs. D) The salespeople at ABM Connect have been demonstrating the value that their speedy Internet services can bring to business customers even when their competitors are slashing prices. E) The salespeople at ABM Connect receive special training in the area of customer relationship-building strategies.
answer
A
question
Which of the following statements is true of team selling? A) Each salesperson is an expert in every area and can handle all of a large customer's needs autonomously. B) It is adopted when the group of target customers is small and homogeneous. C) It is usually adopted when the company has only one product line. D) It includes experts from many areas like marketing, operations, finance, and others. E) It is easier to evaluate individual contribution and compensation in case of team selling when compared to other sales forces.
answer
D
question
Which of the following is an advantage of market sales force structure? A) lowest travel expenses B) minimal need for supervision of salespeople C) highest degree of product specialization D) close relationships with important customers E) lowest compensation rates for salespeople
answer
D
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________ is the sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call. A) Follow-up B) Price quotation C) Demonstration D) Approach E) Pre-approach
answer
E
question
In which of the following steps in the sales process does the salesperson meet the customer for the first time? A) prospecting B) approach C) presentation D) qualifying E) pre-approach
answer
B
question
Which of the following examples represents a territorial sales force structure? A) Ajax Medicals has special teams of medical representatives who are well-versed in the specific classes of medicines they sell to the customer markets assigned to them. B) Oriental Meals, producers of pre-cooked Chinese meals, markets its products throughout the country through a network of area and regional sales officers. C) Verra Designers operates from its landmark store in uptown New York and customers from world over come to this store to buy original merchandise at steep prices. D) Apollo Pharmaceuticals sells its products through a network of teams, each of which handles a specific product, but sells them in one location only. E) Milton's is a specialty liquor brewery that markets its products to the most exquisite hotels and has individual sales teams assigned to provide priority service to each of its clients.
answer
B
question
Which of the following is an advantage of printed catalogs over digital catalogs? A) efficiencies in production, printing, and mailing costs B) ease in matching prices instantly in response to changes in demand C) an ability to offer an unlimited amount of merchandise D) real-time merchandising E) a stronger emotional connection with customers
answer
E
question
Gutter Guys is a gutter installation company in Southern California that used to generate most of its sales through telemarketing but now uses direct mail to reach prospective customers. Which of the following most likely explains the reason that Gutter Guys switched from telemarketing to direct mail? A) Clayton Act B) Children's Online Privacy Protection Act C) National Do-Not-Call Registry D) Federal Trade Commission's Anti-Spam Act E) Robinson-Patman Act
answer
C
question
________ allows consumers to gain additional information about a product through the use of a remote control. A) Data mining B) Podcasting C) Telemarketing D) Interactive television E) Direct-mail marketing
answer
D
question
Green Gardens is a click-and-mortar seller of gardening and landscaping goods and equipment. The marketing department wants to encourage shoppers at the physical stores to use the company's online catalog to order items that are not available at a given retail location. Which of the following marketing devices is the best match for this goal? A) podcasts B) infomercials C) kiosks D) retail stores E) mail-order forms
answer
C
question
Jean-Paul's Cutlery has always relied upon advertising to market its products to final customers. However, the marketing team at Jean-Paul's Cutlery is now considering starting a direct marketing campaign consisting of a company Web site, e-mail to current customers, and an online catalog. Which of the following would the marketing team expect to gain as a result of implementing this direct marketing plan? A) greater control over employee-management interactions within the company B) the ability to learn more about their customers and tailor offerings to fit their needs C) a wealth of information about competitors and their products. D) the ability to increase the range of products the company offers E) a lower cost-per-contact than its advertising campaign using mass marketing strategies
answer
B
question
You are looking up airline schedules on HolApp, a mobile Web app. A bar at the bottom of the screen reads, Stay at Holiday Inn and get a 25 percent discount! This is a(n) ________. A) viral advertisement B) advertorial C) microblog D) informercial E) banner
answer
E
question
Which of the following is a primary disadvantage of viral marketing? A) The costs of viral marketing are too high for most companies. B) Marketers have little control over who receives the viral message. C) Viral messages are less likely to be viewed than other types of online promotions. D) The brand associated with the viral message is usually forgotten. E) Viral messages are blocked by most search engines.
answer
B
question
Which kind of marketing involves sending an offer, announcement, reminder, or other item to a person at a particular postal address? A) kiosk marketing B) mass marketing C) telephone marketing D) digital direct marketing E) direct-mail marketing
answer
E
question
________ consists of connecting directly with carefully targeted consumers, often on a one-to-one, interactive basis. A) Standardized marketing B) Direct marketing C) Internal marketing D) Mass marketing E) Marketing without segmentation
answer
B
question
New York Times on the Web, ESPN.com, and Encyclopedia Britannica Online provide financial, research, and other information. They are called ________. A) content sites B) e-tailers C) iTV sites D) transaction sites E) ISPs
answer
A
question
What characteristic of niche sites makes the medium most appealing to marketers? A) commercial transaction capabilities B) podcasting and vodcasting capabilities C) wide variety of demographics and purchasing patterns D) audience sizes larger than those of general social networking sites E) audiences of people with similar interests
answer
E
question
A 30-minute or longer television advertising program marketing a single product is called a(n) ________. A) inbound advertisement B) iTV advertisement C) advertorial D) infomercial E) testimonial
answer
D
question
Marketers use ________ telephone marketing to receive orders from television ads and catalogs. A) inbound B) infomercial C) direct-response D) advertorial E) viral
answer
A
question
CashSecure is a financial services provider. Whenever a customer has a child who is about to become eligible for a driver's license, CashSecure sends the customer materials related to teaching teenagers how to drive safely. This is an example of using ________ information from a customer database. A) metadata B) psychographic C) political D) demographic E) geographic
answer
D
question
Eric Dylan is the marketing director of a charity that raises funds to help provide educational services to children and families in developing countries. Eric targets a selective market of individuals who have recently donated to international charities by sending them a letter with the proposed plan for charity and instructions for those who are interested to participate. Eric uses ________ in this scenario. A) direct-mail marketing B) kiosk marketing C) direct-response television marketing D) mass marketing E) telephone marketing
answer
A
question
A company would be most likely to benefit in which of the following ways by using blogs as marketing tools? A) Blogs are an inexpensive yet personal way to connect with consumers. B) Demographic information about customers can be easily tracked. C) Long-term customer relationships can be developed through blogs. D) Blogs provide companies with additional revenue. E) Blog content is easy to filter, monitor, and control.
answer
A
question
As the marketing manager at Secure Services, a home security systems company, you have been asked to devise a new sales and marketing strategy for a new line of sophisticated alerting systems called "Imperio." The two previous promotional ventures failed to elicit much consumer response because most people were unaware of the benefits of such devices except for those consumers who were specifically looking for them. Which of the following would be categorized as a viral marketing approach to sell its products by Secure Services? A) a promotional e-mail sent to all customers on the customer database of Secure Services B) a promotional video depicting the pros and cons of the products of Secure Services as opposed to those of the other competing products in the field C) a promotional campaign with pop-ups and banners of the products of Secure Services on online social networks like Twitter and Facebook D) a promotional video juxtaposing elements of extreme horror and humor to convey that the Imperio line of home security systems make homes impervious to strangers E) a promotional infomercial of thirty minutes duration that is aired with a toll-free number for interested customers to place orders
answer
D
question
________ might appear anywhere on an Internet user's screen and are often related to the information being viewed. A) iTV advertisements B) Marketing Web sites C) Online display ads D) Corporate Web sites E) Viral videos
answer
C
question
________ marketers use online marketing to reach new business customers, serve current customers more effectively, and obtain buying efficiencies and better prices. A) B2C B) global commerce C) C2C D) C2B E) B2B
answer
E
question
The popular press has paid the most attention to ________ online marketing-the online selling of goods and services to final consumers. A) B2B B) C2C C) B2C D) global E) C2B
answer
C
question
The site www.bestbargains.com has become a rage among Internet-users and businesses. Though the site is only eight-months old, it has elicited large amounts of Internet traffic and transactions. The site promises to provide the best deals for an almost unlimited range of goods and services it lists. Consumers are required to log-in and bid for goods and services of their choice and can obtain heavy discounts, free shipping, and bonus points for being frequent users. This scenario reflects ________. A) B2B online marketing B) C2C online marketing C) C2B online marketing D) multi-channel marketing E) B2C online marketing
answer
C
question
Which of the following is a transaction site? A) Facebook B) Wikipedia C) Yahoo D) IMDB E) eBay
answer
E
question
What is the main purpose of a corporate Web site? A) to create a consumer query into a sale B) to give out coupons and tell about sales events or contests C) to build customer goodwill D) to point out and explain competitors' weaknesses E) to sell the company's products directly
answer
C
question
Jenny McCarthy, a stay-at-home mother, regularly posts new entries on a widely read blog. In these entries, she often reviews consumer products that she uses during the course of her day. This is an example of ________. A) C2C online marketing B) C2B online marketing C) viral marketing D) click and mortar blogging E) data mining
answer
A
question
Fox Scully received an e-mail promoting a new financial services institution that offers surprisingly low mortgage rates. The e-mail simply asked customers to provide their address, date of birth, social security number, and current mortgage information in order to receive a free loan quote. Suspicious of the offer, Fox researched the company and discovered that the e-mail was a fraud. This is an example of ________. A) data mining B) iTV advertising C) phishing D) viral marketing E) cold calling
answer
C
