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Marketing 301 Final – Flashcards

Robert Lollar

7 July 2022

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Price

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The amount of money charged for a product or service; the sum of the values that customers exchange for the benefits of having or using the product or service.

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Customer Value-Based Pricing

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Setting price based on buyers' perceptions of value rather than on the seller's cost.

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Good-Value Pricing

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Offering the right combination of quality and good service at a fair price.

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Value-Added Pricing

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Attaching value-added features and services to differentiate a company's offers while charging higher prices.

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Cost-Based Pricing

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Setting prices based on the costs for producing, distributing and selling the product plus a fair rate of return for effort and risk.

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Fixed Costs (Overhead)

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Costs that do not vary with production or sales level.

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Variable Costs

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Costs that vary directly with the level of production.

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Total Costs

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The sum of the fixed and variable costs for any given level of production.

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Cost-Plus Pricing (Markup Pricing)

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Adding a standard markup to the cost of the product.

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Break-Even Pricing (Target Return Pricing)

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Setting price to break even on the costs of making and marketing a product or setting price to make a target return.

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Competition-Based Pricing

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Setting prices based on competitors' strategies, prices, costs, and market offerings.

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Target Costing

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Pricing that starts with an ideal selling price and then targets costs that will ensure that the price is met.

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Which promotion tool offers short-term incentives to encourage the purchase or sale of a product or service? a) advertising b) sales promotion c) public relations d) personal selling

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b) sales promotion

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The promotional tool that results in the most credible and believable message is: a) Advertising b) Personal selling c) Public relations d) Direct Marketing

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c) Public relations

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A _____ strategy calls for promoting extensively to final consumers. When effective, consumers will ask their retailers for the product, the retailers will then ask the wholesalers for it, who ultimately ask the producers for it. a) Public relations b) Push c) Pull d) Partner

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c) pull

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High-definition DVD players are relatively new products on the market. There are not many competitors and many consumers are not aware of the benefits that come along with the high price tag. Which type of advertising would be appropriate at this stage? a) Reminder advertising b) Informative advertising c) Persuasive advertising d) Comparative advertising

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b) Informative advertising

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The most logical method of setting a promotion budget is the ______ method, whereby the company sets its budget on what it wants to accomplish with the promotion. a) Objective-and-task b) Percentage-of-sales c) Affordable d) Competitive-parity

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a) Objective-and-task

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An ad shows how a college student uses her laptop to take notes during class, send email to her grandparents, pay bills online, and research a paper. Which execution style is being used? a) Fantasy b) Lifestyle c) Slice-of-life d) Technical expertise

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c) Slice-of-life

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The measure of how many times the average person in the target market is exposed to the message is called: a) Reach b) Frequency c) Impact d) Exposures

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b) Frequency

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You want an advertising medium that offers high audience selectivity, flexibility, no adcompetition within the same medium, and allows personalization. Which medium would be best? a) Direct mail b) Newspapers c) Magazines d) Television

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a) Direct mail

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Public relations departments may perform all of the following functions EXCEPT: a) Investor relations b) Lobbying c) Product publicity d) Product advertising

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d) Product advertising

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Procter & Gamble encourages customers to discuss its products with each other online through various blogs. Many of the conversations are initiated by P&G, which is an example of which public relations tool? a) News b) Lobbying c) Buzz marketing d) Special events

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c) Buzz marketing

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As a sales representative for your firm, your territory is limited to accounts located within the state in which you currently reside. This type of sales force structure is called: a) Customer sales force structure b) Product sales force structure c) Territorial sales force structure d) Combination sales force structure

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c) Territorial sales force structure

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Your organization has a number of large volume customer accounts that demand exceptional service. The products marketed by your firm are complex. Such a situation calls for a(n): a) Team selling approach b) Workload approach c) Product sales force approach d) Inside sales force approach

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a) Team selling approach

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Pharmaceutical companies employ salespeople who visit doctors to inform them of products. This is an example of which type of sales force? a) An inside sales force b) An outside sales force c) A large sales force d) A customer sales force

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b) An outside sales force

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Sales training programs generally teach sales recruits to do all the following EXCEPT: a) Understand the company's products b) Understand different customers and their corresponding buying needs c) Calculate their sales commissions d) Sell effectively

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c) Calculate their sales commissions

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Howard must sell five computers systems per month. This is an example of a sales: a) Quota b) Goal c) Objective d) Program

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a) Quota

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______ is the step in the selling process in which the salesperson learns as much as possible about a prospective customer before making a sales call. a) Prospecting b) Preapproach c) Approach d) Handling objections

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b) Preapproach

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______ consists of short-term incentives to encourage the purchase or sale of a product or service. a) Sales promotion b) Advertising c) Personal selling d) Direct marketing

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a) Sales promotion

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McDonald's Happy Meals include a toy inside. The toy is an example of which type of consumer promotion? a) Coupon b) Premium c) Sweepstake d) Advertising specialty

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b) Premium

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Disney invited children to enter drawings of Mickey Mouse. The grand prize for the best picture was a family vacation to Disney World. This is an example of a: a) Point-of-purchase promotion b) Premium c) Sweepstake d) Contest

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d) Contest

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Melanie is a salesperson at a decorating store and receives $50 from the manufacturer of one brand of carpeting for every customer she influences to buy that brand. What type of promotion is this? a) Rebate b) Push money c) Allowance d) Discount

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b) Push money

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Consumers and business buyers benefit from Internet buying because it is convenient, interactive and immediate, offers a wealth of comparative information and ______ a) Provides access to a greater product selection. b) Leads to quicker product delivery. c) Filters out unethical vendors. d) All of the above.

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a) Provides access to a greater product selection.

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In consumer marketing, a customer database might contain all the following EXCEPT: a) Competitive suppliers b) Customers' ages c) Customers' past purchases d) Customers' preferences

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a) Competitive suppliers

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Suppose you wanted to sell custom-built cars to consumers using one of the major methods of direct marketing. Which do you think would be the most effective? a) Telemarketing b) Direct-mail marketing c) Catalog marketing d) Kiosk marketing

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b) Direct-mail marketing

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CNET.com hosts reviews, how-to advice, online videos, and a vendor listing/price search option for various types of electronic products. Which classification best describes the CNET Web site? a) Portal site b) Shopping comparison site c) Content site d) Transaction site

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c) Content site

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Robert's Clothiers operates a downtown store and an e-tail site on the Web. Robert's is an example of a(n): a) ISP b) Click-only company c) Click-and-mortar company d) Transaction site

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c) Click-and-mortar company

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_______ are offers of a trial amount of a product. a) samples b) cash refunds c) price packs d) coupons e) rebates

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a) samples

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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 product b) territorial and market c) product and territorial d) geographic and market e) product and market

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e) product and market

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Which of the following is a disadvantage of the territorial sales force structure? a) it does not involve geographic specialization b) it does not lead to building local customer relationships c) salesperson's job and accountability are not clearly defined d) it is not useful in a company with a number of product lines in different industries e) travel expenses are relatively larger than any other sales force structure

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d) it is not useful in a company with a number of product lines in different industries

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Which of the following is the first step in the selling process? a) determining call objectives b) prospecting and qualifying c) handling objections d) preapproach e) presentation and demonstration

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b) prospecting and qualifying

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Which of the following examples represents a territorial sales force structure? a) 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. b) Vera 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. c) Apollo Pharmaceuticals sells its products through a network of teams, each of which handles a specific product but sells them in one location only. d) Oriental Meals, producers of pre-cooked Chinese meals, markets its products throughout a network of area and regional sales offices. e) 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.

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d) Oriental Meals, producers of pre-cooked Chinese meals, markets its products throughout a network of area and regional sales offices.

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Which of the following is an advantage of an outside sales force? a) it is less expensive than an inside sales force b) it is the most effective way to provide technical sales support to buyers c) it essentially provides daily access and support d) it can make more decision maker contacts a day as compared to the inside sales force e) it provides face-to-face collaboration and relationship-building

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e) it provides face-to-face collaboration and relationship-building

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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) geographical b) territorial c) demographic d) product e) market

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e) market

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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) approach b) price quotation c) demonstration d) preapproach e) follow-up

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d) preapproach

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Salespeople from the inside sales force typically ____________. a) work independently of the outside sales force b) work only on the relationship-building process c) provide daily access and support d) cannot conduct business on their own e) travel to call on customers in the field

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c) provide daily access and support

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Which of the following examples represents a product sales force structure? a) Venisons 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. 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) Cartlon Computers sells its highly specialized computers through special teams which have received special training in the configuration, uses, and USPs of a single model of its computers. d) Nutters, producers of cookies and other bakery products, markets its products throughout the country through a network of area and regional sales officers e) Vera 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.

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c) Cartlon Computers sells its highly specialized computers through special teams which have received special training in the configuration, uses, and USPs of a single model of its computers.

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Which of the following is a supervision tool used by managers for their salespeople? a) call plan b) bonus plan c) sales contest d) straight commission plan e) sales quota

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a) call plan

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Which of the following is true of the stage of presentation in the selling process? a) it shows how the company's offer solves the customer's problem b) it involves the final meeting with the customer to close the deal c) it involves clarifying customer objections to buying with a positive approach d) it involves the act of cold calling in the absence of potential leads e) it involves learning as much as possible about the organization and its buyers prior to the approach stage

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a) it shows how the company's offer solves the customer's problem

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Which of the following is the last step in the selling process? a) presentation b) prospecting c) follow-up d) closing e) handling objections

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c) follow-up

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Which of the following statements is true of team selling? a) it includes experts from many areas like marketing, operations, finance, and others b) it is adopted when the group of target customers is small and homogenous c) each salesperson is an expert in every area and can handle all of a large customer's needs autonomously d) it is easier to evaluate individual contribution and compensation in case of team selling when compared to other sales forces e) it is usually adopted when the company has only one product line

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a) it includes experts from many areas like marketing, operations, finance, and others

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CashSecure is a financial service 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) political b) demographic c) psychographic d) metadata e) geographic

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b) demographic

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Which of the following is an advantage of printed catalogues over digital catalogues? a) an ability to offer an unlimited amount of merchandise b) efficiencies in production, printing, and mail cost c) ease in matching prices instantly in response to matches in changes in demand d) a stronger emotional connection with customers e) real time merchandising

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d) a stronger emotional connection with customers

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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) National Do Not Call Registry b) Robinson-Patman Act c) Federal Trade Commission's Anti-Spam Act d) Clayton Act e) Children's Online Privacy Protection Act

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a) National Do Not Call Registry

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Which kind of marketing involves sending an offer, announcement, reminder, or other item to a person at a particular postal address? a) mass marketing b) digital direct marketing c) telephone marketing d) direct mail marketing e) kiosk marketing

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d) direct mail marketing

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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% discount!" This is a(n) __________. a) infomercial b) microblog c) advertorial d) viral advertisement e) banner

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e) banner

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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 catalogue to order items that are not available at a given location. Which of the following marketing devices is the best match for this goal? a) infomercials b) mail order forms c) podcasts d) kiosks e) retail stores

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d) kiosks

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A company would be most likely to benefit in which of the following ways by using blogs as marketing tools? a) blogs provide companies with additional revenue b) blogs are an inexpensive yet personal way to connect with customers c) blogs are an inexpensive yet personal way to connect with consumers d) demographic information about customers can be easily tracked e) long-term customer relationships can be developed through blogs

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c) blogs are an inexpensive yet personal way to connect with consumers

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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) mass marketing b) direct mail marketing c) telephone marketing d) kiosk marketing e) direct response television marketing

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b) direct mail marketing

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________ allows consumers to gain additional information about a product through the use of a remote control. a) data mining b) telemarketing c) interactive television d) direct mail marketing e) podcasting

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c) interactive television

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What is the main purpose of a corporate website? a) to sell the company's products directly b) to give out coupons and tell about sales events or contests c) to point out and explain competitors weaknesses d) to build customer goodwill e) to create a consumer query into a sale

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d) to build customer goodwill

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The popular press had paid the most attention to __________ online marketing, the online selling of goods and services to final consumers. a) C to B b) B to C c) B to B d) global e) C to C

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b) B to C

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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 characterized as a viral marketing approach to sell its products by Secure Services? a) 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 b) a promotional campaign with popups and banners of the products of Secure Services on online social networks like Twitter and Facebook c) a promotional infomercial of thirty minutes' duration that is aired with a toll-free number for interested customers to place orders d) a promotional email sent to all customers on the customer database of Secure Services e) a promotional video juxtaposing elements of extreme horror and humor to convey that the Imperio line of home security systems makes homes impervious to strangers.

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e) a promotional video juxtaposing elements of extreme horror and humor to convey that the Imperio line of home security systems makes homes impervious to strangers.

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Marketers use _________ telephone marketing to receive orders from television ads and catalogues. a) inbound b) direct response c) infomercial d) advertorial e) viral

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a) inbound

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A thirty minute or longer television advertising program marketing a single product is called a(n) ________. a) advertorial b) testimonial c) inbound advertisement d) iTV advertisement e) infomercial

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e) infomercial

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Rent, electricity, and executive salaries are examples of _________ costs. a) total b) marketing c) accumulated d) fixed e) variable

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d) fixed

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Costs that do not vary with production or sales level are referred to as ________ costs. a) total b) variable c) fixed d) unit e) target

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c) fixed

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Value-based pricing is the reversed process of _____________ pricing. a) good-value b) variable cost c) value-added d) cost-plus e) cost-based

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e) cost-based

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____________ is the amount of money charged for a product or service. a) price b) salary c) demand curve d) wage e) experience curve

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a) price

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Of the following, a company would be least likely to set prices low to _________. a) prevent competition from entering the market b) stabilize the market c) match a competitor d) create excitement about a product e) prepare for an easy exit from a market

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e) prepare for an easy exit from a market

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___________ involves charging a constant low price with few or no temporary price discounts. a) high-low pricing b) target return pricing c) cost-plus pricing d) prevention pricing e) everyday low pricing (EDLP)

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e) everyday low pricing (EDLP)

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Price-setting is usually determined by ___________ in small companies. a) marketing departments b) divisional managers c) top management d) sales departments e) cross-functional teams

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c) top management

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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) fixed cost b) variable c) cost-based d) skimming e) value-based

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c) cost-based

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Consumer perceptions of the product's value set the _________ for prices. a) image b) variable cost c) demand curve d) ceiling e) floor

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d) ceiling

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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) competition-based pricing b) target return pricing c) customer-based pricing d) fixed cost e) value-based pricing

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b) target return pricing

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The company designs what it considers to be a good product, totals the expenses of making a product and sets a price that adds a standard markup to the cost of the product. This approach to pricing is called __________ pricing. a) cost-plus b) fixed cost c) variable d) value-based e) skimming

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a) cost-plus

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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) product image c) variable costs d) price elasticity e) target return pricing

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a) value-based pricing

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Which of the following is an external factor that affects pricing decisions? a) the salaries of production management b) the company's overall marketing strategy c) overall pricing objectives d) the salaries of finance managers e) competition

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e) competition

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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) break-even pricing b) fixed costs c) variable costs d) target returns e) perceived value

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e) perceived value

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Which of the following presents the strongest reason that markup pricing generally does not make sense? a) this method ignored demand b) by tying the price to cost, sellers simplify pricing c) sellers earn a fair return on their investment d) with a standard markup, consumers know when they are being overcharged e) when all firms in the industry use this pricing method, prices tend to be similar

answer

a) this method ignored demand

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Linda is angry at Joe's Pizza for delivering yet another soggy pizza, so she fires off an email to Joe's Pizza criticizing their performance. This is an example of: a) B2B e-commerce b) B2C e-commerce c) C2C e-commerce d) C2B e-commerce

answer

d) C2B e-commerce

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Which "C" of effective Web site design refers to the site's ability to tailor itself to different users or to allow users to personalize the site? a) Customization b) Communication c) Clarity d) Context

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a) Customization

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Jason was looking at information on a Web site when an advertisement appeared suddenly in a new window in front of the window he was viewing. This is an example of a(n): a) Search-related ad b) Banner ad c) Infomercial d) Pop-up ad

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d) Pop-up ad

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Unsolicited, unwanted commercial email messages are called: a) Junk mail b) Blogs c) Spam d) Viral marketing messages

answer

c) Spam

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The most challenging public policy issue currently facing the direct marketing industry is/are: a) Sweepstakes fraud and deceit b) Invasion of privacy c) Investment, charity, and research scams d) Irritating infomercials

answer

b) Invasion of privacy

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Setting price based on buyers' perceptionsof value rather than on the seller's cost is called: a) Value-based pricing b) Customer-based pricing c) Non-cost pricing d) Competition-based pricing

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b) Customer-based pricing

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Monthly costs such as rent, interest, and salaries that must be paid regardless of output each month are: a) Nonvariable costs b) Commitment costs c) Fixed costs d) Variable costs

answer

c) Fixed costs

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A manufacturer of bicycles has fixed costs of $500,000 and variable costs of $30 per bicycle. If the company sells the bicycle for $80, how many bicycles must be sold to break even? a) 6,250 b) 10,000 c) 16,667 d) 20,000

answer

b) 10,000

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Initially, you price your new motorcycle at $30,000, but then drop the price to $27,000. Consequently, demand for the new motorcycle jumps by 40%. In this case, demand is: a) Highly inelastic b) Highly unpredictable c) Highly elastic d) Highly variable

answer

c) Highly elastic

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Market penetration pricing works best when all EXCEPT which the following conditions are met? a) Consumers are price sensitive. b) Per unit production and distribution costs fall as sales volume rises. c) The low prices keep competitors at bay. d) The product has a premium image.

answer

d) The product has a premium image.

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Computer printers have become very inexpensive. However, the replacement ink cartridges can cost almost as much as the printer. What product mix pricing strategy is being used? a) Everyday low pricing b) Competition-based pricing c) Captive-product pricing d) High-low pricing

answer

c) Captive-product pricing

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Discounts offered to channel members for services they provide are called: a) Functional discounts b) Quantity discounts c) Cash discounts d) Seasonal discounts

answer

a) Functional discounts

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Priceway grocery stores frequently advertise some products at very low prices to attract customers to the store in the hope that they will buy other items at normal markups. What price-adjustment strategy is Priceway using? a) Promotional pricing b) Reference pricing c) Low-High pricing d) Segmented pricing

answer

a) Promotional pricing

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Charging the same price plus freight to all customers, regardless of their location, is called: a) Nonpromotional pricing b) Uniform-delivered pricing c) Zone pricing d) Price conformity

answer

b) Uniform-delivered pricing

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Amanda was checking airline prices on the Internet and noticed that prices changed throughout the day and on different days when she checked. This type of pricing routinely practiced by industries such as airlines and hotels is called: a) Reference pricing b) Dynamic pricing c) Captive-product pricing d) Zone pricing

answer

b) Dynamic pricing

question

As Vice President of Marketing for Holden-Evan, a highly successful consumer products company, you have been asked by your superiors to price a new product for the company, an electric razor. Your first chore is to determine the basis on which you will determine price. Before you have a chance to analyze the situation, an advisor from sales tells you that this razor will never break into a tough market unless it has an absolute rock-bottom price. Which of the following identifies the best reason for why you should ignore advice to employ a competitive price approach in which you undercut all competitors? a. Low-priced razors are often considered "cheap" and don't sell well. b. By setting the price before you know the costs, you could lose money on every razor you sell. c. The best way to enter into a tough market is with promotion, not a low price. d. When buying a durable product like an electric razor, consumers don't pay attention to price. e. The best way to enter into a tough market is with high quality, not a low price.

answer

b. By setting the price before you know the costs, you could lose money on every razor you sell.

question

You are considering a cost-plus pricing method for the razor. Which of the following identifies the greatest danger in using this pricing method? a. The price that is set will increase demand dramatically. b. The price that is set will be too low. c. The price that is set will fail to factor in fixed costs. d. The price that is set will be variable and unstable. e. The price that is set will dramatically decrease demand.

answer

e. The price that is set will dramatically decrease demand.

question

Another pricing method you are considering is break-even pricing. With this method, you compute how many units you will need to sell at a given price to break even. Your VP of Finance, who is focused on profits, is against using this method to set the price. Which of the following best explains why the VP of Finance is against break-even pricing? a. Break-even pricing computes a price that simply offsets costs without actually generating a profit. b. Break-even pricing is risky and unpredictable. c. Break-even pricing works only when demand is very high. d. Break-even pricing does not consider how the price of the product can increase or decrease demand. e. Break-even pricing works only when demand is very low and you want to generate enthusiasm for your product.

answer

a. Break-even pricing computes a price that simply offsets costs without actually generating a profit.

question

Using break-even pricing, suppose your revenue estimate falls short of the break-even point. Which of the following modifications will not result in reaching the break-even point? a. Raise the price to increase revenue and keep sales, costs, and the break-even point steady. b. Lower the price to increase sales, and keep costs and the break-even point steady. c. Lower the break-even point and keep the price, costs, and sales steady. d. Lower costs and keep the price, sales, and the break-even point steady. e. Raise both the price and sales, but keep costs steady.

answer

c. Lower the break-even point and keep the price, costs, and sales steady.

question

Rather than break-even pricing, you are considering setting your price using the target profit approach. Which of the following best explains why target profit pricing is an improvement over break-even pricing? a. Target profit pricing is the only method that takes into account how a price can influence demand. b. Target profit pricing completely ignores how a price can influence demand. c. Target profit pricing sets an ideal price that reflects the best possible outcome for your product. d. Target profit pricing sets a price that will generate revenue above the break-even point so a profit can be achieved. e. Target profit pricing lowers costs well below the break-even point so a large profit is guaranteed.

answer

d. Target profit pricing sets a price that will generate revenue above the break-even point so a profit can be achieved.

question

Another option you are considering is a value-based approach using good-value pricing. Which of the following accurately describes a good-value pricing approach? a. a less expensive model that has fewer features than the name brand product b. a less expensive model that has features that are similar to the name brand product c. a less expensive model that has more features than the name brand product d. a deluxe model that has better features and a higher price than the name brand product e. a deluxe model that has better features and a much lower price than the name brand product

answer

b. a less expensive model that has features that are similar to the name brand product

question

Another value-based approach is value-added pricing. Which of the following products is using a value-added pricing approach? a. the industry leader: a 3G smart phone with all of the standard features at a medium-level price b. a 3G smart phone with all of the standard features at a price that is lower than the industry standard c. a 3G smart phone that works well and has most, but not all of the standard features at a price that is lower than the industry standard d. a 3G smart phone with all standard features and a few unexciting extra features at a price that is the same as the industry standard e. a 3G smart phone with all standard features and a few very exciting extra features at a price that is higher than the industry standard

answer

e. a 3G smart phone with all standard features and a few very exciting extra features at a price that is higher than the industry standard

question

Your current estimates for the razor list $555,000 in fixed costs and $29 per unit in variable costs. Previously, expected sales for the unit were 50,000. New data suggests expected sales of 70,000 units. To obtain a 15 percent profit, what price range should you set? a. between $43 and $44 b. between $47 and $48 c. between $32 and $35 d. between $40 and $42 e. between $48 and $50

answer

a. between $43 and $44

question

The estimated demand for various prices for the razor are listed below. Your colleague suggests a break-even price of about $30. PRICE EXPECTED DEMAND $30 135,000 $35 92,500 $40 60,500 $45 50,000 $50 41,500 $55 20,000 Which of the following best explains why a break-even price of $30 is incorrect? a. At a price of $30 per unit, it is not possible to sell 135,000 units. b. To sell 135,000 units, you would need to charge more than $30 per unit. c. To sell 135,000 units, you could charge less than $30 per unit. d. To sell 135,000 units, you would need to exactly $30 per unit. e. To sell 135,000 units, you would need to charge over $40 per unit.

answer

b. To sell 135,000 units, you would need to charge more than $30 per unit.

question

A different colleague wants to charge a premium price for the razor. To make a profit of $316,000 he suggests that you price the razor at the highest possible price, $55, and expect sales of 20,000 units. PRICE EXPECTED DEMAND $30 135,000 $35 92,500 $40 60,500 $45 50,000 $50 41,500 $55 20,000 Which of the following best explains why a price of $55 is incorrect? a. At a price of $55 per unit, you would sell fewer than 20,000 units. b. More than 20,000 units would be sold at a price of $55 per unit. c. To generate enough revenue to make a $316,000 profit, you would need to raise the price to over $70 per unit. d. At a price of $55 per unit and sales of 20,000, you would make more than a $316 profit. e. At a price of $55 per unit and sales of 20,000, you would make a 20 percent profit.

answer

c. To generate enough revenue to make a $316,000 profit, you would need to raise the price to over $70 per unit.

question

As a Brand Manager for a for Holden-Evan, a global consumer products company it is your task to develop the brand of Bee!, a newly acquired energy drink. You main task is to create an advertising campaign for the product that successfully competes against established major players in the market. A key difference between Bee! and other energy drinks is Bee!'s appeal to women. Which of the following is the most important thing to communicate for your first Bee! ad? a. that Bee! tastes great b. that Bee! comes in three flavors c. that Bee! is healthy d. that Bee! is for women e. that Bee! gives you energy

answer

d. that Bee! is for women

question

Before being sold to Holden-Evan, Bee! had experienced a great deal of success in Denver and had a large market share in the local market. One of your assistants advises you to re-run the local ads that were being used in Denver just before Bee! was sold to Holden-Evan. Should you take your assistant's advice and re-run the Denver adds? a. Yes, Bee! was successful in Denver so the Denver ads must be well done and effective. b. Yes, you can save money by using ads that already exist. c. No, there is no reason to save money at this point in the campaign. d. No, you want to introduce Bee! and the Denver ads were for an already established product. e. No, if the Denver ads had been successful, the regional company would not have been sold.

answer

d. No, you want to introduce Bee! and the Denver ads were for an already established product.

question

You are considering using a persuasive approach in your initial ad campaign for Bee! Which of the following should you try to persuade your customers to do? a. drink energy drinks rather than water b. give up their old energy drink c. give Bee! a try d. recognize that their old energy drink was for men, not for women e. tell others how delicious Bee! is

answer

c. give Bee! a try

question

A member of your team thinks that you need to focus on getting people to switch to Bee! Which strategy would be most effective in getting people to switch to Bee!? a. point out the strengths of Bee! b. point out the weaknesses of Bee!'s competitors c. point out the benefits of an energy drink d. show how drinking an energy drink for men can be harmful to women e. demonstrate how Bee! can turn its users into world-class athletes

answer

a. point out the strengths of Bee!

question

In determining an advertising budget, someone in the finance department suggests that you use the affordable method of advertising budgeting that is based on the product's current profits. Should you take this suggestion and use the affordable method of advertising budgeting? a. Yes, it is more responsible to base an advertising budget on current rather than future profits. b. Yes, you can adjust the budget up as the product becomes more successful. c. No, you should base a budget for a new product on the amount that competitors spend on advertising. d. No, a new product cannot be expected to have enough profits at this point that support a high advertising budget. e. No, a product this promising should have an advertising budget with absolutely no limits.

answer

d. No, a new product cannot be expected to have enough profits at this point that support a high advertising budget.

question

You are considering this message for the product: "Bee! — the woman's healthy choice to renew your energy." Which of the following most concerns you about adopting this message for the product? a. The message focuses exclusively on women, possibly causing men to feel excluded. b. The message focuses exclusively on health, an aspect of Bee! that is not a key feature. c. The message fails to focus on sports performance. d. The message fails to identify any of the key ingredients in Bee! e. The message is not upbeat enough.

answer

a. The message focuses exclusively on women, possibly causing men to feel excluded.

question

You think the "Slice of Life" approach that features a working mother who struggles to balance work, exercise and children as a good approach for Bee! Which feature do you consider to be the primary strength of this approach? a. It is the only approach that focuses on health. b. It is the only approach that makes women feel happy. c. It is the only approach that focuses on balancing health, family, and work. d. It is the only approach that makes women feel guilty for not having enough energy for their family. e. It is the only approach that feels sorry for women because they have too much to do.

answer

c. It is the only approach that focuses on balancing health, family, and work.

question

You are considering running a print add in a magazine called Working Mother that focuses on women balancing work and family priorities. Without explaining himself, your boss emails that he doesn't think this is a good choice. Which of the following is most likely to identify the cause of your boss's objection to Working Mother? a. It doesn't focus on children. b. It has no specific focus on health and exercise. c. It doesn't reach a broad national audience of males and females. d. It reaches too broad of an audience e. It puts too much focus on children.

answer

b. It has no specific focus on health and exercise.

question

You are looking into holding promotional events for Bee! that distribute balloons with the Bee! logo and free samples of the product. Which of the following would be the best choice as a location for a promotional event? a. a community center that features a swimming pool and tennis b. a supermarket c. an exclusive private country club d. rallies and barbecues for popular political candidates e. a popular all-you-can-eat pizza restaurant

answer

a. a community center that features a swimming pool and tennis

question

A member of your team wants to run commercials for Bee! during a morning talk show. You are against this idea. You have compiled a list of reasons for not buying commercial time during the talk show. Which of the following does not belong on your list? a. Morning talk show commercials are expensive. b. Morning talk shows do not specifically target active women. c. Morning talk shows do not target health-conscious women. d. Morning talk show audiences are over 40 percent male. e. Morning talk shows audiences reflect a broad cross-section of the public.

answer

d. Morning talk show audiences are over 40 percent male.

question

Curtis Precision Manufacturing has named you as its new National Sales Manager. Your task is develop special sales teams to sell specialized metal finishing products to highly targeted customers. The first product features anodizing equipment that manufacturers of such things as electronic devices and automotive parts use to coat titanium with a layer of metal oxide. The second product is a line of waxes, sealants, and polishes for protecting metal boat hulls. The third product is a jewelry and silver polishing kit. Which of the three products is likely to require the least amount of training for its team members? a. Curtis anodizing equipment, because the customers will be highly knowledgeable themselves and need little guidance b. Curtis anodizing equipment, because there is an enormous amount of information on anodizing on the Internet c. Curtis boat products, because boat owners usually know exactly what they want d. Curtis polishing kits, because they need to be easy enough for ordinary consumers to use e. Curtis polishing kits, because they are non-toxic

answer

d. Curtis polishing kits, because they need to be easy enough for ordinary consumers to use

question

You are considering options for choosing a sales force for the anodizing equipment. Which of the following would best support choosing a product sales force for selling anodizing equipment? a. Most companies that buy anodizing equipment use it to manufacture only a single product. b. Most companies that buy anodizing equipment use it for a large variety of different products and purposes. c. The companies that buy anodizing equipment are geographically far apart. d. The companies that buy anodizing equipment are usually high tech manufacturers. e. The companies that buy anodizing equipment usually take a long time to decide on a purchase.

answer

a. Most companies that buy anodizing equipment use it to manufacture only a single product.

question

You are lining up individuals for different sales teams. Why does it make sense to have your most personable sales personnel be chosen for a customer sales force structure? a. Sales reps in a customer sales force need to develop close personal friendships with customers. b. Sales reps in a customer sales force need to convince customers to purchase things that they don't need. c. The actions of sales reps in a customer sales force represent Curtis. d. Sales reps in a customer sales force need to develop an extremely strong knowledge of the products and services they sell. e. Sales reps in a customer sales force need to develop strong long-term relationships with customers built on trust and reliability.

answer

e. Sales reps in a customer sales force need to develop strong long-term relationships with customers built on trust and reliability.

question

You are thinking of using a territorial sales force for one of your products. Which of the following is the best reason to use a territorial sales force? a. A territorial sales force allows the salesperson to develop great expertise in the products he or she is selling. b. A territorial sales force allows the salesperson to build close relationships to customers. c. A territorial sales force allows the salesperson to be effective with little or no training. d. A territorial sales force allows resources to be saved in travel, organization, manpower, and planning. e. A territorial sales force allows customers to develop a deep understanding of the products they buy.

answer

d. A territorial sales force allows resources to be saved in travel, organization, manpower, and planning.

question

Some of your sales personnel are versatile and can quickly become comfortable in selling almost any product. Other salespeople like to specialize in a single product or discrete product line. In which kind of sales force(s) should your most versatile salespeople be placed? a. product or territorial sales forces. b. territorial sales forces only c. customer or territorial sales forces d. customer sales forces only e. customer or product sales forces

answer

c. customer or territorial sales forces

question

It turns out that in some areas of the country, the marinas and boat stores that buy Curtis boat products need an extraordinary amount of expert advice. The products behave differently in different weather conditions and a great deal of knowledge is required to use them correctly. Which sales force structure would you recommend for these areas? a. a territorial sales force because that structure works best over a large, spread-out customer base b. a product sales force because that structure works best when the customers require a lot of expertise c. a customer sales force because that structure works best when customers face problems d. a product sales force because that structure works best over a large, spread-out customer base e. a customer sales force because that structure works best when there is a high number of customers in different locations

answer

b. a product sales force because that structure works best when the customers require a lot of expertise

question

Swazzi is a national clothing store chain that sells clothing to all age groups. Its CEO wants to increase its spending in online advertising, but also wants to track the results to determine the effectiveness of its ad campaigns. Suppose that you are the marketing director and it is your responsibility to determine how to allocate the advertising budget and evaluate the results. Your first task was to analyze the existing sales data and identify the best way to spend your online advertising budget. You reviewed the following chart and determined that the campaign that would give you the most for your dollars was Plan B, placing a banner at top of page. What is the flaw behind this conclusion? Host - Type of Ad - Cost - # of Displays - # of Clicks - Revenue A - "Take our survey" ad - $0.25 per displays - 5000 - 600 - 60 buys, $200 each B - Banner a top of page - $3 per click - 10000 - 3000 - 400 buys, $80 each C - Test ad on search engine - $5 per purchase - 10000 - 2000 - 350 buys, $40each a. Both Plan B and Plan C allow for the same number of displays. b. Both Plan A and Plan C generate more revenue per dollar spent. c. There is no flaw. Plan B would generate the highest revenue. d. Plan A has lower cost per unit than Plan B.

answer

b. Both Plan A and Plan C generate more revenue per dollar spent.

question

One of Swazzi's current ad campaigns is running ads in both the online and print versions of Dangerfield Weekly, an influential business magazine. Data show that although Swazzi spends a lot of money on this campaign, it doesn't result in significant revenue. Another of Swazzi's current ad campaigns is a three-month campaign running an ad on Antler Pacific, a popular website for outdoor adventurers. It has produced strong results, but its terms are expiring and the website wants to lock you into a long-term contract based on these results. You decided to continue the Dangerfield Weekly campaign even though it is not profitable and to discontinue the Antler Pacific campaign even though it is profitable. Which of the following recommendations best justifies your decision? a. Discontinue a profitable ad campaign if it requires an additional investment of resources. b. Continue a profitable ad campaign whose success is built on a seasonal peak season of activity. c. Continue an unprofitable ad campaign that involved a significant investment of resources. d. Continue an unprofitable ad campaign that generates an intangible benefit.

answer

d. Continue an unprofitable ad campaign that generates an intangible benefit.

question

Review the following table of segmentation data. Segmentation Variable Money Spent on Clothes (Per Person Average, Per Year) Generation Baby Boomers (30% of the population): $780 Generation X (24% of the population): $770 Millennials (29% of the population): $790 Gender Men (49% of the population): $490 Women (51% of the population): $850 Education High-school diploma or less (30% of the population): $850 College degree (60% of the population): $900 Advanced degree (10% of the population): $2000 Occupation: Professional, white-collar workers (40% of the population): $1600 Blue-collar workers (25% of the population): $640 Other, such as students and retirees (35% of the population): $820 Based on the data in this table, what are the most important segmentation variables in terms of money spent on clothing purchases? a. Gender and education; because gender has the most significant variation and education has the greatest variation b. Education and occupation; because education has the most significant variation and occupation has the greatest variation c. Gender and generation; because they have the least significant variation in spending d. Gender and occupation; because they have the most significant variation in spending

answer

d. Gender and occupation; because they have the most significant variation in spending

question

Review the following table that provided additional segmentation data. Segmentation Variable Money Spent on Clothes (Per Person Average, Per Year) Shopping Habits Brick and Mortar Store Shopper (70% of the population): $1480 Online Shopper (35% of the population): $750 Primary Computer Used for Internet Browsing and Shopping Laptop (44% of the population): $770 Tablet (8% of the population): $1250 Smart phone (48% of the population): $760 User of Social Media Yes (54% of the population): $1500 No (46% of the population): $730 Based on the data in this table, what is the most important segmentation variable to Swazzi in terms of money spent on clothing purchases? a. primary computer used for Internet browsing and shopping, because there is a significant variation in spending levels between tablet shoppers and both laptop and smart phone shoppers b. either social media or shopping habits, because both have a comparable variation in spending levels between groups. c. shopping habits, because there is a significant variation in the size of each group and spending levels between brick-and-mortar store shoppers and online shoppers d. user of social media, because there is a significant variation in spending levels between people who use social media and people who don't use social media

answer

d. user of social media, because there is a significant variation in spending levels between people who use social media and people who don't use social media

question

Review both segmentation variable charts again. Based on the data in these charts, which of the following groups would be the least important demographic for Swazzi clothing? a. Both Plan A and Plan C generate more revenue per dollar spent. b. blue-collar females who use social media c. blue-collar males who use social media d. blue-collar males who do not use social media

answer

d. blue-collar males who do not use social media

question

Based on the data in the two charts, suppose you identified the ideal demographic for Swazzi clothing as female professionals who use social media, and the next most promising demographic as blue-collar females who use social media. Which of the following best rebuts this determination? a. There is a large spending gap between men and women consumers. b. Male professionals who are users of social media have the closest demographics to female professionals who are users of social media. c. Female professionals who do not use social media have the closest demographics to female professionals who are users. d. There is a large spending gap between professional and blue-collar consumers.

answer

b. Male professionals who are users of social media have the closest demographics to female professionals who are users of social media.

question

Suppose you decided to create a community-based website for the company. The community-based website most likely to create a culture that increases brand awareness or encourages people to buy Swazzi clothing is one that ________. a. creates a positive association with Swazzi by promoting local businesses and community events b. promotes the Swazzi brand through a dedicated Swazzi fan site c. helps people to feel connected with the Swazzi brand through social sharing and interactive tools d. engages users through interactive video games that display Swazzi ads in the background

answer

c. helps people to feel connected with the Swazzi brand through social sharing and interactive tools

question

Suppose an ad agency created several plans to draw people to your website. You narrowed the options to two choices: a humorous commercial for Swazzi clothing, full of elaborately choreographed gags; and a "paper doll" activity allowing users to put their own faces on virtual characters and try on Swazzi clothing. Which is the better choice? a. The paper doll activity—Web users respond well to interactive activities. b. The commercial—it appeals to both females and males. c. The commercial—consumers respond well to humor. d. The paper doll activity—it allows users to test how Swazzi clothing fits.

answer

a. The paper doll activity—Web users respond well to interactive activities.

question

A customer walks into a ShipNow location with four boxes and a document envelope, all going to different destinations in different amounts of time with different security and notification needs. The salesperson' job is to: a) talk the customer into shipping with ShipNow b) sell the customer the correct combinations of shipping times and services for the customer's needs c) enter the shipping information into the computer and print out labels d) make sure the customer understands that shipping rates are probably cheaper at the post office e) build a rapport with the customer to make sure the customer understands the interaction

answer

b) sell the customer the correct combinations of shipping times and services for the customer's needs

question

What should the salesperson focus on to differentiate ShipNow's product from other shipping services? a) the different times ShipNow is able to offer that other shippers cannot b) ShipNow's prices are lower than cost c) the added value the salesperson creates by making the shipping process and service options easy for the customer d) auxiliary products ShipNow sells, like boxes and packing tape e) internet tracking of packages

answer

a) the different times ShipNow is able to offer that other shippers cannot

question

ShipNow requires every new store salesperson to ride along on deliveries with drivers for two weeks before beginning the sales course necessary to be able to have contact with customers. What might be the purpose of the ride-alongs? a) to give the salesperson empathy for the stresses the drivers endure delivering packages b) to give the salesperson a driver mentor within the company c) to give the driver an extra hand with deliveries during the rushed holiday season d) to give the salesperson in-depth knowledge of the delivery process e) to give the company a trial period to determine if the salesperson can actually lift heavy boxes

answer

d) to give the salesperson in-depth knowledge of the delivery process

question

Some customers of ShipNow ship so many packages regularly with the company that ShipNow develops special services and pricing for them. Before a salesperson sells a delivery service that is not listed on the normal retail services menu, the salesperson should: a) base the pricing on the prices offered to larger customers b) calculate the commission on the order to make sure it is not better to quote the customer retail pricing c) look up the name of the driver who will be making the deliveries d) check with the logistics department that it is possible for the company to perform this service at a profit e) ask a supervisor for the authorization to sell to the customer

answer

d) check with the logistics department that it is possible for the company to perform this service at a profit

question

Although the salespeople at ShipNow are in contact almost exclusively with the customers who ship packages, who are the other primary customers of ShipNow? a) the accounting departments of the companies that ship with ShipNow b) the companies and individuals that receive the packages c) the ShipNow delivery drivers d) the billing departments of local ShipNow locations e) the companies that make the products that are shipped by ShipNow customers

answer

b) the companies and individuals that receive the packages

question

The sales director of a medium-sized company selling chemicals to the lumber industry has analyzed sales and found serious problems with sales representatives close rate relative to the number of prospects in the pipeline. The sales director commissioned a research company to come in and analyze the numbers in the CRM system and conduct interviews with prospects who became customers as well as with prospects who did not buy from the company. He also hires a sales training consultant with whom he has worked before to analyze the sales representatives and the training they receive. The training consultant finds that the sales representatives do not have a strong product strategy. Without a proper product strategy, sales representatives are unable to: a) choose the correct products to sell to the customer b) develop a marketing campaign for a given product c) sell a product whether the customer needs it or not d) fulfill an order once it has been placed e) contact customers at current contact numbers and addresses

answer

a) choose the correct products to sell to the customer

question

As the interviews with prospects who did not buy from the company are analyzed, it becomes apparent that prospects felt that the sales representatives did not know about the full line of products they carried or understand their uses. The prospects did not buy, as they felt they could not: a) ensure the company's billing process was aboveboard b) understand what their business objectives were c) pay the prices the company was charging d) find the room to store the chemicals once they were delivered e) trust the sales reps to sell them the correct products

answer

e) trust the sales reps to sell them the correct products

question

To increase the sales' representatives' product knowledge, the sales director arranges for each of them to rotate through the product development department for a month to understand the way the chemicals are developed. What is another department they should rotate through to gain more product knowledge that will help them configure the right mix of products for customers? a) customer service, so that they can learn how the chemicals are implemented and used by the customer b) logistics, so that they can understand how the products are delivered c) billing, so that they understand the problems that arise when customers do not pay promptly d) warehousing, so they can understand exactly how much room the chemicals take up in storage e) human resources, so they can understand what characteristics a successful salesperson should have

answer

a) customer service, so that they can learn how the chemicals are implemented and used by the customer

question

The training consultant feels that the sales representatives need to understand the entire market to put their customers' needs and buying motives in context. To understand the entire industry market, she recommends that the sales representatives learn more about: a) customers' business plans b) competitor companies' products and pricing c) management's five-year plan d) the history of the lumber industry e) the close rates of other sales reps in their company

answer

b) competitor companies' products and pricing

question

The sales director and consulting team discuss changing the entire sales model for the company by eliminating the sales representatives altogether and allowing customers to order on their own from the company website. What is the best argument against this plan? a) the sales representatives rely on the income they receive from their jobs b) the products are so complicated that customers need a sales representative to help them decide which products to buy c) the company will need to build a new website the customers can order from d) the customers are used to the salespeople and have never ordered chemicals from a website before e) the IT department of the company has not built a commerce website before

answer

b) the products are so complicated that customers need a sales representative to help them decide which products to buy

question

Roni is carrying a full course load this semester, belongs to the Student Investment Club, is studying Mandarin Chinese, runs with the track team, and has been volunteering with an art therapy program to help homeless children process their emotions. Which of those activities will be of most help to her in a career in selling? a) studying is most important because she will know all the rules of selling correctly b) investing is most important because she will understand how money works and will make good sales decisions c) speaking Chinese is most important so that she can sell to international customers d) staying physically fit is most important because a healthy appearance will attract customers to her e) volunteering is most important because it will develop her sense of empathy and her relationship skills to understand customers and their needs

answer

e) volunteering is most important because it will develop her sense of empathy and her relationship skills to understand customers and their needs

question

Roni is interviewing for a job in sales of a business-to-business application sold by subscription. During the interview, the interviewer asks her to tell him about a time she partnered with another person or group to achieve the other party's goal. Which example should Roni tell the interviewer? a) Roni sold her used textbooks to a friend who was taking a course Roni had taken the previous semester b) Roni audited the books of the Investment Club to make sure they were calculating earnings, interest, and fees correctly c) Roni speaks Mandarin to the server at her favorite Chinese restaurant so the server will understand her more easily d) Roni watched her track teammate run to analyze her gait so the teammate could choose and purchase the best shoes for her stride e) Roni organized an art show of the homeless children's artwork to show what the children can do

answer

d) Roni watched her track teammate run to analyze her gait so the teammate could choose and purchase the best shoes for her stride

question

At her new job, Roni talks with a prospect who is strongly interested in the product, but does no have the budget to purchase a full year subscription. When Roni reports this to her manager, her manager says "Turn it into a win-win!" What does the sales manager mean by this? a) she wants Roni to sell the product to the customer at cost b) she wants Roni to work with the customer to sell a length of subscription the customer can afford c) she wants Roni to work with the research department to lower costs so the subscription will be able to be sold at a lower price point d) she wants Roni to ask the prospect for a referral to another prospect who can buy, so the time spent with this prospect won't be a loss e) she wants Roni to say a polite thanks and goodbye to the prospect and move on to the next lead

answer

b) she wants Roni to work with the customer to sell a length of subscription the customer can afford

question

Roni is concerned that she is not as experienced as the other salespeople at her company. She has been assigned a mentor who has been in the sales department of the company for ten years. How can Roni best get help from her mentor for her concerns about her own experience? a) Roni can watch what her mentor does and emulate his speech and movements on the phone and with clients b) Roni can ask her mentor to give her some of his qualified prospects so she will have a better chance of closing sales with them c) Roni can ask him what he wish he'd known when he first started out, and what the top things he'd tell a new salesperson are d) Roni can read through her mentor's call notes on the CRM system to see how frequently he contacts clients e) Roni can make an effort to become friends with her mentor by taking him out for coffee

answer

c) Roni can ask him what he wish he'd known when he first started out, and what the top things he'd tell a new salesperson are

question

Consumer perceptions of the product's value set the ________ for prices. A) image B) floor C) demand curve D) variable cost E) ceiling

answer

E) ceiling

question

Value-based pricing is the reverse process of ________ pricing. A) good-value B) cost-plus C) cost-based D) value-added E) variable cost

answer

C) cost-based

question

________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing. A) Variable costs B) Value-based pricing C) Product image D) Target return pricing E) Price elasticity

answer

B) Value-based pricing

question

Rent, electricity, and executive salaries are examples of ________ costs. A) marketing B) fixed C) variable D) accumulated E) total

answer

B) fixed

question

________ is the amount of money charged for a product or service. A) Wage B) Price C) Salary D) Demand curve E) Experience curve

answer

B) Price

question

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) variable B) cost-plus C) skimming D) value-based E) fixed cost

answer

B) cost-plus

question

Which of the following is an external factor that affects pricing decisions? A) the company's overall marketing strategy B) the salaries of production management C) competition D) the salaries of finance management E) overall pricing objectives

answer

C) competition

question

________ involves charging a constant low price with few or no temporary price discounts. A) Penetration pricing B) Everyday low pricing (EDLP) C) High-low pricing D) Cost-plus pricing E) Target return pricing

answer

B) Everyday low pricing (EDLP)

question

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) competition-based pricing B) target return pricing C) fixed cost D) customer-based pricing E) value-based pricing

answer

B) target return pricing

question

________ 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) Variable D) Cost-based E) Value-based

answer

D) Cost-based

question

Price setting is usually determined by ________ in small companies. A) cross-functional teams B) divisional managers C) marketing departments D) top management E) sales departments

answer

D) top management

question

Measuring ________ can be difficult. A company might conduct surveys or experiments to test this in the different products they offer. A) target returns B) perceived value C) break-even pricing D) variable costs E) fixed costs

answer

B) perceived value

question

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) advertising B) direct marketing C) sales promotion D) personal selling E) public relations

answer

E) public relations

question

Which of the following types of advertising budgets is directly set based on company profits? A) the percentage-of-sales method B) the objective-and-task method C) the affordable method D) the adaptive control method E) the competitive-parity method

answer

A) the percentage-of-sales method

question

________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A) Sales promotion B) Advertising C) Public relations D) Personal selling E) Direct marketing

answer

B) advertising

question

Which of the following is a function of an integrated marketing communications system? A) controlling production levels by feedback received from customers B) designing products using environmentally-friendly techniques C) sharing company forecasting details with shareholders D) delivering a consistent message on the product to each brand contact E) allowing suppliers or vendors to manage the inventory of products

answer

D) delivering a consistent message on the product to each brand contact

question

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) pull strategy E) direct marketing

answer

D) pull strategy

question

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) More of the promotion budget is spent on digital advertising than on TV advertising. C) Digital media force-feeds mass messages to customers, while TV advertising targets more defined micromarkets. D) TV advertising is more interactive than digital media techniques. E) Digital media advertising reaches mass audiences whereas TV advertising reaches only limited audiences.

answer

A) Less advertising money is spent on digital media than on TV advertising.

question

A company that allows consumers to use monthly installment plans for buyers to pay for products is using the promotional tool of ________. A) public relations B) personal selling C) advertising D) direct marketing E) sales promotion

answer

E) sales promotion

question

Advertainment is an example of a ________ advertising technique. A) social B) covert C) public service D) Madison & Vine E) surrogate

answer

D) Madison & Vine

question

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

answer

A) based on an amount remaining after operating expenses and capital outlays are deducted from total revenues

question

Which of the following is true of direct marketing? A) It meets the needs of mass buyers who are geographically spread out simultaneously. B) Its marketing message is fixed and does not change according to the customer's requirements. C) It is brought out it in the form of company news rather than as a sales-directed communication. D) It does not involve any direct interaction between the company and its customers. E) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships.

answer

E) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships.

question

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) retailing C) public relations D) personal selling E) Crowdcasting

answer

A) direct marketing

question

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) integrated marketing communications C) market segmentation D) inventory control system E) warehouse management system

answer

B) integrated marketing communications

question

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) direct mailing B) television advertisements C) door-to-door selling D) telephone marketing E) discount promotions

answer

B) television advertisements

question

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) direct marketing B) pull strategy C) push strategy D) publish-subscribe method E) vertical integration

answer

C) push strategy

question

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) crowdsourcing B) personal selling C) branding D) public relations E) advertising

answer

B) personal selling

question

________ are offers of a trial amount of a product. A) Coupons B) Cash refunds C) Rebates D) Price packs E) Samples

answer

E) Samples

question

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) product sales force structure B) client sales force structure C) customer sales force structure D) territorial sales force structure E) market sales force structure

answer

D) territorial sales force structure

question

Which of the following examples represents a product sales force structure? A) 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. B) 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. C) Nutters, producers of cookies and other bakery products, markets its products throughout the country through a network of area and regional sales officers. 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) 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.

answer

B) 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.

question

Which of the following is a supervision tool used by managers for their salespeople? A) call plan B) bonus plan C) sales quota D) straight commission plan E) sales contest

answer

A) call plan

question

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 involve geographic specialization. C) It does not lead to building local customer relationships. D) Travel expenses are relatively larger than any other sales force structure. E) It is not useful in a company with a number of product lines in different industries.

answer

E) It is not useful in a company with a number of product lines in different industries.

question

Sales people from the inside sales force typically ________. A) cannot conduct business on their own B) work independently of the outside sales force C) work only on the relationship-building process D) travel to call on customers in the field E) provide daily access and support

answer

E) provide daily access and support

question

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) geographical C) product D) demographic E) market

answer

E) market

question

Which of the following is the last step in the selling process? A) follow-up B) closing C) prospecting D) presentation E) handling objections

answer

A) follow-up

question

________ are certificates that save buyers money while they purchase specified products. A) Rebates B) Premiums C) Coupons. D) Price packs E) Samples

answer

C) coupons

question

Sales reports primarily contain ________. A) call plans developed by supervisors for salespeople B) schedules for sales meetings C) details of the expenses and overheads incurred D) weekly or monthly work plans E) details of sales contests and the incentives they carry

answer

D) weekly or monthly work plans

question

In which of the following steps in the sales process does the salesperson meet the customer for the first time? A) preapproach B) prospecting C) presentation D) approach E) qualifying

answer

D) approach

question

Which of the following is an advantage of an outside sales force? A) It can make more decision-maker contacts a day as compared to the inside sales force. B) It essentially provides daily access and support. C) It is the most effective way to provide technical sales support to buyers. D) It is less expensive than the inside sales force. E) It provides face-to-face collaboration and relationship building.

answer

E) It provides face-to-face collaboration and relationship building.

question

Which of the following is an advantage of market sales force structure? A) close relationships with important customers B) minimal need for supervision of salespeople C) highest degree of product specialization D) lowest travel expenses E) lowest compensation rates for salespeople

answer

A) close relationships with important customers

question

Which of the following statements is true of salespersons? A) They do not represent the customers to the company. B) They do not work with wholesalers and retailers. C) They represent a new class of professionals who have emerged as part of the steep rise in retailing. D) Click-only companies have maximum number of salespersons. E) They represent a company to customers by communicating and selling.

answer

E) They represent a company to customers by communicating and selling.

question

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 free "well-woman" check up at Vintage clinics for any recent customer who purchased merchandise above $200 at Vintage retail stores B) a toaster being sold at half its list price for any consumer who buys a Vintage oven or food processor C) a sweepstakes program inviting customers to submit their names and gain a chance to win the new Vintage car, VTG 412 D) a display allowance for those retailers who feature the manufacturer's product E) a trade show depicting the new villas and condominiums that are being developed under the Well Homes project

answer

E) a trade show depicting the new villas and condominiums that are being developed under the Well Homes project

question

Which of the following is a disadvantage of the territorial sales force structure? A) It is not useful in a company with a number of product lines in different industries. B) Salesperson's job and accountability are not clearly defined. C) Travel expenses are relatively larger than any other sales force structure. D) It does not lead to building local customer relationships. E) It does not involve geographic specialization.

answer

A) It is not useful in a company with a number of product lines in different industries.

question

________ is the sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call. A) Approach B) Preapproach C) Follow-up D) Demonstration E) Price quotation

answer

B) preapproach

question

________ is the sales step in which the salesperson seeks out, clarifies, and overcomes any customer disapproval to buying. A) Prospecting and qualifying B) Handling objections C) Preapproach D) Closing E) Follow-up

answer

B) handling objectives

question

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 work under extreme supervision and managers are aware of the activities of their salespeople on field at all times. 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 are encouraged to use trade and business promotions, rather than customer promotions.

answer

B) The salespeople at Carmalax are invited to frequent sales meetings to voice their concerns and rewarded well for individual and group performance.

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 have been demonstrating the value that their speedy Internet services can bring to business customers even when their competitors are slashing prices. C) The salespeople at ABM Connect receive special training in the area of customer relationship-building strategies. D) The salespeople at ABM Connect typically use business promotions, rather than trade or consumer promotion measures. E) 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.

answer

E) 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.

question

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 product B) product and market C) geographic and market D) product and territorial E) territorial and market

answer

B) product and market

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-response television marketing B) mass marketing C) direct-mail marketing D) telephone marketing E) kiosk marketing

answer

C) direct-mail marketing

question

New York Times on the Web, ESPN.com, and Encyclopedia Britannica Online provide financial, research, and other information. They are called ________. A) transaction sites B) iTV sites C) e-tailers D) ISPs E) content sites

answer

E) content sites

question

A company would be most likely to benefit in which of the following ways by using blogs as marketing tools? A) Blogs provide companies with additional revenue. B) Demographic information about customers can be easily tracked. C) Long-term customer relationships can be developed through blogs. D) Blog content is easy to filter, monitor, and control. E) Blogs are an inexpensive yet personal way to connect with consumers.

answer

E) Blogs are an inexpensive yet personal way to connect with consumers.

question

What characteristic of niche sites makes the medium most appealing to marketers? A) wide variety of demographics and purchasing patterns B) podcasting and vodcasting capabilities C) commercial transaction capabilities D) audiences of people with similar interests E) audience sizes larger than those of general social networking sites

answer

D) audiences of people with similar interests

question

What is the main purpose of a corporate Web site? A) to sell the company's products directly B) to give out coupons and tell about sales events or contests C) to create a consumer query into a sale D) to build customer goodwill E) to point out and explain competitors' weaknesses

answer

D) to build consumer good will

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) the ability to increase the range of products the company offers B) a lower cost-per-contact than its advertising campaign using mass marketing strategies C) a wealth of information about competitors and their products. D) greater control over employee-management interactions within the company E) the ability to learn more about their customers and tailor offerings to fit their needs

answer

E) the ability to learn more about their customers and tailor offerings to fit their needs

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) Corporate Web sites D) Online display ads E) Viral videos

answer

D) online display ads

question

The popular press has paid the most attention to ________ online marketing-the online selling of goods and services to final consumers. A) global B) C2C C) B2C D) C2B E) B2B

answer

C) B2C

question

Which of the following is an advantage of printed catalogs over digital catalogs? A) an ability to offer an unlimited amount of merchandise B) real-time merchandising C) efficiencies in production, printing, and mailing costs D) a stronger emotional connection with customers E) ease in matching prices instantly in response to changes in demand

answer

D) a stronger emotional connection with customers

question

________ allows consumers to gain additional information about a product through the use of a remote control. A) Direct-mail marketing B) Data mining C) Interactive television D) Podcasting E) Telemarketing

answer

C) interactive television

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) multi-channel marketing B) C2B online marketing C) B2B online marketing D) C2C online marketing E) B2C online marketing

answer

B) C2B online marketing

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) demographic B) psychographic C) geographic D) metadata E) political

answer

A) demographic

question

________ marketers use online marketing to reach new business customers, serve current customers more effectively, and obtain buying efficiencies and better prices. A) C2B B) B2C C) B2B D) global commerce E) C2C

answer

C) B2B

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) National Do-Not-Call Registry B) Clayton Act C) Federal Trade Commission's Anti-Spam Act D) Robinson-Patman Act E) Children's Online Privacy Protection Act

answer

A) National Do-Not-Call Registry

question

A 30-minute or longer television advertising program marketing a single product is called a(n) ________. A) testimonial B) inbound advertisement C) advertorial D) infomercial E) iTV advertisement

answer

D) infomercial

question

ox 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) viral marketing C) iTV advertising. D) cold calling E) phishing

answer

E) phishing

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) informercial B) microblog C) banner D) viral advertisement E) advertorial

answer

C) banner

question

Which of the following is a transaction site? A) Yahoo B) Facebook C) eBay D) Wikipedia E) IMDB

answer

C) eBay

question

Which of the following is a primary disadvantage of viral marketing? A) Viral messages are blocked by most search engines. B) The brand associated with the viral message is usually forgotten. C) Marketers have little control over who receives the viral message. D) The costs of viral marketing are too high for most companies. E) Viral messages are less likely to be viewed than other types of online promotions.

answer

C) Marketers have little control over who receives the viral message.

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) mail-order forms B) podcasts C) retail stores D) infomercials E) kiosks

answer

E) kiosks

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) direct-mail marketing C) digital direct marketing D) telephone marketing E) mass marketing

answer

B) direct-mail marketing

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