question

According to the "physical distribution concept":

answer

all transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as part of one system

question

When Herbal Essences offers "dollar-off coupons" to adult women to try to get them to try its shampoos and conditioners, this is an example of:

answer

sale promotion

question

Which of the following would NOT be favorable to successful branding?

answer

Product quality fluctuates due to variations in raw material

question

Which of the following gives the correct order of the steps in the new-product development process?

answer

Idea generation, screening, idea evaluation, development, commericalization

question

Macro-marketing:

answer

tries to effectively match supply and demand

question

Reference group

answer

members may not even know the people who influence their values and attitudes

question

When consumers screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs, this is called:

answer

selective perception

question

The "rule for maximizing profit" is that a producer should set a price such that:

answer

marginal cost is just less than or equal to marginal revenue

question

Consumer product classes are based on _______, while business product classes are based on ______.

answer

how consumers shop for the product, how the product is to be used

question

Organizational buyers:

answer

are likely to do little search for additional information if the purchase is unimportant

question

A "product-market" is a market in which:

answer

sellers offer very close substitute ways of satisfying potential customers' needs

question

Ideally, a "channel captain":

answer

earns that "position" by effective leadership

question

Jan Alvarez works for a cable TV company in a large city. She makes telephone calls during the early evening and tries to sell cable services to non-subscribers. Jan is...

answer

an order getter

question

General Electric's "strategic planning grid" is an approach for:

answer

evaluating existing and possible plans

question

NAFTA:

answer

all of the above (is a free-trade pact between the U.S., Canada, and Mexico; is a long-term proposition; has eliminated most trade barriers with Mexico in the past 15 years)

question

The "economic-buyer" model:

answer

is seen as too simplistic by most marketing managers

question

A straight salary

answer

is seen as too simplistic by most marketing managers

question

Resident buyers

answer

are independent buying agents who work for several retailers

question

During the sales era

answer

increased competition made firms focus on winning customers

question

Some manufacturers give _____ to retailers to pass onto the retailers' salesclerks to encourage aggressive selling of specific items or lines

answer

"push money"

question

A target market and a related marketing mix make up a:

answer

Marketing strategy

question

Industry profits are largest in which of the following product life cycle stages

answer

Market growth

question

Which of the following statements about secondary data is correct?

answer

Secondary data may be available much faster than primary data

question

________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market

answer

Positioning

question

The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is:

answer

piggyback service

question

A sales-oriented objective may seek all of the following EXCEPT

answer

target return profits

question

A sales-oriented objective may seek all of the following

answer

some level of unit sales, some level of dollar sales, share of the market, and percentage of the market

question

In the United States, the ____ has the power to control unfair or deceptive business practices, including deceptive advertising

answer

FTC

question

A Hewlett-Packard "all-in-one" printer that serves as a computer printer, fax machine, copier, and scanner would fall into which of the following business product classes?

answer

Accessories

question

Which of the following is NOT one of the target marketing approaches for developing market-oriented strategies in a broad product-market?

answer

Exclusive

question

_______ means that the marketing mix is distinct from and better than what is available from a competitor

answer

Differentiation

question

This promotional approach emphasizes the importance of securing the wholehearted cooperation of channel members to promote the product in the channel and to the final user

answer

Pushing

question

What is the first step in the marketing research process?

answer

Defining the problem

question

"Discrepancies of quantity" means:

answer

the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users

question

Regarding Internet advertising

answer

All of the above (search ads know what customers are looking for based on the keywords that customers use in a search; ads can be delivers to customers based on which other Web sires customers have visited; most ads try to get customers to click-through to the firm's Web site; one in 5 clicks on online ads may be fraudulent)

question

Identify the INCORRECT statement about the effect of marital status, age, and the age of any children in the family, on how people spend their income

answer

Younger people usually earn more than older consumers, but spend less on discretionary items

question

Among the multiple buying influences, _____ control the flow of information within the organization

answer

gatekeepers

question

More freight is carried more miles ______ than any other mode of transportation

answer

by railraods

question

Business firms in the late majority group

answer

tend to be conservative, smaller-sized firms with little specilization

question

A computer software company sent 3 computer magazines some information about the latest release of its popular software program. One of the magazines printed a story about the new version. This is an example of:

answer

publicity

question

Gradual "rollouts" are characteristic of which step of the new-product development process?

answer

commercialization

question

Regarding markups and turnover:

answer

higher markups do not always lead to higher profits; low stockturn rates increase costs by tying up working capital in inventory

question

Using advertising to develop selective demand:

answer

may become necessary as a firm's product moves through its product life cycle

question

______ refers to the total market value of all goods and services provided in a country's economy in a year by both residents and nonresidents of that country

answer

Gross domestic product

question

When using ______, researchers compare the responses of two or more groups that are similar except on the characteristic being tested

answer

experimental method

question

Identify a weakness of the average-cost approach

answer

it ignores competitors' cost and prices

question

With that _____ approach, the salesperson assumes that a customer faced with a particular stimulus will say yes to his request for an order

answer

prepared sales

question

A target return figure of zero implies:

answer

setting a price level that will just recover costs

question

A first step in evaluating marketing opportunities is to:

answer

consider the objectives and resources of the firm

question

Intensive distribution at the retail level would probably be most appropriate for:

answer

batteries

question

All of the following statement bout the income distribution in the U.S are correct EXCEPT

answer

during the 1960s the growth in income slowed due to inflation

question

All of the following statement bout the income distribution in the U.S are correct

answer

sixty years ago, most families were just over a subsistence level; by the 1970s, real income in the U.S. had risen; since 2000, median income was declined; real income growth has slowed

question

The percent of people contacted in a survey who complete a questionnaire is the:

answer

response rate

question

"Place" is NOT concerned with:

answer

telling the target market what products are available -- and where

question

The North American Free Trade Agreement (NAFTA):

answer

Has resulted in the movement of production jobs to Mexico due to lower labor costs.

question

MACRO-marketing:

answer

tries to match heterogeneous supply capabilities with heterogeneous demands for goods and services.

question

A young working couple earned $55,000 last year. They paid $16,000 in taxes and $20,000 in rent, food, insurance and other necessities. What was their disposable income for the year?

answer

$39,000

question

A marketing manager wants to know why her sales are down. She talks with several sales reps and finds that a competitor has introduced a successful new product. This "research" seems to be part of

answer

the situation analysis

question

The total group under study is called:

answer

the population

question

Differnetiation means that

answer

a firm's marketing mix is distinct from and better than what is available from a competitor.

question

In the political environment, an emphasis on a single country's interests before everything else is called:

answer

nationalism

question

An economic system in which government planners determine production levels is known as

answer

a command economic system

question

Most businesses that fail do so because:

answer

they fail to execute on the business plan

question

A product-market is one

answer

in which exchanges are based on barter rather than money; in which competing sellers offer physically or conceptually similar products

question

The most important reason to use focus groups is to:

answer

discover unexpected findings that can be obtained from free flowing group discussions.

question

Which legal case which was decided by the Supreme Court resulted in a decision which states that only "unreasonable" restraints of trade are illegal?

answer

The Standard Oil Case of New Jersey

question

The holder of a lost or stolen credit card:

answer

is limited to $50 of liability.

question

Most stimuli people see every day and are screened out by them. This process is called:

answer

selective attention.

question

Which of the following U.S. antimonopoly laws deals with "tying contracts" where the sale of one product is contingent on the business customer purchasing other products from the same supplier?

answer

Clayton Act (1914)

question

Along with studying trends in the environment, a first step in looking for attractive opportunities is to:

answer

understand the resources and objectives of the firm.

question

Which of the following is NOT a key to the understanding of a strategic plan?

answer

- Long-term time horizon - The boundaries of the plan are set by the firm's mission - The plan forces the firm to examine its strength's and weaknesses - The plan helps the firm decide where it will invest its resources in the future

question

The difference between the benefits a customer sees from a market offering and the cost of obtaining those benefits is called:

answer

customer value

question

When consumers screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs, this is called:

answer

selective perception.

question

A mail-order marketer of flower bulbs to gardening hobbyists decides to sell the bulbs in grocery stores--to reach nonhobbyists who might be interested in pretty flowers. This is an example of:

answer

market development

question

Market segmentation:

answer

tries to identify homogeneous submarkets within a product-market.

question

A manager with a "production orientation" is likely to think that:

answer

customers exist to buy the firm's output.

question

An estimate of the U.S. birthrate for the year is 14. This means that

answer

14 babies were born per 1,000 people in the population.

question

"Puffery" is:

answer

Legal

question

What are the basic forces that motivate a person to do something?

answer

Needs

question

When deciding how far to carry the segmenting process,

answer

profit should be the balancing point--determining how unique a marketing mix the firm can offer to some target market.

question

The Wheeler-Lea Amendment specifically aims at:

answer

unfair or deceptive practices.

question

Which of the statements about culture is true?

answer

- Culture is learned behavior - culture transmits collective problem solving wisdom

question

In a simple economy, one family may produce only cooking pots, but many of them. Others may specialize in farming, making clothing, and building shelters. This

answer

shows why "discrepancies of assortment" occur.

question

The whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous group of people is a(n):

answer

culture

question

According to the text, your social class level does not depend directly on your:

answer

income level

question

All of the groups that have a direct or indirect influence on consumers behavior are called.

answer

reference groups

question

A "marketing plan" is:

answer

a marketing strategy--plus the time-related details for carrying it out.

question

Why are personal interviews usually preferred for research with business customers?

answer

The interviewer can explain complicated directions and perhaps get better responses.

question

The key to s successful SWOT analysis is to:

answer

- do a careful and honest evaluation of the firm's strength's and weaknesses. - examine the competitor's strengths and weaknesses now and in the future. - carefully study the environment factors that are beyond the control of the firm

question

It's best to think of "breakthrough opportunities" as opportunities which:

answer

help innovators develop hard-to-copy marketing mixes.

question

The scientific method in marketing research

answer

forces an orderly research process.

question

Regarding the family life cycle, singles and younger couples without children

answer

are more willing to try new products and brands.

question

A marketing model is a

answer

statement of relationships among marketing variables.

question

A ______ is an integrated economic and social unit with a large population nucleus.

answer

Metropolitan Statistical Area

question

Gross domestic product (GDP) is the:

answer

total market value of goods and services provided in an economy in a year by both residents and nonresidents of that country.

question

An agreement by the seller as a condition of the sale to the buyer that the buyer will not purchase for resale the products of other competitive sellers is called:

answer

an exclusive agreement.

question

The process of naming broad product-markets and then segmenting them in order to select target markets and develop suitable marketing mixes is called:

answer

market segmentation

question

A set of benefits that can be offered to customers that meet their needs is called the firm's:

answer

value proposition

question

Some marketers stretch the meaning of "attitude" to include:

answer

intention to buy

question

The first step in the seven-step approach for segmenting product-markets is to

answer

select the broad product-market

question

It is very difficult to eliminate risk in most marketing decisions because the analyst

answer

- is dealing with complex human beings and their decision process. - is often dealing with rapidly changing macro-environmental forces. - is often dealing with an evolving competitive environment.

question

Complete acceptance of the "marketing concept" would require:

answer

making sure that all departments focus their efforts on satisfying customer needs.

question

Which of the following statements are correct?

answer

The major disadvantage of the percentage of sales approach for determining advertising budgets is that it views promotion expenditures as the result of sales.

question

The current status of the "battle of the brands" is that:

answer

competition has reduced the gap in prices.

question

A low stockturn rate

answer

ties up working capital.

question

To communicate a very specific message to a very select, well-identified group of consumers, one probably should use:

answer

integrated direct-response promotion.

question

Which one of the following is a normal task of a brand manager

answer

- Develop a long-range competitive strategy for the product. - Develop an annual marketing plan for the product. - Work with advertising agencies to develop an advertising strategy for the product. - Stimulate the sales force that sells the product.

question

Purchasing managers

answer

may be willing to pay more to reduce personal risk.

question

If real income increases then there will most likely be:

answer

a positive shift in the demand curve for new houses.

question

Prices are "administered" when:

answer

firms consciously set their own prices.

question

A penetration pricing policy

answer

tries to sell the whole market at one low price

question

Committee buying in large retail chains

answer

reduces the impact of a persuasive sales rep

question

Convenience products are products

answer

a consumer needs but is not willing to spend much time or effort shopping for.

question

Decoding is:

answer

the reverse of encoding

question

The government market:

answer

Often has a buying process that includes purchase specifications and competitive bidding procedures.

question

Total cost:

answer

increases directly with increases in total variable cost.

question

If a retailer purchases a product for $30.00 and charges a 20% mark-up, its selling price will be (using standard assumption with respect to the definition of a mark-up as discussed in class):

answer

$37.50

question

Given the following data, determine the break-even point in units: Total fixed cost = $120,000 Variable cost per unit = $0.60 Selling price per unit = $1.10

answer

240,000

question

Words, symbols, or logos that are legally registered for use by a single company are:

answer

Trademarks

question

Seeking to stop declining sales for an established mouthwash, a sales manager suggests that new coloring be added to the product and a major promotion effort be started for the "new" product. The Federal Trade Commission would:

answer

probably not approve of this at all because the product doesn't meet the FTC's definition of "new."

question

A large U.S. firm produces potato chips, shortening, dishwasher detergent, laundry detergent, shampoo, disposable diapers, and facial tissues. These are the firm's

answer

product assortment

question

A flexible-price policy means offering

answer

the same product and quantities to different customers at different prices.

question

If a firm reduces its price from $7 to $5 and demands increase from 10 to 15 units, the firm has an:

answer

elastic demand curve

question

Just in time inventory systems are an example of:

answer

channel differentiation

question

A producer using very aggressive promotion to get final consumers to ask intermediaries for a new product has:

answer

pulling policy

question

Which of the following adopter groups is most important to "sell"--given the importance of opinion leaders?

answer

Early adopter

question

An integrated direct-response promotion is most likely to be effective if:

answer

it relies on a CRM database to target specific individuals

question

"Target return pricing":

answer

seeks to earn a percentage return on investment or a specific total dollar return.

question

If a supermarket runs an ad for a gallon of milk in the local newspaper at a price that many consumers will recognize as a low price for this product, this is an example of:

answer

Leader pricing

question

Which of the following characteristics is not true of pure competition?

answer

Human capital is not always mobile

question

The use of a firm's brand name to enter totally new markets is called:

answer

brand extension

question

______________ means target customers will generally choose a particular brand over other brands--perhaps out of habit or past experience.

answer

Brand preference

question

Which of the following is true concerning advertising messages?

answer

Two-sided messages may be appropriate if the audience is initially opposed to the idea

question

The basic premise behind competitive bidding is the firm wants to:

answer

maximize expected profits

question

Straight rebuy

answer

vendor selections are likely to be made by a purchasing manager--without consulting anyone else.

question

A "buying center"

answer

may vary from purchase to purchase

question

At Toyota, its Lexus designers attempt to make improvements to the car's design each year, even if those changes are minor ones. This process is an example of:

answer

continuous improvement.

question

To encourage potential customers to buy a recently-released book, Amazon.com provides online reviews written by others who have already read the new book. This is an example of:

answer

publicity

question

Impulse products:

answer

are likely to gain or lose sales depending on where they're sold.

question

In developing a branding strategy, the first question the firm must address is:

answer

What target market is the firm trying to reach?

question

Which of the following is NOT within the power of the Consumer Product Safety Commission?

answer

It can conduct random searches for unsafe products in consumers' homes.

question

Which of the following is within the power of the Consumer Product Safety Commission?

answer

- it can set safety standards for products - it can order repairs of unsafe products - i can order returns of unsafe products - it can back up its orders with fines and jail sentences

question

A pricing objective that seeks a specific level of profit is a:

answer

target return objective

question

Noncumulative quantity discounts

answer

apply only to individual orders.

question

What basic promotion objective should be sought by a producer whose Product is very similar to its many competitors' Products?

answer

Persuading

question

Which of the following are requirements for differential pricing to be successful?

answer

- Market segmentation - buyers in low price segments must not be able to resell to buyers in higher price - competitors must not be able to undersell the firm in higher price segments

question

A firm with a stockturn rate of 4 sells products that cost it $100,000. This requires _____ worth of inventory.

answer

$25,000

question

Building quality into services:

answer

can be improved by giving employees the authority to correct a problem on their own

question

A firm in monopolistic competition has "marginal revenue" which:

answer

is the change in total revenue which results from the sale of one more unit of a product.

question

A producer of sports equipment offers its retailers a 2 percent price reduction on all purchases if the dealer advertises the products locally. Apparently, the producer is using

answer

an advertising allowance

question

In the market introduction stage of a fast product life cycle, _____ helps develop loyal customers early and keeps competitors out.

answer

a low initial penetration price

question

Chrysler manufactures cars in Detroit and loads them on truck trailers at the factory. Burlington Northern Santa Fe (BNSF) picks up the truck trailers, loads them on specially designed rail flatcars, and ships them to St. Louis. There they are delivered by truck to local dealers. This transportation process is:

answer

piggyback

question

Regarding advertising media selection, which of the following is the best advice?

answer

"Be sure the media match your target market."

question

Advertising spending

answer

represents only a small portion of what people pay for products.

question

Independent sales people that do not own the product and carry little, if any, inventory are called:

answer

manufacturer's agents

question

Which of the following is true about public warehouses?

answer

- They are leased by companies for their own use. - They are useful for manufacturers that must maintain stock in many locations, including foreign countries.

question

Compared to a warehouse, a DISTRIBUTION CENTER is:

answer

set up to speed the flow of products toward the consumer.

question

Legal concerns about channel of distribution arrangements are most likely to arise when:

answer

there are horizontal arrangements between firms at the same level of the channel.

question

"Intensive distribution" means selling through:

answer

all responsible and suitable retailers or wholesalers.

question

The number of different persons or households exposed to a media schedule once during a specified time

answer

reach

question

Separating products into grades and qualities desired by different target markets is called:

answer

sorting

question

Behavioral targeting

answer

delivers ads to consumers based on previous websites the customer has visited.

question

Which of the following is true regarding JIT systems?

answer

JIT requires suppliers to respond to very short order lead times and the customer's production schedule.

question

A good job description for a salesperson:

answer

Lists the specific tasks that salespeople are expected to do.

question

A good marketing manager organizing a new sales force knows that:

answer

it may be necessary to rely on team selling and have more than one rep call on a single customer if different skills are needed.

question

Many countries forbid this form of advertising.

answer

comparative advertising

question

Airfreight

answer

- can reduce the cost of preparing goods for distribution - can help reduce inventory costs

question

A firm acquiring another firm at a different level of activity within a channel of distribution is called:

answer

vertical integration

question

Which of the following statements is true?

answer

High market share brands normally requires less advertising as a percentage of sales than do brands that have a low market share.

question

A salesperson for cold remedy products visits pharmacists during the cold season and encourages them to use a special end-of-aisle display for his firm's cough syrup and then helps set up the display. The salesperson is a(n)____________.

answer

Missionary salesperson

question

Assume the following facts are correct. The reach of the advertisement is 60%, the cost of the advertisement is $50,000, the readership of the publication is 200,000, the impact is 4, and the frequency is 4. What is the cost per thousand of the advertisement?

answer

$250 (200,000/1000 = 200 -> $50,000/200 = $250)

question

A supply chain:

answer

includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers.

question

Which of the following is typically the lowest risk approach for moving into international markets?

answer

exporting

question

Which of the following statements is true?

answer

Advertising offers a reason to buy and sales promotion offers an incentive to buy.

question

Missionary salespeople

answer

work for producers calling on their intermediaries and their customers.

question

Choosing an INDIRECT channel probably will be better than a direct channel if a producer wants to:

answer

adjust large discrepancies of quantity and assortment.

question

Multichannel distribution:

answer

- May involve using both direct and indirect channels simultaneously. - May offer producers a way to reach customers they would not be able to reach with a single channel. - Is becoming more common. - May create channel conflict.

question

The most popular sales force payment method is:

answer

a combination plan

question

Conflict between a wholesaler and a retailer is called:

answer

vertical conflict

question

The desirability of a common "product-market commitment" is based on the idea that:

answer

the whole channel is competing with other channel systems.

question

Skye West is a manufacturers' agent. Skye is most likely to have responsibilities like those of

answer

a producer's order getter

question

The physical distribution ________________________ is how rapidly and dependably a firm can deliver merchandise in demand through the appropriate channels.

answer

customer service level

question

Discrepancy of quantity is

answer

the difference between the quantities of products that it is economical for a producer to make and the quantity final users or consumers normally want.

question

Order getters

answer

are concerned with establishing relationships with new customers and developing new business.

question

personal selling

answer

is often a company's largest single operating expense.

question

_____ is a manager who helps directs the activities of a whole channel and tries to avoid or solve channel conflicts.

answer

a channel captain

question

When setting salespeople's compensation level,

answer

the first step is to write job descriptions.

question

Which of the following sales force payment methods is best for SIMPLICITY?

answer

Straight salary

question

The right physical distribution system should be based primarily on

answer

the desired customer service level

question

From a producer's viewpoint, which of the following is an advantage of INTENSIVE DISTRIBUTION over selective distribution?

answer

Intermediaries' facilities will be more convenient for customers.

question

Analysis of sales increases for measuring the effectiveness of a firm's advertising makes the most sense with ______________ advertising.

answer

direct-response

question

If the promotion objective is to develop a desired positioning, which type of publicity would work best?

answer

branded services

question

Traditionally full service advertising agencies are paid:

answer

as a function of how much advertising they place for their clients.

question

Which of the following is the LEAST appropriate advertising objective?

answer

to increase sales by 20% this year

question

Good marketing strategy planners know that:

answer

A. transporting costs may limit a marketing manager's possible target markets. B. the transporting costs for some bulky or low-value products may be greater than their manufacturing costs. C. transporting is vital for mass distribution and modern urban life. D. the cost of shipping some "high-value" products to users is less than 5 percent of their selling prices.

question

The largest share of total advertising expenditures in the United States goes for:

answer

television and cable advertising

question

Which of the following is not used by a media planner to determine how to adjust the cost per thousand calculations?

answer

A. Audience quality. B. Attention probability. C. Editorial quality.

question

"Competitive advertising" tries to:

answer

develop selective demand rather than primary demand.

question

Which of the following observations about the total cost approach is NOT true?

answer

Focuses on direct costs and doesn't consider the possible costs of lost sales.

question

Which of the following observations about the total cost approach is true?

answer

- Includes transportation costs. - Helps find the lowest total cost for the right service level. - Uses the tools of cost accounting and economics. - Involves evaluating each possible physical distribution system and identifying all of the costs of each alternative.

question

"Cooperative" advertising refers to the practice of:

answer

wholesalers and retailers doing advertising which is partially paid for by the producer.

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