BFU 104 Marketing Set 8

**Five days after the red carpet at the Academy Awards, some clothing manufacturers have close copies of some of the gowns on their way to stores. This is known as a. imitative strategy b. knockoff strategy c. mirror image strategy d. alliance strategy e. follower strategy

The correct answer is A. A company using the imitative strategy, choice A, takes designs from other companies to create its products. Choice B is a distractor; the creations are sometimes called knockoffs. Choice C is also a distractor; it seems as though it might be an answer. Choice D is incorrect because in an alliance the designer of the original dress would work with the manufacturer; that is not the case in this scenario. Choice E is incorrect because a company that employs the follower strategy markets products to compete against the weakness of the market leader; the knockoff manufacturer and the couture designer are not in the same market.

A rebate debit card that is mailed to purchasers of a particular type of cell phone is an example of a. sales promotion b. public relations c. advertising d. direct marketing e. personal selling

The correct answer is A. A rebate debit card or check is one type of sales promotion, choice A. Choice B is incorrect because although the rebate may generate good public relations, they are a by-product of the rebate, which is a form of sales promotion. Choice C is incorrect because a rebate is not advertising as such. Choice D is incorrect because direct marketing involves getting a potential customer to buy a product through the use of catalogs, direct mail, shopping channels, etc.; direct marketing is not the same as a sales promotion, though such marketing may contain a sales promotion. Choice E is incorrect because a rebate debit card is not an example of personal selling.

**In deciding to target 20- to 30-year-old car buyers for its new model, an automaker is using which segmentation strategy? a. Concentrated b. Differentiated c. Macromarketing d. Demographics e. Lifestyle

The correct answer is A. Choice A, a concentrated strategy, is also called single or niche strategy; it focuses on one market segment. Choice B is incorrect because a differentiated strategy uses many types of marketing mixes for a variety of products sold to a variety of market segments. Choice C, macromarketing, does not exist; if it did, it would probably be aimed at the total market, not a specific age group. This answer choice is meant to create confusion with the term micromarketing, which is a variant of concentrated marketing and focuses on a local or submarket of a segment. Choice D is incorrect because demographics is not a strategy; it is a criterion used in determining segmentation. Choice E is incorrect because lifestyle is not a segmentation strategy, but a psychographic characteristic used in determining market segments.

Which of the following is NOT a form of social media marketing? a. Prospecting b. Social networks c. Sponsored virtual gifts d. Blogs e. User-generated contests

The correct answer is A. Choices B, C, D, and E are all forms of social media marketing, so they are not the correct answer to the question. Choice A, prospecting, is the first step in the sales process; it is not a social media marketing method, so it is the correct answer to the question.

Tabloids at the supermarket checkout line are an example of what type of consumer product? a. Convenience b. Specialty c. Unsought d. Component e. Supplies

The correct answer is A. Convenience goods, such as tabloids, candy bars, and magazines bought at the checkout line, as well as staples like as bread and milk, are categorized as convenience products. They are bought from habit or on impulse and are relatively inexpensive. Choice B is incorrect because specialty goods are expensive items, such as high-end cars and designer clothes. Choice C is incorrect because unsought goods and services are those that individuals don't know exist, such as DVRs when they first came out, or don't want, such as annuities. Component products, choice D, are those that are part of another product, such as microchips in computers, or those that need additional processing, such as silicon for the microchips. Supplies are used in maintenance, overhaul, and operations (MRO) jobs and include such things as paint, nails, paper, and toner, so choice E must be eliminated.

Buying a ready-made dining room set rather than making it from lumber, glue, and nails is an example of which type of customer value? a. Form utility b. Time utility c. Place utility d. Possession utility e. Utility of money

The correct answer is A. Customer value is the value, or utility, that marketing creates for customers: form, place, time, and possession. The question describes choice A, form utility. Choice B is incorrect because time utility refers to the value created by having a product available when the customer wants/needs it. Choice C is incorrect because place utility refers to the value created in selling a product in a location convenient to the customer. Choice D is incorrect because possession utility refers to the value to the customer of being able to buy a number of items in one place. Choice E seems convincing, but is not a marketing-generated customer value, so it is incorrect.

Which of the following market research tools is the most expensive? a. In-home personal interviews b. Telephone interview c. Mall intercepts d. Mail surveys e. Automated self-interviewing

The correct answer is A. In-home personal interviews, choice A, are the most expensive way to obtain market research information. Choices B, C, D, and E are less expensive forms of conducting market research, so they are incorrect.

Customers' perceptions of different retail chains and whether they would shop in them are based on the customers' a. material values b. spiritual values c. cultural values d. core values e. instrumental values

The correct answer is A. Material values affect where people shop and what they buy, so choice A is correct. Choice B is incorrect because spiritual, or religious, values belong to the category of nonmaterial values. Choices C, D, and E are incorrect because cultural, core, and instrumental values do not affect where and what people buy.

**In identifying and defining market segments, marketers look for segments that are a. substantial b. heterogeneous within the group c. explicit d. responsible e. sustainable

The correct answer is A. One criterion that is used to determine if a market segment is worthwhile pursuing is whether it is substantial, that is, large enough, choice A. Choice B is incorrect because marketers look for groups that are homogeneous within themselves, not heterogeneous. They need to be heterogeneous in terms of other groups. Choices C, D, and E are incorrect.

**Which of the following factors can make doing business online more expensive than doing business through a traditional store format? a. Order processing and direct shipping to customers b. Warehousing goods c. Operating call centers d. Customizing orders e. Potentially wide geographic range of customers

The correct answer is A. Order processing and direct shipping to customers, choice A, are two factors that can make online businesses more expensive than bricks-and-mortar stores. Choices C and D are incorrect because operating call centers and customizing orders are only part of the order processing system, so choice A is the better answer. Choice D is also incorrect because a certain amount of the customization is done by online customers for items such as airline and concert tickets. Choice E is incorrect because the geographic range of customers can be considered as part of the cost of direct shipping, so choice A is the better choice. Choice B is incorrect because regardless of format, warehousing is required by some entity on the distribution channel.

**Which of the following is an internal reason that a company's product positioning can fail? a. Market research misunderstands the preferences of the target market. b. A competitor gets to market first with a similar product. c. A strike hits a supplier. d. Costs to promote the product are underestimated. e. A flaw in the product requires a recall after six months.

The correct answer is A. Positioning is the process by which marketers attempt to get a targeted market to identify the company's products with a certain image or identity—and buy it. Choice A is one internal reason why positioning may fail; the product doesn't satisfy the unmet need of the target market. Choice B, competition, is an external reason positioning may fail. Choice C, a strike, would affect production, but not positioning. Choice D, high costs, would affect profitability, but not positioning. Choice E would affect profitability, but not necessarily positioning unless the latter was built on the quality of the product.

**A product that has been priced for skimming is in what phase of the product life cycle? a. Introduction b. Growth c. Maturity d. Saturation e. Decline

The correct answer is A. Skimming is a pricing strategy used to recoup development costs quickly during the introduction stage of a product's life cycle before competitors enter the market. It is meant to indicate product prestige and quality. It is the opposite of penetration pricing, which sets a low price to gain market share quickly. Choices B, C, D, and E are incorrect because these stages do not use skimming as a pricing strategy.

A marketing campaign to sell heavy equipment to a textile manufacturer would place most emphasis on a. direct selling b. sales promotions c. advertisements in trade magazines d. direct mail letters e. catalog marketing

The correct answer is A. The most important tool in the promotional mix for industrial product sales is direct, or personal, selling, choice A. Choices B, C, D, and E are incorrect.

**Jake has decided on the media for his product launch and his next step is to a. identify the outlets to use b. buy the media c. establish schedules for when the ads will run d. determine the method of advertising to use e. identify objectives for the advertising

The correct answer is A. The next step after deciding on the media is to choose the specific outlets to use, choice A. Choice B is incorrect because the outlets have to be identified before buying can begin. Choice C is incorrect because scheduling cannot begin until after the outlets have been identified. Choice D is incorrect because determining the method of advertising is the same as determining the media and comes before identifying specific outlets to use. Choice E is incorrect because identifying advertising objectives is the first step in media planning.

Which of the following is an environmental factor that companies can influence, though not control? a. Target market b. Technology c. Demographics d. Competition e. Social

The correct answer is A. The target market, choice A, is a microenvironmental factor that a company can choose to serve or not. However, once chosen, the best the company can do is influence a target market, not control it. Choices B, C, D, and E are macroenvironmental factors that companies cannot control.

Because of the expense of promotional campaigns in foreign countries, which of the following is the most effective promotional tool for companies in foreign countries? a. Trade shows b. Catalogs c. Direct mail d. Direct selling e. Advertising

The correct answer is A. Trade shows enable companies to meet many customers at one time and in one place, including local intermediaries that could serve as intermediaries for their businesses. Trade shows also give companies the opportunity to identify and evaluate competitors and to evaluate their own marketing efforts. Choices B, C, D, and E are less effective as promotional tools in foreign countries.

Which of the following transportation modes is typically used to ship grain? a. Waterways b. Rail c. Air d. Trucks e. Air and trucks

The correct answer is A. Typically, high-volume, low-value goods such as grain are shipped by water, so choice A is correct. Choices B, C, D, and E are incorrect.

A shipping company sets prices according to where in the country a package is being sent. This is known as a. zone pricing b. competitive pricing c. flexible pricing d. unit pricing e. variable pricing

The correct answer is A. Zone pricing, choice A, sets prices by regions. Choice B is incorrect because competitive pricing prices product within a range of the prices competitors are charging for the same or similar product. Choice C is incorrect because flexible pricing refers to setting different prices for different customers for the same product. Choice D is incorrect because unit pricing is information about the price per unit of a good. Choice E is incorrect; it is a distractor. The term seems similar to flexible pricing, which is incorrect.

A high-end cosmetics company is introducing a line of men's products. To interest department stores in selling the line, the manufacturer would offer a a. trade-in allowance b. promotional allowance c. markdown d. seasonal discount e. channel discount

The correct answer is B. A promotional allowance, choice B, is a reduction in the wholesale price that is offered to incentivize retailers or other intermediaries to promote a product. A trade-in allowance, choice A, is not correct because it a price reduction to a buyer who is giving an old item, such as a car, as part of a transaction to buy a new item. A markdown is a price reduction for an item that is not selling well; it would not be offered as an incentive to begin selling a new product or line of products, so choice C is incorrect. Choice D is incorrect because seasonal discounts are offered on goods that are out of season to incentivize buyers to purchase them and clear out inventory.

On each customer bill that it sends out, a retailer prints a coupon offering 20 percent off on the customer's next purchase. What kind of coupon is this? a. Markdown b. Bounce back c. Special value d. Instant redemption e. Customer reward

The correct answer is B. A retailer adds a bounce back coupon, choice B, to entice the customer to come back to the store and buy again. Choices A, C, D, and E are incorrect. Choice D describes a coupon that is on a product and can be removed and used immediately at checkout for a price reduction.

**A chain of superstores works out an arrangement with a drugstore chain to open pharmacies in its stores. The superstores company receives rent for the pharmacies. This is an example of a a. vertical marketing system b. horizontal marketing system c. multichannel marketing system d. retailer-wholesaler system e. contract marketing system

The correct answer is B. An arrangement between two or more distribution channel members that are on the same level of the distribution chain is a horizontal marketing system, choice B. Choice A is incorrect because a vertical marketing system is one in which channel members on different levels cooperate. Choice C is incorrect because a multichannel marketing system is one in which a member uses one or more channels to reach a market segment(s). Choice D is incorrect because retailers and wholesalers are not on the same level in a distribution channel; it is a type of vertical marketing system. Choice E is incorrect because the contract marketing system is an overall category under vertical marketing systems.

A manufacturer of snow blowers wants to begin using e-newsletters as part of its cooperative advertising campaign with retailers for a new line of eco-friendly machines. An e-newsletter a. is an effective indirect marketing tool b. will remind consumers on a regular basis about the product line c. should not include a call to action d. will be more expensive than a print newsletter e. doesn't require an opt-out function

The correct answer is B. An e-newsletter is a regular reminder to consumers about a company's products and their features and benefits, choice B. It may also provide other information that may be useful to the reader, such as product use tips. Choice A is incorrect because an e-newsletter is a direct marking tool. Choice C is incorrect because an e-newsletter, like any direct marketing tool, should include a call to action. Choice D is incorrect because there is no postage involved in distributing e-newsletters, which saves money. Choice E is incorrect because the Can-Spam Act requires a way for consumers to opt-out of unwanted commercial e-mail.

Which of the following statements is the best response to a customer who asks a salesperson how his or her company's after-sale service compares with another company's? a. "I don't know, but I can find out for you." b. "You'd have to ask customers of the XYZ Company what they think of its service." c. "I don't know anything about XYZ's service." d. "I haven't heard anything, good or bad, about XYZ's service." e. "XYZ Company has a bad reputation for service after a sale."

The correct answer is B. Choice B is the best answer because it takes the onus off the salesperson to make a statement—good or bad—about a competitor. Choice A keeps the focus on the salesperson, so eliminate it. Choices C and D could create the impression with the customer that the service is bad, so eliminate those choices. A salesperson should never say anything negative about a competitor, so eliminate choice E immediately.

Which of the following is an example of reverse logistics? a. A company ships unused goods back to its suppliers b. A company accepts the return of its used clothing from customers and reuses it in the manufacture of new clothing c. An audit of the supply chain is performed to see where costs can be cut d. The logistics department is debriefed after a product launch to determine if any changes should be made e. The wholesaler is removed from the supply chain and purchases are made directly from the supplier

The correct answer is B. Choice B, a manufacturer's accepting the return of its own clothing discarded by consumers, is an example of reverse logistics. Choices A, C, D, and E are incorrect because recycling and reuse of materials by manufacturers is reverse logistics.

Darden Enterprises wants to extend the life of its once best-selling canister vacuum cleaner. Which of the following marketing options could be attempted to extend the life cycle of the vacuum cleaner? a. Switching over to the milking strategy b. Designing new features c. Ending marketing to all segments except the one that is the heaviest user of the product d. Retiring the product and reintroducing it in a year or two e. Recognizing that the product has outlived its profitability and discontinuing it

The correct answer is B. Designing new features (and with them new benefits) is a product life extension strategy, choice B. Choices A and C are product deletion strategies, not product life extension strategies, and incorrect answers to the question. Choices D and E are incorrect because they are not product life extension activities. However, choice E is a variation on another product deletion strategy, the continuation strategy, in which a product is marketed until there are so few sales that it is removed from the product line.

**Which of the following is an example of the emotional appeal that a car brand may have for loyal customers? a. Reliability b. The feeling of status that ownership confers c. Quality of craftsmanship d. Design and styling e. Comfort

The correct answer is B. Feelings relate to emotions, and the feeling of status that some brands confer on purchasers is an example of the appeal to emotions that some brands have. Choices A and C are incorrect because they are examples of rational appeals that a brand may have for customers. Choices D and E are examples of the appeal to the senses that some brands make, so they are incorrect.

Which of the following is an example of a direct channel? a. A garden center selling supplies like hoses and rakes to customers b. A basketweaver selling to customers at a craft show c. A boutique owner selling a designer's clothing line d. A farm stand selling fruits and vegetables from several farms e. A dealership selling cars

The correct answer is B. In a direct channel, the producer sells his or her product directly to the customer without an intermediary. Only choice B satisfies this definition. Choices A, C, D, and E are incorrect because the sellers are intermediaries for products they did not produce.

**Sharing survey data from customer surveys across the sales, direct mail, and advertising departments is an example of how which of the following concepts works? a. MIS b. IMC c. CRM d. DSS e. USP

The correct answer is B. Integrated marketing communications (IMC) is coordination of all promotional messages so that a single, unified, customer-focused message is used in all promotion, which includes what the sales department does. Choice A is incorrect because a marketing information system (MIS) is a computerized system that provides information to managers for decision-making purposes. Choice C is incorrect because CRM stands for customer relationship marketing, the purpose of which is to maximize profitability, revenue, and customer satisfaction, but the focus is on building a relationship with the customer. Choice D is incorrect because DSS stands for decision support system, which is a computerized information system that provides managers with information for decision-making purposes. Choice E is incorrect because USP stands for unique selling position and refers to an advertising message that highlights the attributes that differentiate one product from another, focusing on the product's strengths and the customer's needs.

A nonprofit agency that provides residential care for people with cognitive developmental disabilities would do best to advertise its services to families by highlighting the a. availability of recreational activities b. low aide-to-resident ratio c. list of its board of directors d. biography of its founder e. list of its funders

The correct answer is B. It is safe to assume that a family looking for residential care for a person with cognitive developmental disabilities would be interested in the care that the person would receive, so that eliminates choices C, D, and E. These may be interesting and validate the agency as reputable, but they do not address the care issue. Choice A may be important for some individuals, but not for all, so choice B is the better answer. It addresses the major concern.

Which of the following is a behavioristic criterion that a company would evaluate in determining a market segment for a new line of toothpaste? a. Zip code b. Level of brand loyalty c. Lifestyle d. Gender e. Family size

The correct answer is B. Level of brand loyalty, choice B, is the only behavioristic criterion in the list. Choice A is incorrect because zip code is a geographic criterion. Choice C is incorrect because lifestyle is a psychographic criterion. Choices D and E are incorrect because both gender and family size are demographic criteria.

**Trade shows, public relations, banner ads, and dealer incentive programs are part of a. indirect marketing b. marketing services c. product development d. strategic marketing e. sales promotion

The correct answer is B. Marketing services, choice B, is the department that performs the activities that implement the strategic marketing plan, such as setting up and running exhibits at trade shows, creating public relations events and press releases, etc. Choice A is incorrect because, depending on the industry, all of the listed activities could be direct marketing. Even without considering this, the presence of banner ads and public relations in the list indicates that at least two of the activities are methods of direct marketing to customers. Choice C is incorrect because the listed activities are not part of product development. Choice D is incorrect because trade shows, public relations, advertising, direct mail campaigns, and dealer incentive programs are tactical marketing activities that implement the strategic marketing plan. Choice E is incorrect because public relations/publicity is not sales promotion; it is a separate element in the promotional mix.

Which of the following is a backward-only flow in the distribution channel? a. flow of information b. payment flow c. physical flow of goods d. flow of promotional materials e. flow of title to goods

The correct answer is B. Payment, choice B, flows backward along the distribution channel from customer to retailer to wholesaler to manufacturer to supplier, depending on the complexity of the distribution channel. Choice A is incorrect because information involves forward and backward flow along the distribution channel. Choices C, D, and E are incorrect because each involves a forward-only flow along the distribution channel.

A difficulty in conducting market research on a company's Web site is the a. high cost of collecting the data b. lack of randomness of the sample c. poor tools for collecting online data d. difficulty in driving people to the site e. difficulty in designing algorithms for data gathering

The correct answer is B. People who go to a company's Web site are either users or people interested in its products, so the sample is not random, choice B. Choice A is incorrect because collecting data on a company's Web site is relatively inexpensive. Choices C and E are incorrect because online data gathering tools are sophisticated and continually evolving. Choice D is incorrect because advertising, including the use of banner links in search engines as well as print ads that include the company's URL, is used to drive people to a company's Web site.

People buying relatively high-ticket durable goods such as refrigerators and flat-screen TVs tend to do what kind of information search? a. Internal search b. External search c. Compensatory search d. Situational search e. Conditional search

The correct answer is B. Purchasers of expensive items tend to do an external search, checking Web sites, comparing brand information, and asking friends and family. Choice A is incorrect because, for expensive items like durable goods, people tend to do external, not internal, searches. Choice C is incorrect because the term is "compensatory decision," not search, and refers to the process of deciding, not gathering information. Choices D and E are incorrect those who buy big-ticket items do extensive external information searches. These answer choices seem as though they could be answers, but are distractors.

**SMSA stands for a. Standard Metropolitan Statistical Aggregate b. Standard Metropolitan Statistical Area c. Standard Marketing System Approach d. Societal Marketing System Approach e. Sociocultural Marketing and Standard Aggregate

The correct answer is B. SMSA stands for Standard Metropolitan Statistical Area, choice B, and is used in analyzing geographic demographics. Choices A, C, D, and E are incorrect

Telemarketing is regulated by the a. Can-Spam Act of 2003 b. Do Not Call Act of 2003 c. Brady Act of 1993 d. Consumer Protection Act of 1987 e. Consumer Product Safety Act of 1972

The correct answer is B. Telemarketing is cold calling and is limited by the Do Not Call Act of 2003. Choice A is incorrect because this 2003 law (Controlling the Assault of Nonsolicited Pornography and Marketing Act) regulates spam, another name for unsolicited advertising email. Choice C is incorrect because the Brady Law regulates firearms purchases. Choice D is incorrect because the Consumer Protection Act of 1987 provides for strict liability for damage or injury from defective products. Choice E is incorrect because the Consumer Product Safety Act of 1972 set up the Consumer Product Safety Commission to conduct product research and public education programs.

The characteristics of a market include: money, a. authority to purchase, and access b. authority to purchase, desire, and access c. authority to purchase, time, and desire d. time, desire, and access e. time, access, and interest

The correct answer is B. The characteristics of a market are money, authority to purchase, desire, and access. Only choice B includes the necessary characteristics. Choice A is incorrect because it omits desire. Choice C is incorrect because it adds time and omits access. Choice D is incorrect because it adds time and omits authority to purchase. Choice E is incorrect because it adds time and interest and omits authority and desire.

**To be effective, a marketing plan has to answer "yes" to all of the following questions EXCEPT: a. Is it measurable? b. Is it motivational? c. Is it consistent? d. Is it specific? e. Is it achievable?

The correct answer is B. The four basic criteria by which to judge the effectiveness of a marketing plan are whether it is measurable, consistent, specific, and achievable, choices A, C, D, and E. Choice B, motivational, is not one of these four criteria, so it is the correct answer to the question.

**The major factors that can affect the reliability and validity of market research include all of the following EXCEPT the a. unsophisticated nature of research tools b. difficulty in finding subjects to participate c. complexity of human nature d. inability to control the environment in which the research is being done e. short time frame for research

The correct answer is B. The major factors that affect the reliability and validity of market research are choice A, the crudeness of research instruments; choice C, the complexity of what is being measured; choice D, poor controls; and choice E, the short time frame for research. Though any given study may have some difficulty in finding participants, choice B is not one of the four major factors that affect market research, so it is the correct answer to the question.

**The purpose of CRM is to maximize a. distribution channel, revenue, and profitability b. revenue, profitability, and customer satisfaction c. profitability, employee satisfaction, and customer satisfaction d. revenue, resource use, and profitability e. revenue, employee satisfaction, and customer satisfaction

The correct answer is B. To answer this question, you need to know that CRM stands for customer relationship marketing and the purpose of CRM is to maximize profitability, revenue, and customer satisfaction, choice B. Choice A is incorrect because efficient use of the distribution channel is a means to CRM, not a purpose of CRM. Choices C, D, and E are incorrect because employee satisfaction and efficient use of resources are tools of CRM, but not purposes.

**The most important benefit derived from marketing a company's activities in the area of social responsibility is a. potential tax savings b. increased customer loyalty c. free publicity d. improved company image e. influence for good on the general public

The correct answer is B. When customers are made aware of and understand the goals of a corporate social responsibility program, they tend to develop deeper feelings of loyalty to the company and its products. (Employee loyalty also tends to increase.) Choice A is incorrect because although it may be true, tax savings are not the most important benefit; without a loyal customer following buying its products, a corporation wouldn't have taxes to pay. Choices C and D are means to encourage customers to greater feelings of loyalty. Choice E is the main goal of corporate responsibility programs, but not a benefit.

**To which of the following groups would a furniture manufacturer target living room and dining room sets? a. Single adults b. Young married couples c. Full nesters I/II/III d. Empty nesters e. Retired couples

The correct answer is B. Young married couples, choice B, just starting out would be most likely to need and buy living room and dining room sets. Choices A, C, D, and E typically would not need large pieces of furniture, so choice B is the best answer.

**According to the Boston Consulting Group (BCG) matrix, a business unit that is defined as a "star" has a a. small market share in a stabilized market b. small market share in a growing market c. large market share in a growing market d. large market share in a stabilized market e. large market share in a shrinking market

The correct answer is C. A business unit that is considered a "star" in the Boston Consulting Group (BCG) matrix has a large market share in a growing market, choice C. Choice A is incorrect because a star business unit has a large market share of a growing market. Choice B is incorrect because it defines a business unit labeled as "question mark." Choices D and E are incorrect both define a business unit described as a "cash cow."

A business arrangement in which a parent company promotes locally owned operations with advertising and promotional deals is a a. licensing arrangement b. strategic alliance c. franchise d. turnkey operation e. partnership

The correct answer is C. A franchise is a right given to an individual or group (franchisee) to market a company's goods or services, choice C, at a certain location or within a certain territory in exchange for a fee. Franchisees in return have the support and technical assistance of the franchisor. Choice A is incorrect because a licensing arrangement involves the use only of patents, trademarks, copyrights, or marketing in exchange for a fee or royalties. Choice B is incorrect because a strategic alliance is a formal relationship between independent organizations in order to pursue some agreed-upon goals. Choice D is incorrect because a turnkey operation is a contract between companies in which one provides the services for the other. Choice E is incorrect because a partnership, in legal terms, is a type of unincorporated business organization in which two or more individuals manage the business and bear equal liability. This is not the same as the relationship between franchisor and franchisee.

**A global brand a. has a different target market depending on the country b. is promoted differently in different countries c. has the same name and logo regardless of country d. uses a single distribution channel e. ensures the profitability of a product line

The correct answer is C. A global brand has the same name and logo regardless of the country in which the branded products are being sold; that's why it's a global brand and choice C is correct. Choice A is incorrect because, from country to country, the target market is the same for a global brand. Choice B is incorrect because a global brand is promoted with the same message from country to country. Choice D is incorrect because a global brand will use a number of distribution channels. Choice E is incorrect because while a brand can help a product line at its introduction, it is not a guarantee that a product line will be profitable; profitability depends on a number of variables, not the least of which are customer acceptance and production and distribution costs.

Ensuring that finished goods are shipped to distributors or retailers is the function of which of the following departments? a. Warehousing b. Purchasing c. Logistics d. Sales e. Marketing

The correct answer is C. A logistics department, choice C, is responsible for the transportation and storage of raw materials, supplies, and finished products. Choices A and B are part of logistics, but they do not have the ultimate responsibility for moving materials, supplies, or finished products. Sales and marketing are not responsible for transporting goods, so choices D and E are incorrect.

**A salesperson who works for a distributor or wholesaler, but restocks shelves and sets up displays in stores, is what kind of a salesperson? a. Order taker b. Missionary c. Trade d. Service e. Product manager

The correct answer is C. A trade salesperson, choice C, restocks shelves, sets up displays, and may take orders from retailers, but does not sell. Choice A is incorrect because an order taker takes orders, but does not generate them. Choice B, a missionary sales representative, shows new products to prospective customers, but does not restock shelves or set up store displays, so choice B is incorrect. Choice D is incorrect because a service salesperson works with customers on service to products after a sale and does not restock shelves or set up store displays. Choice E, a product manager, is an internal position that oversees the development, marketing, and sale of products; the product manager is not in a sales position.

The Clothes Hanger chain of boutique clothing stores receives a discount for warehousing the clothes that it buys from Ace Clothing Manufacturer. This is a. an absorption factor b. a quantity discount c. a trade discount d. a cash discount e. a service discount

The correct answer is C. A trade, or functional, discount is given by manufacturers to wholesalers and retailers in return for a service like warehousing or selling. Choice A is incorrect; absorption factor is a distractor, similar to the term "freight absorption pricing," in which a manufacturer pays shipping charges to buyers. Choice B is incorrect because a quantity discount is one given to encourage a customer to buy more than usual. Choice D is incorrect because a cash discount is an incentive to a customer to pay an invoice early. Choice E is a distractor and is incorrect.

**According to the Pareto effect, Mary's House of Cupcakes will see what proportion of customers account for what proportion of its business? a. 10/90 b. 15/85 c. 20/80 d. 25/75 e. 30/70

The correct answer is C. According to the Pareto effect, 20 percent of customers account for 80 percent of a company's business generally, choice C. Choices A, B, D, and E are incorrect because they represent the wrong proportions.

**All of the following are objective characteristics that define consumers EXCEPT a. age b. stage in life cycle c. brand loyalty d. sex e. class

The correct answer is C. Brand loyalty, choice C, is a situation-specific characteristic of consumers. Choices A, B, D, and E are objective characteristics that can be used to segment the consumer market, so they are incorrect answers to this EXCEPT question.

**Which of the following characteristics of service organizations makes it impossible for a consulting company to duplicate its services exactly for all clients? a. Lack of standardization b. Intangibility c. Inseparability d. Perishability e. Variability

The correct answer is C. Choices B, C, D, and E are all characteristics of service organizations. Choice C, inseparability, means that how a service is provided depends not only on the person providing it, but also on the person receiving it. As a result, no service can be provided in exactly the same way to all clients. Choice A is incorrect because it is not a characteristic of services.

**Two elements that are added to an actual, or tangible, product to create an augmented product are a. warranties and brand name b. brand name and customer care services c. free delivery and customer care services d. stylishness and brand name e. warranties and quality

The correct answer is C. Free delivery and customer care services, choice C, are two factors that are considered enhancements to an actual, or tangible, product. Choice A is incorrect because although a warranty augments an actual product, its brand name is a characteristic of the actual product, not an augmentation. Choice B is incorrect because it includes brand name, which is part of the actual product. Choice D is incorrect because both stylishness and brand name may be part of the actual product, not augmentations to it. Choice E is incorrect because quality is a characteristic of the actual product, not an augmentation.

A cell phone maker wishing to sell its products in a developing country did market research and discovered that because of the country's high rate of illiteracy, all functions would need to be shown through icons. This is an example of which of the following difficulties in selling in a foreign market? a. Political; b. Sociocultural; c. Demographic; d. Technological; e. Economic

The correct answer is C. Illiteracy is a demographic factor. Choice A is incorrect because political factors might include local content rules for products and tariffs, but not illiteracy. Sociocultural problems include religion or a multiplicity of languages or dialects, so choice B is incorrect. Technological issues might revolve around the lack of infrastructure needed to move goods, and economic difficulties might be centered around the lack of an economically viable market, so choices D and E are incorrect.

The Hardy Company's sales for its Series X cell phone is slowing. Sales are still increasing, but the rate of increase has slowed each year for the last three. The Series X is probably in which stage of its life cycle? a. Introduction b. Growth c. Maturity d. Saturation e. Decline

The correct answer is C. In the maturity stage of the product life cycle, sales are still increasing, but at a declining rate, choice C. Choice A is incorrect because the introduction stage is when sales are growing, typically slowly. Choice B is incorrect because during the growth stage, sales rise at an increasingly greater rate. Choice D is incorrect because external economic conditions tend to drive sales—up or down—at the saturation stage. Choice E is incorrect because sales no longer increase, only decline.

**A meeting in a company that uses an integrated marketing communications system would include people from all of the following departments EXCEPT a. advertising b. public relations c. inventory control d. sales promotion e. personal selling

The correct answer is C. Integrated marketing communications (IMC) includes all groups that are responsible for creating and disseminating a company's sales-related messages (promotion) to its stakeholders. Choice C, inventory control, is not involved in promotional efforts, and so would not be invited and is the correct answer to the question. Choices A, B, D, and E are all involved in IMC, so they are incorrect answers to the question.

**To fulfill their missions, nonprofit organizations specifically target financial supporters and a. government agencies b. the media c. users of their services d. the general public e. similar, but noncompeting organizations for partnerships

The correct answer is C. Nonprofit organizations target financial supporters to help them fund their work as well as users of their services, choice C. Without clients, an organization would have no reason for its existence. Depending on the nonprofit, government agencies, choice A, may provide funding, but they are included in "financial supporters" in the question stem. Choices B and D are incorrect because although public support is important to nonprofits, their main targets are funders and clients. Although partnerships among nonprofits can be important, the main targets of a nonprofit's marketing are funders and clients, so choice E is incorrect.

A penetration pricing strategy is most effective in marketing to an expandable and a. small, price-sensitive market b. medium-sized, price-sensitive market c. large, price-sensitive market d. small, nonprice-sensitive market e. large nonprice-sensitive market

The correct answer is C. Penetration pricing usually succeeds if the marketer is going after an expandable, large, price-sensitive market, choice C. Choices A, B, D, and E are incorrect because they indicate the wrong market size and/or incorrect price-sensitivity.

**In identifying market segments based on purchase behavior, a marketer should look for groups that are internally heterogeneous in terms of a. age, consumption, and brand loyalty b. age, preferences, and brand loyalty c. preferences, brand loyalty, and consumption d. life style, consumption, and age e. life style, preferences, and brand loyalty

The correct answer is C. Purchase behavior includes preferences, brand loyalty, and consumption, choice C. Choice A is incorrect because it includes age and omits preferences. Choice B is incorrect because it includes age and omits consumption. Choice D is incorrect because it includes life style and age and omits preferences and brand loyalty. Choice E is incorrect because it adds life style and omits consumption.

Which of the following is an example of a positional influencer? a. A celebrity spokeswoman for a face cream b. A friend extolling the features of his new cell phone c. A wife with her husband while he is buying a new jacket d. A Web site video explaining the features of a new MP3 player e. An e-mail sent to a potential customer's inbox about a netbook

The correct answer is C. Someone who has a close relationship to a potential customer and is most likely to influence that customer when faced with buying a product is called a positional influence. When looked at objectively, a wife has a closer relationship to her husband than one friend has to another, so choice B is incorrect. Choices A, D, and E are incorrect because the source of potential influence in each choice is at a greater distance from the consumer.

**The Everyday Cookie Company, a regional chain, decides to move into the cupcake market. It has gone through a number of the stages of new product development and is now ready to do test marketing. What does test marketing involve? a. Evaluating the product against the competition b. Testing the product with real consumers in buying situations c. Testing the marketing plan and the product d. Trying out some of the promotional concepts in the local area e. Giving out samples in the store and tracking how many customers then buy cupcakes

The correct answer is C. Test marketing assesses both the product and the marketing plan for the product, choice C. Evaluating the product against the competition would be done earlier, during the marketing strategy development stage, so choice A is incorrect. Choice B is incorrect because introducing the product into a real buying situation is only part of test marketing. Choice D is incorrect because testing some of the promotional ideas is only one aspect of testing the marketing plan. Choice E is incorrect because handing out samples and tracking resultant buying is only one promotional idea.

Which step in the consumer decision-making purchase process is evaluating alternatives? a. First b. Second c. Third d. Fourth e. Fifth

The correct answer is C. The five steps in the consumer decision-making purchase process are: problem recognition, information search, evaluation of alternatives, implementation of decision, post-purchase behavior. Evaluating the alternatives is the third step, so choice C is correct. Choice A is incorrect because the first step is recognizing a problem (the need for a product). Choice B is incorrect because the second step is the information search. Choice D is incorrect because implementing the decision is the fourth step. Choice E is incorrect because the fifth step is post-purchase behavior.

**A party thrown in order to sell cosmetics is an example of a. direct advertising b. cold calling c. direct selling d. generating sales leads e. direct response marketing

The correct answer is C. The party is face-to-face selling, which is known as direct selling, choice C. Choice A is incorrect because direct advertising is another name for direct marketing in which advertising reaches consumers without an advertising intermediary, for example, catalogues. Choice B is incorrect because a cold call is made to someone who has no idea that it's coming. Because invitations are sent out for sales parties, the "guests" know that the goal of the party is to sell product. Choice D is incorrect because the sales leads were already generated in order to find people to invite to the party. Choice E is incorrect because direct response marketing is any advertising that results in a positive response from the consumer.

In order to be quantifiable, marketing objectives must indicate a. numerical measures b. the group(s) charged with responsibility for accomplishing objectives c. numerical measures and time frames for accomplishing objectives d. processes for feedback e. clear reporting structures

The correct answer is C. To be quantifiable, marketing objectives need to include numerical measures and the time frames for accomplishing the objectives. Only choice C includes both elements, so choices A, B, D, and E are incorrect.

**Selling new products in the business-to-business market is complicated because of the a. number of companies that sell in this market b. short time frame in which decisions are made c. number of people involved in the buying process in any given company d. usual lack of defined need e. difficulty in getting information from seller to buyer in this market

The correct answer is C. Two factors complicate business-to-business marketing. One is the number of people involved in decision making, choice C, and the other is the amount of time that it can take for decision makers to decide. The latter means that choice B is incorrect. The time frame is long, not short. Choice A is incorrect because this is true of any market and is not one of the factors that complicates business-to-business marketing for the marketer. Choices D and E are incorrect and the opposite of the real world.

Computer Graphics, Inc., decides it wants to sell its netbooks in Japan. The option that involves the least investment for CGI is a. setting up a national sales office and regional sales offices in Japan b. building a factory in Japan to make its netbooks there c. hiring an importer to handle sales of its computers d. buying a Japanese computer manufacturer to produce CGI's netbooks and sell them e. setting up its own subsidiary to build and sell CGI's netbooks

The correct answer is C. Working through an importer is the method for expanding business into another country that involves the least investment, choice C. Choice A, setting up sales offices, is next in order of less costly. Choices B, D, and E each require large amounts of investment—and risk.

Factors used to screen and evaluate new products for production and sale include all of the following EXCEPT a. the relevance of new products to the company's existing products b. the results of marketplace testing c. a financial analysis of costs and potential profitability d. an analysis of the competition e. the sales force's interest in selling the product

The correct answer is E. Choice E is not one of the criteria used to determine whether to go forward with a new product, so it is the correct answer to the question. Choices A, B, C, and D are criteria that a company would analyze in determining whether an innovation was worth pursuing, so they are incorrect answers to this EXCEPT question.

**The BYN Company has developed a strategy for its new product line that will enable it to market to a segment that is not covered by the market leader. What marketing strategy has BYN adopted? a. Niche b. Frontal attack c. Flank d. Bypass e. Penetration

The correct answer is D. A bypass strategy, choice D, enables a market challenger to market to a segment that the market leader is not in. Choice A is incorrect because a niche strategy would mean that BYN is marketing into a small, specialized market that the market leader is not interested in serving. Choice B is incorrect because in a frontal attack BYN would go head-to-head with the market leader in the same market. Choice C is incorrect because using a flank strategy, BYN would compete against the market leader by marketing against its weaknesses. Choice E is incorrect because penetration is an intensive growth strategy, not a strategy for competing against a market leader.

Which of the following is considered a service business? a. Vending machine company b. Cable TV shopping channel c. Mail order catalog company d. Fitness club and spa e. Convenience store

The correct answer is D. A fitness club and spa is considered a service business; it mainly offers services rather than goods. A vending machine company is a type of nonstore retailer, but it is not a service business, so choice A is incorrect. Choices B and C are incorrect because a cable TV shopping channel and a mail order catalog company are direct marketing types of business. A convenience stores, choice E, is a type of retail store.

A wholesaler that buys merchandise from a manufacturer, inventories it, and then fills orders and delivers the merchandise to retailers is a: a. drop shipper; b. manufacturer's agent; c. commission merchant; d. full-service wholesaler; e. selling agent

The correct answer is D. A full-service wholesaler, choice D, buys merchandise; inventories, sells, and delivers it; and, in addition, offers trade credit, research, management, and promotion for the merchandise. Choice A is incorrect because a drop shipper does not inventory the merchandise it sells; it passes the orders to the manufacturer of the merchandise or a wholesaler to fill. However, a drop shipper does buy the merchandise. Choice B incorrect because a manufacturer's agent is a sales representative only and works on contract for a manufacturer or several manufacturers. Choice C is incorrect because a commission merchant does not buy the merchandise it sells. Choice E is incorrect because a selling agent does not buy the merchandise to sell.

A supermarket chain sells its own brand of canned vegetables. This is known as a a. national brand b. regional brand c. shelf brand d. private label brand e. licensed brand

The correct answer is D. A private label, or store, brand is one that is owned by a retailer or supplier and, under contract, is manufactured for the owner by someone other than the owner. Choice A is incorrect because a national brand is one that is owned by a manufacturer; it is well promoted and recognizable nationally. Choice B is incorrect because a regional brand is one that is marketed in a region of the country, rather than locally or nationally; it is owned by a wholesaler, retailer, or dealer rather than by a manufacturer. Choice C is a distractor, so it is incorrect. A license, choice E, gives a licensee the right to use another's logo, trademark, patent, or other proprietary information in exchange for a fee or royalty. In this case, the supermarket chain owns the brand, so choice E is incorrect.

Bob is working with the creative team to develop packaging for a new clothes detergent. He wants the packaging to be easy-to-use and deliver the message that the detergent is eco-friendly by listing its ingredients. Based on his criteria, what functions of packaging is he looking for? a. Be easily packable for shipping, promote the product b. Be attractive, encourage product use c. Be easily packable for shipping, identify the product d. Encourage product use, promote the product, inform the consumer e. Identify the product, inform the consumer

The correct answer is D. Bob wants to encourage product use (easy-to-use packaging), promote the product (deliver the message), and list the ingredients (inform the consumer).Only choice D satisfies all three of Bob's criteria. Choice A is incorrect because it adds transportability, which is a function of packaging, but not one of Bob's criteria; it omits encouraging product use and informing the consumer. Choice B is incorrect because it adds attractiveness, which is not one of Bob's criteria, and omits promoting the product and informing the consumer. Choice C is incorrect because transportability and identification are not among Bob's criteria. Choice E is incorrect because it adds identification, but omits encouraging product use and informing the consumer.

Which of the following is NOT a tactic for marketing on social networking sites? a. Blog sponsorship b. Brand pages c. Gifting d. Boilerplate e. Banners

The correct answer is D. Boilerplate, choice D, is not a marketing tactic, but a formulaic statement or document that can be used and reused, with changes possible. Choices A, B, C, and E are marketing tactics for social networking sites and, therefore, incorrect answers to the question.

A distributor has worked out a deal with a manufacturer to receive a 15 percent discount off the face value of its invoice if the invoice is paid in full in 30 days. If the distributor fails to pay in 30 days, then the full amount is due in 45 days. Which of the following shows this agreement? a. 30/45, net 15 b. 15, net 45 c. 30/15, net 45 d. 15/30, net 45 e. 15/30/45 net

The correct answer is D. Choice D indicates 15 percent in 30 days or the whole payment in 45 days. Choices A, B, C, and E misstate the agreement and are, therefore, incorrect.

**A maker of frozen dinners decides to capitalize on the interest in healthy foods and develops a line of reduced-calorie frozen dinners. The new dinners are an example of a. product line extension b. product distribution c. product density d. product diversification e. repositioning

The correct answer is D. Choice D is correct because product diversification refers to developing new products for new markets. Choice A is incorrect because it refers to adding a product to an existing line, and the new dinners are a new line. Choices B and C are incorrect because they do not describe the development of a new product line. Choice E is incorrect because repositioning involves changing the perceptions of the marketplace about an existing product, but the healthy frozen dinners are a new product.

Ace Tire Company sells its tires to an automaker. The automaker puts the tires on the cars and trucks that it builds and then sells to consumers through its dealers. The tire maker also sells tires to distributors who sell them to retailers who sell them directly to consumers. Which of the following represents the distribution channel for Ace tires? a. Supplier, manufacturer/wholesaler, distributor/retailer, consumer b. Supplier, manufacturer, retailer, distributor, consumer c. Supplier, distributor, retailer, consumer d. Supplier, manufacturer/distributor, retailer, consumer e. Supplier, manufacturer, retailer, consumer

The correct answer is D. Choice D is correct because the supplier (Ace) sells the tires to the automaker (manufacturer) and to distributors, both of whom sell them to retailers (car dealers or tire dealers) who sell them to consumers, either as part of a new car or to replace worn tires. Choice A is incorrect because the scenario does not include a wholesaler. Choice B is incorrect because it indicates that the retailer sells the tires to the distributor. Choice C is incorrect because the manufacturer is missing from the channel. Choice E is incorrect because the distributor is missing from the channel.

**If a company wanted to measure market characteristics as part of its environmental analysis, in which area would it conduct research? a. Business economics b. Advertising c. Competitive analysis d. Sales and marketing e. Product research

The correct answer is D. Conducting research on market characteristics is part of sales and marketing, choice D. Choice A is incorrect because business economics research looks at trends and pricing and projects forecasts. Choice B is incorrect because research on advertising looks at the effectiveness of ads and media in general. Choice C is incorrect because competitiveness studies are conducted as part of choice E, product research. Choice E is incorrect because product research analyzes topics such as new product potential.

What is the standard agency commission for media buying? a. 2 percent b. 5 percent c. 10 percent d. 15 percent e. 20 percent

The correct answer is D. Fifteen percent, choice D, is the standard advertising agency commission for media buying. Choices A, B, C, and E are incorrect because the standard rate is 15 percent.

**Some of the economic factors that a company should consider before entering a foreign market include a. infrastructure, export regulations, and currency stability b. currency stability, infrastructure, and political stability c. import regulations, currency stability, and income distribution d. currency stability, infrastructure, and income distribution e. export regulations, currency stability, and income distribution

The correct answer is D. In considering whether to enter a foreign market, the economic factors that a company would consider include the stability of the nation's currency, the nation's infrastructure, and the income levels of its population. Choice A is incorrect because it includes export regulations, which are irrelevant to a company wanting to do business in another country; such regulations are also political-legal factors. Choice B is incorrect because political stability is a political-legal factor, not an economic factor. Choice C is incorrect because import regulations are political-legal factors. Choice E is incorrect because export regulations are political-legal factors.

**Intrapersonal influences on a person's buying behaviors might include his or her a. family members b. college classmates c. language(s) d. attitudes e. co-workers

The correct answer is D. Intrapersonal, or internal, influences include a person's attitude, perceptions, and values, so choice D is the correct answer. Choices A, B, C, and E are interpersonal influences; they come from outside the individual, so they are incorrect.

The total market is estimated at $750 million a year. The Standard Company sells 40 percent of the total market and Ajax is second with 36 percent. What is Ajax's percentage called? a. Sales forecast b. Market potential c. Sales potential d. Market share e. Market profile

The correct answer is D. Market share, choice D, is the total unit or dollar sales that competitors in a particular market hold. Choice A is incorrect because a sales forecast is a company's estimate of the sales that it will generate in a particular market during a particular period of time. Choice B is incorrect because market potential is the total universe of possible sales in an industry for a particular time period. Choice C is incorrect because sales potential is the amount of market potential—total possible sales—that a company can reasonably expect to gain. Choice E is incorrect because a market profile describes the characteristics of a particular market segment.

**Which of the following is a true statement about publicity? a. It is a paid advertisement. b. It is a celebrity endorsement. c. It appears on TV, cable, or the radio, but not in print. d. It is a nonpaid announcement about a person, product, or event. e. It is not carried well by Web sites.

The correct answer is D. Publicity is a nonpaid announcement, such as a press release, so choice D is correct. Choice A is incorrect because publicity is not paid for and it is not an ad as such. Choice B is incorrect because publicity is not a celebrity endorsement, though having a celebrity agree to endorse a product could generate publicity. Choice C is incorrect because publicity appears in print and in the electronic media. Choice E is incorrect because Websites are just as successful at carrying publicity as other media vehicles.

**A difference between quantitative and qualitative market research is that quantitative market research is a. subjective, not objective b. inductive, not deductive c. captured in words rather than numbers d. generalizable, whereas qualitative is not generalizable e. systematic, not unsystematic

The correct answer is D. Quantitative market research is generalizable, but generalizations cannot be made from qualitative data, so choice D is correct. Choices A, B, and C are incorrect because they each state the opposite of what is true about quantitative and qualitative market research. Choice E is incorrect because both quantitative and qualitative market research are systematic in their approaches.

Which of the following would be considered an "expert influencer"? a. A celebrity endorsing a cosmetics line b. A politician endorsing a nonprofit foundation c. A friend endorsing a particular brand of coffee d. A product reviewer in a consumer affairs organization e. A blogger reviewing music CDs as a hobby

The correct answer is D. The assumption is that people who work for a consumer affairs organization as product reviewers are experts, choice D. While a music blogger may be a trained musician with highly developed musical knowledge, such qualifications should not be assumed; choice D is the better choice. Nothing in the descriptions of choices A, B, and C indicate any level of expertise, so they should be eliminated.

**Which of the following is the sixth step in the advertising process? a. Select channels b. Determine promotion mix c. Develop message d. Develop budget e. Implement

The correct answer is D. The eight steps in the advertising process in order are: assess opportunities, select channels, establish objectives, determine promotion mix, develop message, develop budget, implement, measure effectiveness. Choice A is incorrect because selecting channels is the second step in the process. Choice B is incorrect because determining promotion mix is the fourth step. Choice C is incorrect because developing the message is the fifth step. Choice E is incorrect because implementing the advertising plan is the seventh step.

**A company that adopts a penetration pricing strategy for a new product will need which of the following to ensure that the strategy works? a. Accurate sales forecasting b. Exceptional customer care c. Extras, such as warranties d. Economies of scale e. Promotion based on price and value

The correct answer is D. The goal of penetration pricing is to take a large share of the market by offering the new product at a low price. The expectation is that, over time, the large sales volume will offset the low price. While all five choices will help a new product be successful, the factor that will best ensure the goal is achieved is economies of scale, choice D. The cost of producing more goods must decrease as sales increase in order to generate larger profits to make up for the lower price. Choices A, B, C, and E don't affect the cost of producing the good.

The marketing concept philosophy differs from earlier views of marketing by: a. focusing resources on the sales force b. incorporating concerns about the greater good of society c. shifting the organization's efforts to maximize short-term sales goals d. doing extensive research about potential customers e. focusing on the features of products and services

The correct answer is D. The marketing concept philosophy emphasizes the role of the buyer in product development and uses market research extensively to divine what the market wants. Choice A is incorrect because the market is the focus of the marketing concept approach. Choice B describes the societal approach to marketing. Choice C is incorrect because the marketing concept philosophy looks at both short-term and long-term goals. Choice E is incorrect because a focus on the features of products and services is the opposite of the marketing concept philosophy, which focuses on benefits.

**"A good product sells itself" could be the slogan of which of the following marketing management philosophies? a. Sales b. Marketing concept c. Societal marketing d. Production e. Social responsibility

The correct answer is D. The production philosophy holds that if a company produces and distributes good products, people will buy them, choice D. Choice A, sales, is incorrect because it relies on a sales force to persuade people to buy products. Choice B is incorrect because the marketing concept asks the market what it wants to see in a product before the product is developed; it is the opposite of the production philosophy. Choice C, societal marketing, is incorrect because it is based on the idea that products should improve or enhance society in general. Choice E, social responsibility, is incorrect because it is a characteristic of the societal marketing approach.

Sam intends to buy a hamburger and a soda, and the clerk asks if Sam wants fries, too. Then the clerk asks if Sam wants to add a cherry pie to his order. The clerk is using a technique known as a. approach b. unplanned buying c. overselling d. upselling e. add-on selling

The correct answer is D. The technique of attempting to get a customer to buy more items or a more expensive item is upselling, choice D. Choice A is incorrect because the sales approach is the first step in a sales interaction and is not a selling technique. Choice B is incorrect because Sam may be engaged in unplanned buying, but that's not what the question is asking. Though they may seem plausible, choices C and E are incorrect.

**Which of the following is the unique selling proposition? a. The training materials developed for the sales force b. The sales materials that accompany a product c. The package of offers that a salesperson customizes for potential purchasers d. The chief benefit associated with a product e. The call to action

The correct answer is D. The unique selling proposition (USP) is the reason a customer should buy a product; it is the most important benefit and separates a product from its competitors, choice D. Choices A, B, C, and E are incorrect.

**Exclusive distribution is the best option for a. staples such as bread and milk b. moderately priced menswear c. lighting fixtures d. designer clothing for women e. name-brand electronics

The correct answer is D. To maintain the prestige of the brand and a high price, the manufacturer of designer clothing for women, choice D, would choose exclusive distribution through a single outlet in an area. Choice A is incorrect because staples are goods that have a wide market—wider than any of the other answer choices—so exclusive distribution would not make sense for staples. Choices B, C, and E have varying size markets, but all of them are large enough to make exclusive distribution a poor choice because the manufacturers want as many customers as possible to purchase their products.

A company wanted to add to its product line of cereals and decided after research to produce a whole-grain cereal. It targeted its new cereal to a market segment looking for a. healthful food b. "green" concerns c. low-sugar cereals d. cereals made from natural foods e. organic foods

The correct answer is D. Whole grain is a natural food and while the same people who want a natural-foods cereal might also want organic foods, choice E, the market segment that the company identified was one that wanted a whole-grain cereal, so choice D is the better answer. Choice A, healthful food, is too broad; this group may not eat cereal. Choice B, "green" concerns, is irrelevant; again, these people may not necessarily eat cereal. Choice C, low-sugar cereal, is too broad because these people may not want whole-grain cereal if it doesn't have some sugar.

Business-to-business advertising includes all of the following areas EXCEPT a. industrial advertising b. agricultural advertising c. professional advertising d. trade advertising e. advertising to entrepreneurs

The correct answer is E. Business-to-business advertising includes industrial, agricultural, professional, and trade advertising, so choices A, B, C and D are correct. Choice E is incorrect because there is no separate advertising segment known as entrepreneurs. They are covered in each of the other segments.

The Internet is changing marketing for all of the following reasons EXCEPT that it a. can individualize products and services for consumers b. it is not location specific c. can provide better data for market segmentation d. keeps costs of communicating with customers low e. requires little support from other departments within an organization

The correct answer is E. Choices A, B, C, and D are ways that the Internet is changing marketing, so each is a wrong answer to the question. The same departments that would support a product if sold by formerly conventional means are still required. In addition, the IT department would be more heavily involved than in traditional marketing and sales efforts. Choice E is not true, so it is the correct answer to the question.

The pricing strategy for products sold in convenience stores is to set prices a. low b. low to moderate c. moderate d. high e. very high

The correct answer is E. Customers of convenience stores are trading convenience for very high prices. Choices A, B, C, and D are incorrect because the pricing strategy for goods sold in convenience stores is to set prices very high.

Which of the following is an example of dual distribution? a. A textbook salesperson sells to both middle schools and high schools b. A retailer sells merchandise in its stores and through its Web site c. A clothing manufacturer sells its clothes through its own boutiques and its own Web site d. A garden center sells plants from two different nurseries e. An electronics manufacturer sells its products through its own stores and through retailers

The correct answer is E. Dual distribution uses two or more types of distribution channels—intermediaries—to get the same product to the same market. Only choice E satisfies this definition; the two types are the manufacturer's own stores and the stores of other retailers. Choice A is incorrect because the same person is selling the same type of product in both markets. Choices B and C are incorrect because the intermediary in each scenario—retailer, manufacturer—is the same. Choice D is incorrect because where the plants originate is irrelevant; the intermediary is the same.

**Which of the following types of demand exists when aging Americans look for easy-to-use products that will help them become and stay fit, but can't find what suits them? a. Irregular b. Negative c. Focus d. Full e. Latent

The correct answer is E. Latent demand, choice E, is demand waiting to be fulfilled; no current product satisfies it. Choice A is incorrect because irregular demand is demand for a product that fluctuates significantly. Choice B is incorrect because negative demand occurs when people don't like an existing product. Choice C may seem like a good answer, but is a distractor and incorrect. Choice D is incorrect because full demand occurs when a particular company can't fulfill any more business.

The Yale Manufacturing Company has decided to maximize short-term profits and cash flow from one of its long-standing product lines. This is what kind of strategy? a. Maintenance b. Exit c. Improvement d. Extension e. Harvesting

The correct answer is E. The harvesting strategy, choice E, is used to maximize short-term profits and cash flow from a product/product line when a company anticipates declining market share and withdrawal from a market at some point. Choice A is incorrect because maintenance refers to keeping a product/product line at a certain level in a market. Choice B is incorrect because an exit is withdrawal from a market. Choice C is incorrect because improvement is a stage in the product life cycle on a product/product line. Choice D is incorrect because extension is adding to a product line.

**In evaluating how well a marketing message works on a social networking platform, a marketer can measure a. social actions and sociographics b. traffic, demographics, and sociographics c. traffic, sociographics, and social actions d. traffic, demographics, and social actions e. traffic, demographics, sociographics, and social actions

The correct answer is E. The metrics that can be measured on social networking platforms are sociographics and social actions as well as demographics and traffic, so choice E is correct. Choices A, B, C, and D are incorrect because each omits one or more of the measurable metrics.

The A&B Realty Company, based in New York and selling real estate, decides to begin acting as an intermediary for people looking for vacation rentals in Europe. The service connects vacationers with owners wanting to rent their homes through the Internet. This is an example of a company a. selling its existing product to a differentiated market b. selling its existing product to its existing market c. extending its existing product to a new market d. developing a new product for its existing market e. developing a new product for a new market

The correct answer is E. The phrase "selling real estate" and the word "begin" indicate that acting as a rental agent is a new product. Because the company is based in New York and the service involves Europe and the Internet, it is safe to assume that the market is also new, so choice E is the best answer Choices B, C, and D are incorrect because this venture involves a new product and a new market. Choice A is incorrect because there is only one market involved, vacation rentals.

**Which is the most important resource that an organization must have in order to achieve its strategic marketing plans? a. Well-researched promotional campaign b. Personnel c. Recognized brand(s) d. Distribution channels e. Money capital

The correct answer is E. Without the needed cash, choice E, an organization will not be able to carry out its plans. Choices A, B, C, and D are incorrect because, most importantly, an organization needs capital to be able to carry out its plans.