Marketing Final

Which of the following statements about price elasticity is false?

When price is raised on a product that has an inelastic demand, then total revenue will decrease.

The Food and Drug Administration influences marketing activities the most.

False

A sales rep's actual sales relative to sales potential are relevant to the sales manager in which of the following phases of the sales management process?

Controlling and evaluating sales force performance

Millie's Cookie House sells cookies, pastries, and muffins. She offers 30 different types of cookies, 20 different types of pastries, and 10 types of muffins. While not all of these are available in-store, customers can special order or have the baked goods catered. The depth of the product mix that Millie's offers is ______________, while the width of the product mix is ___________________.

Deep; narrow

Which of the following should be the least important concern for marketers when selecting a brand name?

Developing an advertising campaign to introduce the name

A firm can survive in the long run only if its products are sold below cost.

False

A segmentation variable is used to group smaller markets into one larger market.

False

If Seth and Noah each own their own gas station, and they get together to set agreed-upon prices, this is an example of deceptive pricing.

False

If Tom's of Maine wants to maximize profit on its toothpaste, it should operate at the point where

MR=MC

Company sales records, commercial databases, newspaper announcements, and public records are all sources used for

Prospecting

Which of the following acts does NOT directly affect pricing decisions?

Simpson-Marshall Act

An organization that uses pricing to increase its market share would likely set the brand's price below those of competing brands of similar quality.

True

. One condition for effective segmentation is that at least one segment must have substantial profit potential

True

Even though salespeople do not use the exact same sales methods, they do go through the same general selling process.

True

If possible the salesperson should have the prospect view, touch, or test the product during the presentation.

True

In a customer forecasting survey, a marketer would question customers about the types and quantities of products they intend to buy during a specific time period. T or F

True

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

True

The aim of a motivational program is to create a working environment in which sales personnel can achieve their goals.

True

The most effective sales promotion efforts are highly interrelated with other promotional activities.

True

The point at which marginal revenue equals marginal cost is the breakeven point.

True

If a large proportion of customers in a total market have similar product needs and the company has the resources to develop a marketing mix to satisfy them, which targeting strategy would be effective?

Undifferentiated strategy

A(n) ____ is a concept, philosophy, or image

idea

Myrna's company just purchased $600 worth of supplies from Staples. The terms for payment are 2/10 net 30. If Myra's firm pays in the next week, it will pay ___________. If Myrna's company waits three weeks to pay Staples, it will pay _____________.

588;600

Technological changes do not directly affect what, how, when, and where products are marketed. a. True

False

The marketer uses segmentation variables to divide a market into segments. All of the following statements are true about segmentation variables except

The variables should be based primarily on demographic characteristics.

The owner of Big Jim's Motorcycles is opening a new retail location. Which of the following is most likely to be a fixed cost for Big Jim's Motorcycles?

building rent

Elias, a sales representative, is returning from a week on the road. One of his activities this week is to develop ____, which are designed to identify the customers called on and to present detailed information about interaction with those clients.

call reports

A set of Bowers & Wilkins car speakers sold to Volvo for use in the production of XC90 SUV would be an example of a(n)

component part

Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through

containerization.

If a retailer is reviewing its inventory and notices that the order lead time for one of the products it stocks has increased, the retailer should

decrease its reorder point

Segmentation variables for consumer markets are usually grouped into four categories:

demographic, geographic, psychographic, and behavioristic

During the growth stage of the product life cycle, marketers must

fortify the product position

Amy's Ice Cream offers its customers a stamp card that allows them to receive a free ice cream after they have filled an entire card. This is an example of a

frequent-user incentive

Scenario 3.3 Use the following to answer the questions. The Consumer Financial Protection Bureau settled a claim with the Bank of America for deceiving customers and unfairly billing them for services such as credit monitoring and identity theft protection. Bank of America agreed to provide refunds to 2.9 million people and pay $45 million in fines for their illegal credit card practices. Their deceptive practices dated to 2000 where they had billed customers for products such as "Privacy Guard" or "Privacy Assist" without first obtaining authorization for the products. The $45 million in fines includes $25 million as a civil penalty that will be paid to the Office of the Comptroller of the Currency and $20 million to the Consumer Financial Protection Bureau. The Bureau also claims that Bank of America deceived about 1.4 million customers into making about $268 million in payments by, among other things, improperly telling them the first 30 days of coverage were free or the benefits were greater than existed.

legal and regulatory

Multiple packaging is

likely to increase demand

Penny promotes pharmaceuticals to pharmacies and doctors' offices. She is best categorized as

missionary salesperson

Praveen is an experienced salesperson who has worked for the same company for 20 years. When he is informed that he must attend a training seminar the following Tuesday, he believes it will most likely be about

new product information

A firm wants to build a subsidiary in the Middle East. However, it is apprehensive because of protests in some Middle Eastern countries and the violence in Syria. It does not know if it should take the risk of expanding. ​Which type of barrier does this situation represent?

political

To meet federal gas mileage regulations, Ford has developed aluminum vehicle bodies that are light enough to help conserve fuel. What kind of response is this to environmental forces?

proactive

____ competitors are those that compete in the same product class, but their products have different features, benefits, and prices.

product

. Jorge totals his car and spends two days recuperating in the hospital. After he gets out, he knows he needs a new vehicle. Jorge's old car was a Volvo that he loved. There is no Volvo dealership in his city. Although there are many less expensive vehicles to purchase, Jorge convinces his friend to drive more than 50 miles to a much larger city so that he can purchase a new Volvo. For Jorge the hospital stay was a(n) ______________ product, while his purchase of the Volvo is a ______________ product.

unsought;shopping