Principles of Marketing Final

One situation in which it might be considered unethical for businesses to use advertising characters that appeal to children is if the businesses are advertising

Adult products. Many businesses use advertising characters that children recognize. These characters appear in advertising and attract the attention of children as well as adults. However, it may be unethical to use these characters if the businesses are advertising adult products. Children might want the products simply because of the characters. It is not considered unethical to use advertising characters that appeal to children if the business is advertising expensive toys, low-quality goods, or luxury services because these products are not necessarily meant for adults only. SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (pp. 218-219). Mason, OH: South-Western.

Which of the following situations is an example of a marketing researcher obtaining secondary data:

Ben reads a trade magazine. Secondary data are information collected for purposes other than the project at hand. Reading a trade magazine can provide researchers with secondary information about trends, statistics, and regulations about a specific trade or industry. Interviewing a client, following up with a customer, and distributing a survey are ways in which businesses often collect primary data. SOURCE: IM:281 SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [pp. 180-181]. Boston: McGraw-Hill/Irwin.

In which of the following businesses would a separate department most likely be responsible for establishing prices:

Chain store. Large companies usually have departments responsible for the pricing function. The owners of small boutiques, local clothing stores, and hair salons would most likely be in charge of setting prices for their goods and services. SOURCE: PI:001 SOURCE: PI LAP 2—The Price is Right (Nature of Pricing)

When marketers sampled 100 15-year-old girls, they found that they all were 5 feet 2 inches tall. What type of sampling error contributed to this finding?

Chance. It is highly unlikely that all 100 girls in a sample would be exactly the same height. However, it could happen by chance--even with little chance of occurrence. Interviewer bias occurs when the presence, actions, or attitudes of the interviewer influence a respondent's answers. The scenario provides insufficient information to determine whether non-response error occurred. This problem happens when researchers fail to sample the people who didn't respond to determine whether there were statistical differences between respondents and non-respondents. Inadequate information is provided to know whether the question was asked in such a way that it influenced responses. SOURCE: IM:285 SOURCE: Mugo, F.W. (n.d.). Sampling in research. Retrieved June 3, 2010, from http://www.socialresearchmethods.net

Which of the following is a primary factor that affects a company's choice of promotional mix elements:

Characteristics of the company's product. The specific characteristics of the company's product will determine which type(s) of promotion will be most effective. Other primary factors that affect the choice of promotional elements include the product's market, the firm's distribution system, and the characteristics of the company. The number of company employees, the location of the company, and the media used by other firms in the same industry might be secondary factors affecting the promotional mix. SOURCE: PR:003 SOURCE: PR LAP 1—Promotional Mix

Which of the following is a consideration in the place element of marketing:

Choosing distribution channels. The place element of marketing focuses on considerations in getting the selected product in the right place at the right time. Some of the other place considerations are storage, transportation, inventory handling and control, and choice of specific outlets to offer the products. Sales promotion is an aspect of the promotion element. Extending credit is a consideration of the price element. Warranties and guarantees are considerations in the product element. SOURCE: MP:001 SOURCE: IM LAP 7—Pick the Mix (Marketing Strategies)

A characteristic of effective prices is that they must be

Competitive. When a similar product is offered by other businesses, a business needs to be aware of the prices of those businesses. If not, the business will probably lose customers because it is not competitive. Businesses must be willing to adjust their prices, depending on the circumstances faced by the business. Changes in the economy, demand, and other factors can affect pricing. SOURCE: PI:001 SOURCE: PI LAP 2—The Price is Right (Pricing)

Because the Hubert Company is not sure how to define its marketing problem, it should begin examining the issue by

Conducting exploratory research. Exploratory research is marketing research that collects information to help the business define its issue, situation, or concern and decide which direction to go in order to address it. For example, a business experiencing a drop in sales might conduct exploratory research to determine why it is happening. It might form a plan of action to figure out whether the problem involves customer-service issues, lack of promotion, lack of salesperson knowledge, product quality, etc. After the business decides to conduct exploratory research, it can determine the types of primary and/or secondary information that it needs, which may include formatting any necessary surveys and developing a framework for sampling. SOURCE: IM:284 SOURCE: Zikmund, W.G., & Babin, B.J. (2010). Exploring marketing research (10th ed.) [pp. 50-51, 60]. Mason, OH: South-Western Cengage Learning.

Corporate brands are built on all the associations and experiences

Consumers have toward a business or product. The current meaning of "brand" is completely consumer focused and combines the consumers' experiences, images, and associations regarding a company, good, or service. A brand is the relationship a company or product has with its customers. A brand is not built on how businesses view each other or other industries, nor is brand about consumers' views of things they want to buy. SOURCE: PM:206 SOURCE: Kotler, P., & Armstrong, G. (2008). Principles of marketing (12th ed.) [pp. 230-232]. Upper Saddle River, NJ: Prentice-Hall.

Channels of distribution are necessary for the sale of goods and services to ultimate

Consumers. A channel of distribution is the route that a product takes in moving from a producer to a consumer. Ultimate consumers are those who use goods and services for their own needs. Wholesalers, retailers, and sales agents are channel intermediaries that perform specific functions in the movement of goods. SOURCE: CM:003

Which of the following Internet-based marketing-research methods is most likely to raise an ethical issue regarding the users' right to privacy:

Cookies. Cookies are text files that are put on a web-site visitor's hard drive and then later retrieved during subsequent visits to the site in order to track shopping and buying behavior. As a result, Internet users often feel that their right to privacy is compromised. Portals are sites that are popular starting points for surfing the Web. Scan portal is not a term that is widely used to describe activities and concepts related to the Internet. A browser is the software that is needed for surfing the Internet. Banner ads are promotional messages appearing on the WWW, usually at the top of the web sites. SOURCE: Churchill, G. (2001). Basic marketing research (4th ed.) [p. 55]. Mason, OH: South-Western.

To improve a business's effectiveness in providing customer satisfaction, the business's marketing activities and its other business functions should be

Coordinated. An organization that applies the marketing concept must focus all of its planning and activities on satisfying customer needs. This requires the coordination of all marketing activities with each other and with all other business functions. No viable marketing activities should be eliminated. Contrasting or publicizing the activities would not improve customer satisfaction. SOURCE: MK:001 SOURCE: BA LAP 11—Have It Your Way! (Marketing)

Which of the following is a type of external marketing information that helps businesses make decisions:

Demographic trends. Demographic trends indicate changes in the physical and social characteristics of the population. Gathering information about demographic trends helps businesses to make decisions about what to produce and sell in the future to meet the changing needs of the population. An example of a demographic trend is the aging of the "Baby Boomer" generation that is reaching retirement age. This is a large segment of the population that has different wants and needs than younger people. To remain competitive, businesses need to understand these different wants and needs. Purchasing records, customer databases, and sales predictions are types of internal marketing information that help businesses make decisions. SOURCE: IM:012

Producers who eliminate all middlemen in the channel are said to be using __________ distribution.

Direct. Producers who eliminate all middlemen in the channel are said to be using direct distribution. This method of distribution is often impractical. Indirect distribution refers to the use of middlemen in the channel. Consumer and industrial channels may or may not use middlemen. SOURCE: CM:001

A business that test-markets a new product is using what method of marketing research?

Experiment. This is a marketing-research method that tests cause and effect by test-marketing new products or comparing test groups with control groups. Survey is a marketing-research method that involves the use of mail surveys, telephone interviews, personal interviews, and group interviews. Observation is a marketing-research method that gathers data by watching consumers. Objective is not a marketing-research method but a point of view, or opinion, that is not influenced by bias, prejudice, or outside opinion. SOURCE: IM:010

What research approach do businesses often use to test new product ideas?

Experimental. This technique is expensive because it involves setting up the research situation, such as developing a new product and then testing it on groups of consumers to determine their response. An example of the experimental research approach is quick-serve restaurants testing a new sandwich in certain markets. Technological is not a research approach. Recording means to keep track or to keep a record of something. Questioning is a variation of the survey research approach. SOURCE: IM:284 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 616). New York: Glencoe/McGraw-Hill.

Which of the following is a method used to obtain primary market research:

Focus groups. Primary market research is information that marketers collect for a specific purpose. A focus group is an example of a method for obtaining primary data. A focus group is a group that is formed for the purpose of discussing a specific topic. Businesses use focus groups to obtain direct feedback about their products and image. A search engine is a computer software program that explores the Web looking for information for specific search terms and displays a list of results. Search engines, government publications, and industry periodicals are sources of secondary research. SOURCE: IM:289 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 602, 612-614). New York: Glencoe/McGraw-Hill.

Customers in cold climates who need warm clothes are an example of which of the following market segments:

Geographic. Geographic segmentation groups people by the areas in which they are located. This includes customers in cold climates. Occupations are a basis for demographic segmentation. Psychographic segmentation groups people by lifestyles and personalities. Behavioral segmentation groups people by their response to a product. SOURCE: MP:003 SOURCE: IM LAP 9—Have We Met? (Market Identification)

In order for a market to exist, consumers must have an unfulfilled desire for a product and

Have financial resources. A market is a customer or a potential customer who has an unfulfilled desire and is financially able and willing to satisfy that desire. Consumers' brand preferences are not a factor. Knowing who makes the product or where it is sold are not necessary to the existence of a market. SOURCE: MP:003 SOURCE: IM LAP 9—Have We Met?

What is the advantage in using personal interviews to collect marketing data?

High flexibility. Some marketing researchers conduct personal (one-on-one) interviews with people to collect data. Although the disadvantages to using this method are the slow rate of collection and the possible bias of the interviewer, it allows the interviewer a great deal of flexibility and the ability to gain a wide array of data with personal interaction. SOURCE: IM:289 SOURCE: Shao, A. (2002). Marketing research: An aid to decision making (2nd ed.) [pp. 185-186]. Mason, OH: South-Western.

When companies increase the quality of materials used in the production of their products, their prices will tend to be

Higher. Companies that use high-quality materials in the production of their goods have to pay higher prices for the materials. They will pass these increased costs on to their customers. SOURCE: PI:001 SOURCE: PI LAP 2—The Price is Right (Nature of Pricing)

Marketers determine distribution intensity so they can achieve

Ideal market exposure. Marketers determine distribution intensity so they can achieve ideal market exposure—that is, they want to make their product available to each and every customer who might buy it, but they don't want to over-distribute the product and waste money. This condition is not known as complete market coverage or total market saturation—ideal market exposure often does not cover an entire market. It is also not referred to as perfect market balance. SOURCE: CM:001

The first step in the marketing research process involves

Identifying the problem. Before a business can conduct meaningful research, it must identify the problem or issue. This is the first step in the marketing research process. Once the problem or issue has been identified, businesses can gather relevant information. Some businesses prefer to hire a research firm rather than conduct research themselves. However, that is not a step in the marketing research process. Organizing resources is not the first step in the marketing research process. SOURCE: IM:282 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 610-611). New York: Glencoe/McGraw-Hill.

Businesses often use promotional campaigns to create or improve their

Image. Promotion is a marketing function that communicates information about goods, services, images, and/or ideas to achieve a desired outcome. Businesses often develop promotional campaigns to create a certain image or to improve an existing image. The purpose of creating a favorable image is to increase sales. Businesses do not use promotional campaigns to create or improve credit or safety, which are business activities. Displays may be part of a promotional campaign. SOURCE: MK:002 SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)

The Radnor Company outlined the specific activities and timelines it plans to use to accomplish its marketing goals. In which section of the marketing plan is this information placed?

Implementation. A company's marketing plan is its blueprint for carrying out its marketing activities to achieve its marketing goals, which are designed to attract the target market to the business. The implementation section of the marketing plan provides detailed information about the activities and timelines that the company will use to achieve its marketing goals. The company outlines its goals or desired outcomes in the objectives section of the marketing plan. The situation analysis provides a snapshot of the company's current business situation, and discusses various factors that are affecting its current situation. The executive summary is a complete overview of the company's marketing plan. SOURCE: MP:007 SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 33-35). Woodland Hills, CA: Glencoe/McGraw-Hill.

Implementing an electronic data interchange (EDI) system benefits businesses because it

Improves the speed and accuracy of information flow. Electronic data interchange is a computer network that links two or more businesses for the exchange of information. Retailers often use EDI systems for reordering inventory with their vendors. Using an EDI system can cut back on paperwork for all businesses, resulting in speedier order processing and reducing the margin of error. The system eliminates duplication of the data entry process. Artificial intelligence systems are computer programs or machines that perform functions that humans carry out. Implementing an EDI system does not necessarily dictate the type of distribution system businesses use and, therefore, does not necessarily create a benefit.

ABC Inc. sells very expensive products that the average consumer cannot afford. Which form of demographic segmentation would be the most appropriate to use when directing promotional efforts to the target market?

Income. A consumer's level of income tells marketers how much money is available to be spent for goods and services. Individuals must have a certain level of available income in order to afford expensive items. Consumers in the same age group cannot necessarily afford expensive items. Consumers employed in certain types of occupations might not be able to afford expensive products. No matter what life stage a family or household is in, they must have sufficient income to purchase expensive products. SOURCE: MP:003 SOURCE: IM LAP 9—Have We Met?

What is one way that promotional activities benefit consumers?

Increase awareness. Promotional activities make consumers more aware of the goods and services available to meet their needs. Promotional activities also inform, thereby creating better-educated consumers. Consumers who are aware of the goods and services available are able to make intelligent purchases and raise their standard of living. Influencing sales is a way that promotional activities benefit businesses. Supporting advertising and creating controversy are not ways that promotional activities benefit consumers. SOURCE: PR:002 SOURCE: PR LAP 4—Know Your Options (Types of Promotion)

Indirect channels of distribution are the only channels that involve

Intermediaries. Intermediaries are also called middlemen and include sales agents, wholesalers, and retailers who perform specific functions in the movement of goods from producers to consumers. Direct channels of distribution do not involve intermediaries. All channels of distribution involve producers and either industrial or ultimate consumers. SOURCE: CM:003

A marketer who changes the product element in the marketing mix should re-evaluate the other marketing elements because the elements are

Interrelated. If marketers change one element of the marketing mix, they should carefully examine the other elements because the others will probably also need to be changed. The marketing mix elements depend on each other, rather than being independent or detached. The elements are not unique—the same elements can be used by other companies. SOURCE: MP:001 SOURCE: IM LAP 7—Pick the Mix

Orson, a researcher, is asking a customer a series of questions during a scheduled meeting. Orson is using the __________ method to collect marketing data.

Interview. Researchers often collect marketing data by conducting interviews with customers. The interviews can take place over the telephone, through the computer, or by holding face-to-face discussions (group or individual). An interview is a good method to use when the business wants in-depth information from the respondents. The disadvantage to holding interviews is the expense. Observation is a research method that involves watching customers. Relational and contact interviews are fictitious terms. SOURCE: IM:289 SOURCE: Malhotra, N.K. (1999). Marketing research: An applied orientation (3rd ed.) [pp. 181-182]. Upper Saddle River, NJ: Prentice Hall. 

What product factor should a business consider when selecting a good or service to offer its customers?

Level of quality. Businesses should consider the level of quality of the product being offered because this will affect price, promotion, and place. Channels of distribution and inventory are elements of distribution. Availability of credit is an element of financing. SOURCE: MP:001 SOURCE: IM LAP 7—Pick the Mix

Which of the following situations indicates that a marketer should conduct marketing research to resolve a problem:

Losing market share. Marketing research is the systematic gathering, recording and analyzing of data about a specific issue, situation, or concern. Marketers often conduct marketing research when they want to determine why problems are occurring, such as market-share loss. Market-share loss is a problem because it usually indicates that the business is selling less and losing profits. In other situations, the business wants to obtain information about competitors, new products, new market opportunities, or economic conditions (e.g., inflation), which are not always problems for the business. SOURCE: IM:282 SOURCE: Shao, A. (2002). Marketing research: An aid to decision making (2nd ed.) [pp. 36-38]. Mason, OH: South-Western.

By offering mail-order services, telephone-order services, and delivery services, marketers are

Making buying convenient. Marketers constantly try to make buying as easy as possible for customers in order to attract more business. Businesses that provide special services make buying more convenient for customers, which often increases sales. The other alternatives are different ways in which marketing benefits consumers. SOURCE: MK:001 SOURCE: BA LAP 11—Have It Your Way!

Because of customer requests, a business decides to reorder a product that it had stopped selling. The business is using the

Marketing concept. The marketing concept is based on satisfying the needs and wants of customers. By reordering a discontinued product, businesses are satisfying their customers' requests. The production process is the activity of producing goods and services. The promotional mix is the combination of communication channels a business uses. The promotional-mix concept does not result from providing previously discontinued products. Distribution involves moving, storing, locating, and/or transferring ownership of goods and services. SOURCE: MK:001 SOURCE: BA LAP 11—Have It Your Way! (Marketing)

Which of the following statements is true about marketing functions:

Marketing functions work together to get products from producers to consumers. The functions of marketing involve activities that are interrelated. No one function is more important than another. When the marketing functions are performed well, consumers are satisfied. The functions are not independent. If any one of the functions is not performed well or is neglected, the other functions will be less effective. SOURCE: MK:002 SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)

What marketing function helps marketers decide to whom to sell? A. Pricing

Marketing-information management. Marketing-information management is a marketing function that involves gathering, accessing, synthesizing, evaluating, and disseminating information for use in making business decisions. This information helps businesses define their markets. Product/Service management involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities. The pricing function involves determining and adjusting prices to maximize return and meet customers' perceptions of value. Financing is a business function rather than a marketing function. SOURCE: MK:002 SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)

An essential characteristic of marketing research is that it must be

Objective. Marketing research is the systematic gathering, recording, and analyzing of data about a specific issue, situation, or concern. In order to be effective and useful, marketing research must be objective—not influenced by bias, prejudice, or outside opinion. Businesses use predictive research to help them forecast future business developments. Causal research is data that businesses collect to test "what if" theories, or cause-and-effect relationships. SOURCE: IM:010

One of the main reasons for developing a marketing plan is to identify the strategies necessary to achieve the marketing

Objectives. Marketing objectives are the goals a business seeks to reach with its marketing plan, which is a set of strategies for attracting the target customer to the business. One of the main reasons for developing a marketing plan is to identify those strategies that are the plans of action for achieving marketing goals and objectives. Marketing functions are interrelated activities that must work together to get goods and services from producers to consumers. Marketing mix is the combination of the four elements of marketing—product, place, promotion, and price. Market share is an organization's portion of the total industry sales in a specific market. SOURCE: MP:007 SOURCE: Soloman, M.R., Marshall, G.W., & Stuart, E.W. (2008). Marketing: Real people, real choices (5th ed.) [pp. 51-52]. Upper Saddle River, NJ: Pearson Prentice Hall.

What do businesses create to help answer the research problem?

Objectives. There is a strong relationship between the research purpose and the research objectives which are the goals of the research. Businesses create research objectives to help answer the research problem. For example, if the problem is service, one objective might be to determine customer satisfaction with delivery. Strategies are plans of action, or activities, for achieving goals and objectives. A procedure is the step-by-step process personnel follow in performing a specific task. SOURCE: IM:284 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 612). New York: Glencoe/McGraw-Hill.

An effective research approach that provides accurate information about what people do is the __________ method.

Observation. Observation is a marketing-research method that gathers data by watching consumers. It is an effective research approach that provides information about what they do and how they interact with others. People do not know they are being observed so they behave in a normal way that provides useful information. The survey, experiment, and interview methods involve contact with people so they may not provide the most truthful or accurate information about what they do. SOURCE: IM:284 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 616). New York: Glencoe/McGraw-Hill.

Which of the following is the most appropriate research approach to use when a business wants to determine how its employees interact with customers:

Observation. Observing the way in which employees and customers interact is one way to obtain information about customer service and customer satisfaction. This technique involves watching how the employees and customers communicate with one another without them knowing that they are being observed. The observation approach often provides the researcher with insight (verbal and nonverbal cues) that s/he cannot obtain by holding a telephone interview or by distributing a survey. For example, if observation research indicates that several employees have problems helping customers select the appropriate product, the business can take steps to train employees so they can better help customers. An experiment involves manipulating certain factors in a controlled environment to determine the cause and effect of variable combinations. An experiment would not be the appropriate approach to determine how employees interact with customers. SOURCE: IM:284 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 615-616). New York: Glencoe/McGraw-Hill.

Descriptive research is a type of marketing research that is used by businesses when they need to

Obtain specific data related to the business's situation. This information might include specific characteristics of a market, economic data that directly affect the business, or information about the business's nearest competitors. Predictive research is used to estimate the business's future sales or other future developments. Exploratory research collects information to help the business define its situation, problem, or concern and to decide which direction to take in order to address it. Causal research focuses on cause and effect and tests "what if" theories. SOURCE: IM:010

A home-improvement supply company targets its advertising to plumbers, carpenters, mechanics, and electricians. This business has segmented the market based on

Occupation. The market for some products can be segmented based on occupation. In this situation, the business is targeting workers in occupations that are most likely to use the company's products. This is a form of demographic segmentation. Other categories of demographic segmentation include age, gender, and income. SOURCE: MP:003 SOURCE: IM LAP 9—Have We Met?

Which of the following elements of the marketing mix are businesses considering when they answer the question of how much of a product to order:

Place. This element can make or break the buying experience. To be successful at distribution (place), businesses consider how much of a product to order because if a product is not available when customers want to buy, the business will lose sales. Therefore, buying the right amount is an important part of the place element. Businesses are not considering the price, product, or promotion elements when they answer the question of how much to buy. SOURCE: MP:001 SOURCE: IM LAP 7—Pick the Mix

A computer manufacturer offers customers who pay for their computers over a period of time, the opportunity to upgrade to a new machine at the end of the contract. This is an example of an ethical solution to the problem of

Planned obsolescence. Planned obsolescence occurs when businesses continually upgrade and develop new products, which make an existing product out-of-date, thereby creating an increase in the market for new products. It is often looked upon as unethical and a means of taking advantage of the consumer. Offering an upgrade is a way to solve the problem. Overproduction, sales forecasting, and product positioning are not unethical business considerations. SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2001). Marketing (12th ed.) [pp. 256-258]. New York: Irwin-McGraw/Hill.

What type of information do businesses include in their marketing plans?

Pricing strategies. A marketing plan is a set of procedures or strategies for attracting the target customer to a business. An important part of a marketing plan is the pricing strategies that a business will use to attract those customers. Businesses want their prices to be low enough to appeal to customers but high enough to cover costs and earn a profit. Businesses analyze a variety of information about expenses, prices charged by competitors, and customers' wants in order to decide how to price their products. Businesses do not include information about billing methods, payroll systems, or accounting procedures in their marketing plans. SOURCE: MP:007 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 650]. Woodland Hills, CA: Glencoe/McGraw-Hill.

Which function of marketing determines how much gross profit a business will make on a good or service?

Pricing. This marketing function involves determining and adjusting prices to maximize return and meet customers' perceptions of value. Pricing includes setting an amount to charge a customer for a product, which usually is based on the item's cost, expenses, and desired profit. Distribution involves moving, storing, locating, and/or transferring ownership of goods and services. Communicating information about goods, services, images, and/or ideas to achieve a desired outcome is promotion. Risk management, which is not a marketing function, involves the planning, controlling, preventing, and procedures used by management to limit business loss. SOURCE: MK:002 SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)

Holding a focus group is one way for a business to collect _________ marketing-research data.

Primary. Primary data are facts that a business collects for a specific purpose or project. A focus group is a group that forms to discuss a specific topic. A business might form a focus group of customers to gather first-hand information (opinions) about its goods and services. The data are used to help the business resolve a problem or make decisions about product development, customer service, etc. Secondary data are facts that are collected for purposes other than the issue or project at hand. Statistical data are numerical facts. Oftentimes, businesses will assign numerical values to qualitative information to obtain statistics. Complementary is not a type of marketing-research data. SOURCE: IM:281 SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [pp. 184-186]. Boston: McGraw-Hill/Irwin.

Which of the following statements about marketing research problems is true:

Problems that company decision-makers identify are often just symptoms of larger problems that need to be researched. Frequently, the problem or issue that decision-makers identify is actually the result or outcome of a much larger, "real" problem. Marketing researchers are responsible for helping these decision-makers to dig deep enough into the situation that the true issue becomes obvious. Then, the researchers and decision-makers can work together to finalize the marketing research problem. Specific research objectives are based on the marketing research problem, not the other way around. The research instruments, or methods to collect the data, are identified after the marketing research problem has been finalized. Every marketing research project requires a research problem, regardless of whether researchers plan to gather internal and/or external information. SOURCE: IM:282 SOURCE: Hair, J.F., Wolfinbarger, M, Ortinau, D.J., & Bush, R.P. (2008). Essentials of marketing research (p. 28). New York, McGraw-Hill Irwin.

Which of the following is an example of a business using the illegal tactic of bait-and-switch advertising:

Promoting a low-priced item to sell a more expensive item. Bait-and-switch advertising involves promoting a low-priced item to attract customers to whom the business then tries to sell a higher-priced item. In many cases, the low-priced item is in very limited supply or completely unavailable when customers try to buy it. The only reason the item is advertised at that price is to attract customers and encourage them to buy a more expensive item. Loss-leader pricing involves offering a low-priced item to eliminate competition. Price fixing involves agreeing with competitors to sell an item for a certain price. Selling certain items at a discounted price is not an illegal pricing tactic. SOURCE: Soloman, M.R., Marshall, G.W., & Stuart, E.W. (2008). Marketing: Real people, real choices (5th ed.) [p. 363]. Upper Saddle River, NJ: Pearson Prentice Hall.

A business that sends discount coupons to potential customers is using the __________ function of marketing.

Promotion. The purpose of the promotion function of marketing is to communicate information about goods, services, images, and/or ideas to achieve a desired outcome. Some of the ways to communicate with customers include advertising, publicity, and sales promotion. Sending discount coupons to potential customers is a promotional form of communication intended to encourage customers to buy. Financing is the business function which determines the need for and availability of financial resources to aid in marketing activities. Selling is the marketing function which involves determining client needs and wants and responding through planned, personalized communication that influences purchase decisions and enhances future business opportunities. Product/Service management involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities. SOURCE: MK:002 SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)

What type of research is intended to obtain detailed information about customers' opinions and experiences?

Qualitative. Qualitative research is based on obtaining information about opinions and experiences. The goal of qualitative research often is to find out "why" people buy certain products and "how" they feel about certain products and businesses. This research is often conducted through the use of in-depth interviews to obtain the detailed information. Sampling involves selecting a group to interview. Observation involves watching what people do. Forecasting involves making a prediction. SOURCE: IM:281 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 597). New York: Glencoe/McGraw-Hill.

Which of the following research techniques usually answers questions related to "how many":

Quantitative. Quantitative research often answers questions related to "how many" and "how much." The information is usually obtained from large numbers of people, and the results often are explained in a numerical form. For example, a business would use quantitative research to find out how many customers in a certain area buy a specific product and how many products they buy. Intelligence, syndicated, and economic are not types of research techniques. SOURCE: IM:281 SOURCE: Churchill, G.A., Brown, T.J., & Suter, T.A. (2010). Basic marketing research (7th ed.) [pp. 257-260, 494]. Mason, OH: South-Western Cengage Learning.

A wholesaler breaks down a large shipment of a product and sells portions of it to several retailers. The wholesaler is reducing a discrepancy of

Quantity. The wholesaler is reducing a discrepancy of quantity by breaking down a large quantity of a product into smaller quantities for retailers to buy and sell to final customers. Reducing a discrepancy of assortment means making a variety of related products available in one place. There is no such thing as a discrepancy of installation or a discrepancy of promotion. SOURCE: CM:001

Tying agreements may violate laws in some countries because these types of arrangements tend to

Reduce competition. Tying agreements require customers to buy other products in order to obtain the desired goods and services. In many free-enterprise economic systems, this practice is illegal because it can reduce or limit competition. Tying agreements do not necessarily increase taxes or exaggerate demand. Therefore, these options do not affect the tying agreement regulation. Tying agreements are more likely to increase conflict among businesses and distribution channel members. SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [p. 372]. Upper Saddle River, NJ: Prentice Hall.

Wal-Mart, Domino's Pizza, and Avis Rent-a-Car are examples of

Retailers. Retailers are businesses that buy consumer goods or services and sell them to the ultimate consumer. Wal-Mart, Domino's Pizza, and Avis Rent-a-Car all sell directly to consumers. Wholesalers are businesses that buy goods from producers or agents and sell to retailers. Agents assist in the sale and/or promotion of goods and services but do not take title to them. Industrial distributors are intermediaries that buy industrial goods and services and sell them to industrial users. SOURCE: CM:003

Which of the following is an example of a secondary source of data that a business can obtain internally:

Sales report. Marketing-research data are available from many sources, including those that are collected for other purposes. This type of information is secondary data. Secondary data are available outside the company from sources such as trade journals, government web sites, and magazine articles. A business can also obtain useful secondary data that are generated within the organization. Examples of this type of information include sales reports, budgets, customer profiles, and annual reports. SOURCE: IM:281 SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [pp. 180-181]. Boston: McGraw-Hill/Irwin.

Which of the following is a type of internal marketing information:

Sales reports. Internal marketing information that is useful to businesses includes sales reports and other types of accounting and sales data. The advantage to a business of using internal marketing information is that it is easy to obtain because it is available in-house. Marketing managers can review the internal information, such as sales reports, on a regular basis and make adjustments to existing programs based on what the information reveals. For example, if reports indicate that sales are down in certain areas, managers can increase advertising or use other techniques in an attempt to reverse the trend. Government databases, public records, and industry journals are examples of external marketing information. SOURCE: IM:012

Trade-association web sites and online libraries are Internet sources from which marketing researchers obtain

Secondary information. Secondary information is data that have already been collected by others. Marketing researchers can obtain secondary information from Internet web sites and often find that the data are useful for addressing their current issues or problems. Some researchers access trade-association web sites, which often publish articles and provide statistical data that relate to a specific industry. Online libraries are also good sources of secondary information because they have extensive access to various periodicals, online textbooks, and magazines. Internal data come from within the business. Primary data are information collected for a specific issue at hand. Classified information is confidential and is only available for certain viewers. SOURCE: IM:289 SOURCE: Malhotra, N.K. (1999). Marketing research: An applied orientation (3rd ed.) [p. 141]. Upper Saddle River, NJ: Prentice Hall.

Without marketing, people would need to be

Self-sufficient. Without marketing, people would need to be self-sufficient. Marketing provides the products that consumers need and cannot provide themselves. For example, individual consumers are not able to manufacture automobiles. Self-assured, self-controlled, and self-confident people could be part of our society without marketing. But marketing's absence would demand that we depend upon ourselves. SOURCE: MK:001 SOURCE: BA LAP 11—Have It Your Way!

The costs of promoting products are often

Shared by channel members. The costs of promoting products are often shared by channel members instead of being paid for entirely by one channel member. All products need to be promoted—promotion costs are unavoidable and are often expensive, especially for new products. SOURCE: CM:001

A university is considering changes to its business administration degree. To obtain feedback on the idea from students, the university selects a sample of business majors who are seniors. What type of sampling did the university use?

Simple. A simple sampling strategy is used when the researchers believe that the population is relatively homogeneous for the characteristic of interest. In this case, the researchers would feel that people sharing the same major, business, would have similar interests. Proportionate sampling is used when subgroups vary dramatically in size in our population. Researchers can select more participants from larger groups to ensure that they are adequately represented. Stratified random sampling is used when subgroups in the population differ a great deal in their responses or behavior. To overcome this issue, researchers treat the population as though it were multiple, separate populations and then randomly sample within each subgroup. Marketers would choose cluster sampling when it would be impossible or impractical to identify every person in the sample. As an example, imagine that a large international business wants to survey its employees but does not have a staff directory from which names could be sampled. It would be easier to sample by department. The researchers could randomly sample a percentage of employees within each randomly selected department rather than trying to sample that percentage of employees companywide. SOURCE: IM:285 SOURCE: Wadsworth Cengage Learning. (2005). Sampling methods: Research methods workshops. Retrieved June 3, 2010, from http://www.wadsworth.com/psychology_d/templates/student_resources/workshops/res_methd/sampling/sampling_01.html

To develop a better understanding of a problem's complexity, marketing researchers often gather background information about the issue via a __________ analysis.

Situation. A situation analysis is a tool that is often used to gather background information about a current business situation or problem. Researchers use the information that they gather via a situation analysis to familiarize themselves with the complete problem or issue. This information may help researchers to identify what caused the problem as well as possible consequences of the issue. A competitive analysis is the process of comparing a business's income statement with that of its competitors to see how it is doing by industry standards. A SWOT analysis is a marketing tool that investigates a business's strengths, weaknesses, opportunities, and threats in an organized fashion. A break-even analysis is a financial analysis whose purpose is to identify the level of sales needed to reach the break-even point at various prices. SOURCE: IM:282 SOURCE: Hair, J.F., Wolfinbarger, M, Ortinau, D.J., & Bush, R.P. (2008). Essentials of marketing research (pp. 28-29). New York, McGraw-Hill Irwin.

Which component of the marketing plan summarizes the environmental conditions that can affect a business's marketing activities:

Situational analysis. A situational analysis is a determination of a firm's current business situation and the direction in which the business is headed. Both internal (e.g., personnel) and external (e.g., competition) environmental conditions are evaluated to determine the business's current strengths, weaknesses, opportunities, and threats. Diagnostic summary, conditional assessment, and environmental synopsis are not terms commonly used to describe marketing plan components. SOURCE: MP:007 SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [p. 632]. Mason, OH: South-Western.

Useful marketing information often helps businesses to

Solve problems. Marketing information is all of the marketing-related data available from inside and outside the company. By analyzing certain data, a business often finds ways to solve a problem. For example, if a business's sales volume is decreasing, it realizes that there is a problem. By looking at various data, such as inventory reports, the business might find that certain high-moving products have been on backorder from a vendor for a long time. To resolve the problem, the business decides to find another supplier that has the products available. The backorders decrease and sales increase because the products are available. Marketing information might help a business find ways to be more competitive, but it does not prevent competition, which is illegal in some countries. Ethics are the basic principles that govern your behavior. SOURCE: IM:012

Scuba diving gear is an example of a product that would be marketed to a(n) __________ market.

Specific. In other words, scuba gear appeals only to certain market groups. In order to market products that have limited appeal, marketers use market segmentation that divides the market into smaller, more specific groups. Mass marketing is designing products and directing marketing activities in order to appeal to the general market. Mass marketing is used for goods and services that almost all people buy and use. Examples include soap, toothpaste, bread, milk, etc. SOURCE: MP:003 SOURCE: IM LAP 9—Have We Met? (Market Identification)

One of the ways in which marketing benefits people is by improving their

Standard of living. Standard of living is the way, or manner, in which people live. It is usually measured by the quantity and quality of the goods and services that people own and use. Our marketing system has given the United States one of the highest standards of living in the world. Community relations refers to a company's involvement or relationship with the community. Family ties are intrafamily relationships. A planned economy is an economic system in which the government makes all the decisions. SOURCE: MK:001 SOURCE: BA LAP 11—Have It Your Way!

Business goals are accomplished by means of marketing

Strategies. Marketing strategies are game plans for getting the job done. Budgets and salespeople are factors in a strategy, and profit is a goal of most strategies. SOURCE: MP:001 SOURCE: IM LAP 7—Pick the Mix

The goal of determining a sampling plan is to identify an accurate segment of the

Target population. The target population is usually very large, such as all of the people who live in North America. Therefore, it is often impossible to survey the target population. As a result, researchers identify a sample of the target population, which is an accurate segment of the entire population. By surveying the sample, researchers can obtain a fairly accurate representation of the target population. The business community, the mass audience, and the general market might be the target population depending on the research and the specific research problem. SOURCE: IM:285 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 614-615). New York: Glencoe/McGraw-Hill. 

A business with its own marketing-research department is most likely to use outside marketing research when

The business needs more research than the department can handle. Businesses may need data at a time when the marketing-research department is handling as much research as it can. When that happens, the business may hire outside researchers in order to obtain the information it needs in a timely fashion. Internal information would be found within the business and would not require the business to hire outside researchers to obtain it. While a business may conduct marketing research when it wants to prevent unnecessary financial losses, it is an unlikely reason for hiring an outside marketing-research firm. A business large enough to have a marketing-research department would have ample access to computers without hiring an outside firm. SOURCE: IM:010

When developing a sampling plan for a marketing-research project, a business must first determine

The size of the group it intends to survey. A sampling plan is the course of action or blueprint for gathering marketing information from a section of a target market. When a business designs its sampling plan, it must determine the size of the group that it intends to survey and the process that it intends to use to select the participants. Researchers determine the validity of the data after coding and analyzing it, which can only occur after the sample group has been selected and surveyed. Researchers usually assign response codes during the survey-development process. Predicting the sample group's responses is not a necessary action to take when a business develops a sampling plan. SOURCE: IM:285 SOURCE: Soloman, M.R., Marshall, G.W., & Stuart, E.W. (2008). Marketing: Real people, real choices (5th ed.) [pp. 114,125]. Upper Saddle River, NJ: Pearson Prentice Hall.

Why does a company need to know what stage of the product life cycle its products are in?

To adapt its marketing strategies. Businesses change their marketing strategies as their products go through the stages of the life cycle. This means that companies need to know where products are in their life cycles in order to use marketing strategies appropriate for each stage. It is not usually possible to prevent imitators from entering the market or to predict the length of a product's life cycle. Finding new uses for the product is a marketing strategy that is used to boost sales for a mature product. SOURCE: PM:024 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 557-559]. Woodland Hills, CA: Glencoe/McGraw-Hill.

Why do businesses develop marketing plans?

To attract the target customer. A marketing plan is a set of procedures or strategies for attracting the target customer to a business. The target market is the group of people identified and selected as the primary users of a product. Each business has a specific target market and develops a marketing plan for the purpose of reaching that market. Providing quality service and expanding the distribution system are marketing strategies that a business might use to attract the target customer. Businesses do not develop marketing plans for the purpose of preparing revenue statements. SOURCE: MP:007 SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 89-93]. Upper Saddle River, NJ: Prentice Hall.

XYZ Company is interested in developing, producing, and selling a new product. Before it does so, the company spends six months conducting marketing research. What are the primary advantages of this course of action?

To determine customer preferences and minimize losses. Businesses obtain marketing information in order to develop a product that customers want and need. By doing research, companies obtain marketing information that helps them to minimize the losses that may occur from introducing a product that customers do not want. Businesses do not conduct marketing research to increase costs, although they may identify consumer dislikes. The goal is not to delay production or increase labor costs. Marketing research may identify trends, but it is not intended to provide information to customers. SOURCE: IM:012

Which of the following is the most important reason for creating a written plan for a marketing-research project:

To keep the project on track. Creating a written plan for the research helps to keep the project on track as to types and amounts of data to be collected. A written plan also ensures that both the business and the research have the same information. The amount budgeted for research should be stated in the written plan, but that is not the most important reason for putting the plan in writing. A written plan does not affect data analysis or help the business to implement the marketing concept—a philosophy of doing business that is based on satisfying customer wants and needs while achieving company goals. SOURCE: IM:010

Why is it important for businesses to obtain marketing information about economic conditions, political systems, and technological changes throughout the world?

To remain competitive. Today's business environment is becoming more global in nature. To remain competitive in this environment, businesses need up-to-date marketing information about a variety of issues such as economic conditions, political systems, and technological changes throughout the world. Frequently, businesses in one part of the world make decisions that affect their customers in other parts of the world. To be able to make the right decisions and stay competitive, the businesses need marketing information about conditions in those areas. Businesses do not gather marketing information about conditions throughout the world to understand geography, import products, or eliminate trade quotas. SOURCE: IM:012

A marketer needs to collect quality control information about car batteries that a manufacturer is thinking about using on new cars. To collect the needed data, marketers have to cut the batteries in half. Which of the following is a true statement about collecting data about a sample rather than the population of batteries:

To test the population of batteries, marketers would need to dismantle all of the batteries, thereby leaving no batteries available to go on the cars. Since marketers do not want to destroy all of an item being studied, it is better to use a sample. A sample is a representative group of the population--all of an item being studied. Use of a well-planned sample can provide more accurate data than a poorly identified population. In addition, it will cost less and be less time-consuming than use of the population. SOURCE: IM:285 SOURCE: Bineham, G. (2006, March). Sampling in research. Retrieved June 3, 2010, from http://www.thh.nhs.uk/documents/_Departments/Research/InfoSheets/16_sampling_research.pdf

Which of the following costs do businesses usually include in the price of their products:

Transportation. There are a variety of ways that businesses can ship or transport their products to their final destination. The cost of each type of transportation varies; therefore, businesses choose the method that fits within their price range. Businesses build the transportation costs into the price of their products. Inflation is a rapid rise in prices, usually occurring when demand exceeds supply. Regulations are an established set of rules. Orientation is job preparation or induction training for new employees. SOURCE: PI:001 SOURCE: PI LAP 2—The Price is Right (Pricing)

A marketing researcher is determining whether to collect data about individual consumers, households, or geographic areas. The researcher is choosing the

Unit of analysis. The unit of analysis represents "whom" or "what" is studied in a marketing research project. In other words, it is whatever persons, groups of people, or things from which researchers collect data. The relevant variables can be described as the types of information that a researcher gathers. This information might focus on brand attitudes, satisfaction, demographics, etc. The data analysis method is the procedure(s) that a researcher uses to evaluate, test, synthesize, and analyze the data that s/he has collected. The marketing mix is a combination of the four elements of marketing-product, place, promotion, and place--used by a business or organization. SOURCE: IM:282 SOURCE: Hair, J.F., Wolfinbarger, M, Ortinau, D.J., & Bush, R.P. (2008). Essentials of marketing research (p. 30). New York, McGraw-Hill Irwin.

A producer feels that a retailer is not marketing its product to final consumers aggressively enough. This is an example of

Vertical conflict. Vertical conflict occurs between channel members at different levels within the same channel. It often occurs between producers and wholesalers or producers and retailers. Horizontal conflict occurs between channel members at the same level. Chargebacks and sanctions are two types of negative economic motivators used in channels. SOURCE: CM:001

Which of the following data-collection methods obtains product information during the point-of-purchase process:

Volume-tracking scanner. A scanner is an electronic device that reads or translates codes that are placed on products and enters the product information into a computer. Scanners are commonly used during a sales transaction, which is the point of purchase. This is a popular method of collecting information about customers' buying habits and inventory status because the scanning system can track large volumes of goods. Once enough data are collected, researchers evaluate the data to determine how fast or slow certain products are moving, which is information they can use to make business decisions. Photographic scanners, e-mail surveys, and statistical surveys are not data-collection methods that researchers use during the point-of-purchase process. SOURCE: IM:289 SOURCE: Zikmund, W.G., & Babin, B.J. (2010). Exploring marketing research (10th ed.) [pp. 256-257]. Mason, OH: South-Western Cengage Learning.

A short channel of distribution will probably be used by a producer that

Wants channel control. A producer that wants total control of the channel should use a direct channel. On the other hand, if the producer is willing to give up some control of the channel functions, longer channels can be selected. Insufficient funding, lack of a sales force, and wanting to share the costs of distribution indicate the use of longer channels. SOURCE: CM:003

Where does a channel of distribution begin?

With the producer. A producer is the grower, provider, or manufacturer of goods or services. Products originate with producers. The channel ends with an industrial user or ultimate consumer. An intermediary is a channel member operating between the producer and the consumer or industrial user to help in the movement of goods and services. SOURCE: CM:003

Can prices be set too low?

Yes; customers may feel quality is too low. Quality and price are often considered the same by customers. Higher-priced items are usually perceived as high-quality products. Customers who feel lower prices reflect low quality will not buy more of that product. SOURCE: PI:001 SOURCE: PI LAP 2—The Price is Right (Nature of Pricing)

Implementing an electronic data interchange (EDI) system benefits businesses because it

improves the speed and accuracy of information flow. Electronic data interchange is a computer network that links two or more businesses for the exchange of information. Retailers often use EDI systems for reordering inventory with their vendors. Using an EDI system can cut back on paperwork for all businesses, resulting in speedier order processing and reducing the margin of error. The system eliminates duplication of the data entry process. Artificial intelligence systems are computer programs or machines that perform functions that humans carry out. Implementing an EDI system does not necessarily dictate the type of distribution system businesses use and, therefore, does not necessarily create a benefit.

Which of the following is an example of a salesperson reaffirming the buyer-seller relationship:

"You've made an excellent choice in carpeting, Mr. Jones." Reaffirming the buyer-seller relationship can be done in many ways. One technique is to reassure the customer that s/he made a wise purchasing decision. Reaffirmation is the last step in the selling process and is done after the sale has reached closure. The options, "I understand your financial concerns, but remember that the investment value will quadruple within six months" and "Shall I order three dozen of each appetizer for your reception, Mrs. Hanover?" are used during the closure process. During the closure process, the salesperson identifies remaining objections in order to close the sale. The option, "In what types of publications does your company place full-color print advertisements each year?" is an example of an open-ended question that is used to determine customers needs. SOURCE: SE:048 SOURCE: SE LAP 126—The Selling Process

Which of the following is an example of a product's being sold without the use of an intermediary:

A Mary Kay cosmetics party. A Mary Kay cosmetics party is an example of a product's being sold without the use of an intermediary. A company representative sells the products directly to consumers at the party. A tanning salon, a construction-supply distributor, and a car-rental agency are all intermediaries who resell goods or services to consumers. SOURCE: SE:017 SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)

Which of the following is most likely to raise the price a business charges for its products:

A new law increases minimum wage. This change would increase costs for the business by forcing it to pay higher wages to entry-level workers. The result might be a raise in prices to cover the added expense. Increased efficiency and a reduction of inventory level would decrease prices. Laying off workers would either stabilize or reduce prices. SOURCE: PI:002 SOURCE: Soloman, M.R., Marshall, G.W., & Stuart, E.W. (2008). Marketing: Real people, real choices (5th ed.) [pp. 350-351]. Upper Saddle River, NJ: Pearson Prentice Hall.

Which of the following is an example of a product's being sold to an organization for use in producing other goods:

A retailer sells a sewing machine to a professional seamstress. A retailer's selling a sewing machine to a professional seamstress is an example of a product's being sold to an organization for use in producing other goods. The seamstress will use the sewing machines to produce goods that she will sell. A retailer's selling office furniture to an advertising firm is an example of a product's being sold for use in general business operations. A teenager's mowing his neighbor's lawn for $20 is an example of a product's being sold directly to the user for ultimate consumption. A distributor's selling comic books to a comic store is an example of a product's being sold to an organization for resale. SOURCE: SE:017 SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)

Which of the following responses would maintain the loyalty of a customer who has asked you for an item that is not on the sales floor, but you know is in the back room:

Ask the customer to wait while you get the item. Making every effort to help customers is an excellent way to create and to maintain good feelings toward the business. Customers generally return to a business whose salespeople go beyond the call of duty to help them. Asking the customer to make another trip to the business is not considerate of the customer. Suggesting a substitute or promising to call the customer would not meet the customer's needs or develop his/her loyalty. SOURCE: SE:828 SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)

A well-known company developed the first tissues that were enhanced with lotion. What strategy was most likely used to initially position the product in the marketplace?

Benefits. One way marketers position goods and services in the marketplace is by emphasizing their benefits. The marketers emphasize how the product is different from other similar products. A new concept such as tissues containing lotion is appealing to people during flu and cold season or for those who have allergies. The tissues are softer and less likely to irritate the skin. Therefore, emphasis is placed on the benefits of using the product. A new product in the marketplace would not initially experience competition. Price would not likely be used to position the product because product development is very expensive. The product might be more expensive when it is introduced in the marketplace to cover development costs and because there is no competition. Image refers to the way someone or something is viewed by others. Marketers would probably not emphasize the image of disposable products such as tissues. SOURCE: PM:042 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 560-561]. Woodland Hills, CA: Glencoe/McGraw-Hill.

One advantage of using certain software programs in the process of determining price is that these programs allow businesses to find out what effect different prices will have on the

Bottom line. Certain types of computer software programs enable businesses to experiment with prices before deciding on the actual price to charge. A business can plug in different prices for various items to find out what effect each price will have on the bottom line, or net outcome. Businesses use computer software programs to determine which price will be the most profitable as well as the most appealing to customers before setting the price. The target market is the particular group of customers a business seeks to attract. Competition is the rivalry between two or more businesses to attract scarce customer dollars. Operating cost is all of the expense involved in running a business.

Which of the following is an advantage of newspaper advertising:

Broad coverage. Advertisements placed in newspapers provide a firm with broad coverage because many consumers read newspapers. This does not constitute a captive audience since no one is forced to read a newspaper. Disadvantages of newspapers as an advertising medium are that they have a short life, and that there is high waste circulation because the ads reach many consumers who have little interest in them. SOURCE: PR:007 SOURCE: PR LAP 3—Ad-quipping Your Business (Types of Promotional Media)

One way that product/service management benefits marketing is by helping to decrease

Business risk. A company that spreads its business risk over several products is in a much better position than a company that relies on one or two products for its income. If one of those products fails and no replacement products have been planned, the company may be in serious trouble. Product/Service management is supposed to increase profits, sales, and financial success rather than decreasing them. SOURCE: PM:001 SOURCE: PM LAP 17—Rapping Up Products (Nature of Product/Service Management)

One way that some businesses obtain new products to add to their product line is by

Acquisition. Some firms acquire new products by taking over a company that is already making a product in which they are interested. These businesses are constantly on the lookout for such opportunities. In many cases, acquisition of other firms can be less expensive than developing and producing a new product. Consolidation is the joining of two or more companies to form a new company. Implementation is the process of doing or taking action. Businesses do not obtain new products to add to their product line by syndication. SOURCE: PM:001 SOURCE: PM LAP 17—Rapping Up Products (Nature of Product/Service Management)

The best use a salesperson can make of information found on the products s/he sells is to

Answer customers' questions in the sales presentation. Salespeople should be familiar with the information found on tags, labels, wrappers, etc., and convert it into selling points and customer benefits. None of the other alternatives are uses of information found on products. SOURCE: SE:062 SOURCE: Burrow, J. (2002). Marketing (pp. 465-466), South-Western.

How can salespeople maintain a positive, ongoing selling relationship with their customers?

Handle and resolve problems promptly. By addressing issues quickly, salespeople express concern for their customers. Customers who are satisfied with problem resolution often provide the salespeople with repeat business and loyalty. Testimonials often help salespeople sell products to others, but they do not necessarily maintain a positive relationship with existing customers. Promising additional services does not necessarily maintain a positive relationship with customers unless the salespeople follow through with their promises. Although follow-up activities are necessary to maintain a good selling relationship with customers, the type and amount of follow-up is determined by many factors, including available resources and the nature of the product. Therefore, it is not always necessary to follow up with customers every week. SOURCE: SE:076 SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [p. 408]. Boston: Irwin/McGraw-Hill.

One of the reasons for using promotion is to __________ goods and services.

Help sell. Promotion should make the salesperson's job easier by persuading the customer to buy before the customer comes to the business. Promotion cannot deliver or guarantee goods and services. Promotion usually focuses on new products rather than old items. SOURCE: PR:001 SOURCE: PR LAP 2—Razzle Dazzle (Nature of Promotion)

Which of the following is an example of a product line:

Notebooks, scratch pads, and stationery. A product line is a group of related product items. Notebooks, scratch pads, and stationery are all paper products. A double cheeseburger and an automobile tire are examples of product items. A product item is an individual good, service, or idea that a business offers for sale. Candy, games, and shampoo are product items that might be part of a business's product mix—the assortment of products that a business offers in order to meet its market's needs and its company's goals. SOURCE: PM:003 SOURCE: PM LAP 3--Mix & Match (Nature of the Product Mix)

The promotion of baseball-nut ice cream during baseball season would be classified as __________ promotion.

Product. Product promotion is a type of promotion that aims to persuade customers to buy a specific good or service. Public-service promotions inform consumers about noncontroversial issues that are in the public's best interest. Patronage promotion is designed to promote a firm's features or prestige. Institutional promotion is used to create a certain image or reputation. SOURCE: PR:002 SOURCE: PR LAP 4—Know Your Options (Types of Promotion)

The phase of the selling process that includes writing up the order is

Reaching closure. Reaching closure is the phase of the selling process in which the salesperson addresses customer objections and asks the customer to buy. When the objections have been resolved, it is time to write up the order. Establishing relationships is the opening phase that involves prospecting for potential customers and making the initial contact with them in order to create the right selling environment. Discovering needs is the phase in which the salesperson determines what a customer needs/wants through the use of questioning and listening. Prescribing solutions is the phase in which the salesperson recommends specific goods or services that meet the customer's needs. SOURCE: SE:048 SOURCE: SE LAP 126—The Selling Process

Robney Corporation, a candy manufacturer, is using advertising and coupons to introduce the "Wacky Bar," a new candy bar. The company is trying to create brand

Recognition. Consumers are made aware of a new product in the brand recognition stage. Brand insistence is the stage of brand loyalty that occurs when consumers insist on buying a specific brand and will not accept a substitute. Using promotional methods does not create brand quality or performance. SOURCE: PM:021 SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)

A salesperson can discover customer needs during the sales process by

Skillful questioning and careful listening. By asking questions of undecided customers and listening to the answers, salespeople can tailor each sales presentation to meet the specific needs of the customer. Conducting a good product demonstration is part of prescribing solutions to customer needs. Showing the customer a few products may not give the salesperson enough information about the customer's needs. Using suggestion selling is part of reaffirming the buyer-seller relationship. SOURCE: SE:048 SOURCE: SE LAP 126—The Selling Process

A company implements customer credit limits and payment requirements. These guidelines or rules are part of the company's __________ policies.

Terms-of-sale. Terms-of-sale policies are company guidelines that cover aspects of a sale and include issues that relate to product price, delivery, credit, discount, and guarantees. Selling-activity policies are the guidelines for selling activities that involve interaction with customers or potential customers. Service policies are the guidelines governing the support a company provides to the customer after the sale through return, repair, and installation. An adjustment policy is a type of service policy. SOURCE: SE:932 SOURCE: Levy, M., & Weitz, B. A. (2007). Retailing management (6th ed.) [pp. 251-252]. Boston: McGraw-Hill/Irwin.

Why do some new companies set their selling prices as low as they can?

To get market share as fast as possible. Businesses may use selling price to obtain a share of the market, to enlarge the share they already have, or to maintain that share. For example, some new companies set low prices in order to get as much of the market as possible right from the start. They feel that they will benefit over time because the customers who are attracted by the low prices will become regular customers. Because the selling prices are low, the business will not make a large profit or earn a high return on investment. It is illegal for businesses to deliberately set prices so low that they eliminate all competition. SOURCE: PI:002 SOURCE: PI LAP 3—Factors Affecting Selling Price

Why is it important for selling policies to have a bit of flexibility?

To make an occasional exception. Selling policies need to have a bit of flexibility so that an occasional exception can be made. For example, one policy might require customers to have sales receipts when exchanging items. However, a business might make an exception for a regular customer who buys all of the time. Not making an exception in this case might offend the regular customer who lost a receipt only one time. Selling policies must be interpreted and enforced in a reasonably firm manner. They should not be interpreted differently or randomly enforced. They should not be used to provide special treatment to certain customers. SOURCE: SE:932 SOURCE: SE LAP 121—Selling Policies

What do businesses often consider when developing service guarantees?

What customers think is important. A guarantee is a promise made to the consumer that the product's purchase price will be refunded if the product is not satisfactory. Many businesses offer guarantees on their goods and services. For example, a theater might offer a 100% money-back guarantee if customers are not satisfied with their experience. When developing these guarantees, businesses consider what customers think is important. Businesses do not consider what employees are willing to provide when developing service guarantees. Also, it is unwise to put a lot of restrictions on the guarantees because that reduces their effectiveness. Businesses often provide guarantees because they help to reduce complaints. SOURCE: PM:020 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2009). Marketing essentials (pp. 674-677). Woodland Hills, CA: Glencoe/McGraw-Hill.

What product would most likely be subject to a governmental grading process prior to distribution?

Canned fruit. Many food products must meet various standards before being distributed for end-user consumption. Sometimes the standards are established in different levels known as grades. Meat, eggs, fruits, and vegetables are subject to grading. Although grading is possible for lawn mowers, athletic footwear, and CD players, these items are not the most likely candidates for the grading process. SOURCE: PM:019 SOURCE: PM LAP 8—Grades and Standards

Promotion is thought of as being at the heart of marketing because it allows sellers to

Communicate the benefits of products to buyers. Sellers need to point out the benefits of products because people buy benefits, not features. Promotion contributes to the marketing effort, but it does not enable marketers to expand distribution, bring new products to market, or bypass middlemen. SOURCE: PR:001 SOURCE: PR LAP 2— Razzle Dazzle (Nature of Promotion)

If the XOB Company wants to emphasize the advantages of its product in comparison to similar products in the marketplace, it should position its product in relation

Competitors. Competitors are the rivals that seek to attract the same scarce customer dollars. Positioning refers to the ways in which a business creates a certain image of a product in consumers' minds. A company that compares its product's benefits and/or attributes to other companies' products is positioning the product against the competition. For example, suppose the XOB Company offers a product warranty for six months longer than the ROP Company, a business that sells a similar warranted product. When XOB compares its warranty with ROP's warranty through its advertising and selling efforts, it is positioning its product in relation to a competitor. The example is not positioning the product in relation to consumers, markets, or applications. Consumers buy the products. Markets are the various groups of customers that a business wants to attract. Application refers to the way something is used, such as a computer program. SOURCE: PM:042 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2009). Marketing essentials (pp. 645-646). Woodland Hills, CA: Glencoe/McGraw-Hill.

Which of the following is a type of software program that businesses often use to plan, modify, or customize products:

Computer-aided design. Computer-aided design (CAD) is a type of software program that allows users to draw two- or three-dimensional illustrations on a computer. Many types of businesses use CAD software to design their products and use them as a blueprint for constructing the products. The program offers businesses the flexibility to customize products. Photo management, freeform application, and remote access are not types of software programs that businesses use to plan, build, modify, or customize products.

An important purpose of the sales talk as a step in the selling process is to

Convince the customer of the product's benefits. The sales talk should translate product features into product benefits that will meet the customer's specific needs. Customers make purchases based upon the benefits they will receive from products. The sales talk should include more than a minimum amount of product information. The salesperson should be interested in satisfying the customer rather than in demonstrating his/her skills or closing the sale as quickly as possible. SOURCE: SE:048 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2009). Marketing essentials (pp. 321-323). Woodland Hills, CA: Glencoe/McGraw-Hill.

A company's sponsorship of a free cholesterol test for the community is an example of __________ promotion.

Corporate. Corporate promotion is another term for institutional promotion; the goal of corporate promotion is to create a certain image in the eyes of consumers. The company's sponsorship of a free cholesterol test gives the public the idea that the business is concerned with the welfare of the community. Primary and secondary promotion are forms of product promotion, which is concerned with selling a good or service. SOURCE: PR:002 SOURCE: PR LAP 4—Know Your Options (Types of Promotion)

Employees who waste materials have a negative effect on a business's __________ standards.

Cost. Cost standards measure the monetary success of the business. Employees who waste materials or take more time than necessary to perform tasks are adding to the cost of doing business. The increased costs will bring about a decrease in the business's profits. Work standards usually are evaluated as an aspect of employee performance reviews. Time standards monitor the amount of time needed to complete specific business activities. Sales standards are a component of quantity standards. SOURCE: PM:019 SOURCE: PM LAP 8—Grades and Standards

Which of the following is a way a business can set up a product line:

Customer group. Product lines that are set up by customer group contain products that appeal to a certain market, such as the consumer market or the industrial market. Trading up is a product-mix strategy in which a business adds a higher-priced product or product line to its product mix. Depth is a product-mix dimension referring to the number of products and the assortments of sizes, colors, and models offered in a product line. Width is a product-mix dimension referring to the number of product lines a company carries. SOURCE: PM:003 SOURCE: PM LAP 3—Mix & Match (Nature of the Product Mix)

A long-range benefit that a business may derive from promoting its company image is

Customer loyalty. The images that are created by promotions affect customers' attitudes toward a company and/or its products. Loyalties to products or businesses are often the direct result of promotional activities. New customers and immediate sales are short-range benefits of promotion. Promotional activities generally increase rather than reduce a company's expenses. SOURCE: PR:001 SOURCE: PR LAP 2—Razzle Dazzle (Nature of Promotion)

One way that salespeople develop and maintain positive relationships with customers is by providing excellent

Customer service. Salespeople strive to develop and maintain positive relationships with customers to keep them as customers. Effective salespeople know that customers expect more than just a product when they purchase something. The salespeople who are able to provide excellent service for their customers are usually able to maintain positive selling relationships with them. Excellent demonstrations might help to sell customers the first time, but will not help to develop positive relationships unless salespeople also provide good service. Salespeople are not responsible for providing sales management. Providing the opportunity to buy will not necessarily help to develop positive relationships with customers. SOURCE: SE:076 SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [pp. 402-403]. Boston: Irwin/McGraw-Hill.

In which stage of the product life cycle would a business decide to discount its products to appeal to a different market segment, if sales have been steadily decreasing:

Decline. The decline stage is the stage of the product life cycle in which sales and profits fall rapidly. When a product is in the decline stage, a business might discount the products, which often appeals to a different, more price-conscious market segment. The maturity stage is the product life cycle stage in which sales peak and then increase at a slower rate or start to decline. Withdrawal and alteration are not stages of the product life cycle. SOURCE: PM:024 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 644-645). New York: Glencoe/McGraw-Hill.

Which of the following types of media may include catalogs:

Direct mail. Direct mail is a promotional medium that comes to consumers' homes in the form of letters, catalogs, postcards, and folders. Broadcast media are promotional media such as radio and television, which use radio waves to reach consumers. Out-of-home media are promotional media to which we are exposed outside our homes such as outdoor and transit media. Transit media are out-of-home media found in various modes and locations of mass transportation. SOURCE: PR:007 SOURCE: PR LAP 3—Ad-quipping Your Business (Types of Promotional Media)

Why should businesses cultivate their touch points?

Each touch point is an opportunity to reinforce the brand with customers. Every day, businesses have hundreds, even thousands, of opportunities to touch customers with their brand values and to build brand equity. These touch points include virtually every way in which the business or product has contact with the customer—be it an invoice, a promotional message, or the way something is positioned on the shelf. Customers do not select brands based on which have the most touch points; in fact, they have no way of knowing this. They select brands that consistently meet and exceed their expectations. Businesses do not get tax breaks based on touch points. Well-developed touch points are a major factor in building a business's success; however, touch points alone are no guarantee. There are a whole host of other factors that influence a business's success, including its management, its location, its competition, and the economic environment in which it operates. SOURCE: PM:206 SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)

Which of the following is an external factor that affects selling price:

Economic conditions. The current economic conditions have a significant effect on a business's selling prices. If the economy is strong and interest rates are low, a business can charge higher prices because consumers have more money to spend. If the economy is struggling and consumers are out of work and interest rates are high, a business will need to offer lower prices to attract buyers. Marketing objectives, variable costs, and production expenses are internal factors that affect selling price. SOURCE: PI:002 SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [p. 313]. Upper Saddle River, NJ: Prentice Hall.

Which of the following is an area that might be covered by a selling-activity policy:

Entertaining the customer. Selling-activity policies focus on providing salespeople with guidelines for activities that involve interaction with customers or potential customers. An area that is often covered by these policies is entertaining the customer. Policies might explain the use of expense accounts or place limits on the cost of business lunches or dinners. Offering a discount and arranging for credit are areas covered by terms-of-sale policies. Scheduling product installation is explained in service policies. SOURCE: SE:932 SOURCE: SE LAP 121—Selling Policies

A salon recently added nail services to its product mix. This strategy is called

Expansion. When a business adds product items or lines to its product mix, it is using the product-mix strategy of expansion. Contraction is a product-mix strategy in which a business removes, or deletes, product items or product lines from its product mix. Alteration is a product-mix strategy in which a business makes changes to its products or product lines. Trading up is a product-mix strategy in which a business adds higher-priced product items or lines to its mix. SOURCE: PM:003 SOURCE: PM LAP 3—Mix & Match (Nature of the Product Mix)

Which of the following is one of the most accessible and reliable internal sources of product information:

Experienced salespeople. A business's veteran salespeople often are the most reliable and accessible sources of product information. They have many years of experience selling the product and are able to share their knowledge with new salespeople. Trade association members, government representatives, and consumer protection advocates may have product information, but they are external rather than internal sources. SOURCE: SE:062 SOURCE: Manning, G.L., & Reece, B.L. (1998). Selling today: Building quality partnerships (p. 98). Upper Saddle River, NJ: Prentice Hall.

Donna's new refrigerator came with a five-year written warranty on the cabinet liner and refrigerating system. This is an example of a(n) ______________ warranty.

Express, limited. An express warranty is a written or oral promise that a product will be repaired or replaced if it does not function properly. The warranty for the refrigerator is a written statement, so it is an example of an express warranty. The refrigerator's warranty is limited because it only covers some of the product's components, rather than all of it. A full warranty would cover every part of the product. An implied warranty is not written nor stated orally. Instead, it is simply an understanding that the product will perform as expected. SOURCE: PM:020 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 674-678). New York: Glencoe/McGraw-Hill.

Purchasers of the Super Veggie Cutter are dissatisfied because the product does not perform as promised in television ads. The seller can be held responsible because its advertising included a(n) __________ warranty.

Express. An express warranty is a warranty that is written or expressed verbally. An oral promise given in advertising or by the salesperson is an express warranty. A full warranty is a warranty which covers the entire product. A limited warranty is a warranty that does not contain the provisions of a full warranty. An implied warranty is an unwritten warranty understood by the consumer and the seller that the product will perform as expected. SOURCE: PM:020 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2009). Marketing essentials (pp. 674-677). Woodland Hills, CA: Glencoe/McGraw-Hill.

Which of the following is an example of a customer-service function:

Extended delivery hours. Customer service is any activity or benefit a seller provides to customers in connection with a sale. A retailer who provides delivery service after standard business hours is accommodating a segment of the population who cannot leave work to accept a delivery. Therefore, the activity (delivery) is a benefit that the seller provides to customers in relation to the sale. Sales prospecting refers to activities to qualify or identify potential customers and is an activity that benefits the sellers. Monthly sales reports are documents that are used to analyze various aspects of a company's sales during a specific period. Offering a buyer low interest rates might be a customer-service function; however, high interest rates are generally not considered a benefit. SOURCE: SE:076 SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [pp. 402-406]. Boston: Irwin/McGraw-Hill.

When other salespeople and industry trade groups assist a company in locating new clients, the company is using

External sources. These are contacts outside the business. Personal sources are contacts that individuals have through clients, family, or friends. Company leads are considered internal sources. They include information about, and contacts with, potential customers; the information is available within the company and may be obtained through its advertising, participation in trade shows, or telephone or mail solicitation. Using external sources is not unethical. SOURCE: SE:828 SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)

Descriptive terms on a product's label, such as water-repellent and chrome-plated, refer to the product's

Finish. The surfaces of many products have had finishes applied to enhance the beauty of the products, increase their value, protect their surfaces, aid in their care, or provide safety features. This information usually is included on a product's label. Salespeople should explain the reasons for finishes to customers in order to enhance their sales presentations. Size is not a factor in a product's finish. SOURCE: SE:062 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 664-667). New York: Glencoe/McGraw-Hill.

Checking on delivery or supervising the installation of a product are activities involved in the __________ phase of the selling process.

Follow-up. Reaffirming the buyer-seller relationship by being attentive to the customer after the sale is the follow-up phase of the selling process. Salespeople use a variety of follow-up techniques that often include checking on delivery or supervising the installation of a product. The purpose of effective follow-up is to maintain a relationship that may lead to repeat sales. Prospecting is the process of identifying and locating potential clients. Discovering needs and finding solutions are other phases of the selling process. SOURCE: SE:048 SOURCE: SE LAP 126—The Selling Process

A company wants consumers to try out its newest product. What type of promotion would be most effective for the company to use?

Free samples. By providing samples of the product free to consumers there is little, if any, risk involved for the consumer to try the product. Coupons would provide an incentive for consumers to try a product, but there is more risk involved on the consumers' end because they must spend money to try the product. Advertising and publicity can make consumers aware of new products, but these forms of promotion do not provide any guarantees that a consumer will actually try the product. SOURCE: PR:003 SOURCE: PR LAP 1—Promotional Mix

Mr. and Mrs. Inkwell purchased a bookshelf stereo system that was completely covered by a one-year warranty. After six months, one of the speakers no longer worked. When the Inkwells returned one speaker, what kind of warranty applied to the speaker?

Full. The complete stereo system was covered by the warranty, which is, therefore, a full warranty. A full warranty is a promise by the seller to the consumer to repair or replace a product that does not perform as expected. A limited warranty does not have all the provisions of a full warranty but may cover specific parts or certain repairs. A warranty is an ethical business practice intended to protect consumers. Warranties are regulated by government through the Magnuson-Moss Warranty Act, but they are not referred to as government warranties. SOURCE: PM:020 SOURCE: PP LAP 4—Warranties and Guarantees

If a manufacturer has chosen to advertise on national radio and in magazines, which of the following factors has influenced the promotional mix:

Geographical location of the market. A company would advertise nationally in order to deliver a promotional message to consumers who are widely scattered. Neither radio nor magazines would bring customers into face-to-face contact with the promotion. A product with technical aspects would require personal selling. If the company's promotional funds were limited, it could not afford national advertising. SOURCE: PR:003 SOURCE: PR LAP 1—Promotional Mix

Consumers tend to buy brands they feel good about because such purchases

Give them a sense of comfort. Consumers associate brands with a certain price level, performance, or sense of comfort. When consumers feel good about brands, they buy them. This does not guarantee that they will always be totally satisfied since even the best brands occasionally produce a "lemon." Buying on the basis of feeling is an emotional buying motive, not a rational motive. Consumers are not interested in reinforcing the company's image. SOURCE: PM:021 SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)

Which of the following is an example of specialty advertising:

Giving customers pens with the business's name. Specialty advertising involves giving customers reminder gifts—gift items that carry the name and possibly the telephone number or address of the business. Such gifts as pens, rulers, note pads, and coffee mugs are expected to last a while and remind customers of the business. Giving out samples is a form of sales promotion. Running an ad is an example of print advertising, and using a display is an example of visual merchandising. SOURCE: PR:007 SOURCE: PR LAP 3—Ad-quipping Your Business (Types of Advertising Media)

A company has promised that it will meet any competitor's advertised price. This kind of guarantee will benefit the business by

Giving the business a customer-oriented focus. This is one of the benefits to the business of offering meaningful warranties and guarantees. The process of determining which warranties or guarantees would be meaningful to customers focuses the business on its customers' needs. Reducing anxiety about purchases is a customer benefit of warranties and guarantees. Feedback from customers is not a benefit of a price guarantee. Providing increased profits for the business is not likely to happen because the company is reducing its profit margin by matching prices. SOURCE: PM:020 SOURCE: PP LAP 4—Warranties and Guarantees

Which of the following controls such new-product considerations as warranties and safety standards:

Government regulations. Many new products must meet government standards or be produced under government guidelines. Government regulations also control some of the information that must be provided consumers, such as the nutritional content of food. Governmental regulations cover factors such as warranties, noise-emission standards for a wide range of products, mobile-home construction and safety standards, auto-emission standards for new cars, and safety packaging for many products. Stages in product life cycles are the courses that products follow in the market, including introduction, growth, maturity, and decline. Market-research studies are often used to aid product/service management in order to gather information concerning consumer needs and preferences but do not control warranties and safety standards. Product characteristics may indicate the types of warranties and safety standards that are needed but do not control them. SOURCE: PM:001 SOURCE: PM LAP 17—Rapping Up Products (Nature of Product/Service Management)

Which of the following is an example of a sales promotion activity:

Holding a contest. Sales promotion is promotional activities other than advertising, personal selling, and publicity that stimulate customer purchases. Other examples of sales promotion include premiums, coupons, and free samples. Publicity is a nonpersonal form of promotion that is not paid for by the company or individual that benefits from it. Running a newspaper ad is advertising. Personal selling is a form of promotion that uses planned, personalized communication in order to influence purchase decisions and enhance future business opportunities. SOURCE: PR:003 SOURCE: PR LAP 1—Promotional Mix

What type of product information might a salesperson be able to obtain from a manufacturer's representative?

How the product is made. Manufacturers' representatives can provide salespeople with detailed information about the manufacturing process. They can explain why certain materials and procedures are used. Salespeople who understand how products are made are better able to pass on this information to customers and encourage them to buy. The salesperson's company would decide what type of credit terms to make available and what inventory method to use. A manufacturer's representative might not know how a product became popular. SOURCE: SE:062 SOURCE: Manning, G.L., & Reece, B.L. (1998). Selling today: Building quality partnerships (pp. 94-97). Upper Saddle River, NJ: Prentice Hall.

Which of the following is the correct sequence of steps in the development of new products:

Idea generation, product screening, concept testing, test marketing, commercialization. Ideas for new goods and services can come from employees, customers, or research. After ideas are generated, they are screened to determine which ones may warrant further investigation. The screened ideas are then carefully tested with consumers, and a finished product is introduced to a limited test market. Commercialization is the point at which the product goes into full-scale production, and the product's life cycle begins. SOURCE: PM:001 SOURCE: PM LAP 17--Rapping Up Products (Nature of Product/Service Management)

Why are the individuals in a business considered the "drivers" of brands?

Ideally, they demonstrate brand values to customers in everything they do. Behind all successful brands are people—people at all levels in business who are the walking, talking personification of the brand's values on a daily basis. Although there may be a host of other, more "tangible" elements representing the brand—a name, a logo, advertising, to name a few—the people who embody the values are the real foundation, or drivers, of a brand. Employees generally do not decide what brand values and promises will be. They may participate in this process in some way; however, values must originate with the business's leadership, who must also make a firm and long-term commitment to them in order for these to be effective. Employees in any business come from a variety of backgrounds, including large and small businesses; they do not generally come from one size company. There may be instances in which employees can effectively participate in the development of a business's name or logo. However, because developing the elements that make up the brand's identity is critical to their success, most businesses should hire professionals to develop a name and logo. SOURCE: PM:206 SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)

Some people who drink Pepsi or Coke will not drink any other kind of soda. This stage of brand loyalty is known as brand

Insistence. Customers at this brand-loyalty stage insist upon buying a specific brand and will not accept a substitute. Brand recognition occurs when customers become aware of a brand. Brand preference occurs when a customer prefers to purchase a certain brand, but will accept substitutes. Brand positioning is the creation of a certain image or impression of a brand as compared with other brands. SOURCE: PM:021 SOURCE: PM LAP 6—It's A Brand, Brand, Brand World! (Nature of Branding)

During which stage of a product's life cycle is a company likely to use promotional campaigns to emphasize product characteristics in order to create demand:

Introductory. When a product first appears in the marketplace, it is in the introductory stage of its life cycle. During the introductory stage, the company uses promotion to stimulate consumer awareness and create an interest in trying the new product. The company would use promotional campaigns to provide information about the product—what it is, how to use it, its benefits, and its attributes. When a product is in the growth stage of its life cycle, sales tend to rise rapidly because consumer awareness has been established. When consumers are aware of the product, more people are buying it, and repeat sales by early users are occurring. A product's sales peak and increase at a slower rate during the maturity stage of the product's life cycle. During the decline stage, sales and profits fall rapidly. SOURCE: PM:024 SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 334-335]. Mason, OH: Thomson/South-Western.

An advantage of profit-oriented pricing is that the business

Is more likely to achieve its profit goals. The business is more likely to earn the amount of profit it wants because it has set specific profit goals. Since market conditions are always changing, it is difficult for businesses to predict what prices will be profitable over time. The fact that the business is focused on making money can be a disadvantage if not enough attention is paid to other areas, such as the activities of competitors. SOURCE: PI:002 SOURCE: PI LAP 3—Factors Affecting Selling Price

Consumers may be hesitant to believe information in ads for a good or service because advertising

Is necessarily biased. Consumers know that the advertiser must present the product in the best possible light, while product weaknesses are not mentioned. Advertising does not necessarily raise the price of a product. Most advertising is not meant to be misleading since misleading ads are illegal. Directing advertising toward a mass audience would not cause customers to doubt the information presented. SOURCE: PR:001 SOURCE: Arens, W.F. (2004). Contemporary advertising (9th ed.) [pp. 62-64]. Boston: Irwin/McGraw Hill.

A major reason for businesses to try to build a clientele is that a loyal clientele

Leads to repeat business. A company's clientele consists of a body of customers upon which the organization can rely for significant repeat business. These are the customers who return to shop regularly. Other benefits of building a clientele include reduced selling costs, increased sales volume, and personal satisfaction. A loyal clientele does not change the business's image, provide it with a source of workers, or attract well-to-do customers. SOURCE: SE:828 SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)

Businesses often prefer to buy goods that have been inspected and graded because they

Meet specific standards. Goods that have been inspected and graded meet specific industry standards for quality. Businesses that buy graded goods are guaranteed that they are of a certain quality. Graded goods are not necessarily more expensive, able to be stored longer in inventory, or more costly to distribute. SOURCE: PM:019 SOURCE: PM LAP 8—Grades and Standards

In order to increase its chances of success, a small, specialized business should stress its

Merchandise depth over breadth. A small, specialized business may carry only a few lines of goods but offer a variety of colors, sizes, styles, and prices in those lines. Offering a variety of lines and prices would require a large inventory, which would be financially difficult for a small business. Low-turnover or low-profit items would not generate enough sales or profits to give the business the best opportunity for success. SOURCE: PM:003 SOURCE: PM LAP 3--Mix & Match (Nature of the Product Mix)

A local car company just expanded and needs to develop a primary product promotion for its cars. Which line of cars would benefit the most from this type of promotion?

New line of cars. Primary product promotion aims to stimulate demand, or consumer desire, for an entire class of goods or services and is especially useful and necessary for introducing a new concept or totally new product, making it ideal for the new line of cars. All the other lines of cars would benefit from traditional advertising methods. SOURCE: PR:002 SOURCE: PR LAP 4—Know Your Options (Types of Promotions)

Costs and available resources are especially important factors for product/service managers to examine during which phase of product/service management?

New-product development. Costs and available resources are especially important factors for product/service managers to examine during the new-product development phase of product/service management. A company may have a great idea for a new product, but it may not be cost-effective if it is too expensive to develop and produce, or if the needed materials are too scarce to obtain affordably. It is too late by the time the product is already on the market (in the monitoring or elimination phases). Idea generation is just one stage in the new-product development process. SOURCE: PM:001 SOURCE: PM LAP 17—Rapping Up Products (Nature of Product/Service Management)

A print medium that is low in cost, has a short lead time, and usually covers an entire metropolitan area is

Newspapers. Newspaper advertising costs are reasonable, and lead time can often be as short as one day. Most newspapers cover a metropolitan area or have special editions for adjacent areas. Magazine advertising is more costly, may have a widely scattered audience, and usually requires a longer lead time. Radio and television are broadcast media. SOURCE: PR:007 SOURCE: PR LAP 3—Ad-quipping Your Business (Types of Promotional Media)

Which of the following is the most efficient, cost-effective way for a business to promote goods and services to customers who want to receive product information:

Opt-in e-mail. When a business uses opt-in e-mail, it sends electronic promotional messages with a recipient's permission. E-mail is a cost-effective way to send promotional messages because the business is sending information only to individuals who want the information. Another advantage to using opt-in e-mail is that the business does not spend money on postage, printing, telephone calls, etc. Direct mail is sent through the postal service to consumers' homes and businesses. This is one of the most expensive forms of promotion. Spam is "junk" e-mail, which is an unsolicited message sent to a recipient. Recipients often discard spam without reading it. Indirect mail is direct mail that the recipient passes to another person.

Consumers often look for familiar brands to buy because of the brands'

Predictable quality. Consumers expect a brand to provide predictable, consistent quality. They automatically buy satisfactory, reliable brands rather than trying new ones because it makes shopping easier. A descriptive name is a brand name that has fallen into everyday use so that the brand is used to describe every product in the brand's product category, e.g., Kleenex. Market share, the business's portion of the total market, is important to the marketer, not the consumer. Product category is the general grouping of goods or services in which a product is found, and it would not affect the choice of brand. SOURCE: PM:021 SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)

What elements of the marketing mix are being used when a business positions a product by using high price as a sign of quality?

Price and product. The marketing elements of price and product are being used to position the product by emphasizing the quality that is available at a high price. The business is combining product and price. The business is not using promotion or place to position the product. SOURCE: PM:042 SOURCE: Burrow, J.L. (2002). Marketing (pp. 171-173). Mason, OH: South-Western.

A salesperson who explains to a customer the features and benefits of several types of 35mm cameras in stock is demonstrating good

Product knowledge. Salespeople who know their products can translate features into benefits for customers and help them select products that will best meet their needs. Ethical standards are unwritten rules of good conduct. All salespeople should have high ethical standards so that customers will trust them. Showing a new use for a product would demonstrate creativity, the ability to generate unique ideas, approaches, and solutions. Probing is an investigation of what customers think, feel, or know. SOURCE: SE:017 SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)

Federal and state governments regulate businesses and their sales policies in order to

Protect consumers. Federal and state governments, along with the regulatory agencies they have created, pass legislation that affects businesses and their sales policies. Regulatory factors include consumer protection regulations intended to protect individuals when making purchases. The federal and state regulations are intended to encourage competition among businesses, eliminate the possibility of price-fixing, and prevent discrimination in the prices or services that businesses offer customers. SOURCE: SE:932 SOURCE: SE LAP 121—Selling Policies

In order to build a clientele for a business, it is important to

Provide friendly, courteous service. A company's sales personnel must have the appropriate personality characteristics and attitudes in order to foster customer goodwill and encourage repeat business. These characteristics include being patient, courteous, friendly, sincere, and trustworthy. Some businesses change their product mix from time to time, but it is not necessary to make frequent changes or to provide a wide variety of services. This approach might have the opposite effect from building a clientele as customers would not know what to expect or would have too much from which to choose, and is dependent on the type of business. It is not always possible to know customers personally. SOURCE: SE:828 SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)

An advantage of promotional activities is that they contribute to economic growth through increased

Purchases and jobs. Promotion is thought to contribute to economic growth by encouraging consumers to purchase and use new and improved products. Society also benefits from promotional activities because of the money these activities add to our economy and the jobs that they create. Educating the consumer about products and using colorful ads are promotional activities that encourage the consumer to make a purchase. The number of new products that are introduced is not increased by promotion. SOURCE: PR:002 SOURCE: PR LAP 4—Know Your Options (Types of Promotion)

When a business emphasizes a product's degree of excellence, it is positioning the product by its

Quality. Quality is a product's degree of excellence. A luxury car, a five-star hotel, and designer clothing are often associated with a high degree of excellence. Product durability and price are also factors that people associate with quality. Competition, market, and skill do not always indicate a product's degree of excellence. SOURCE: PM:042 SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [pp. 235-236]. Boston: McGraw-Hill/Irwin.

What effect does building a clientele have on selling costs?

Reduces them because making a repeat sale costs less than making an initial sale. Because of reduced selling costs, it is to the organization's advantage to develop a loyal clientele. Repeat sales to a client are more profitable for the business. With repeat sales, salespeople are usually able to increase their commissions and bonuses. SOURCE: SE:828 SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)

A benefit to the business of branding is that a successful brand

Reinforces a positive company image. Successful brands help to create and reinforce a positive company image. This can strengthen the company's position in the marketplace. Successful brands contribute to the company's finances but cannot make the business a financial success. Brand positioning is the way consumers see the brand as compared to competitive brands, and it is very important to brand success. Successful brands are usually priced higher than generic, or unbranded, items. SOURCE: PM:021 SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)

Quality customer service builds profits through existing customers by generating

Repeat business. Quality customer service builds profits through existing customers by generating repeat business. Loyalty is the name of the game. Successful salespeople strive to provide high quality customer service, so they can build long-term partnerships with their customers. Maintaining a relationship with a current customer is less expensive and time-consuming than generating a new customer relationship. Compliments are nice, but they don't necessarily build profits. Discounts and product demonstrations are great things for salespeople to offer, but they don't build profits either. SOURCE: SE:076 SOURCE: SE LAP 130—Go Beyond the Sale (Customer Service in Selling)

Maggie is in the market for a new stove, and Jan recommends Appliance World because she has purchased three different appliances there and the company backs up its promises. This is an example of which benefit of customer service?

Reputation. This example shows that the business is building a loyal following and demonstrates a solid relationship by showing that it stands behind its products and cares about the customer. Customers often recommend businesses that provide good service, which also tends to build a positive reputation. Providing good customer service is essential for an organization to make a profit and stay in business. Spirit refers to the "can-do" attitude of employees in an organization. A critical aspect of customer service is putting customer convenience first. SOURCE: SE:076 SOURCE: Ingram, T.N., LaForge, R.W., Avila, R.A., Schwepker, C.H., & Williams, M.R. (2001). Professional selling: A trust-based approach (pp. 258-259). Mason, OH: South-Western.

Management may prevent any negative effects of selling policies by ensuring that the policies do not

Restrict the salesperson's normal authority. Salespeople should be able to sell their products without being restricted by petty rules. Selling policies should provide a framework for salespeople by defining the sales job for that particular business and ensuring uniform action by salespeople. Selling policies do not need to be in writing, but they should be flexible and address the internal and external factors that can affect them. SOURCE: SE:932 SOURCE: SE LAP 121—Selling Policies

A characteristic of the growth stage of a product's life cycle is

Rising sales. A product in the growth stage of the product life cycle has been accepted by consumers, and sales are increasing. Product production is more efficient at this stage, resulting in lower costs of production. Distribution expands as the market expands. Obsolescence does not begin until the product is in late maturity or decline. SOURCE: PM:024 SOURCE: Boone, L.E., & Kurtz, D.L. (2002). Contemporary marketing (pp. 345-347). Mason, OH: South-Western.

The Food and Drug Administration sets standards for all drugs that are sold in the United States, either by prescription or over-the-counter, for the purpose of

Safeguarding consumers. The Food and Drug Administration (FDA) sets standards for the ingredients and the production methods of drugs that are to be sold in this country in order to make sure they are safe and effective for public use. The Food and Drug Administration is not involved in setting prices, promoting products, or controlling the market. SOURCE: PM:019 SOURCE: Mietus, N.J., Adamson, J.E., Conry, E.J., (1993) Law for Business (14th ed.) [pp. 163-165]. South-Western Publishing Co.

Cookie's Palace, a new boutique for children, wanted to attract more customers. The manager planned a puppet show, a new window display, and bought balloons to give to children. This is an example of

Sales promotion. Sales promotion is activities other than advertising, personal selling, and publicity which stimulate consumer purchases. Personal selling is the form of promotion that uses planned, personalized communication to influence purchase decisions and enhance future business opportunities. Publicity is a nonpersonal form of promotion that is not paid for by the company or individual that receives it. Advertising is any paid form of nonpersonal presentation of ideas, images, goods, or services. SOURCE: PR:003 SOURCE: PR LAP 1—Promotional Mix

A mid-priced automobile company provides customers with free transportation while their cars are being repaired. What attribute is the company using to gain the competitive advantage?

Service. Luxury car dealers, such as Lexus, often provide their customers with free transportation while their cars are being serviced. However, most mid-priced car dealerships do not usually provide free transportation. A mid-priced car dealer that offers a service that its competitors do not, is setting itself apart in terms of the level of service that it provides. Free transportation does not necessarily emphasize safety, loyalty, or performance. SOURCE: PM:042 SOURCE: Soloman, M.R., Marshall, G.W., & Stuart, E.W. (2008). Marketing: Real people, real choices (5th ed.) [pp. 322-323]. Upper Saddle River, NJ: Pearson Prentice Hall.

When a company's promotional materials are used as sources of selling information, a salesperson may need to

Sort out useful selling facts. A salesperson must be able to discriminate between product facts and company "hype" in company promotional materials in order to obtain useful, accurate, selling information. Calling the manufacturer's representative, asking other salespeople for help, and using your own personal experience are ways to obtain information that can be used in selling when no promotional materials are available. SOURCE: SE:062 SOURCE: Anderson, R.E., & Dubinsky, A.J. (2004). Personal selling: Achieving customer satisfaction and loyalty (p. 311). Boston: Houghton Mifflin.

Newspapers and magazines are sometimes referred to as __________ media.

Space. Newspapers and magazines are called space media because they provide permanent storage space for promotional messages. The advertisements that they contain can be examined as long, or as frequently, as the reader desires. Radio and television are examples of broadcast media, which are considered time media because their advertisements last for just a short period of time. Outdoor and transit media are examples of out-of-home media. SOURCE: PR:007 SOURCE: PR LAP 3—Ad-quipping Your Business (Types of Promotional Media)

Selling that meets customers'/clients' needs contributes to the

Success of the business. Selling efforts that meet clients' needs help to ensure customer satisfaction and repeat business that contribute to business success. The target market is composed of individuals who are most likely to buy your products. Relative price is the ratio between two prices. The national debt is the total indebtedness of the entire country. Selling does not contribute to any of these areas. SOURCE: SE:017 SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)

The way in which the promotional message is communicated should be

Suited to the product. The method of communicating the promotional message must be appropriate to the product being promoted. The right method for one product might be wrong for another. The message should also be appropriate to the market, but it would not be selected by the market. If a method of communication is effective, it would not need to be different each time. SOURCE: PR:001 SOURCE: PR LAP 2—Razzle Dazzle (Nature of Promotion)

The strawberry crop was severely damaged by a late frost this year. The selling price of a quart of strawberries has been set 50¢ higher this year than last. Which of the following factors affected the price of strawberries:

Supply and demand. When the supply of a product is less than the demand, marketers often increase the selling price. Production costs, competition, and product life cycle are not factors that caused the selling price to increase in this situation. SOURCE: PI:002 SOURCE: PI LAP 3—Factors Affecting Selling Price

How do companies make brand promises to their customers?

They meet or exceed customer expectations on a consistent basis. A brand promise is an agreement, of sorts, with customers that a business or product will behave in certain ways that are in accordance with their brand values and characteristics. Consistently delivering on a brand promise reinforces the brand with customers, building brand equity and brand loyalty. Most businesses do not provide customers with a sworn statement. Besides, "actions speak louder than words." Customers are more interested in the quality of their experiences with a business than words. Salespeople generally do not verbally make brand promises to customers; rather, they deliver on the business's brand promise through the nature of their interaction with customers and their appearance. Fulfilling special requests might be just one way in which a particular business delivers on its brand promise, if its values include "individualized service" or "going the extra mile" for the customer. However, making and fulfilling a brand promise to customers means the business must be customer centered in all of its operations and interactions with customers. SOURCE: PM:206 SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)

The MNO Company sets a performance standard that says it will deliver its customers' orders within 48 hours. This is an example of a __________ standard.

Time. Standards are statements that a business uses as a basis for comparing or judging goods or services. Time standards are specifications that monitor the amount of time it takes to complete specific business activities. In the example, the MNO Company states that it wants orders delivered within 48 hours, which is a specific time standard of allocation of time, for completing a business activity. Quality standards are statements that businesses use to measure the degree of excellence of a product. Cost standards are specifications businesses use to measure how much a product costs. Quantity standards are specifications businesses use to measure the amount of work produced. SOURCE: PM:019 SOURCE: PM LAP 8—Grades and Standards

Why do businesses often try to develop new uses for established products that are beginning to lose market share?

To extend their life cycle. Once established products start to lose market share, businesses often try to develop new uses in order to extend their life cycle. The goal is to persuade customers to continue to buy the products because they have uses other than the original use. Finding new uses is often less costly than allowing a product to decline and then developing a new product to replace it. Selling expense might increase because it will be necessary to explain the new uses to customers. Businesses often develop new uses for established products to increase public awareness rather than monitor public awareness. Businesses do not develop new uses to reinforce a product's features. The business would focus on the benefits of the new way to use the product. SOURCE: PM:024 SOURCE: Boone, L.E., & Kurtz, D.L. (2002). Contemporary marketing (p. 349). Mason, OH: South-Western.

What is the purpose of brand cues?

To remind customers of a brand's values and qualities. Brand cues are essentially short cuts—elements that provide customers with a quick reminder of brands and their values. Cues can be very effective in influencing customers' buying behavior. Brand cues do not in and of themselves make one brand better than another, nor do they connect many brands to one another. In fact, just the opposite is true: They help distinguish one brand from another. Customers cannot avoid inferior products with brand cues alone; their overall experiences help them evaluate and select brands. SOURCE: PM:206 SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)

A business has extended its inexpensive product line to include larger, more expensive models. This is an example of the product-mix strategy known as

Trading-up. A product-mix strategy in which a business adds a higher priced product or product line to its product mix is trading-up. Trading-down is a product-mix strategy in which a business adds a lower priced product or product line to its product mix. Positioning is a product-mix strategy in which a business creates a certain image or impression of a product in the minds of consumers. Alteration is a product-mix strategy in which a business makes changes to its product or product lines. SOURCE: PM:003 SOURCE: PM LAP 3: Mix & Match (Nature of the Product Mix)

Products that are sold to the individual(s) who will make personal use of them are being sold for

Ultimate consumption. These are products sold for personal use, rather than for use by a business. Products sold for resale are usually sold to intermediaries to sell to their customers. Products sold for promotional purposes are display or advertising items used by businesses. Products sold for industrial purposes are purchased by business and industry to use in making other products or in the operation of the business. SOURCE: SE:017 SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)

Caroline is unable to travel to a client's office but needs to demonstrate product features and be able to answer questions as they arise. What technology tool would be helpful to her in making a sale?

Web presentation combined with a teleconference. Utilizing this combination, Caroline's client could view the demonstration online as she walks the customer through the presentation. Teleconferencing allows her to answer questions as they arise during the presentation. A PowerPoint presentation on CD could be sent to the client to view, but this would not provide a live demonstration. Also, questions would have to be addressed via another method. The high-tech sales-support office is maintained for the use of salespeople who may be dispersed geographically or travel a great deal. A cell phone with wireless faxing would provide a static picture while allowing questions to be answered. This could also be time consuming for the salesperson and the client.