Study Guide 3 Marketing management
Which of the following is NOT retailing? A. A vacuum cleaner manufacturer hires its own sales force to sell door to door. B. A private ambulance service takes an accident victim to a hospital and charges him $100. C. A group of students sell donuts to people passing by their dorm. D. A book wholesaler has a mail- order catalog which offers discounts to final consumers who buy by mail. E.All of these are examples of retailing.
All of these are examples of retailing.
A retailer's "Price" may include: A. delivery charges. B. discount policies. C. frequency of sales. D. store credit card. E. All of these are included in a retailer's "Price."
All of these are included in a retailer's "Price."
A retailer's "Promotion" may include: A. publicity. B. demonstrations and displays. C. online videos and reviews. D. number of salespeople. E. All of these are included in a retailer's "Promotion."
All of these are included in a retailer's "Promotion."
"Promotion" is concerned with: A. how suitable messages are communicated to target customers. B. communicating information between seller and buyer or others in the channel to influence attitudes and behavior. C. Informing customers that the right Product is available at the right Place at the right Price. D. blending personal selling, mass selling, and sales promotion. E. All of these are parts of "Promotion."
All of these are parts of "Promotion."
"Place" decisions: A. may focus on the location of retail stores and wholesale facilities. B. may focus on the selection and use of intermediaries and collaborators. C. can be aided by knowing about the product classes. D. are harder to change than Product, Promotion, or Price decisions. E.All of these choices are correct.
All of these choices are correct.
Which of the following is NOT a promotion method? A. mass selling B. personal selling C. sales promotion D. All of these choices are promotion methods.
All of these choices are promotion methods.
Which of the following is NOT relevant regarding why some consumers prefer one retailer over another? A. Location. B. Discount policies. C. Store hours. D. Number of salespeople. E. All of these choices can be relevant
All of these choices can be relevant
Which of the following statements about Place decisions is True? A. Product classes are not related to Place objectives. B. The product life cycle is not related to Place objectives. C. Place decisions are short- term decisions that are easy to change. D. Different market segments may require separate Place arrangements. E. All of these statements about Place decisions are True
Different Market segments may require separate Place arrangements
In which of the following distribution channels is the firm most likely to maintain control of the marketing mix? A. Direct B. Indirect C. Cooperative D. Layered E. Horizontal
Direct
A consumer's choice of a retail store appears to be based almost entirely on emotional needs— economic needs have almost no influence. True False
False
A discount house is trying to meet all the customer's routine needs at a low price. True False
False
A marketing manager should never increase the total cost of distribution—even if this would result in a better customer service level for his target market. True False
False
A salesperson who aggressively seeks out possible buyers with a well-organized sales presentation designed to sell a product is a missionary sales rep. True False
False
Although telephone selling by an inside sales group can save time and money in business markets, it has been declining in recent years. True False
False
Comparative advertising tries to keep the product's name before the public. True False
False
Competitive advertising is typically used in the market introduction stage of the product life cycle—to develop primary demand. True False
False
Cooperative advertising is not very economical—because media rate structures usually require local firms to pay more for local advertising than the same ad would cost a national advertiser. True False
False
Customer service reps are usually specialists who are involved in helping potential customers before a purchase is made. True False
False
Direct-to-customer channels are rarely used in business markets because they are much more expensive and less efficient than using intermediaries. True False
False
Discount stores offer "soft goods" at substantial price cuts to customers. True False
False
Discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products while individual consumers prefer to buy a small assortment of products. True False
False
During the last decade, the rate of advertising spending has increased in the U.S., but it has decreased in the rest of the world. True False
False
Good salespeople try to sell the customer, regardless of other factors. True False
False
Homogeneous shopping products need order getters more than heterogeneous shopping products. True False
False
If the objective of an ad is to inform, telling a detailed story and using precise pictures, then print advertising is right. True False
False
International dimensions do not affect sales promotion decisions, because consumers throughout the world have the same responses to sales promotion methods. True False
False
Logistics costs vary little between developed economies like the U.S. and developing economies like Africa. True False
False
Logistics focuses on the handling of goods along a channel of distribution but not within individual firms. True False
False
Many business products are sold direct, but hardly any services are. True False
False
Mass-merchandisers emphasize "hard goods" while discount houses emphasize "soft goods." True False
False
Missionary salespeople usually work for wholesalers and provide special promotion help to producers whose products are widely distributed. True False
False
Physical distribution is the part of marketing that is visible to most customers. True False
False
Place decisions are easier to change in the short-run than Product, Price, and Promotion decisions. True False
False
Providing effective customer service is relatively simple— because it is usually clearer how to repair a negative experience than it is to provide an initial purchase experience that is satisfying to the customer. True False
False
The "total cost approach" to physical distribution focuses exclusively on the total cost of transporting a product. True False
False
The Internet gives large firms access to repeat customers, but it does little for small firms trying to develop an initial base of customers. True False
False
The major advantage of vending machine retailing is that the costs are low relative to the volume they sell. True False
False
Today, discount houses are found in low-rent facilities, have poor images with customers, and offer few services and no guarantees. True False
False
Toll-free telephone lines are not very practical for getting direct feedback from final consumers. True False
False
When deciding how many salespeople are needed, the first step is to determine how many sales reps are used by competing companies. True False
False
elephone selling (telemarketing) to consumers is still extremely popular despite the National Do Not Call Registry. True False
False
Personal selling: A. Is indirect written communication between buy ers and sellers. B. Is indirect spoken communication between buyers and sellers. C. Is not usually combined with other aspects of promotion in the total marketing mix. D. Gets immediate feedback from consumers. E. Is one of the least expensive components of the communications program.
Gets immediate feedback from consumers.
Point-of-purchase materials, coupons, trade shows, calendars, merchandising aids, and sales training materials are all examples of: A. publicity. B. advertising. C. mass selling. D. sales promotion. E. personal selling.
Sales Promotion
Which of the following is NOT an example of sales promotion? A. Establish frequent buyer programs B. Run contests for its sales people C. Secure favorable media coverage D. Provide samples to its customers E. Provide coupons for products
Secure favorable media coverage
Direct _____ involves personal sales contact between a representative of the company and an individual consumer. A. marketing B. selling C. distribution D. servicing E. pricing
Selling
The "Fashion Place" carries a carefully selected and distinctive assortment of traditional women's business clothing and accessories for upper-class executives in Boston. It emphasizes customer service with its well-trained salesclerks. The store is probably a: A. small department store. B. specialty shop. C. convenience store. D. single-line store. E.limited-line store.
Specialty Shop
Which of the following would be a type of advertising used in the awareness stage of the adoption process? A. Flash ads B. Testimonials C. Teaser campaigns D. Point-of-purchase ads E. Persuasive copy
Teaser campaigns
"Retailing" refers to: A. the sale of products to final consumers. B. the sale of both business and consumer products. C. the sale of consumer products to wholesalers, retailers, or final consumers. D.the performance of regrouping activities. E.None of these is a good answer.
The sale of products to final consumers
A channel of distribution is a series of firms or individuals participating in the flow of products from the producer to the consumer. True False
True
Advertising allowances are price reductions given to firms further along in the channel to encourage them to advertise or otherwise promote a producer's products locally. True False
True
Advertising objectives should be very specific, even more specific than personal selling objectives. True False
True
An insurance company might use institutional ads to highlight its concern for safe driving. True False
True
Better information flows make it easier to coordinate activities, improve efficiency, and add value for the customer. True False
True
Customer service reps are customer advocates, but they need company support. True False
True
Department stores are larger stores that are organized into many separate departments and offer many product lines. True False
True
For many physical goods, firms spend half or more of their total marketing dollars on physical distribution activities. True False
True
Good salespeople try to help customers buy by presenting both the advantages and disadvantages of a product—and showing how it will satisfy the customer's needs. True False
True
It's a common belief that half of the money spent on advertising and sales promotion is wasted. True False
True
Large sales volume and efficient operation are usually very important for supermarkets, since net profits usually run 1 percent of sales or less. True False
True
Marketing managers should set overall advertising objectives, but then it's usually the advertising manager's job to set specific objectives for each ad. True False
True
Most physical distribution decisions involve trade-offs between costs, the customer service level, and sales. True False
True
Personal Selling is often a company's largest single operations expense
True
Place decisions make goods and services available in the right quantities and locations, when customers want them. True False
True
Place is concerned with the selection and use of marketing specialists—intermediaries and collaborators—and making goods and services available in the right quantities and locations when customers want them. True False
True
Poor customer service is likely to reduce a firm's customer equity. True False
True
Product classes help marketing managers understand how much market exposure will be needed in each geographic area. True False
True
Promotion is communicating information between the seller and the potential buyer or others in the channel to influence attitudes and behavior. True False
True
Salespeople often are responsible for representing the customer inside their own company as well as representing their company to the customer. True False
True
Specialty shops are limited-line stores which aim at a carefully defined target market with a unique product assortment, good service, and knowledgeable salespeople. True False
True
The Internet is making it possible for firms to reach customers that were impossible to reach before. True False
True
The direct type of competitive advertising tries to obtain immediate buying action. True False
True
The effectiveness of an advertising medium depends on how well it fits with the rest of a particular marketing strategy. True False
True
The mass-merchandising concept means that retailers can succeed by selling a large volume of merchandise to a target market at low prices. True False
True
The three basic sales tasks are order-getting, order-taking, and supporting. True False
True
To guarantee good media selection, the advertiser must specify its target market and then choose media that will reach these target customers. True False
True
Whenever Product includes a physical good, Place requires logistics decisions. True False
True
While face-to-face with prospects, a salesperson can adjust what he or she says or does to take into consideration culture and other behavioral influences. True False
True
With the Internet, even very small specialized firms can draw customers from all over the world. True False
True
Which of the following chains is the largest food retailer in the U.S.? A. Kroger's B. Safeway C. Walmart D. Target E. Kmart
Walmart
Which of the following is NOT an advertising decision? A. Who the target audience is. B. What kind of advertising to use. C. Who will do the work. D. Which media to use. E. What types of coupons will be used.
What types of coupons will be used.
Advertising objectives should A. be specific, but not as specific as the objectives for the personal selling effort. B. be set by the specialists— the creative people at the advertising agency. C. be quite general so that ads will appeal to the largest possible audience. D. determine the kinds of advertising needed. E. be more specific for institutional advertising than for direct type competitive advertising.
determine the kinds of advertising needed.
Business products tend to be sold direct to customers because compared to consumer products: A. business markets have more transactions. B. orders are smaller in size. C. e-commerce systems can efficiently handle orders once relationships are established. D. customers are usually widely dispersed across geographic areas. E. business products always use direct distribution.
e-commerce systems can efficiently handle orders once relationships are established.
A good marketing manager for a retailer knows that: A. economic needs are more important than emotional needs in choosing a store. B. shopping atmosphere has little comparative importance. C. consumers only go to stores that offer the lowest possible prices. D. individual consumers have different economic and emotional needs. E. All of these alternatives are true.
individual consumers have different economic and emotional needs.
Mass selling: A. makes widespread distribution possible—by reaching many potential customers at the same time. B. alternatives do not vary much in cost when target market preferences are considered. C. alternatives do not vary much from one country to another. D. alternatives do not vary much in results when target market preferences are considered. E. None of these alternatives is true.
makes widespread distribution possible—by reaching many potential customers at the same time.
"Promotion" is MAINLY concerned with: A. obtaining a favorable corporate image. B. telling the target market that the right Product is available in the right Place at the right Price. C. obtaining maximum publicity —at the lowest cost. D. informing the public about the firm's offerings to maximize sales. E. getting people to buy a firm's product—even when it isn't needed.
telling the target market that the right Product is available in the right Place at the right Price.
Regarding promotion methods, which of the following statements is TRUE? A. Personal selling can provide immediate feedback. B. Publicity is "free," but usually is ineffective for really new products. C. Advertising is usually more tailored to the individual needs and attitudes of target customers than personal selling. D. Sales promotion activities produce results very slowly compared to advertising. E. All of these statements about promotion methods are TRUE.
Personal selling can provide immediate feedback.
Which of the following statements does not accurately characterize place decisions? A. Place decisions involve stocking the right quantities of products. B. Place decisions involve identifying appropriate locations for products. C. Place decisions must analyze when customers will want or need products. D. Place decisions typically involve channel partners. E. Place decisions are easier to change compared to price, promotion, and product decisions
Place decisions are easier to change compared to price, promotion, and product decisions
Which of the following statements about place is true? A. Most consumer products and most business products are sold to intermediaries who then sell them to final customers. B. Place decisions are usually harder to change than other marketing mix decisions. C. There is always one Place arrangement that is "best" for a product. D. A series of individuals who aid in the flow of goods and services from producer to final customer is called a distribution network. E. None of these statements about Place is true.
Place decisions are usually harder to change that marketing mix decisions
Which of the following statements about Place is FALSE? A. Place variations are required when target markets have different needs. B. Product classes suggest Place objectives. C. Place decisions have relatively little impact on competition in a product-market. D. Place decisions have longer- run implications than Price decisions. E. Place decisions need to consider when customers want products.
Place decisions have relatively little impact on competition is a product-market
A company's policy regarding in- store returns falls under which of the following elements of its marketing mix? A. Price B. Place C. Product D. Promotion E. Positioning
Price
When a supermarket manager decides the amount to charge customers for home delivery of grocery items, this is a decision about: A. Product. B. Place. C. Promotion. D. Price.
Price
When a department store manager decides to make a personal shopper available to its career-oriented female shoppers, this is a decision about: A. Product. B. Place. C. Promotion. D. Price.
Product
Communicating with customers is known as the ________________ portion of the marketing mix. A. Place B. Positioning C. Promotion D. Pricing E. Production
Promotion
When a department store manager decides to offer its female shoppers a free trial of Clinique's new skin cream, this is a decision about: A. Product. B. Place. C. Promotion. D. Price
Promotion
_____ is communicating information between the seller and potential buyer or others in the channel to influence attitudes and behavior. A. Price B. Product C. Promotion D. Place E. Process
Promotion
A motion picture studio that secures interviews in several national papers regarding plans for its upcoming film releases is using which of the following promotion methods? A. Sales promotion B. Personal selling C. Advertising D. Mass selling E. Publicity
Publicity
To encourage potential buyers to take its new Model 3 sedan for a test drive, BMW posts a video on its website of the Model 3 speeding down a winding mountain road. This is an example of: A. single-customer marketing. B.advertising. C.publicity. D.personal selling. E.sales promotion.
Publicity
Which of the following is NOT a Place decision? A. Types of intermediaries needed. B. Degree of market exposure desired. C. Recruiting, selecting and managing the sales force. D. Type of distribution channel to use. E. Customer service level
Recruiting, Selecting, and managing a sales force
The main difference between retailing and wholesaling is that: A. Retailing involves selling to other merchants and wholesaling does not. B. Retailing involves selling to business customers and wholesaling does not. C. Technology is more important in wholesaling than in retailing. D. Wholesaling involves selling mainly to other merchants and business customers, but retailing involves selling mainly to final consumers. E. Wholesaling involves selling to final consumers and retailing does not.
Wholesaling involves selling mainly to other merchants and business customers, but retailing involves selling mainly to final consumers.
Department stores: A. usually aim at customers seeking convenience products. B. have accounted for a larger share of retail sales every year since 1950. C. have no trouble holding their own against mass-merchandisers. D. are organized into separate departments. E. All of these alternatives are true for department stores.
are organized into separate departments.