Chapter 13 Marketing

Which of the following statements is true of a product sales-force structure?

A product sales-force structure is characterized by specialization along product lines.

The Children's Online Privacy Protection Act requires online operators targeting children to

post privacy policies on their sites

A subsistence economy is one in which

a vast majority of people engage in simple agriculture

In which of the following structures does a company organize its sales force along client or industry lines?

market sales-force structure

Which of the following is the fastest-growing form of marketing?

direct marketing

Which of the following is most likely true of a global firm?

A global firm manufactures and markets goods wherever it can do the best job.

is a method of going global in which a company makes agreements with producers in the foreign market to produce its product or provide its service.

Contract manufacturing

is a method of entering a foreign market by developing foreign-based assembly or manufacturing facilities.

Direct investment

consists of connecting directly with carefully targeted consumers, often on a one-to-one, interactive basis.

Direct marketing

Which of the following statements is most likely true about direct marketing?

Direct marketing provides opportunities for building customer engagement.

are international divisions responsible for the sales and profits of their own operating units.

International subsidiaries

Which of the following is a disadvantage of straight product extension?

It can be costly in the long run if products fail to satisfy consumers.

Which of the following is true of a territorial sales-force structure?

It clearly defines each salesperson's job and establishes accountability.

Which of the following is an advantage of management contracting?

It yields income from the beginning of the contract.

is a method of entering a foreign market by associating with foreign companies to produce or market products or services.

Joint venturing

consists of creating something new to meet the needs of consumers in a given country.

Product invention

Which of the following statements is true of salespeople?

They represent a company to its customers by communicating and selling.

Which of the following is most likely true about a global organization?

Worldwide policies are planned by top corporate management.

The difference between direct and indirect exporting is that indirect exporting involves

less investment

What is the first step in the selling process?

prospecting

The purpose of a quota is to

protect local employment

Which term refers to the fixed amount in a salesperson's compensation?

salary

A tax on an imported product designed to raise revenue or protect domestic firms is referred to as a(n)

tariff