Marketing exam three 9-10, 12-13

A toothpaste manufacturer that bands two products together, selling two for the price of one, is using which type of consumer promotion tool to build short-term sales? A) price packs B) coupons C) rebates D) advertising specialties E) samples

A

AirNetwork, a telecommunications company, sponsors a rock concert by a famous band in order to further its brand visibility. This is an example of a(n) ________. A) event marketing program B) premium C) point-of-purchase promotion D) trade promotion E) price pack

A

Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called? A) location-based pricing B) market-skimming pricing C) product-form pricing D) time-based pricing E) market-penetration pricing

A

Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other inputs. Although these costs tend to be the same for each unit produced, they are called ________ costs because the total changes based on the number of units produced. A) fixed B) variable C) target D) capital E) payroll

A

For over 10 years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart.com, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart.com and set up its own Web site to sell its books. This change in channel organization is called ________. A) disintermediation B) intensive distribution C) brokering D) franchising E) selective distribution

A

Greentech is launching a line of miniature solar chargers for laptops, cellphones, and other electronic devices. The chargers are compact, affordable and the green energy technology is a value-added benefit for both the company and consumers. Which of the following would qualify as an advertisement for Greentech's new solar chargers? A) a front-page notice of the release of Greentech's solar chargers in all leading newspapers B) a press conference to discuss the various benefits, including environmental feature C) the use of dedicated sales personnel to explain the qualities of the new solar chargers to retailers D) an endorsement by a national environmental organization to tout the benefits of the new solar chargers E) an online lottery where interested buyers have a chance to win a prize

A

Harry Potts is a salesperson for a national pet food company. He meets Karen Sharp, a buyer for a large, specialty pet retailer, and speaks to her at length about the product categories and brands of pet food the retailer currently carries as well as future needs. At which step of the selling process is Harry Potts in the above scenario? A) approach B) preapproach C) qualifying D) prospecting E) closing

A

How have social media tools most likely affected personal selling? A) reducing the use of person-to-person selling efforts B) increasing the costs of selling products and services C) changing the basic fundamentals of interpersonal selling D) increasing the number of product reports given to customers E) slowing the sales-force response rate to customers' problems

A

In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a pure monopsony

A

In a just-in-time logistics system, ________. A) retailers carry small inventories of merchandise to last for only a few days B) retailers store products for long periods to avoid an interruption in supply C) producers supply products to resellers before customers place their orders D) producers that are geographically far from their retailers use an express-delivery system E) retailers incur high inventory-carrying and inventory-handling costs

A

In a promotion mix, ________ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. A) direct marketing B) advertising C) public relations D) predictive analyticals E) indirect procurement

A

In which of the following promotion tools does a customer send a proof of purchase to a manufacturer, who then refunds part of the purchase price by mail? A) rebate B) coupon C) sample D) premium E) price pack

A

In which of the following steps of the selling process does a salesperson seek out, clarify, and overcome any customer disapproval to buying? A) handling objections B) closing C) follow-up D) prospecting and qualifying E) preapproach

A

In which step of the selling process does a salesperson set call objectives? A) preapproach B) approach C) presentation D) qualifying E) prospecting

A

Lemony Inc. sells its popular bottled lemonade — the company's only product — in various geographic locations through tie-ups and agreements with retailers. Each location is represented by two salespersons, one of whom serves current customers while the other finds new ones. Which of the following sales-force structures has most likely been combined to form the complex sales-force structure at Lemony Inc.? A) market and territorial B) market and customer C) product and territorial D) market and product E) geographical and product

A

Marketers need to know how customers connect with an ad and brand idea as a part of the broader brand relationship. This can be achieved by measuring ________ levels. A) media engagement B) reach C) frequency D) listenership E) readership

A

NerdHerd Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing. A) product line B) optional-product C) by-product D) product bundle E) captive-product

A

Performance Inc. sells its newest athletic shoe styles to The Sneaker Store and distributes dated or slightly defective merchandise through Sports Discounters. Performance Inc.'s main competitor is Topnotch Manufacturers. Performance Inc. also markets its products through the company Web site. They decide to offer a short-term online promotion to encourage consumers to buy their newest athletic shoes, promoting a 20 percent discount off current retail prices. In such a distribution channel, which of the following would be considered a vertical conflict? A) a conflict between Performance Inc. and The Sneaker Store B) a conflict among Performance Inc., The Sneaker Store, and Sports Discounters C) a conflict between The Sneaker Store and Sports Discounters D) a conflict between Performance Inc. and Sports Discounters E) a conflict between Performance Inc. and Topnotch Manufacturers

A

Posh Collections introduced a new watch to appeal to upscale consumers. The company will most likely use a(n) ________ strategy. A) market-skimming pricing B) market-penetration pricing C) optional-product pricing D) by-product pricing E) allowance pricing

A

Producers use marketing intermediaries because they ________. A) create greater efficiency in making goods available to target markets B) supply inexpensive raw materials for manufacturing products C) provide technical expertise for faster production D) monitor day-to-day activities during production E) form a part of the company's direct channel

A

Rent, electricity, and executive salaries that do not vary with production or sales level are referred to as ________ costs. A) fixed B) variable C) break-even D) target E) promotional

A

Sales managers use a ________ that shows which customers and prospects to pursue and which activities to carry out. A) call plan B) sales quota C) sales contest D) bonus plan E) straight commission

A

Selective distribution is a strategy in which ________. A) more than one, but fewer than all, willing intermediaries are used by a seller B) products are stocked in as many outlets as possible by a seller C) products are not sold through intermediaries but directly to customers from producers D) all willing intermediaries are given rights to sell a product E) common household goods are preferred over luxury products by intermediaries

A

Sonic Shack, an audio equipment retailer, signs an agreement with PineWire, a renowned electronics company, to sell PineWire products. The deal requires Sonic Shack to provide PineWire products with superior displays, shelf space, and promotion compared to competing products. Sonic agrees to these terms as PineWire products command a huge share in the market. Which of the following types of channel arrangements do PineWire and Sonic Shack most likely have? A) administered vertical marketing system B) corporate vertical marketing system C) indirect marketing system D) wholesaler franchise system E) horizontal marketing system

A

The Sherman Act, Clayton Act, and Robinson-Patman Act are all federal laws that were initially adopted to curb the formation of ________. A) monopolies B) oligopolies C) competitive markets D) international markets E) limited partnerships

A

The ________ method of setting an advertising budget typically overlooks how promotion affects sales. A) affordable B) percentage-of-sales C) objective-and-task D) competitive parity E) adaptive-control

A

The first generation Apple iPod was introduced in 2001 and sold for $500. The following year a mini version was introduced for $250. Apple initially used a ________ strategy to price their digital music innovation. A) market-skimming B) target costing C) deceptive D) market-penetration E) predatory

A

The relationship between the price charged for a product and the resulting demand level can be shown in a(n) ________. A) demand curve B) supply curve C) elastic demand slope D) break-even chart E) inelastic demand slope

A

There are more than 50 blueberry farmers in Shammonton, New Jersey, that grow, package, and distribute the same quality blueberries. An individual farmer cannot charge more than the going market price per unit without the risk of losing business to the other farmers. This is an example of ________. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a black market

A

Trendy Appliances has introduced a new product, Minute Yogurt, into the yogurt maker appliance market. Minute Yogurt differs from competitive offerings because it takes a minute to blend and a minute to clean. Which type of advertising would be best for promoting Minute Yogurt? A) informative advertising B) reminder advertising C) classified advertising D) comparative advertising E) personalized advertising

A

What is the last step in the selling process? A) follow-up B) closing C) handling objections D) presentation E) prospecting

A

When Toyota announces a product recall on its Camry model due to a faulty igniter, they are using ________ to coordinate with dealers and car owners. A) reverse logistics B) outbound logistics C) inbound logistics D) inventory logistics E) disintermediation

A

When a manufacturer offers a ________, a customer buys a product from a manufacturer's dealer within a specified time period, and the manufacturer then sends the customer a check. A) cash rebate B) quantity discount C) promotional allowance D) flash sale E) functional discount

A

When establishing prices, it's important for a manager to understand that "good value" is not the same as ________. A) "low price" B) "high price" C) "bargain basement" D) "perceived value" E) "everyday value"

A

Which group is most likely offered functional discounts by manufacturers? A) trade-channel members that perform sales tasks B) consumers who buy products in large quantities C) buyers who pay their bills before the due date D) buyers who purchase merchandise out of season E) retailers that participate in advertising programs

A

Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product? A) The product's quality and image must support its high price. B) Lower-priced alternatives can enter the market easily. C) Low prices promote more market growth than high prices. D) The product's price matches its manufacturing costs. E) A low-price position of the product is maintained.

A

Which of the following is an example of branded entertainment? A) a company placing its product in a movie scene B) a company using a celebrity to endorse a product C) a company airing its advertisements in movie theaters D) a company using an acclaimed movie director to film an advertisement E) a company using a famous song in its advertisement

A

Which of the following is most likely true about a sales force in the field? A) They build relationships with customers through face-to-face collaboration. B) They make most sales from their offices via media interactions. C) They provide administrative backup for outside salespeople. D) They rely on telemarketing efforts to gain leads and clients. E) They are prohibited to sell or service accounts directly.

A

Which of the following is most likely true of a sales force? A) The performance difference between an average salesperson and a top salesperson is generally substantial. B) The cost of replacing a salesperson is usually low because minimal training is necessary. C) A sales force with many new people is typically more productive than one whose members have been around for a long time. D) Individuals within a sales force generally perform at the same level of efficiency. E) On-site sales training is more efficient and less costly than e-learning programs.

A

Which of the following is true of a conventional distribution channel? A) It has each channel member acting as a separate business unit trying to maximize its own profits. B) It consists of producers selling their products directly to customers without the use of intermediaries. C) It has one channel member owning the other channel members. D) It is a distribution channel where a producer is owner of all the other channel members. E) It has all members of the channel working together as a single organization.

A

Which of the following is true of a territorial sales-force structure? A) It clearly defines each salesperson's job and establishes accountability. B) It benefits firms with many technological products requiring technically skilled salespeople. C) It is used by firms that organize their sales forces along customer or industry lines. D) It requires salespeople to sell a wide variety of products over a broad geographic area. E) It differentiates the sales force solely on the basis of product expertise.

A

Which of the following is true of advertising in the new marketing communications model? A) Advertisers are increasingly shifting toward digital media. B) Advertisers are spending more on broadcast advertising. C) Advertisers are finding traditional media less expensive. D) Advertisers are using less targeted media to reach customers. E) Advertisers have replaced print catalogues with digital versions.

A

Which of the following is true of logistics? A) Companies can gain a powerful competitive advantage by using improved logistics to enhance customer service or lower prices. B) The cost savings to a company and its customers due to improved logistics is typically nominal. C) Less than 5 percent of an average product's price is accounted for by shipping and transport. D) The cost of logistics is considerably less than advertising. E) Shaving off a small fraction of logistics costs has very little impact on savings.

A

Which of the following is true of marketing strategies that are being developed in the new marketing communications model? A) They are more targeted, social, and engaging. B) They target much larger customer segments. C) They rely more on mass-media marketing techniques. D) They use very little alternative media. E) They include a greater number of print media ads.

A

Which of the following media is most suitable for advertising a product that needs to be demonstrated? A) television B) radio C) newspaper D) magazine E) billboard

A

Which of the following sets the lower limit for a product's pricing? A) product costs B) profits C) competition D) elements of the product mix E) consumer perceptions of value

A

Which of the following statements is true of a product sales-force structure? A) A product sales-force structure is characterized by specialization along product lines. B) A product sales-force structure is used when a company has only one product line. C) A product sales-force structure requires every salesperson to be an expert in all the product categories of the company. D) A product sales-force structure organizes the sales force along customer or industry lines. E) A product sales-force structure uses a single sales force across different product lines.

A

Which of the following would most likely trigger a price increase? A) cost inflation B) reduced demand C) cheaper alternatives D) reduced expenses E) overproduction

A

Which type of channel arrangement is a retailer like Home Depot likely to follow? A) administered vertical marketing system B) horizontal marketing system C) contractual vertical marketing system D) corporate vertical marketing system E) direct marketing system

A

Wilkinson & Company sells plumbing supplies across the United States. Wilkinson uses Chicago as its central location for determining freight costs regardless of the city from which products are actually shipped. For example, a Dallas customer pays the freight cost from Chicago to Dallas even if the goods are shipped from Dallas. Wilkinson most likely uses ________ pricing. A) basing-point B) FOB-origin C) freight-absorption D) zone E) reference

A

________ help companies reach many prospects that are not reached through their sales forces. A) Trade shows B) Rebates C) Allowances D) Point-of-purchase promotions E) Sweepstakes

A

________ is the only element in the marketing mix that produces revenue. A) Price B) Place C) Promotion D) Product E) Profit

A

________ uses buyers' perceptions of what a product is worth as the key to pricing. A) Customer value-based pricing B) Target return pricing C) Cost-plus pricing D) Psychological pricing E) Competition-based pricing

A

A TV ad promoting how an ordinary person's life has changed due to considerable weight loss is an example of the ________ style of advertising. A) scientific evidence B) testimonial evidence C) technical expertise D) mood or image E) fantasy

B

A company that sells only one product line to one industry with customers in many locations would typically use a ________. A) product sales-force structure B) territorial sales-force structure C) market sales-force structure D) customer sales-force structure E) complex sales-force structure

B

A(n) ________ is the variable amount in a salesperson's compensation. A) bonus B) commission C) salary D) incentive E) profit-sharing plan

B

According to the text, the most logical budget-setting method in advertising is the ________ method. A) adaptive-control B) objective-and-task C) competitive-parity D) affordable E) percentage-of-sales

B

Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets. What kind of marketing strategy has Bateman Gray adopted with its car dealers? A) direct marketing B) exclusive dealing C) disintermediation D) horizontal integration E) vertical integration

B

Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward ________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones. A) intermediation B) disintermediation C) vertical marketing systems D) horizontal marketing systems E) corporate vertical marketing systems

B

Computer World sells laptops separately from accessory products like docking stations, anti-virus software, and external hard drives. This is referred to as ________ pricing. A) product bundle B) optional-product C) market-penetration D) by-product E) product line

B

Costs that change directly with the level of production are referred to as ________ costs. A) fixed B) variable C) target D) capital E) payroll

B

GE employs different sales forces within different product and service divisions of its major businesses. For example, within GE Infrastructure, the company has separate sales forces for aviation, energy, transportation, and water processing products and technologies. GE has most likely adopted a ________ sales-force structure. A) market B) product C) customer D) territorial E) complex

B

In a logistics system, minimizing distribution costs most likely involves ________. A) flexible assortments B) large shipping lots C) rapid delivery D) large inventories E) liberal return policies

B

In a marketing communications mix, ________ refers to any short-term incentive that encourages the purchase or sale of a product or service. A) advertising B) sales promotion C) personal selling D) crowdsourcing E) public relations

B

In which of the following situations is a producer guaranteed full control over product sales? A) a corporate marketing channel B) a direct marketing channel C) a contractual distribution channel D) a horizontal marketing system E) an administered marketing system

B

Inglast, a chocolate producer, is faced with a class action suit when customers found pieces of plastic in boxes of cocoa powder. Inglast settles the case and then releases an advertising campaign to show the new and improved safety seals on all containers of cocoa powder. Which kind of advertisement has Inglast most likely used? A) classified B) informative C) comparative D) personalized E) reminder

B

Integrating the entire distribution chain — from its own design and manufacturing operations to distribution through its own managed stores — has turned Spanish clothing chain Zara into the world's fastest-growing fast-fashion retailer. This is an example of a(n) ________ marketing system. A) contractual vertical B) corporate vertical C) administered vertical D) horizontal E) direct

B

Java Jane's first coffeehouse was very successful due to the unique flavors, on-site baked goods, and inviting ambiance. The owner, Jane Phillips, decided to franchise her operation when she was approached by several interested investors. Which type of marketing system has Java Jane's most likely adopted? A) an administered marketing system B) a contractual marketing system C) a horizontal marketing channel D) a direct marketing channel E) a vertical marketing channel

B

Karen Dodd is employed by Dell and responsible for calling on primary schools in her home state of Maine to promote the company's offerings. She demonstrates the Dell line of products including desktop computers, laptops, and tablets and fields questions from teachers and administrators alike. This is an example of which promotion tool? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising

B

Los Amigos, a new Mexican restaurant, has set up shop across the street from Hot Tamales and More. Which of the following pricing strategies will Los Amigos likely use? A) cost-plus B) competition-based C) break-even D) good-value E) target costing

B

Netcorp, an Internet service provider, charges its users a fixed rental fee for its basic package, which has a download limit. If a user exceeds this download limit, an additional fee is charged for every download. In this case, the firm's pricing strategy is referred to as ________ pricing. A) by-product B) two-part C) optional-product D) segmented E) promotional

B

Pricing a product based on consumers' reference prices is referred to as ________ pricing. A) geographical B) psychological C) allowance D) by-product E) captive-product

B

Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing. A) high-low B) value-added C) target return D) everyday low E) cost-plus

B

Rather than just creating and placing "TV ads" or "print ads" or "Snapchat branded story ads," many marketers now view themselves more broadly as ________ managers. A) social media marketing B) content marketing C) integrated marketing communication D) direct marketing E) multi-media marketing

B

Salespeople need to know how to ________ leads, that is identifying good leads and screening out poor ones, at the beginning of the selling process. A) approach B) qualify C) consolidate D) generate E) manage

B

Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment is $35. But the combo price is $50. This is referred to as ________ pricing. A) by-product B) product bundle C) captive-product D) optional-product E) product line

B

Sleek Designs markets a wide range of kitchen cabinets, counter tops, and ceramic tile. Its salespeople are initially divided on the basis of their expertise in a product category. They're then further divided into teams addressing large home improvement retailers, kitchen and bath suppliers, and specialty home improvement stores. Which of the following sales-force structures has most likely been combined to form this complex sales-force structure? A) territorial and market B) product and market C) product and territorial D) geographical and product E) market and customer

B

The National Tree Company offers resellers half-price reductions on artificial Christmas trees if they purchase them in July. This is an example of a ________. A) functional discount B) seasonal discount C) promotional allowance D) trade-in allowance E) quantity discount

B

The ________ style of advertising shows ordinary people clearly using a product in a normal setting. A) personality symbol B) slice of life C) mood or image D) testimonial evidence E) technical expertise

B

The aim of ________ is to make ads and brand content so engaging or useful that people want to watch them. A) branded entertainment B) advertainment C) social advertising D) subliminal advertising E) infotainment advertising

B

The first Target store opened in 1962. Its initial strategy was to set prices low to attract a large number of buyers quickly and win a large market share. This is referred to as ________. A) market-skimming pricing B) market-penetration pricing C) value-added pricing D) target costing E) deceptive pricing

B

The manufacturer of Two-In-One, a combination shampoo and conditioner, shrink wraps a 4- ounce foil packet of a smoothing hair pomade to its combo product. Which of the following promotion tools is being used in this case? A) rebates B) samples C) coupons D) advertising specialties E) price packs

B

The salesperson completes any details on delivery time, purchase terms, and other matters during the ________ step of the selling process. A) closing B) follow-up C) handling objections D) presentation E) prospecting

B

Under ________, a customer shares real-time data on sales and current inventory levels with a supplier, and the supplier then takes full responsibility for managing inventories and deliveries. A) periodic inventory systems B) vendor-managed inventory systems C) selective-trading inventory systems D) manual inventory replenishment systems E) customer-managed inventory systems

B

Under ________, the market consists of many buyers and sellers trading over a range of prices rather than a single market price. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a pure monopsony

B

Vertical conflicts in distribution channels are conflicts that occur between ________. A) same levels in the same channel B) different levels of the same channel C) same levels of different channels D) different levels of different channels E) retailers and customers

B

Victoria's Closet, a manufacturer of bohemian-style clothing and accessories, sells its products through its online Web site, a catalogue, and specialty boutiques that target women. Which kind of channel arrangement does Victoria's Closet employ to distribute its products? A) horizontal marketing system B) multichannel distribution system C) administered vertical marketing system D) contractual vertical marketing system E) corporate vertical marketing system

B

Which of the following is a difference between storage warehouses and distribution centers? A) Storage warehouses are used to store agricultural products, while distribution centers are used to store nonagricultural products. B) Storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them. C) Storage warehouses are always owned by a producer, while distribution centers are rented. D) Storage warehouses are more likely to use newer, computer-controlled systems, while distribution centers generally use outdated materials-handling methods. E) Storage warehouses are exclusively used by government agencies, while distribution centers are exclusively used by private businesses.

B

Which of the following is a disadvantage of using a magazine as an advertising medium? A) It has a poor pass-along readership. B) It involves high costs. C) It has low geographic selectivity. D) It has low credibility and image. E) It consists of low-quality reproduction.

B

Which of the following is a shortcoming of advertising? A) It does not allow dramatization of the brand or company. B) It only provides one-way communication with customers. C) It can be too customized and only attracts small, niche markets. D) It reaches targeted customers too slowly in most cases. E) It is the most costly promotion tool for companies.

B

Which of the following is an example of a horizontal conflict in a distribution channel? A) a Nike shoe dealer complaining that the shoes provided to the dealer are defective B) a Ford car dealer complaining that another Ford dealer is underpricing the same models C) a FedEx agent complaining that a DHL agent is cutting off his business D) a Walmart executive complaining to a Pepsi executive for not replenishing stocks on time E) a Gucci executive complaining to Gucci's suppliers of delays in shipping consignments

B

Which of the following is most likely a difference between advertising and sales promotion? A) Advertising is a sales-directed form of communication, while sales promotions are endorsed as company news. B) Advertising can be used to build up a long-term image for a product while sales promotion effects can be short lived. C) Advertising can be used to dramatize product offers, but sales promotion cannot be used for this purpose. D) Advertising can trigger quick sales, while sales promotions cannot. E) Advertising is not as effective in building long-term brand preferences as sales promotions.

B

Which of the following is most likely an example of a business promotion tool? A) a free DVD for customers who purchase a new television at a retail store B) a trade fair showcasing a new audio system developed by an electronics firm C) a sweepstakes program inviting customers to enter for the chance to win a new car D) a toaster being sold at half its list price for any buyer who purchases a food processor E) a display allowance for retailers who feature a manufacturer's product in a favorable manner

B

Which of the following is true of an intensive distribution strategy? A) It gives sole rights to select dealers in a given area. B) It strives to make products available where and when consumers want them. C) Compared with other distribution strategies, it uses the least number of intermediaries to sell products. D) Compared with other distribution strategies, it provides the best support for dealers of luxury products. E) It discards traditional intermediaries and uses direct marketing to reach customers.

B

Which of the following is true of direct and digital marketing? A) Its marketing message is fixed and does not change according to the customer's requirements. B) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships. C) It is presented as company news rather than as a sales-directed communication. D) It does not involve any interaction between the company and its customers. E) It is an impersonal promotion tool that hinders two-way communication.

B

Which of the following is true of public relations? A) It provides quick incentives to make product purchases. B) It emphasizes news and events rather than sales C) It involves training a dedicated sales force to meet customers. D) It cannot be used to dramatize a product or company. E) It is the most widely used promotional tool.

B

Which of the following promotion mix approaches involves a producer promoting a product to different channel members who in turn promote the product to customers? A) direct marketing B) a push strategy C) the publish-subscribe method D) a pull strategy E) vertical integration

B

Which of the following statements is true of consumer promotions? A) Their primary objective is to persuade resellers to carry a brand. B) They include a wide range of tools like samples, coupons, and refunds. C) They include the use of display allowances. D) They are primarily used to generate business leads and reward customers. E) They include the use of conventions and trade shows.

B

Which of the following types of promotion tools requires a considerable degree of personal interaction with a customer? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising

B

Which of the following would be considered an upstream partner in a company's supply chain? A) a firm that resells a finished product and shares the net sales with the producer B) a firm that provides technical expertise in the production of a product C) a firm that markets a product to consumers through social media D) a firm that buys products at wholesale cost from the company E) a firm that exclusively markets a product to other businesses

B

Which statement is most likely true about the affordable method of setting an advertising budget? A) Spending on advertising is calculated based on the financial objectives a company wishes to accomplish. B) Spending on advertising is calculated after operating expenses and capital outlays are deducted from total revenues. C) Spending on advertising is based on a predetermined percentage of current or forecasted sales for the year. D) Spending on advertising is calculated as a percentage of the unit sales price. E) Spending on advertising is based on a competitor's advertising outlays.

B

________ advertising would most likely result in attack ads between competitors. A) Reminder B) Comparative C) Personal D) Informative E) Classified

B

________ are the standards stating the amount salespersons should sell and how sales should be divided among the company's products. A) Sales promotions B) Sales quotas C) Display allowances D) Time-and-duty analyses E) Sales reports

B

________ distribution typically allows manufacturers to develop good working relationships with intermediaries and expect a better-than-average selling effort. It also gives producers good market coverage with more control and less cost than intensive distribution. A) Vertical B) Selective C) Horizontal D) Comprehensive E) Inclusive

B

________ prices are carried in buyers' minds and used when looking at a given product. A) Captive-product B) Reference C) Promotional D) Geographical E) Dynamic

B

________ pricing is when a firm tries to determine the price at which it will break even or earn the profit it is seeking. A) Competition-based B) Target return C) Cost-plus D) Good-value E) Value-added

B

A ________ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth. A) cost-based B) target costing C) value-based D) value-added E) competition-based

C

A company that uses telephone marketing to sell its products to customers is most likely using the promotion tool of ________. A) advertising B) public relations C) direct and digital marketing D) retailing E) merchandising

C

Chic Eyewear, a producer of designer eyeglass frames, promotes their new line in national fashion magazines. Chic Eyewear lists the select optical retailers that carry their line at the bottom of their ads. This is an example of a ________ strategy. A) push B) vertical integration C) pull D) publish-subscribe E) direct marketing

C

Consumers rely less on price to judge the quality of a product when they ________. A) lack information about the product B) are unable to research the product C) have prior experience with the product D) are unable to judge the quality of the product E) rely on cues from sellers to differentiate a high or low price

C

Crest toothpaste has used a ________ style of advertising to convince buyers that Crest is better than other brands at fighting cavities. A) testimonial evidence B) technical expertise C) scientific evidence D) mood or image E) fantasy

C

How do firms that use captive-product pricing make up for the low prices of their main products? A) They reduce the cost of the captive products. B) They provide the captive products as freebies. C) They set high markups on the captive products. D) They increase the price of the main products. E) They offer the captive products and main products together at a reasonable price.

C

If a company assigns individual teams of salespeople to big retail customers, it most likely has a(n) ________ sales-force structure. A) undifferentiated B) product C) market D) territorial E) demographic

C

In the competitive-parity method of setting an advertising budget, the budget is set based on ________. A) a percentage of future sales B) the total revenues that a company makes C) the amount spent by similar companies in the same industry D) objectives set by the company and the cost required to accomplish them E) a percentage of current sales

C

In which of the following steps of the selling process does a salesperson ask a buyer for an order? A) preapproach B) qualifying C) closing D) prospecting E) approach

C

In which of the following structures does a company organize its sales force along customer or industry lines? A) demographic sales-force structure B) service sales-force structure C) market sales-force structure D) territorial sales-force structure E) product sales-force structure

C

In which step of the selling process does a salesperson or company identify qualified potential customers? A) demonstration B) preapproach C) prospecting D) approach E) presentation

C

Karen Rogers is a salesperson for Solar Panels Inc. She attends builder trade shows to identify potential customers in an effort to build long-term profitable relationships. Karen Rogers is engaging in which step of the selling process? A) demonstration B) preapproach C) prospecting D) approach E) presentation

C

Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is using a ________ approach to price the new moisturizer. A) value-added B) good-value C) cost-plus D) competitor-based E) break-even

C

Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers is known as ________. A) marketing logistics B) distribution system management C) supply chain management D) full-line forcing E) physical distribution

C

Many athletic stadiums enter into contractual agreements with national beverage companies and food franchises to distribute only their brand-name products at the respective venues. This is an example of ________. A) horizontal price fixing B) disintermediation C) exclusive dealing D) selective distribution E) horizontal integration

C

Mary Kay Cosmetics and Amway sell their products through home and office sales parties, online Web sites, and social media. Both companies use a(n) ________ channel to distribute their offerings. A) functional B) indirect C) direct D) layered E) behavioral

C

Metro Museum has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing. A) time-based B) location-based C) customer-segment D) by-product E) product form

C

More than 80 percent of McDonald's restaurants worldwide are owned and operated by franchisees. This illustrates a(n) ________ marketing system. A) corporate vertical B) horizontal C) contractual vertical D) administered vertical E) direct

C

Moving products and materials from suppliers to the factory is known as ________ logistics. A) outbound B) reverse C) inbound D) downstream E) inventory

C

Penny Bank, a discount store, is highly competitive. When entering a new market, Penny Bank often cuts prices so deeply that it sells below costs, effectively pushing smaller retail stores with less purchasing power out of the market. In this case, Penny Bank is using ________. A) market skimming B) psychological pricing C) predatory pricing D) deceptive pricing E) cost-plus pricing

C

Performance Inc. sells its newest athletic shoe styles to The Sneaker Store and distributes dated or slightly defective merchandise through Sports Discounters. Performance Inc.'s main competitor is Topnotch Manufacturers. Performance Inc. also markets its products through the company Web site. They decide to offer a short-term online promotion to encourage consumers to buy their newest athletic shoes, promoting a 20 percent discount off current retail prices. In such a distribution channel, which of the following would be considered a horizontal conflict? A) a conflict between Performance Inc. and The Sneaker Store B) a conflict among Performance Inc., The Sneaker Store, and Sports Discounters C) a conflict between The Sneaker Store and Sports Discounters D) a conflict between Performance Inc. and Sports Discounters E) a conflict between Performance Inc. and Topnotch Manufacturers

C

Producers of convenience products and common raw materials typically seek ________ distribution — a strategy in which they stock their products in as many outlets as possible A) selective B) exclusive C) intensive D) exponential E) comprehensive

C

Radox, a luxury watch brand, identifies a market segment that is willing to pay premium prices for its watches, and Radox managers select an ideal selling price. Managers then determine the costs to create watches that meet the ideal selling price. The company's pricing approach is referred to as ________. A) mass production B) cost-plus pricing C) target costing D) value-added pricing E) target return pricing

C

Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n) ________. A) administered vertical marketing system B) horizontal manufacturing marketing system C) manufacturer-sponsored retailer franchise system D) manufacturer-sponsored wholesaler franchise system E) direct marketing system

C

Starbucks has signed a contract with a television production company to have its brand featured prominently in a new situation comedy about empty nesters. The conditions of the agreement state that the situation comedy will feature only the Starbucks brand of coffee. What kind of advertising technique is being used in this example? A) geofencing B) advertainment C) product placement D) vertical integration E) subliminal advertising

C

Studio 19 is a dance studio geared to adults who want to learn ballroom and Latin dance. When individuals call the studio, they're encouraged to access the Web site to receive a $25 e-coupon entitling them to a free half hour of dance instruction. Once they become patrons, text messages are sent to share news about featured dance instructors and upcoming special events. Which of the following promotion mix tools does Studio 19 employ to reach target customers? A) public relations B) personal selling C) direct marketing D) crowdcasting E) retailing

C

The Vitamin Shoppe sells natural vitamins and supplements. Product prices are adjusted frequently to meet the needs of individual customers. For example, long-time customers receive discounts. This strategy is most likely an example of ________ pricing. A) zone B) competition-based C) dynamic D) basing-point E) penetration

C

The fastest-growing sales trend is ________ that involves the use of online, mobile, and social media to engage customers, build stronger customer relationships, and augment sales performance. A) personal selling B) online selling C) social selling D) teleselling E) videoconferencing

C

The use of both rail and trucks for transporting goods is called ________. A) trainshipping B) fishybacking C) piggybacking D) airtrucking E) autoracking

C

Under ________, the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) pure monopsony

C

When a company issues a press release to announce a sizable donation to a national charity, they are using ________ to generate goodwill and maintain a positive corporate image. A) personal selling B) sales promotion C) public relations D) direct and digital marketing E) advertising

C

When demand hardly changes with a small change in the price of a product, the demand for the product is best described as ________. A) elastic B) flexible C) inelastic D) variable E) cyclical

C

Which of the following best describes the personality symbol style of advertising? A) using ordinary people to show how a product affects them in their daily lives B) using scientific evidence to support claims about a product in an advertisement C) using an animated character or mascot to represent a product in an advertisement D) using a technical expert to recommend a product in an advertisement E) using a celebrity to endorse a product in an advertisement

C

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product? A) The product's quality supports its high price. B) Alternative products can enter the market easily. C) The market for the product is highly price sensitive. D) Prices increase incrementally as sales volume increases. E) Production costs rise with an increase in marketing efforts.

C

Which of the following is a disadvantage of using digital, mobile, and social media for advertising? A) The costs are high. B) Audience selectivity is low. C) The audience controls content and ad exposure. D) The interactive capabilities are low. E) There is little scope for personalization.

C

Which of the following is an effect of the advancement of technology on marketing? A) Fragmented markets have assimilated into a few mass markets. B) Marketers go through more intermediaries to connect with consumers. C) Consumers rely less on marketer-supplied information than in the past. D) Marketers have increasingly moved toward mass-marketing techniques. E) Marketers tend to supply less information to consumers than in the past.

C

Which of the following is most efficient for short hauls of high-value merchandise and is highly flexible in its routing and time schedules? A) water carriers B) pipeline C) trucks D) air carriers E) railroads

C

Which of the following is true of personal selling? A) It is the most effective promotional tool for geographically dispersed buyers. B) It allows firms to dramatize product offers through arts and visuals. C) It is the most expensive promotional tool for companies to utilize. D) It is an ineffective method for building long-term customer relationships. E) It presents a firm's message as news rather than as a sales-directed communication.

C

Which of the following pricing strategies is the opposite of FOB-origin pricing? A) basing-point pricing B) dynamic pricing C) uniform-delivered pricing D) freight-absorption pricing E) zone pricing

C

Which of the following sets the upper limit for a product's pricing? A) profits B) product costs C) consumer perceptions of value D) elements of the product mix E) competition

C

Which of the following statements is most likely true of team selling? A) It is used most often when the group of target customers is small and homogeneous. B) It consists of experts from a single area of the selling firm such as marketing or finance. C) It can unearth problems and provide solutions that no individual salesperson could. D) It is most often implemented when products are simple and distribution costs are low. E) It simplifies the process of evaluating the individual contributions of sales team members.

C

Wisconsin Cheddar has introduced an aged jalapeno cheddar. Displays are set up at various retail cheese stores in the state and patrons are offered free samples as well as $2 off coupons. Which promotion tool is Wisconsin Cheddar most likely using? A) rebates B) price packs C) point-of-purchase promotions D) coupons E) advertising specialties

C

_______ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of the producer's merchandise. A) Horizontal price fixing B) Horizontal integration C) Full-line forcing D) Direct marketing E) Disintermediation

C

________ are certificates that save buyers money while they purchase specified products. A) Price packs B) Samples C) Coupons D) Point-of-purchase promotions E) Premiums

C

________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users. A) Research and development channels B) Upstream channels C) Marketing channels D) Raw materials suppliers E) Backward integration chains

C

________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A) Sales promotion B) Personal selling C) Advertising D) Public relations E) Direct marketing

C

________ is the sum of all the values that customers give up to gain the benefits of having or using a product or service. A) Payroll B) Profit C) Price D) Cost E) Salary

C

________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk. A) Competition-based B) Value-added C) Cost-based D) Good-value E) Demand-based

C

________ pricing occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers. A) Predatory B) Psychological C) Deceptive D) Cost-plus E) Allowance

C

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. A) manufacturing chain B) distribution center C) marketing intermediary D) value delivery network E) disintermediation system

D

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________. A) corporate vertical marketing system B) contractual vertical marketing system C) direct marketing system D) horizontal marketing system E) administered vertical marketing system

D

A freestanding insert in the Sunday newspaper for a local restaurant that contains a $5 off coupon for any meal over $20 is an example of a promotion targeted at ________. A) government buyers B) salespeople C) business customers D) final buyers E) retailers and wholesalers

D

A pharmaceutical manufacturer offers monetary incentives to its sales representatives to promote a new drug to the medical professionals in their respective geographic territories. This is an example of a ________ strategy. A) push B) direct marketing C) vertical integration D) pull E) publish-subscribe

D

A(n) ________ is considered a marketing intermediary. A) customer B) producer C) manufacturer D) wholesaler E) advertiser

D

All the institutions in a channel are connected by several types of flows. When a retailer conveys to a wholesaler that a new line of hip-hop clothing is not selling, this is an example of ________. A) payment flow B) flow of ownership C) physical flow D) information flow E) promotion flow

D

Appliance maker Whirlpool assigns individual teams of salespeople to big retail customers such as Sears, Lowe's, Best Buy, and Home Depot. Each Whirlpool sales team aligns with the large customer's buying team. Whirlpool has most likely adopted a ________ sales-force structure. A) product B) team-based C) territorial D) market E) complex

D

ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting certain safety standards in its waste disposal. ColaBlue remedies the problem by adding higher-grade filters and purifiers. Which of the following actions by ColaBlue would constitute a public-relations effort to address the effects of the lawsuit and the consequent damage to its brand image? A) having well-trained personnel at retail outlets to explain the different ranges of products the company provides B) tying in with local restaurants to promote exclusive sales of ColaBlue soft drinks C) lowering prices of ColaBlue's products in the short term D) holding a press conference to explain the remedial steps that ColaBlue has taken E) making new advertisements for ColaBlue products and sponsoring shows on television

D

Computer Works is a computer accessories manufacturer based in Brazil. All customers in South America pay the same freight charge, $20, when they order products from the company. All customers in North America pay a freight charge of $50. The company's pricing strategy is referred to as ________ pricing. A) basing-point B) FOB-origin C) freight-absorption D) zone E) uniform-delivered

D

Conventions, trade shows, and sales contests are types of ________. A) point-of-purchase promotions B) trade promotions C) advertising specialties D) business promotions E) premiums

D

Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements? A) direct distribution system B) horizontal marketing system C) corporate vertical franchise system D) multichannel distribution system E) administered vertical marketing system

D

Global Insurance sells health and life insurance policies to Fortune 500 companies for its employees. The company's salespeople regularly contact decision makers to ensure that the necessary paperwork has been filed and that contracts are executed. Updates are also provided regularly about premium changes for health insurance. Which of the following steps of the selling process does this scenario depict? A) approach B) presentation C) closing D) follow-up E) preapproach

D

High-end luxury brands like Bentley for cars, Louis Vuitton for handbags, and Rolex for watches use ________ distribution, giving a limited number of dealers the sole right to sell products in a specified geographic territory. A) inclusive B) horizontal C) intensive D) exclusive E) vertical

D

Informing the target market about a price change for a signature cookie dough product through a national TV campaign within three months" is an example of a(n) ________ objective. A) reminder B) comparative C) informative D) advertising E) persuasive

D

Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain? A) SoftStar B) BlueHill C) the consumer D) Abundon E) Kevin Pinker

D

Koffee, a brand of instant coffee, gives away a free coffee mug with its logo imprinted on it with every purchase of a 500g packet of its instant coffee powder. Which promotion tool is Koffee using? A) coupons B) price packs C) samples D) advertising specialties E) rebates

D

Luccia's is a restaurant based in Illinois that exclusively sells Italian food. Luccia's sells the rights to its recipes to a British firm, Clover Trading, which then opens an outlet in London under the Luccia's brand name. Which kind of channel arrangement does Luccia's most likely have with Clover Trading? A) a horizontal marketing system B) a direct marketing system C) an administered vertical marketing system D) a contractual vertical marketing system E) a corporate vertical marketing system

D

Lush Lawns, a new landscaping company, uses the same logo and shade of green in all forms of communication including its online ads, truck signage, Web site, and business cards. Which technique is being used by Lush Lawns to promote its business? A) logistics information management B) inventory control segmentation C) niche market penetration D) integrated marketing communications E) global marketing management

D

Millie Foods, producers of baby food, offers a monetary sum to retailers who agree to feature its new products on their shelves for a considerable time period. In this case, the promotion tool used by the company is referred to as a(n) ________. A) price pack B) rebate C) sample D) allowance E) discount

D

Movie theaters charge matinee pricing during the daytime, and resorts give weekend and seasonal discounts. This is illustrative of a ________ pricing strategy. A) product form B) market-penetration C) market-skimming D) time-based E) value-added

D

Outbound logistics refers to moving ________. A) unwanted, excess products from resellers to producers B) raw materials from suppliers to the factory C) excess materials from the factory to suppliers D) products from the factory to resellers and ultimately to customers E) broken, damaged products from customers to producers

D

Power Pro, a leading manufacturer of lawn and garden equipment, releases a new line of cordless, lightweight, electric weed trimmers. To boost sales, Power Pro issues a 50 percent off coupon to the first 100 buyers at all Home Depot stores in the Northeast. Which element of the promotion mix has Power Pro used in this scenario? A) public relations B) crowdsourcing C) advertising D) sales promotion E) personal selling

D

Retailers like Walmart and Target carry less-expensive versions of established brand name products or new lower-price lines. They have adopted a ________ pricing strategy. A) high-low B) target return C) cost-plus D) good-value E) market-skimming

D

Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers are collectively called ________ promotions. A) consumer B) point-of-purchase C) sales-force D) trade E) business

D

Salespeople write up their completed activities in a(n) ________. A) sales quota report B) profit-sharing plan C) call plan D) call report E) expense report

D

The USA Cotton Growers Cooperative sells unfinished cotton to The Weaving Experts who refine the raw material for sale to The Sheet Factory. It's then used in the manufacturing process of 300, 400, and 500 thread count bed sheet sets. The Sheet Factory distributes their products through a number of wholesalers, including Linen Traders. Linen Traders then resells the bed sheet sets to retailer Bedding Plus who markets the products to consumers. Which of the following represents a marketing intermediary transaction? A) only Linen Traders B) only Bedding Plus C) only The Weaving Experts D) Linen Traders selling to Bedding Plus E) The Weaving Experts selling to Linen Traders

D

The concept of ________ lends even more importance to the salesperson's customer-relationship-building abilities. A) sales-force territory B) sales promotion C) sales-force management D) salesperson-owned loyalty E) sales-force structure

D

The objective of ________ advertising is to build primary demand. A) reminder B) comparative C) personal D) informative E) persuasive

D

The presentation stage of the selling process most likely involves ________. A) cold calling in the absence of potential leads B) fixing the final meeting with a customer to close a deal C) gathering information about an organization and its buyers D) showing how a company's products can solve a customer's problems E) requesting an order from the customer after handling any minor objections

D

Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a ________. A) functional discount B) cash discount C) seasonal discount D) trade-in allowance E) by-product allowance

D

Weekly or monthly work plans used by management to get information about salespeople are referred to as ________. A) sales quotas B) ROI plans C) call objectives D) sales reports E) call plans

D

What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency? A) segmented pricing B) psychological pricing C) geographical pricing D) promotional pricing E) dynamic pricing

D

When Nabisco offers to cover half the cost of all local advertising for supermarkets that sell Oreo Cookies, the company is granting ________. A) cash discounts B) seasonal discounts C) quantity discounts D) promotional allowances E) trade-in allowances

D

Which mode of transportation is best for carrying perishable goods to distant markets? A) railroads B) water carriers C) trucks D) air carriers E) pipelines

D

Which of the following best describes the term "Madison and Vine"? A) utilizing the slice of life style of advertising B) emphasizing reach over impact in advertising C) using social media for advertising a brand D) merging advertising with entertainment E) voicing social concerns through advertising

D

Which of the following examples represents a product sales-force structure? A) Venson's produces frozen dinners at its factory in Ohio, and it sells them across the country through a network of sales representatives organized into regional and territorial tiers. B) AmWeb produces an expensive brand of herbal cosmetics called "Green You" that are sold in select boutiques and beauty parlors by selling teams assigned to serve small groups of key customers. C) Verra Designers operates from its landmark store in uptown New York and customers from all over the world come to this store to buy original merchandise at steep prices. D) Carlton Computers sells its range of highly specialized computers through special teams, each of which has received training in the configuration, uses, and USPs of a single model in the range. E) Nutters Inc., producers of cookies and other baked goods, markets its products throughout the country through a network of area and regional sales officers.

D

Which of the following is a function of an integrated marketing communications system? A) designing products using environmentally friendly techniques B) allowing suppliers or vendors to manage the inventory of products C) controlling production levels by feedback received from customers D) delivering a clear, consistent, and compelling message on the product to each brand contact E) sharing company forecasting details with shareholders

D

Which of the following is an advantage of exclusive dealing between a seller and a dealer? A) The seller gains more shelf power compared to competitors' products. B) The seller can avoid using any intermediary and sell the product directly to customers. C) Customers get more loyal and dependable outlets. D) The seller's distinctive position is reinforced through customer service and the dealer obtains steady support from the seller. E) The dealer can freely choose what products to sell without any interference from the seller.

D

Which of the following is an example of a firm utilizing public relations as a promotion tool? A) a firm using its personal sales force at an expo to sell its products B) a firm sending its catalog directly to customers through e-mail C) a firm informing customers of special discounts on its Web site D) a firm providing interesting information about a product to the news media E) a firm using a celebrity to endorse a product in a television commercial

D

Which of the following is the first step in developing an advertising program? A) setting the advertising budget B) developing an advertising strategy C) developing a brand message D) setting advertising objectives E) evaluating advertising campaigns

D

Which of the following media is most suitable for having consumers provide input on product design or features? A) television B) radio C) magazines D) social media E) billboards

D

Which of the following statements is true of salespeople? A) They do not work with wholesalers and retailers. B) They are employed mostly in click-only companies. C) They do not represent the customers to the company. D) They represent a company to its customers by communicating and selling. E) They represent a new class of professionals who have emerged as part of the steep rise in retailing.

D

Window Concepts has introduced a new line of windows that offer the same benefits as solar panels in reducing heating and cooling costs in homes. The state-of-the-art windows will also contribute to the slowing of global warming while providing energy reliability. The company sends a team of representatives to the National Doors and Windows Trade Show to promote the new line of windows. Which promotion mix tool has Window Concepts used in this scenario? A) crowdsourcing B) public relations C) advertising D) personal selling E) crowdcasting

D

________ advertising primarily maintains brand relationships and is important for mature products. A) Comparative B) Persuasive C) Personalized D) Reminder E) Classified

D

________ costs refer to the sum of the fixed and variable costs for any given level of production. A) Target B) Marginal C) Value-based D) Total E) Break-even

D

________ tends to legitimize products, is very expressive, allows brand or company dramatization, and can build up a long-term image for a product. A) Direct mailing B) Telephone marketing C) Door-to-door selling D) Television advertising E) Printed-catalog marketing

D

) Surf's Up, a family-owned business, offers a free surf lesson with the purchase of any surfboard over $200 during the month of May. This is an example of which promotion mix element? A) direct and digital marketing B) public relations C) advertising D) personal selling E) sales promotion

E

) The primary objective of ________ advertising is to build selective demand. A) reminder B) classified C) personal D) informative E) persuasive

E

A ________ consists of producers, wholesalers, and retailers acting as a unified system. The system can be dominated by any one of the interdependent members. A) direct marketing system B) horizontal distribution channel C) lateral marketing system D) conventional distribution channel E) vertical marketing system

E

A firm that uses direct marketing would most likely sell its products through ________. A) one marketing intermediary B) big box retailers C) large wholesalers D) multiple intermediaries E) the company Web site

E

Brandy's, a national candy store chain, decides to open both a coffee house and ice cream shop within their stores to create a multi-faceted experience for shoppers. The company decides to enter into deals with two well-known retailers — The Beanery and Creamy Creations. As stipulated in their respective contracts, The Beanery and Creamy Creations cannot enter into the same type of agreement with any other candy retailers. All three companies will enjoy greater sales, and ultimately profits, from the arrangement. This is most likely an example of a(n) ________ marketing system. A) direct B) administered vertical C) corporate vertical D) contractual vertical E) horizontal

E

Companies that organize their sales force by customer and territory; product and territory; product and customer; or territory, product, and customer are using a ________ sales-force structure. A) market B) simple C) product D) territorial E) complex

E

Cracker Jack, an American brand snack of caramel-coated popcorn and peanuts, has been in existence since 1896. The brand became popularized due to its free prize inside every box. Which of the following promotion tools does this exemplify? A) rebate B) coupon C) price pack D) sample E) premium

E

Establishing prices for razor blades that must be used with a razor blade system is known as ________ pricing. A) by-product B) market-penetration C) product line D) product bundle E) captive-product

E

Howard Genks works as a sales representative for Med-Tex, a firm that manufactures hospital supplies. Recently, a prospective buyer walked into the Med-Tex store seeking beds for the children's ward in his private clinic. Howard quickly showed the client the range of beds available that were designed specifically for children. In which of the following steps of the selling process was Howard? A) prospecting B) qualifying C) follow-up D) handling objections E) presentation and demonstration

E

In a promotion mix, ________ occurs when a firm's sales force makes individual presentations to consumers for the purpose of promoting sales and building customer relationships. A) advertising B) public relations C) crowdsourcing D) merchandising E) personal selling

E

In a promotion mix, ________ performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling unfavorable rumors and events. A) personal selling B) sales promotion C) direct marketing D) advertising E) public relations

E

In a(n) ________ marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members. A) direct B) contractual vertical C) horizontal D) corporate vertical E) administered vertical

E

In which step of the selling process does a salesperson learn as much as possible about a prospective customer before making a sales call? A) approach B) follow-up C) demonstration D) handling objections E) preapproach

E

Loretta Inc., a U.S.-based watch manufacturer, sells its products in France, China, Russia, and India. To manage sales, Loretta appoints a number of sales representatives to each location. Sales representatives report to area managers, and area managers coordinate sales in their respective areas before reporting to regional managers. Loretta has most likely adopted a ________ sales-force structure. A) customer B) product C) complex D) distributor E) territorial

E

Rug Designs Inc, a manufacturer of large area rugs, markets its products throughout the United States using a network of regional sales offices. They are using a ________ sales-force structure. A) market B) customer C) product D) regional E) territorial

E

The Fashion Store, a new startup, sets product prices so that revenues will equal manufacturing and marketing costs. The pricing strategy used by the company is referred to as ________ pricing. A) good-value B) value-added C) cost-plus D) competition-based E) target return

E

The authors suggest that the term "supply chain" may be too limited because it takes a "make-and-sell" view of the business. They believe the term ________ is more appropriate because it suggests a "sense-and-respond" view of the market. A) "upstream chain" B) "downstream chain" C) "market chain" D) "production chain" E) "demand chain"

E

The salesperson should know how to meet and greet the buyer and get the relationship off to a good start in which step of the selling process? A) prospecting B) preapproach C) presentation D) qualifying E) approach

E

Trainstar, a sportswear equipment manufacturer, releases a new line of energy drinks called VitaZing. The television ad for the energy drink shows people jogging, working out in a gym, and doing aerobics. The actors then take a break to drink VitaZing, which visibly re-energizes them and leads them to continue exercising. Which advertising style is most likely used in the VitaZing ad? A) scientific evidence B) technical expertise C) personality symbol D) testimonial evidence E) lifestyle

E

What is the primary goal of trade promotions? A) boosting long-term relationships with final buyers B) motivating salespeople to attend trade shows C) generating qualified business leads and contacts D) rewarding customers for frequent purchases E) persuading resellers to carry a brand

E

What is the purpose of a sales manager using a time-and-duty analysis? A) compensating salespeople B) prospecting customers C) recruiting salespeople D) forming sales teams E) supervising salespeople

E

When a seller requires that only certain dealers carry its products, its strategy is known as ________. A) horizontal restraint of trade B) intensive distribution C) vertical distribution D) disintermediation E) exclusive distribution

E

Which method of setting advertising budgets best helps management think about the relationship between promotion spending, selling price, and profit per unit? A) adaptive-control method B) objective-and-task method C) competitive-parity method D) affordable method E) percentage-of-sales method

E

Which of the following applies to a marketing intermediary who buys brand name toothpaste from 10 different manufacturers, consolidates offerings, and then resells the various brands to 500 supermarkets in Florida? A) facilitate the production of products without direct customer feedback B) help a company develop a direct channel selling system C) buy small quantities of products from producers and break them down into narrow assortments for customers D) increase the amount of work that must be done by producers and consumers E) transform the assortments of products made by producers into the assortments wanted by consumers

E

Which of the following is a characteristic of an inside sales force? A) It travels to make sales calls on customers in the field. B) It receives administrative backup from outside sales forces. C) It cannot sell or service accounts directly. D) It eliminates the need to have an outside sales force. E) It conducts business from an office via telephone.

E

Which of the following is a cost-effective mode for shipping large amounts of bulk products — coal, sand, minerals, and forest products — over long distances? A) air carriers B) water carriers C) pipelines D) trucks E) railroads

E

Which of the following is a promotion tool used for trade promotions? A) sweepstakes B) price packs C) conventions D) rebates E) allowances

E

Which of the following is an economic factor that affects the pricing decisions of a company? A) market-penetration practices B) top management decisions C) promotional activities D) reseller policies E) interest rates

E

Which of the following is an example of a combination of sales promotions and direct marketing? A) a company giving discounts on their product prices in order to gain a brand image B) a company releasing a nationwide television ad about every buyer having a chance to win a lottery prize C) a company holding a press conference to talk about their new product D) a company's sales representatives meeting customers directly to present customized offerings E) a company sending an e-mail to a customer about a discount on a product during a holiday season

E

Which of the following is true of RFID or "smart tag" technology? A) "Smart tag" technology eliminates the need for intermediaries and facilitates a direct marketing system. B) "Smart tag" technology can de-automate the entire supply chain. C) The use of "smart tag" technology makes it difficult to know where a product is located physically within the supply chain. D) Retailers and suppliers using "smart technology" have higher risks of shoplifting and robbery. E) "Smart shelves" can tell when it is time to reorder and can place orders automatically.

E

Which of the following is true of a vertical marketing system? A) It is formed when two or more companies at one level join together to follow a new marketing opportunity. B) It is formed when a single firm sets up two or more marketing channels to reach one or more customer segments. C) It does not give overall power to any one member in the channel. D) It has each channel member acting as a separate business unit trying to maximize its own profits. E) It has one channel member owning all the other channel members or has contracts with all other channel members.

E

Which of the following is true of an exclusive dealing arrangement between a producer and a dealer? A) It prohibits the producer from selling outside the dealer's territory. B) It prevents the producer from using any other dealer to sell its products regardless of geographical area. C) It gives the producer's products more shelf power compared to a competitor's products being sold by the dealer. D) It can be considered illegal if it increases competition substantially. E) It does not allow other producers to sell to that dealer.

E

Which of the following is true of consumers in the new marketing communications model? A) They are more reliant on traditional methods of marketing for product information. B) They are less informed than before about companies and product marketing techniques. C) They are more reliant on mass-media marketing methods for product information. D) They are less powerful than before in affecting the way a company markets its products. E) They are better equipped to find product and brand information on their own.

E

Which of the following pricing strategies charges the same price plus freight to all customers, regardless of their location? A) basing-point pricing B) freight-absorption pricing C) FOB-origin pricing D) zone pricing E) uniform-delivered pricing

E

Which of the following statements about break-even analysis is most likely true? A) It determines how customer-perceived value changes with value-added pricing. B) It is a tool used to calculate fixed costs. C) It is used to determine the maximum price that can be set on a product. D) It is a tool marketers use to examine the relationship between supply and demand. E) It fails to consider customer value and the relationship between price and demand.

E

________ are offers of a trial amount of a product. A) Cash refunds B) Price packs C) Rebates D) Coupons E) Samples

E

________ involves combining two or more systems of transportation to move products. A) Vertical transportation B) Disintermediation C) Just-in-time management D) Vertical integration E) Multimodal transportation

E

________ pricing refers to selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business. A) Oligopolistic B) Captive C) Dynamic D) Zone E) Predatory

E

________ use the phone, Internet, and social media to find new leads, learn about customers and their business, or sell and service accounts directly. A) Outside salespeople B) Sales managers C) Sales assistants D) Technical sales-support people E) Telemarketers and online sellers

E