Marketing test 2
Teaser campaigns for a product work best in which stage of the adoption process? Multiple Choice Decision Interest Awareness Evaluation and trial Confirmation
Awareness
Which of the following would NOT be included in a producer's total fixed cost? Multiple Choice Depreciation Property taxes Rent Insurance Component parts
Component parts Explanation Among the fixed costs are rent, depreciation, managers' salaries, property taxes, and insurance.
What basic promotion objective should be sought by a producer whose Product is very similar to its many competitors' Products? Multiple Choice Promoting Communicating Persuading Informing Reminding
Persuading Explanation A persuading objective means the firm will try to develop a favorable set of attitudes so customers will buy, and keep buying, its product. A persuading objective often tries to demonstrate how one brand is better than others are.
Logistics, or physical distribution, is related to the ________ part of the marketing mix. Multiple Choice possession production place promotion product
Place
When is it necessary for a firm to practice storing of goods? Multiple Choice When production doesn't match consumption When product quality doesn't match demand When there is more demand and no supply When products are produced in small batches When production doesn't match quality demanded
When production doesn't match consumption
Pepsi's channel system might be best described as: direct. both direct and indirect. neither direct or indirect. indirect.
indirect Pepsi does not sell directly to the consumer, but rather distributors and restaurants who carry the Pepsi product.
Expanded assortment, reduced margins, and more information are characteristics of ______. Multiple Choice mail order specialty shops the Internet club stores department stores
the Internet Explanation A consumer can get a very wide assortment from different sellers on the Internet. An online shopper has access to product descriptions, cost and specifications, photos, videos, reviews, etc.
"Retailing" covers all the activities involved in the sale of products to Multiple Choice organizational and business customers. producer/suppliers. intermediaries. government agencies. final consumers.
final consumers Explanation Retailing covers all of the activities involved in the sale of products to final consumers.
Marketing inefficiencies are due to all of the following reasons EXCEPT Multiple Choice improper blending of the four Ps. listening too closely to the "voice of the customer." lack of understanding of the market environment. lack of understanding of the fickle customer. lack of interest in the customer.
listening too closely to the "voice of the customer." Explanation Marketing inefficiencies are due to one or more of these reasons: lack of interest in or understanding of the sometimes fickle customer; improper blending of the four Ps; and lack of understanding of or adjustment to the market environment.
KeyLine, Inc., engages primarily in the manufacture of touch-sensitive LCD monitors. The company prices its products so that it earns a 20 percent return on investment. Which pricing objective is the company following? Multiple Choice Target return Share of market Nonprice competition Unit sales growth Meet competition
Target return Explanation KeyLine follows a target return objective that sets a specific level of profit as an objective.
The sequence of markups firms use at different levels in a channel is referred to as a ______. Multiple Choice markup chain markup margin markup channel market sequence standard markup
markup chain
When developing a marketing plan for a new product that is about to enter the market introduction stage of its product life cycle, a marketing manager should: Multiple Choice choose the best possible marketing strategy and stay with it throughout its product life cycle. plan to sell the product until its whole life cycle is over. plan to change the marketing strategy as the product moves through its life cycle. change the marketing strategy only when the market environment changes. plan to change the marketing strategy every six months.
plan to change the marketing strategy as the product moves through its life cycle. Explanation When the market situation changes, the original reasons may no longer apply, therefore, a marketing plan needs to be routinely checked and updated.
There are big shifts in demand from season to season for the lawn mowers produced by GreenVision Co. and its need for storage facilities also varies. For its storage needs, GreenVision should think about using ________. Multiple Choice public warehousing facilities commodity warehousing facilities distribution centers private warehousing facilities air freight
public warehousing facilities Explanation A company might choose a public warehouse if it doesn't have a regular need for space and when its business is seasonal.
Which of the 4Ps in the marketing mix is most directly related to the branding strategy for Apple's iPad? Multiple Choice Promotion Place Price Product
Product
A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time. But a bookstore orders only a few copies of each book since its customers want to select from a wide variety. This example shows ________. Multiple Choice why discrepancies of quantity occur why discrepancies of assortment occur multichannel distribution neither discrepancies of assortment or quantity why both discrepancies of quantity and assortment occur
why both discrepancies of quantity and assortment occur Explanation Discrepancy of assortment means the difference between the lines a typical producer makes and the assortment final consumers or users want.
In which of the following distribution channels is the firm most likely to maintain control of the marketing mix? Multiple Choice Indirect Layered Cooperative Direct Horizontal
Direct Explanation Direct distribution allows a firm to maintain control of the marketing mix.
________ track(s) individual customers' behavior and triggers actions in response to specific customer actions. Multiple Choice Marketing automation software Owned media managers Social media management Customer relationship management Tracker programs
Marketing automation software Explanation Marketing automation software track(s) individual customers' behavior and triggers actions in response to specific customer actions.
Some consumers maintain a "price-quality association," meaning that if a product has a high price, they assume the product must have high quality. This "price-quality association" is the basis for the use of ______. Multiple Choice Leader pricing Prestige pricing Reference pricing Price lining Odd-even pricing
Prestige pricing Explanation Prestige pricing is setting a rather high price to suggest high quality or high status.
By offering a free dog biscuit with each cup of coffee, the Coffee Collective entices customers to visit its shop during the pet adoption event. This represents what type of promotion? Multiple Choice Sales promotion Mass selling Personal selling Advertising Publicity
Sales promotion Explanation A sales promotion refers to activities (other than advertising, publicity, and personal selling) that stimulate interest, trial, or purchase by final customers or others in the channel.
Under the physical distribution concept, each of the following is coordinated as one system EXCEPT: Multiple Choice handling of products during transportation. storage of products before final delivery. delivery of manufactured products to storage. design of products according to specifications. delivery of products to their final destination.
design of products according to specifications. Explanation Under the physical distribution concept, all transporting, storing, and product-handling activities of a business should be coordinated as one system. Design of products would not be included under the physical distribution concept.
Kyra Hanover is an order getter for a modern wholesaler. Kyra is LEAST likely to be involved with Multiple Choice helping to plan special promotions and advertising for retailers. checking stock to determine what retailers should order. repairing products returned to retailers by customers. conducting demonstrations for retailers' salespeople and customers. serving as a marketing advisor to her retailers.
repairing products returned to retailers by customers. Explanation A wholesaler's order getter almost hands the product to the customer because of all the help they provide to retailers. This is all part of helping establish and build channel relationships.
Customer service reps ________. Multiple Choice usually install technical products for customers usually work with missionary salespeople are order getters who sell service products resolve problems after a purchase has been made hire professional services personnel
resolve problems after a purchase has been made
Poor communication is likely if Multiple Choice the source and the receiver do not have a common frame of reference. the source and the receiver don't have personal contact. the encoder and the decoder are not the same person. there is no "noise" in the message channel. immediate feedback is not possible.
the source and the receiver do not have a common frame of reference. Explanation Encoding and decoding need a common frame of reference to in order to communicate effectively.
Which of the following statements is a characteristic of leader pricing? Multiple Choice It assumes that some part of the demand curve is upward sloping to the right. It is banned in interstate commerce. It seeks a big profit on the leader items. It is different from bait pricing in that the marketing manager really expects to sell leader priced items. It is usually used for a retailer's major product line-to give it a competitive advantage.
It is different from bait pricing in that the marketing manager really expects to sell leader priced items. Explanation The idea is not only to sell large quantities of the leader items but also to get customers into the store to buy other products. Certain products are picked for their promotion value and priced low but above cost.
akima Valley Produce, Inc. buys artichokes from many small farmers, assembles them into larger quantities, and ships in carload quantities to a central market where they are sold to large food processors. This "regrouping activity" is called: Multiple Choice assorting. sorting. wholesaling. accumulating. bulk-breaking.
accumulating. Explanation Accumulating involves collecting products from many small producers. Accumulating the small products into larger quantities is a way of getting the lowest transporting rate and making it more convenient to handle.
Liz Edwards is a sales associate for a major retailer of high-quality cooking supplies, housewares, and furniture. She is paid an hourly wage, plus she gets an additional sum of money that is a percentage of the dollar sales of all the sales associates combined during the hours that she works. Liz is working under a(n) ________ compensation plan. Multiple Choice straight salary combination straight commission incentive bonuses
combination Explanation A combination plan includes a salary as well as some commission, which is tied to actual performance.
When Nintendo sets a relatively low price on its game units to stimulate more demand for its game cartridges, it is using ______. Multiple Choice price lining complementary product pricing bait pricing product-bundle pricing cost plus pricing
complementary product pricing Explanation Complementary product pricing is setting prices on several products as a group. This may lead to one product being priced very low so that the profits from another product will increase, thus increasing the product group's total profits.
When an independent journalist writes a movie review on a magazine, it represents ________ media. Multiple Choice indirect defined paid owned earned
earned Explanation Earned media refers to promotional messages not directly generated by the company or brand, but rather by third parties such as journalists or customers. Television or radio news stories, magazine or newspaper articles or reviews are examples of earned media.
When Hope Springs purchases refillable bottles for its water, it submits its orders directly from its computer system to its supplier's system. This is an example of: __________. Multiple Choice just-in-time (JIT) delivery RFID electronic data interchange (EDI) vendor-managed inventory contractual marketing channel
electronic data interchange (EDI) Explanation Electronic data interchange (EDI) is an approach that puts information in a standard format easily shared between different computer systems.
The marketing manager for Aerial Photography, Inc. says his sales reps have gotten in the habit of setting prices which do not produce a profit. Aerial Photography apparently is using ________. Multiple Choice introductory price dealing profit minimization pricing flexible pricing penetration pricing administered pricing
flexible pricing Explanation In flexible-price policy, too much price-cutting can erode profits. If sales reps let price-cutting become a habit, it can lead to a lower price level and lower profit.
The "mass-merchandising" concept: Multiple Choice supports the conventional retailer's "buy-low and sell-high" philosophy. focuses on increasing sales and speeding turnover by lowering prices. stresses the need for conventional stores. suggests aiming at small but profitable target markets. All of these alternatives are correct for the "mass-merchandising" concept.
focuses on increasing sales and speeding turnover by lowering prices. Explanation The mass-merchandising concept states that retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets.
Which of the following is NOT an explanation for why MICRO-marketing may cost too much in some firms? Multiple Choice Financial managers reduce finished-product inventories and force "out of stock" situations. Some managers don't see a business as a "total system" focused on customers. Production managers focus on designing products that are easy to make. Marketing managers do target marketing. Some managers make decisions as if customers are eagerly awaiting any product they produce.
Marketing managers do target marketing. Explanation "Marketing managers doing target marketing" is not an explanation for why micro-marketing may cost too much.
Which pricing policy is probably "best" for a profit-oriented, low-cost producer who is introducing a new product into a market with elastic demand and is expecting strong competition very soon after product introduction? Multiple Choice Status quo pricing Introductory price dealing Skimming pricing Penetration pricing Meeting competition pricing
Penetration pricing Explanation A penetration pricing policy tries to sell the whole market at one low price when the whole demand curve is fairly elastic and if the firm expects strong competition very soon after introduction.
A marketing plan that included sections on transportation requirements, inventory product-handling requirements, and facility requirements would include those sections under the area of ________. Multiple Choice Promotion Product Place Personnel Price
Place Explanation According to Exhibit 19-4, "transportation requirements, inventory product-handling requirements, and facilities requirements" would come under the Place section of a marketing plan.
Which of the following is the BEST example of "institutional advertising?" Multiple Choice "I'd walk a mile for a Pepsi" "Mobil gas makes your car perform better" "Promise her anything but give her Obsession" "Better living through pharmaceutical research" "HP is THE standard for personal computers"
"Better living through pharmaceutical research" Explanation "Better living through pharmaceutical research" is acclaiming the prescription drug industry and is an example of institutional advertising.
A firm that is very concerned about increases in market share should adopt a ______________ pricing objective. Multiple Choice nonprice competition sales-oriented profit-oriented status quo target return
sales-oriented Explanation A sales-oriented objective seeks some level of unit sales, dollar sales, or share of market without referring to profit.
Pick the correct statement that accurately brings out the difference between advertising and publicity. Multiple Choice While advertising is primarily aimed at business customers, publicity is typically aimed at final consumers. For most promotion objectives, advertising offers a lower cost and a more effective approach than publicity. Advertising depends on owned media, whereas publicity depends on earned media. While the Federal Trade Commission (FTC) can regulate a firm's publicity efforts, it cannot regulate its advertising campaigns. Advertising utilizes paid media, whereas publicity relies on unpaid media.
Advertising utilizes paid media, whereas publicity relies on unpaid media.
A measure of overall consumer satisfaction in the United States, created by researchers at the University Michigan, and called the ________ is based on the results of regular interviews with thousands of customers. Multiple Choice Survey of Consumer Sentiment American Customer Satisfaction Index Gallup Poll United States Customer Satisfaction Index Index of Consumer Confidence
American Customer Satisfaction Index Explanation A team of researchers at the University of Michigan has created the American Customer Satisfaction Index based on regular interviews with tens of thousands of customers of about 230 companies in 43 industries, to measure the overall consumer satisfaction.
The regrouping activity which involves putting together a variety of products to give a target market what it wants is called ________. Multiple Choice wholesaling assorting bulk-breaking sorting accumulating
Explanation Assorting means putting together a variety of products to give a target market what it wants.
A ski resort is considering a promotional campaign that emphasizes ads in national ski magazines. Which of the following disadvantages would most likely affect this campaign? Multiple Choice Inability to convey complex messages Low reader involvement Poor photo reproduction Poor detail Long lead times
Long lead times Explanation See Exhibit 15-5. The main disadvantages of magazine advertising are inflexibility, long lead times, potential high costs, and declining readership. Advantages include: high reader involvement, high quality images, good detail, and the ability to convey complex messages.
As a mode of transportation, railroad freight would be least suited for Multiple Choice automobiles. coal. fresh fruit. sand. iron ore.
fresh fruit. Explanation Railroad freight usually moves more slowly than truck shipments hence it is not suited for perishable items.
The premise of balancing a marketing manager's distribution of their product just widely enough to satisfy customers' needs but not to exceed them is: ideal market exposure. exclsive distribution. intensive distribution. selective distribution. niche.
ideal market exposure. A marketing manager does not want his or her product distribution to "exceed" their grasp - or exceed the volume of product they can reasonably sell. Products that sit on the shelf do not generate revenue. So the marketing manager must balance the need for distribution with the ability to reasonably turn a profit on that distribution.
Coca-Cola's carbonated soft drinks are available in millions of locations worldwide. This is an example of ____________ distribution. Multiple Choice administered selective intensive horizontal exclusive
intensive Explanation Intensive distribution is commonly needed for convenience products and business supplies. Customers want such products nearby.
Limited-line stores Multiple Choice are a type of unconventional general store. specialize in certain lines of related products rather than a wide assortment. carry anything they can sell in reasonable volume. seldom build good relationships with their customers. are larger stores that are organized into many separate departments and offer many product lines.
Explanation Single-line or limited-line stores specialize in certain lines of related products rather than a wide assortment.
In the United States, the federal regulatory agency that has the power to control deceptive advertising and require corrective advertising is the: Multiple Choice Consumer Product Safety Commission. Office of Consumer Affairs. Fair Trade Committee. Securities and Exchange Commission. Federal Trade Commission.
Federal Trade Commission Explanation In the United States, the federal regulatory agency that has the power to control deceptive advertising and require corrective advertising is the Federal Trade Commission.
Decisions by the Coffee Collective regarding which type of organic dog biscuit to offer is an example of which element of retail strategy? Multiple Choice Pricing Place Promotion Product Scrambled merchandising
Product Explanation The Product element requires retailers who are familiar with both the needs of the target market and alternative products available from suppliers.
Cady ClayWorks offers its customers a 10 percent discount if they buy at least $200,000 worth of products during a year. The products may be bought in one order-or spread out over several orders. Cady ClayWorks is offering a Multiple Choice brokerage allowance. noncumulative quantity discount. cumulative quantity discount. cash discount. seasonal discount.
cumulative quantity discount. Explanation Cumulative quantity discounts apply to purchases over a given period, such as a year, and the discount usually increases as the amount purchased increases.
Which of the following is the best example of owned media? Multiple Choice A games and toys store contacts outside consultants for its promotion activities. A perfume manufacturer runs a sponsored message on Facebook. A jewelry store creates a Facebook page for its products. A grocery store provides discount coupons for its premium customers. A clothing store runs sponsored messages on television.
A jewelry store creates a Facebook page for its products. Explanation On Facebook, a seller can choose to run a "sponsored message" (paid media) on the site. The same seller might also create a Facebook page (owned media) so that a brand's fans can "like" the page and keep up with messages it sends out. When a customer clicks "like" on a brand page or writes something on that brand's wall, the customer's friends see it (earned media).
Which of the following is most likely to be the encoding of a message in the communication process? Multiple Choice Certain industry magazines are chosen by a chemical manufacturer for placement of its ads. An industrial chemical manufacturer advertises its products in industry magazines. A construction company executive asks his purchase department to order a new product. An industrial chemical manufacturer determines what information to include in its ads. A construction company executive reads about a chemical product in a trade magazine.
An industrial chemical manufacturer determines what information to include in its ads. Explanation Encoding is the source deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver. Decoding is the receiver translating the message.
"Discrepancies of assortment" means: Multiple Choice consumers want more output than producers can make. the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users. some producers can produce more products than others. there are more producers than wholesalers. some consumers buy more products than others.
Explanation Discrepancy of quantity means the difference between the quantity of products it is economical for a producer to make, and the quantity final users or consumers normally want.
Which of the following is NOT a Place decision? Multiple Choice Recruiting, selecting and managing the sales force. Type of distribution channel to use. Customer service level desired. Types of intermediaries needed. Degree of market exposure desired.
Explanation Place decisions involve making goods and services available in the right quantities and locations, when customers want them. Recruiting, selecting and managing the sales force is not a place decision. It is a promotion decision.
Which of the following involves intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message? Multiple Choice Integrated marketing communications Online marketing Branding Digital marketing Product positioning
Integrated marketing communications Explanation Integrated marketing communications is the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message.
Which of the following statements is true about Instagram? Multiple Choice It is considered the most dominant social media platform in the United States. It is easy to use, as it consumes minimal time to take and post pictures. It has more penetration among older age groups. It works well for large businesses only. It uses an algorithm to decide what content is placed in the user's newsfeed.
It is easy to use, as it consumes minimal time to take and post pictures. Explanation Instagram can work well for many small businesses, where an owner or part-time marketing manager may find it less time consuming to take and post pictures than write stories or blogs. Instagram's penetration is greatest among younger age groups.
Which of the following is a characteristic of owned media? Multiple Choice It cannot be used to target niche audiences. It is considered a more trusted information source than earned media. It lacks versatility in message content and format. It is relatively more expensive when compared to earned media. It is typically characterized by high message control.
It is typically characterized by high message control. Explanation Refer to Exhibit 16-4. Owned media has the following benefits: high message control, relatively low cost, niche audiences, and versatile in message content and format.
How does advertising differ from any other form of promotion? Multiple Choice It must be paid for, while another form of mass selling-publicity is unpaid. It is the main form of personal selling which includes the use of traditional media as well as new media. It involves direct spoken communication between sellers and potential customers. It is any unpaid form of nonpersonal presentation of ideas, goods, or services. It tries to attract attention to the firm and its offerings without having to pay media costs.
It must be paid for, while another form of mass selling-publicity is unpaid. Explanation Advertising is any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor whereas publicity is any unpaid form of nonpersonal presentation of ideas, goods, or services.
What is the role of LinkedIn in promotion of business activities? Multiple Choice It serves as a place to network for jobs and sales opportunities. It supports users to use visual images such as a chart to represent business information. It allows registered users to send out short messages called tweets. It allows users to share ideas and images they find online with fellow users. It provides free online photo and video sharing service geared to mobile phones.
It serves as a place to network for jobs and sales opportunities. Explanation Businesspeople used to think of LinkedIn as a place to network for jobs. Now many companies and salespeople use LinkedIn to communicate with customers.
Fresh Farm Produce Co. has examined transportation costs and found that shipping its fruits and vegetables by rail to distant markets would cost them only $89,000, while airfreight would cost $250,000. The costs of the actual fruits and vegetables are the same for each transportation mode; in the context of implementing total cost approach, what should Fresh Farm Produce do? Multiple Choice It should immediately switch to airfreight because it is clearly a faster mode of transportation. It should ship with airfreight and store the fruits and vegetables in warehouses. It should immediately switch to rail to save money. It should try to determine other physical distribution costs before deciding on whether to use airfreight. It should conduct marketing research to determine which fruits and vegetables customers want most.
It should try to determine other physical distribution costs before deciding on whether to use airfreight. Explanation In selecting a PD system, the total cost approach involves evaluating each possible PD system and identifying all of the costs of each alternative.
If Macy's department store prices its men's ties at $10 intervals between $38 and $68, this is an example of ______. Multiple Choice Bundle pricing Bait pricing Reference pricing Leader pricing Price lining
Price lining Explanation Price lining is setting a few price levels for a product line and then marking all items at these prices. This approach assumes that customers have a certain reference price in mind that they expect to pay for a product.
Raymond Weil, a European manufacturer of premium watches, is trying to compete in the U.S. market with other fine watch brands. Its corporate website contains the following notice: "RAYMOND WEIL products are sold by official dealers only. The RAYMOND WEIL International Guarantee is offered exclusively to consumers in possession of a watch purchased from an official dealer...." In the United States, Raymond Weil watches are not available in every jewelry or department store. For example, in large cities such as Boston, Washington, D.C., and San Francisco, there are only three retailers in each city that are official Raymond Weil dealers. Raymond Weil seems to be using: Multiple Choice intensive distribution. exclusive distribution. limited distribution. selective distribution. extensive distribution.
Producers may use exclusive distribution to help control prices and the service offered in a channel. They may select only one wholesaler or retailer in each geographic area.
Fly-Right Travel Agency arranges vacation packages to Disney World in Florida. The price includes airfare, a rental car, deluxe accommodations, and tickets to Disney World and other attractions. Fly-Right is using: Multiple Choice Demand-backward pricing. Full-line pricing. Product-bundle pricing. Bid pricing. Complementary product pricing.
Product-bundle pricing. Explanation Product-bundle pricing is setting one price for a set of products.
Which of the following sales promotion activities is aimed primarily at wholesalers and retailers of a product? Multiple Choice Coupons Promotion allowances Point-of-purchase materials Portfolios Bonuses
Promotion allowances Explanation Promotion allowances are sales promotion activities aimed at wholesalers or retailers. See Exhibit 15-7.
Hope Springs could perform all physical distribution steps themselves but they chose to use a distributor instead. Which of the following is NOT a consequence of that decision? Multiple Choice Allows each company to focus on what they do best Increases logistics complexity Reduces the number of companies Hope Springs ships to Reduces total distribution costs Most likely increases price to consumers
Reduces total distribution costs Explanation Using a distributor adds complexity and cost to the logistics process but it also allows Hope Springs to focus on what they do best (producing bottled water) and reduces the amount of capital Hope Springs has to invest in supply chain infrastructure.
Pick the correct statement about sales promotion. Multiple Choice Large powerful retail chains require less sales promotion support for their manufacturer brands. Sales promotion spending has grown in immature markets, not in mature markets. Sales promotion creates a downward cycle of pricing and promotion. Spending on advertising usually exceeds the total spending on sales promotion. Sales promotion spending can be easily measured, as it involves unique activities.
Sales promotion creates a downward cycle of pricing and promotion. Explanation Sales promotion has been used as a tool to overcome consumer price resistance, creating a downward cycle of pricing and promotion.
The Coffee Collective is what type of retailer? Multiple Choice Convenience store Discount house Single-line Specialty shop Mass-merchandiser
Specialty shop Explanation A specialty shop is usually small and has a distinct "personality". Specialty shops sell special types of shopping products, such as coffee and pastries.
Which of the following statements is true about break-even point (BEP)? Multiple Choice The firm's total cost will equal its total revenue. The firm's total profits will equal its total cost. The firm's total variable costs equal its total fixed cost. The firm's total revenue will equal its variable costs. The firm's total sales will equal its total production.
The firm's total cost will equal its total revenue. Explanation Break-even point (BEP) is the quantity where the firm's total cost will just equal its total revenue.
Regarding marketing strategy planning: Multiple Choice Changes in the dimensions of the market environment have no effect on a firm's marketing mix. The lack of a complete understanding of the target market can make it difficult to combine the four Ps into a suitable marketing mix. None of these alternatives is correct. Competitors cannot force a firm to shift its marketing mix. Managers usually know all they need to know about the needs and attitudes of their target markets.
The lack of a complete understanding of the target market can make it difficult to combine the four Ps into a suitable marketing mix. Explanation Narrowing down to a specific target market and marketing mix that represents a real opportunity requires a thorough understanding of the market. There are many possible ways to satisfy the needs of target customers. The four Ps must be creatively blended so the firm develops the best mix for its target market. Each decision must work well with all the others to make a logical whole.
CeCe Springer works for a large cosmetics company. She calls on retailers to tell them about her firm's new products, to train the retailers' salespeople, and to set up promotion displays. Her boss actually handles the order-related activities. CeCe is Multiple Choice a technical specialist. an order taker. an order getter. a missionary sales rep. a manufacturers' agent.
a missionary sales rep. Explanation Missionary salespeople are supporting salespeople who work for producers, calling on intermediaries and their customers. They try to develop goodwill and stimulate demand, help intermediaries train their salespeople, and often take orders for delivery by intermediaries.
A retailer's decisions about "Place" would include decisions about which of the following: Multiple Choice a physical store and/or an online store. salesperson training. which brands to sell. in-store displays. whether to offer a store credit card.
a physical store and/or an online store. Explanation As per Exhibit 12-3, a retailer's decisions on place include physical stores and/or over the Internet, number and location of stores, shopping atmosphere, store size/layout/design, and store hours. Exhibit 12-3 shows the others as decisions around other Ps.
Distribution centers Multiple Choice are designed to facilitate the flow of products through the channel. are the same as public warehouses. are designed to eliminate all storage. are not places where regrouping activities-such as bulk-breaking-are performed. increase storing costs.
are designed to facilitate the flow of products through the channel. Explanation A distribution center is a special kind of warehouse designed to speed the flow of goods.
In measuring consumer satisfaction, marketing managers should remember that: Multiple Choice customer satisfaction is a highly personal concept. looking at the average level of satisfaction for a whole society provides a precise description of macro-marketing effectiveness. evaluations of macro-marketing effectiveness are purely objective in that they are based on tabulated survey results. consumer expectations and aspirations tend to remain the same over time. All of these alternatives are correct.
customer satisfaction is a highly personal concept.
The physical distribution ________________________ is how rapidly and dependably a firm can deliver merchandise in demand through the appropriate channels. Multiple Choice product service level standard service level trade-offs service level efficiency service level customer service level
customer service level Explanation The physical distribution customer service level concerns how rapidly and dependably a firm can deliver what the customers want.
The distributor employed by Hope Springs could use a ______, a special type of warehouse that is designed to speed the flow of goods and avoid unnecessary storing costs. Multiple Choice private warehouse unifying location distribution center production facility public warehouse
distribution center Explanation A distribution center is a special type of warehouse that is designed to speed the flow of goods and avoid unnecessary storing costs.
Pepsi exercises a __________ strategy. intensive distribution All of these exclusive distribution None of these selective distribution
intensive distribution Pepsi does not exclusively sell through any one (or two) retailers/restaurants, nor does it limit itself to sell through intermediaries who will give it "special" attention. It has an intensive distribution model.
"Promotion" does NOT include Multiple Choice publicity. personal selling. advertising. sales promotion. introductory price dealing.
introductory price dealing. Explanation Marketing managers can choose from several basic types of promotion: personal selling, mass selling, and sales promotion. Advertising and publicity are forms of mass selling. "Introductory price dealing" is part of Price, not Promotion.
Manufacturers' agents usually work for ______. Multiple Choice manufacturers' sales branches several manufacturers of noncompeting lines selling agents service wholesalers only one manufacturer
several manufacturers of noncompeting lines Explanation A manufacturers' agent sells similar products for several noncompeting producers.
Emphasis on standardized e-commerce is appropriate for a business selling situation that requires________. Multiple Choice low relationship building and high degree of standardized information exchange low relationship building and low degree of consumer product awareness low relationship building and low degree of standardized information exchange high relationship building and high consumer technology understanding high relationship building and a high degree of standardized information exchange
low relationship building and high degree of standardized information exchange Explanation Emphasis on standardized e-commerce is appropriate for selling situations where relationship-building requirements are low and standardized information exchange requirements are high.
The Xtreme Football League (XFL) was launched in 2001 by Vince McMahon, chairman of World Wrestling Entertainment (WWE). It was designed to provide professional football to American sports fans in the months after the conclusion of the National Football League (NFL) season. In spite of heavy promotion, lots of advertising, and a national network television contract, the XFL was a classic product failure, largely because the quality of play was not good enough to satisfy most football fans. The league evaporated after one season. This type of failure refutes the frequent claim of critics that advertising: Multiple Choice All of these alternatives are correct. elevates the wrong values. leads to higher prices. manipulates consumers to buy anything a company chooses to produce. makes people materialistic.
manipulates consumers to buy anything a company chooses to produce. Explanation Critics of advertising claim that firms can manipulate consumers to buy anything the company chooses to produce. This isn't true. Consumers are not puppets.
The "total cost approach" to physical distribution management Multiple Choice seeks to eliminate the storing function. might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs. All of these alternatives for the "total cost approach" are correct. ignores inventory carrying costs. seeks to minimize the cost of transportation.
might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs. Explanation In selecting a PD system, the total cost approach involves evaluating each possible PD system and identifying all of the costs of each alternative.
Some retailers commonly use prices that end in certain numbers. They seem to assume that their customers see prices with these numbers as substantially lower. This is: Multiple Choice prestige pricing. demand-backward pricing. psychological pricing. leader pricing. odd-even pricing.
odd-even pricing. Explanation Odd-even pricing is setting prices that end in certain numbers.
"Selective distribution" means selling through ________. Multiple Choice only one wholesaler or retailer in each geographic area all responsible and suitable wholesalers only those wholesalers and retailers who give the product special attention retailers but not wholesalers multichannel distribution
only those wholesalers and retailers who give the product special attention Explanation Selective distribution is selling through only those intermediaries who will give the product special attention.
The three basic sales tasks are ________. Multiple Choice order-taking, supporting, and order-getting order-taking, order-managing, and order-getting order-closing, supporting, and order-promoting order-closing, order-opening, and sales-promoting order-taking, missionary selling, and order-getting
order-taking, supporting, and order-getting
The main difference between merchant wholesalers and other wholesalers is that they ______. Multiple Choice own (take title to) the products they handle offer fewer wholesaling functions have the lowest operating expenses as a percent of sales are more aggressive at selling than agent wholesalers are willing to perform retailing functions also
own (take title to) the products they handle
A farmer's cooperative in California is sponsoring TV ads aimed at getting Americans to eat more garlic. The ads don't mention any brand names. This is an example of ________ advertising. Multiple Choice competitive indirect competitive comparative pioneering reminder
pioneering Explanation The ad campaign by the farmer's cooperative in California is trying to promote garlic just as a product itself, not a specific brand of garlic. So, it is an example of pioneering advertising.
Business firms that sell to retailers and other merchants, and/or to industrial, institutional, and commercial users-but which do not sell in large amounts to final consumers-are ______. Multiple Choice intermediaries producers collaborators retailers wholesalers
wholesalers Explanation Wholesaling is concerned with the activities of those persons or establishments that sell to retailers and other merchants, or to industrial, institutional, and commercial users, but that do not sell in large amounts to final consumers.
When personal computers were in the market introduction stage of their product life cycle, advertising helped consumers understand the needs of owning a computer. Now that personal computers have wide acceptance among business and home users, the advertising is focused more on trying to get consumers to purchase a particular brand of computer. So, personal computer advertising used to be ________ advertising in market introduction, but is now ________ advertising in market maturity. Multiple Choice comparative; reminder pioneering; competitive comparative; pioneering pioneering; institutional competitive; pioneering
pioneering; competitive Explanation Pioneering advertising tries to develop primary demand for a product category rather than demand for a specific brand. It is usually done in the early stages of the product life cycle. Competitive advertising tries to develop selective demand for a specific brand and comes later in the product life cycle.
To deliver value through the ________ marketing mix element, Martha decides to open the Coffee Collective close to the college campus. Multiple Choice product promotion price place channel
place Explanation Retailers can deliver value by providing products and services that are close to the customer—much like the Coffee Collective opening a college-focused shop near campus.
A market-directed economic system implies that: Multiple Choice the needs of consumers are not part of marketing objectives. society lacks both political and economic freedom. political freedom and economic freedom go hand in hand. people have political freedom but economic objectives are determined by the government. very little importance is attached to customer satisfaction.
political freedom and economic freedom go hand in hand. Explanation In the United States, the basic objective of the market-directed economic system has been to satisfy consumer needs as they, the consumers, see them. This objective implies that political freedom and economic freedom go hand in hand and that citizens in a free society have the right to live as they choose.
Charlie Ferragamo is a sales representative for the Season-All Spice Company, and sells spices to large food service operations and restaurants. Charlie used to be able to justify selling his products for a higher price than the competition because he believed his spices were of higher quality. However, now the demand for individual brands of spices has become very elastic because buyers perceive few differences among the brands. One of Charlie's regular customers told Charlie that another spice company offered him a significantly lower price on spices, and he asked if Charlie could match the price. Charlie said, "I have to see a written price quote from the competitor. If I lower my price without seeing the price quote, I could be accused by my other customers of engaging in ________." Multiple Choice zone pricing price grabbing price fixing price discrimination dumping
price discrimination Explanation Price discrimination is selling the same products to different buyers at different prices.
A cheese processor has regular need for regional storage of a large quantity of cheese; if he is interested in getting high managerial control and high adequacy for his product line, he probably should use ________ warehouses. Multiple Choice public has less flexibility private specific merchandise
private Explanation Firms use private warehouses when a large volume of goods must be stored regularly.
An example of customer's place requirements or needs shifting would be: providing refrigerated stands in store. None of these providing end-cap displays. All of these securing shelf space with existing customers.
providing refrigerated stands in store. By making Pepsi available anywhere at any time a consumer wants a beverage (thus broadening their options to beyond just the Pepsi product but other options such as Mountain Dew or Sierra Mist. Pepsi would want their product to be handy when the customer "impulsively" wants a drink.
A producer of household batteries for flashlights, radios, and other small electronic devices wants to increase its sales relative to its competitors. The company enters into an arrangement with a supplier of bicycles to develop an incentive for retail buyers to order more batteries. Salespeople for the battery company tell each buyer that for every 20 cases of batteries ordered, the buyer will get a new bicycle. The buyer can keep the bicycle, or use it as part of an in-store contest promotion. The battery company's promotion effort aimed at retail buyers is Multiple Choice buyer-initiated communication. pushing in the channel. integrated marketing communications. pulling by customers. None of these is a good answer.
pushing in the channel. Explanation Pushing means using normal promotion effort which is personal selling, advertising, and sales promotion to help sell the whole marketing mix to possible channel members.
A channel of distribution: Multiple Choice None of these alternatives is a good answer. is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user. is only needed when products are sold indirectly. must include one or more intermediaries. is only needed when products must be stored.
s any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.
he Ivory Islands Resort offers a forty percent discount on lodging from September through December every year due the dramatic fall in the number of visitors during the period, largely because of unfavorable weather conditions. This type of price reduction is called ________. Multiple Choice noncumulative quantity discounts trade discounts cumulative quantity discounts functional discounts seasonal discounts
seasonal discounts Explanation Service firms such as resorts that face irregular demand or drop in customers during a specific period make use of seasonal discounts to attract customers.
The sales analysis of a product revealed that profits were highest when it was initially introduced into the market with a high selling price. However, the price was gradually reduced as it started facing competition as substitutes entered the market. This is an example of a(n) ________. Multiple Choice temporary price cut policy penetration price policy introductory price dealing skimming price policy one price policy
skimming price policy Explanation A skimming price policy tries to sell to the top of a market—the top of the demand curve—at a high price before aiming at more price-sensitive customers. It is generally employed when a product has few substitutes as competition in the market. Such a policy usually involves a slow reduction in price over time, as producers seek to target new markets.
Pepsi might have chosen an indirect channel because: they can serve the customer more cost effectively. they want marketing control. soft drinks are impulse purchases. they can serve the customer better. they wanted direct contact with customers.
soft drinks are impulse purchases. Pepsi does not sell directly to the consumer, but rather distributors and restaurants who carry the Pepsi product.
"Soak" is a retailer with two locations in a major metropolitan area, both of which are in large, popular shopping centers. It carries a unique assortment of high-quality shower and bath products, such as soaps, bubble bath, and bath oils. One of its most popular products is a "bath bomb"-a round ball that fizzes and releases aromatic bath oils when placed in a bathtub filled with warm water. The small staff at the store is very knowledgeable about the store's products and provides a high level of customer service. "Soak" would be classified as a ______. Multiple Choice convenience store specialty shop general store discount house department store
specialty shop Explanation Specialty shops aim at a carefully defined target market by offering a unique product assortment, knowledgeable salesclerks, and better service.
Which of the following is NOT "something of value" that might be offered to FINAL CONSUMERS in the "price equation"? Multiple Choice stocking allowance packaging service credit repair facilities
stocking allowance Explanation As stated in Exhibit 17-2, physical good, service, repair facilities, credit, packaging, assurance of quality, and warranty are all something of value but stocking allowance is not.
A reduction from list price given to intermediaries to get shelf space for a product is a Multiple Choice brokerage allowance. shelf allocation. push money allowance. stocking allowance. trade allowance.
stocking allowance. Explanation Stocking allowances, sometimes called slotting allowances, are given to an intermediary to get shelf space for a product.
Tyler Young sells a diverse line of conveyor systems to small manufacturers. He has found that he is most successful when he uses the sales call to help the customer solve some problem using one of his products. Tyler probably relies on Multiple Choice the missionary approach. Any of these is equally likely. the prepared presentation approach. the selling formula approach. the consultative selling approach.
the consultative selling approach. Explanation Consultative selling approach involves developing a good understanding of the individual customer's needs. The salesperson asks questions and listens carefully to understand the customer's needs. Once they agree on needs, the seller tries to show the customer how the product fills those needs.
When Hope Springs coordinates all of its transporting, storing, and product-handling activities as one system that seeks to minimize the cost of distribution for a given customer service level, they are following the philosophy of _______. Multiple Choice just-in-time delivery the physical distribution concept chain of supply a total cost approach electronic data interchange
the physical distribution concept Explanation The physical distribution (PD) concept says that all transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system that seeks to minimize the cost of distribution for a given customer service level. Both lower costs and better service help to increase customer value.
In the promotion blend during the market maturity stage of the product life cycle, Multiple Choice the promotion emphasis starts to shift from building primary demand to building selective demand. None of these is a good answer. the total amount spent on promotion may rise as competition increases. the total amount spent on promotion usually decreases. the basic promotion objective is informing.
the total amount spent on promotion may rise as competition increases. Explanation In market maturity, the total dollars allocated to promotion may rise as competition increases.
An automobile manufacturer charges a higher price for its "hybrid" car that runs on both electricity and gasoline than it charges for a car that runs on only gasoline. The manufacturer contends that the consumer will save money with the hybrid car in the long run because the money saved on gasoline will more than cover the price differential between the hybrid car and a regular car. This manufacturer is using ______. Multiple Choice psychological pricing value in use pricing price leadership reference pricing price lining
value in use pricing Explanation Value in use pricing means setting prices that will capture some of what customers will save by substituting the firm's product for the one currently being used.
The idea that new types of retailers begin as low-status, low-margin, low-price operators and then-if successful-evolve into more conventional retailers offering more services is called the ______. Multiple Choice scrambled merchandising concept superstore concept wheel of retailing theory mass-merchandising concept pyramid concept
wheel of retailing theory Explanation The wheel of retailing theory says that new types of retailers enter the market as low-status, low-margin, low-price operators and then, if successful, evolve into more conventional retailers offering more services with higher operating costs and higher prices.
