Marketing Final Exam
1.What may occur if firms do not handle the redefining of the salesperson's role in the new age of team selling? a) They may lose key salespeople b) They may lose accounts c) Both A and B d) None of the above
c
1.Which of the following is the biggest retail line of business in the U.S., according to U. S. Commerce Department Statistics? a) Food and beverage retailing b) General merchandise retailing c) Automotive dealer retailing d) Eating and drinking retailing e) Gas station retailing
c
10. Which of the following price points should markets focus on? a) Supply curve kink points b) Demand curve kink points c) Both supply curve and demand curve kink points
c
11. Optimal price is very likely to be at one of the demand curve kinks because it produces the: a) Target return on investment b) Lowest variable costs c) Highest gross contribution d) None of the above
c
2. Concurrent engineering is _____________. a) The development of the production process and marketing plan after the development of the product b) The development of the production process and marketing plan before the development of the product c) When several product development teams work in parallel rather than in sequence d) When several product development teams work in sequence rather than in parallel
c
2. Intermediaries add what type of utility to a manufacturers' product? a) Time utility b) Place utility c) Time and place utility d) Convenience utility
c
2. Relationship synergy occurs when the effectiveness, capability and success of the partnership is: a) The marketing strategies and implementation skills of two trading partners b) When the retailer's positioning and strategy appeal to the manufacturer's management c) More than the sum of the seller's and buyer's separate capabilities d) When the manufacturer's positioning and strategy appeal to the retailer's served market e) None of the above
c
2. What can you learn from the Price Change worksheet? a) What price sensitivity it will take to make a price reduction pay off b) What price sensitivity it will take to make a price promotion pay off c) Both A and B
c
2.In a market where price shading is relatively common, sellers who do not shade their prices: a) Are typically seen as much more ethical than their competitors b) End up haggling with customers over prices c) May be perceived as uncooperative and unreasonable d) Are better able to deal with seasonal fluctuations in supply and demand e) Often acquire greater brand loyalty as a result of their unwillingness to participate in this illegal activity
c
6. Which of the following retailing areas has been greatly impacted by Internet marketing, as mentioned in the distribution module? a) Home furniture market b) Auto market c) Clothing market d) Computer market
b
1.A negative aspect of price promotions in a mature market is: a) That they can reduce the degree of brand loyalty in the market b) That they cause buyers to switch to non-promoted brands c) The lack of competition that results d) That brand switching decreases e) None of the above
a
1.The basic principle behind best practice in increasing salesforce size is a) Marginal return b) Total sales volume c) Salary and commission d) All of the above
a
2. A manufacturer has to reach its target customers, and if those customers shift which channels they shop, then the manufacturer has to ____________. a) Add those channels b) Convince customers to switch back c) Manufacture products that are purchased in the old channel d) All of the above
a
2. In some specialized markets, the annual trade show is. a) An absolute must attend b) An important element of the marketing mix c) Something that is attended every second year or so d) Not important
a
2. The fair and honorable way of handling non-performance is: a) For the firm to inform the rep that it will follow up any leads if the manufacturer's rep does not b) Fire the reps because they are not performing as expected c) Remind the rep to follow up with the leads d) None of the above
a
2. The most efficient transfer price is: a) The market price of the goods and services that the subsidiary faces b) The price that minimizes overall taxes c) The price that minimizes taxes of the selling subsidiary d) The price that minimizes taxes of the buying subsidiary
a
2. What kinds of products are best suited for mass distribution? a) Products that are frequently purchased b) Products that are expensive c) Products that are major durables d) Products that are high risk purchases e) Both A and C
a
2. When demand increases faster than supply increases: a) Price increases b) Price decreases c) Price stays the same
a
3. Four of the following phrases appear in the physical distribution QFD figure. Please indicate which of the phrases appears in the box on the right side. a) Transportation process quality and cost b) Order-taking, picking, and packing process quality and costs c) Product quality and cost d) Customer service process quality and cost e) Inventory holding process quality and cost
a
3. The filter or stage-gate product development process is made up of which of the following stages? a) Idea development, analysis and screening, concept development, prototype design, prototype manufacturing and testing b) Analysis and screening, idea development, concept development, prototype design, prototype manufacturing and testing c) Idea development, concept development, analysis and screening, prototype design, prototype manufacturing and testing d) Idea development, concept development, prototype design, analysis and screening, prototype manufacturing and testing
a
3. Transfer prices are most often adjusted because of: a) Tax implications b) Currency fluctuations c) The personalities involved d) The organizational politics involved
a
4. In considering whether or not a salesforce be paid a salary or a commission, which is NOT true? a) For the first year, a salesperson may be paid a lower base salary to compensate for time in training b) Much depends on the realities of the marketplace c) Most companies pay a base salary with a commission on all sales or bonuses for exceeding quota d) Both B and C
a
4. Reach is short for? a) % of target customers the company distribution reaches b) Gross reach c) Net reach d) Selective reach
a
4. When supply decreases faster than demand decreases: a) Price increases b) Price decreases c) Price stays the same
a
4. Which of the following is the first step in the process used to determine salesforce size? a) Set the average time that salespeople are to spend with AA to D accounts b) Divide the total time required to service accounts by the selling time available to the average salesperson c) Total the amount of time required in a year to service all accounts by multiplying the number of each account category by the minutes per year to service that category and summing the totals of AA, A, B, C and D accounts
a
4. Which of the following statements about a label is NOT true? a) A good product label will be easy to remove b) A good product label will have an 800 number c) A good product label will signal quality d) A good product label is designed to be read by the target segment e) None of the above
a
5. If you face fierce competition, the short-term effect on sales of a price reduction will be: a) Greater than the long-term effect of a price reduction b) Less than the long-term effect of a price reduction c) The same as the long-term effect of a price reduction
a
5. Volume discounting: a) Is a form of price discrimination b) Is a form of predatory pricing c) Results in lower overall demand for the selling firm's brand d) Results in a sustainable competitive advantage over non-discounting sellers e) Is more likely to occur when there are no substitutes in the marketplace
a
5. What presentation format is being used when the following statement is conveyed to every prospect? "Hello, Mrs. X, my name is Y. I'm calling for Samantha's fashions. We carry a complete line of little girls' playwear..." a) Formula-selling presentation b) Stimulus-response presentation c) Needs-satisfaction presentation d) Hard sell e) Persuasive sales presentation
a
6. A manufacturer prefers: a) Intra-brand competition b) Inter-brand competition c) Both intra-brand and inter-brand competition are the same to a manufacturer d) None of the above
a
6. A tied pricing contract: a) Is illegal in the United States b) Results in lower profits for the selling firm, due to the necessarily lower margins c) Fixes the price of a product for a period of time (usually one year) d) Ties the firm's price increases to changes in the consumer price index (CPI) e) Results in lower prices for complementary products
a
6. Regardless of the approach used to organize the salesforce, which of the following environmental realities must be recognized by the selling firm? a) All customers should be given equal sales service b) The competition in the market c) Treat all salespeople equally d) All of the above
a
6. The current emphasis in new product development in North America encourages: a) Managers to think inside the box b) Managers to think outside the box c) Partnerships with companies in low cost markets
a
6. What is the key to a successful product design process? a) Iterating or cycling from design improvement and improved prototype to customer testing and consultation b) Spending a lot of time in designing the first prototype c) Hiring professionals to design the product d) Allocating big budget for product design
a
7. The old-fashioned geographical sales territory is often still preferred over other sales organizational structures designed around customers or products because: a) It offers the firm the greatest control at a lower cost b) It increases sales efficiency c) It is more popular d) All of the above
a
7. What type of information needs to be disclosed to salespeople if basing compensation on gross margin is applied? a) The relative profitability of the item b) Unit cost of the item c) Unit selling price of the item d) All of the above
a
7. Which of the following channel members was negatively affected by Internet marketing? a) Travel agencies b) Orbitz.com c) Airline industries d) Hotels e) Consumers
a
7. Which of the following is the most powerful motivator for salespeople? a) Peer recognition b) Management speeches c) A new product introduction d) All of the above
a
8. What can be done to discourage price promotions? a) Operate close to production capacity b) Salesforce incentives should be based on sales volume c) No need to discourage price promotions d) None of the above
a
9. Electric utilities have developed ___________ to compete in the home heating market segment. a) Usage segment discounting b) Volume discounting c) Price shading d) All are correct answers
a
9. In markets suffering fro m evolutionary rigidity, the potential rewards from innovating are a) Significant b) No change c) Small d) None of the above
a
9. Which of the following decreases consumer price sensitivity? a) When the purchase is a necessity b) When prices are increasing c) When product innovation decreases d) When there are close competitive substitutes
a
9. Which statement represents a correct response to postponing an objection? a) "I think I might be able to explain that better to you after showing you this diagram" b) "Yes, you're right, it is lighter, but that is done intentionally to make your work easier" c) "That's true, it does have a shorter shelf life, but that hasn't really been a problem. It is so popular it never gets to stay on the shelf that long anyway" d) "Where did you hear that? They must not have had the correct information" e) "As I was saying...."
a
3. The connection between a lot of advertising and brand equity is ________ the connection between sustained innovation excellence and brand equity. a) A lot weaker than b) About the same as c) A lot stronger than
a) A lot weaker than
16. When a logo's reputation is earned over decades _______________. a) The logo should stay the same for decades b) The logo needs to be refreshed to create more interest and attention c) The logo needs to be changed to create new brand associations
a) The logo should stay the same for decades
1. Each year, marketers spend far more on ____________. a) Advertising b) Packaging c) Distribution channel promotions d) Similar budget are allocated to all of the above
b
1. When supply increases faster than demand increases: a) Price increases b) Price decreases c) Price stays the same
b
1.Price shading: a) Is illegal in North America b) Allows sellers to lower prices for buyers who are knowledgeable about competitive suppliers c) Results when sellers maintain their prices at the same level when competitors raise prices d) Results when sellers maintain their prices at the same level when competitors lower prices e) Is useless when trying to deal with seasonal fluctuations of supply and demand
b
1.Transfer pricing is a) The price you charge transfer companies for a product or service b) The price you charge another unit or subsidiary of your company for a product or service c) The price you charge an overseas subsidiary of your company for a product or service d) The price you pay transfer companies for a product or services
b
10. What impact(s) might occur when off-peak demand pricing is applied? a) Increasing the annual overall average selling price b) Reducing the annual overall contribution margin c) Price-sensitive shoppers wait for the sales to occur d) Both B and C
b
2. When containers were first introduced, a Harvard University transportation economist _______ container-based transportation would lead to a reduction in U.S. manufacturing jobs. a) Warned about how b) Could not see how c) Had nothing to say about how
b
2. Which of the following is one of the three major benefits from requiring the senior executive team to spend time out on the road with salespeople calling on small accounts? a) It gives executive a second-hand sense of the market b) It helps senior executives understand the effects of their decision-making on the salesperson c) It fosters a belief in the salesforce that senior management is watching them d) All of the above
b
3. Qualifying is a) A term used in personal selling to describe the process of understanding a customer's problems b) Establishing a customer is a hot prospect c) Being approved as a preferred supplier d) Both A and B e) All of the above
b
3. Reseller, image, services and marketing are NOT as important in? a) Franchising b) Mass distribution c) Selective distribution d) All of the above
b
3. When demand decreases faster than supply decreases: a) Price increases b) Price decreases c) Price stays the same
b
3.A price skimming strategy: a) Is more likely to attract a large number of buyers b) Is more likely to attract competitors c) Is illegal if the price is set lower than the firm's average cost d) Will work only when there are substitute products on the market
b
4. Four of the following phrases appear in the physical distribution QFD figure. Please indicate which of the phrases appears in the box on the left side. a) Transportation process quality and cost b) Order-taking, picking, and packing process quality and costs c) Product quality and cost d) Customer service process quality and cost e) Inventory holding process quality and cost
b
4. In 1990, ____ of new product development projects were next generation, break-through products and by 2004, ____were next generation, break-through products according to Professor Cooper. a) 12%, 20% b) 20%, 12% c) 41%, 61% d) 61%, 41%
b
4. Research suggests that compared to price promotions, consumers may have a more positive feeling about: a) An equivalent price reduction made in the base price b) Coupons and rebates c) None of the options are true
b
4. Which of the following companies successfully added new distribution channels, as discussed in the distribution module? a) Elizabeth Taylor's Black Pearl fragrance b) Levi Strauss c) Both A and B d) None of the above
b
5. According to the sales module, what percentage of time spent with customers is high salesforce efficiency? a) 35% b) 50% c) 65% d) 85% e) None of the above
b
5. It is likely that the internal buyer will suggest that the transfer price should be the market price: a) Less half the cost savings in sales commissions and distribution that result from selling to a subsidiary (an internal buyer) b) Less the cost in sales commissions and distribution that result from selling to a subsidiary (an internal buyer) c) Plus half the cost savings in sales commissions and distribution that result from selling to a subsidiary (an internal buyer) d) Plus the cost in sales commissions and distribution that result from selling to a subsidiary (an internal buyer)
b
5. Which of the following statements is true, as discussed in the product development module? a) One third of the CEO's of very successful high-growth, high-profit companies manage the task of designing low cost into their products well b) It has been proven that concurrent engineering is very effective c) It is easy to implement concurrent engineering d) Many admit they are doing a good job of early testing of product design for manufacturability, of estimating costs, and of involving customers and suppliers during the design process
b
5.Which of the following statements is true? a) The timing of promotion isn't an important tactical decision b) In the fashion world, promotions running late in the season are designed to reduce inventory carrying costs and the risk of fashion obsolescence c) Retailers don't manage the promotions by scheduling their manufacturer orders d) Providing an early promotion will not attract buyers who would buy later at the usual higher price
b
6. If the reliability of a delivery system (longest time - average time) is reduced by five days for a buyer who uses 100 boxes a day and the annual inventory carrying cost of each box is $12, how much does the buyer save annually? a) $5,000 b) $6,000 c) $10,000 d) $12,000
b
6. The Price Change worksheet uses the "Wisdom of the Crowd" by: a) Employing economic analysis that has been tested and proven b) Using the forecasts of everyone involved c) Both A and B d) None of the above
b
6. Which of the following is the third step in the process used to determine salesforce size? a) Set the average time that salespeople are to spend with AA to D accounts b) Divide the total time required to service accounts by the selling time available to the average salesperson c) Total the amount of time required in a year to service all accounts by multiplying the number of each account category by the minutes per year to service that category and summing the totals of AA, A, B, C and D accounts
b
8. A firm has a total of 40 of all types of customers and the time required to service all those customers totals 100 hours per year on average for each customer. The firm's salespeople have 1,000 hours of selling time per year, that was calculated by multiplying 25 hours of selling time per week that the salesperson typically has available to be on the job with the customer, multiplied by 40 weeks [remember to subtract vacations (3 weeks), holidays (1 week), sick days (2 weeks) and 30 training days (6 weeks) from 52]. How many salespeople are needed to cover the market? a) 2 b) 4 c) 6 d) 8
b
8. As discussed in the distribution module, a common source of conflict between manufacturers and partners is misunderstanding the other party's viewpoint when it comes to planning and implementing joint marketing programs. These misunderstandings may include: a) Retailers have the time and merchandising skills to set up promotional displays, and marketing people sent by a manufacturer to help only get in the way b) Manufacturers get upset when they run advertisements that draw prospective customers into the retail store but lose sales because the in-store marketing push is missing c) Both A and B d) None of the above
b
8. Channel evolutionary rigidity occurs when channels ___________________. a) Rigidly adopt new technology and processes that increase efficiency b) Very slowly adopt new technology and processes that increase efficiency c) Very quickly adopt new technology and processes that increase efficiency d) None of the above
b
8. How can recognition at a conference be made even more powerful? a) Recognition directed at the self-realization need of a salesperson b) Recognition made in front of a "significant other" attending the conference c) By recognizing a salesperson's failures as well as his/her successes d) All of the above
b
8. Which of the following is/are NOT an advantage(s) of employing a rep salesforce? a) The halo effect (the company benefits from the other brands the rep sells) b) Economies of scale c) Sales territories where fewer customers are covered more efficiently d) Lower average selling cost e) None of the above
b
9. Safety stock is held: a) Against running out of demand because of order-delivery process unreliability b) Against running out of supply because of order-delivery process unreliability c) Against the cost of materials increasing d) None of the above
b
9. What might be the drawback in using commission compensation schemes as discussed in the sales module? a) They motive salespeople to sell and serve their accounts b) They tend to encourage a short-term and selfish perspective c) Firms have no solution for the problems associated with using commission compensation schemes d) The compensation scheme is flexible; there is no major drawback need to be concerned
b
1.Which of the following was not one of the first two activities in the Good Grip's product development process? a) Identify a consumer need b) Hire a designer c) Learn about the market
b) Hire a designer
2. The great era of branding started? a) In the early 1800s b) In the late 1800s c) In the early 1900s d) In the 1950s
b) In the late 1800s
10. In leveraging brand reputation, a strong brand __________________. a) Opens the door and invites you in b) Provides a foot in the door, that is all c) Blows down the door and blows out the windows
b) Provides a foot in the door, that is all
1. When the market has distinguishable segments that vary in their degree of price sensitivity, the best pricing strategy to use when initially introducing a new product is likely: a) Penetration pricing b) Price point pricing c) Price skimming d) Substitute pricing e) Predatory pricing
c
1.A salesforce should be led from front means a) Salespeople should not be asked to do things that the sales manager and senior management would not do b) CEOs convey their product enthusiasm to the public and this inspires their salesforce c) Both A and B d) None of the above
c
1.What is the first principle of sales management? a) A company needs to hire people with excellent personal selling skills b) Be able to organize and lead such people, otherwise the company cannot win in the marketplace c) Both A and B d) None of the above
c
3. Sensible marketing planners a) Involve salespeople in their planning after they have tested the plan in the field b) Often test the implementation of proposed selling tactics in a few low-potential territories c) Consult and work with sales to ensure they are 100 percent behind the marketing plan d) Both A and B e) A, B and C
c
3. What is gross contribution? a) Price minus variable cost per unit b) Price minus total fixed cost c) Quantity sold times contribution
c
4. In trading relationship and processes, which of the following statements is true? a) A unique trading relationship advantage comes from the manufacturer and channel partner working well together to reduce the costs of doing business b) If the cost reduction efforts of both parties are synchronized and if this synchronization is better than any other trading relationship, the trading relationship will have a unique competitive cost advantage c) Both A and B
c
4. Lower introductory prices can lead to higher per unit margins by: a) Increasing demand for competing products b) Decreasing demand for competing products c) Increasing sales volume and achieving economies of scale and sales efficiencies d) Maintaining brand loyalty with price discounts
c
4. Research has shown that the design management skills listed in the section _____________. a) Are positively related to firm growth and profitability b) Moderate the effect of investment in design on performance c) Both A and B d) None of the above
c
4. Which of the following is a disadvantage(s) of employing a rep salesforce? a) Low risk, reps get paid for what they sell b) Improved cash flow, you pay when you get paid c) Product knowledge training d) Good advice from reps on product design and marketing for a new venture e) Establishing proven performance
c
4.If the contribution margin percentage is currently 40 percent and a price reduction of 20 percent is proposed, by what percentage will sales have to increase for the price-reduction to be worthwhile? a) 20% b) 50% c) 100% d) 200%
c
5. When a manufacturer creates its own retail outlets, what is the real rationale for it? a) The outlets are test labs for new product lines and merchandising innovations b) It strengthens the appeal of the brand sold through other retailers c) The manufacturer can make higher profits by retailing as well as manufacturing them d) All of the above
c
5. When you make a physical distribution system more reliable and regular in its processes: a) It has no effect on inventory b) You increase the need for inventory c) You reduce the need for inventory d) None of the above
c
5. Which of the following is the second step in the process used to determine salesforce size? a) Set the average time that salespeople are to spend with AA to D accounts b) Divide the total time required to service accounts by the selling time available to the average salesperson c) Total the amount of time required in a year to service all accounts by multiplying the number of each account category by the minutes per year to service that category and summing the totals of AA, A, B, C and D accounts
c
5. Which of the following statements is true about Walmart in Britain? a) Walmart always wins with its everyday low pricing positioning b) Walmart's acquisition of Asda was a failure as it didn't gain market from Sainsbury c) Walmart continued to promote every-da y low prices, ignoring the fact that rivals were flourishing by marketing selection, quality, organic brands and prepared foods d) None of the above
c
5. Which of the following statements is true about franchising? a) Franchisees are imitators; there is little innovation in a franchise system b) About a quarter of all retailing is franchised c) Franchising is a way for an innovator to earn higher innovation profits d) Franchising is a big part of going global and acting global e) Both C and D
c
5.According to the module, which of the following products/services uses a premium pricing strategy? a) Extended appliance warranties of Walmart b) P&G's Crest Spinbrush c) Extended appliance warranties of Best Buy d) None of the above
c
5.The typical performance metric for judging new product success is __________________. a) Return on investment b) Market share c) % of sales coming from new products launched in the last 3-5 years d) All of the above
c
5.Which material in packaging may enhance the quality image of the brand in beverages and foods industries, as discussed in the product development module? a) Cans b) Plastic c) A glass bottle d) Cardboard
c
6. Creative, win-win process improvements give the trading relationship a differentiation that benefits a) The buyer b) The seller c) Both the buyer and the seller d) None of the above
c
6. Generally, the overall objective of an enterprise is to increase profitability. From this perspective, which factor should a salesforce's compensation scheme be connected to in order to maximize its profitability? a) Sales volume b) Variable costs c) Gross margin d) All of the above
c
6. Risk-taking and financing activities of channel intermediaries_____________ a) Are an important basic channel function these days b) Have been greatly increased over the last one hundred years c) Have been greatly reduced over the last one hundred years d) Both A and B
c
6. Which of the following products is suited for mass distribution? a) A Coach purse b) A Chanel watch c) A pack of Charmin toilet paper d) A marketing textbook
c
6. Which type of sales presentation is represented by the following statement? "What type of driving do you do? How many people will you usually have in the car? Maybe you should look at vans instead of sedans." a) Stimulus-response presentation b) Formula-selling presentation c) Need-satisfaction presentation d) Persuasive-selling presentation e) Canned sales presentation
c
7. A firm has a total of 800 of all types of customers and the time required to service all those customers totals 16,000 hours per year. The firm's salespeople have 1,000 hours of selling time per year, 25 hours of selling time per week, multiplied by 40 weeks [remember to subtract vacations (3 weeks), holidays (1 week), sick days (2 weeks) and 30 training days (6 weeks) from 52]. How many salespeople are needed to cover the market? a) 12 b) 14 c) 16 d) 20
c
7. A manufacturer's launching of its own outlet stores is mainly because____________. a) Consumers like to shop in outlet stores b) Manufacturers produce too many products and too many product lines c) Retail channels take advantage of generous buy-back programs and return a lot of stuff d) All of the above
c
7. If the reliability of a delivery system (longest time - average time) is reduced by 10 days for a buyer who uses 200 boxes a day, and the annual inventory carrying cost of each box is $150, how much does the buyer save annually? a) $150,000 b) $200,000 c) $300,000 d) $400,000
c
7. The Chief Executive of GE, Jeff Immelt thinks ______________. a) North America has a great future in developing new products b) His company will do more product development in Germany c) GE will move its break -through product development efforts to India and China
c
7. Which of the following statements is true about prototyping? a) You develop the clay model and then use it as input into computer-aided design b) Quality prototyping is about getting the prototype right the first time c) The working model that the organization has figured out how to manufacture is called the prototype d) Organizations don't spend enough time in developing detailed specifications of the first prototype
c
7. Why does personal selling work better than other communication options available to firms selling in the business-to-business market? a) Personal selling employs more people in the North America than advertising b) North America firms have become particularly adepts at hiring "born" salespeople c) Salespeople are able to tailor unique messages for each prospective buyer d) Personal selling is the most expensive form of promotion e) Salespeople are proficient in all aspects of new product development
c
7.In which of the following continents do prices change most often? a) Asia b) Europe c) North America
c
8. A penetration pricing strategy can be attractive when: a) Creating the necessary long -term aftermarket relationship with a customer that generates profitability b) It creates an industry platform or standard to which all other rivals must use or conform c) Both A and B d) None of the above
c
8. As discussed in the distribution module, what is the major concern for a supplier of a mass distribution product? a) Quality of its product or services b) Design of it product or services c) How to get into the mass distribution channels d) How to innovate new products frequently
c
8. Royal Phillips Electronics developed a global branding effort called "Sense and Simplicity" in 2004. Which of the following activities is incorrect? a) Set up a Simplicity Advisory Board of company outsiders to evaluate products and report to the CEO b) This principle applies to all good design: Simplify! c) Everything should be made as simple as possible, and then simpler d) It is an extension of the Chinese principle of feng shui: buildings and interiors with no clutter and complexity are healthy
c
8. The primary objective of the partnering-oriented salesperson is to: a) Create a market-exchange relationship b) Close the sale quickly c) Develop lo ng-term relations hips with customers d) Act ethically when dealing with international customers e) Satisfy the short-term needs of the supplier
c
9. Which of the following is/are NOT a disadvantage(s) of employing a rep salesforce? a) Diseconomies of scale b) Difficult to fire, may lead to loss of customers and betrayal of confidences and trade secrets c) Low start-up investment cost d) Less continuous feedback e) None of the above
c
4. Given the results of the Nescafe Instant coffee experiment, how did Nescafe reposition its brand? a) Great tasting and convenient b) Great tasting for the busy homemaker c) Great tasting and it frees up time to do more important chores d) Great tasting to the last drop
c) Great tasting and it frees up time to do more important chores
14. Which of the following is likely to most increase shareholder value and obtain financing? a) A very clever brand advertising campaign b) Having the Chief Executive Officer appear in the brand advertising campaign c) Having the company name as the brand name d) All of the above
c) Having the company name as the brand name
6. Harley Davidson is a great example of what sort of brand loyalty? a) Emotional loyalty b) Differentiation loyalty c) Identity loyalty d) Service contract loyalty
c) Identity loyalty
9. Where are the greatest branding opportunities today? a) In big ticket items involving a lot of risk b) To insecure teenagers c) In developing economies
c) In developing economies
12. Bruce McLaren, a New Zealander, founded the McLaren racing team that won eight Formula One World championships during the 1980s, and McLaren is still a major player in the design of race cars and winning championships. Which of the following would not have been a good brand extension? a) McLaren after-market high performance auto parts and accessories b) McLaren high-performance driving courses c) McLaren scenic tours of New Zealand d) A super sports car e) None of the above
c) McLaren scenic tours of New Zealand
7. Who are/were most likely to be the most brand-loyal to packaged goods and appliances? a) Your generation b) Your parents' generation c) Your grandparents' generation
c) Your grandparents' generation
Pull Strategy
calls for spending on advertising and sales promotion to build consumer demand.
Push Strategy
calls for using the sales force and trade promotion.
1) What is/are the competitive advantage(s) for IKEA? a) Elegant Swedish design b) Flat packing furniture saves manufacturing and distribution costs for IKEA c) Customer convenience and lower final delivery costs for IKEA compared to other furniture competitors d) Both B and C e) All of the above
d
1) Which of the following cities were innovative distribution hubs because their canals allowed goods to be loaded and unloaded directly into a merchant's warehouse? a) Venice b) Amsterdam c) London d) Both A and B e) All of the above
d
1. A good trade show team employs___________. a) At least two people: a screener and a closer b) A screener at the front of the exhibit to meet people c) A good closer spends his or her time at the back of the booth or in a hotel suite with serious prospects, closing deals d) All of the above
d
1. If it takes a rep longer than 3-6 months to start moving the product, then: a) The rep is more than likely just doing nothing b) The rep is not selling it to his or her existing customers c) The rep may be trying to use the product to break into new markets d) All of the above
d
1. When choosing a channel partner, a manufacturer seeks: a) A partner whose customers fit the manufacturer's target market segment b) A partner whose service and current products complement its products and service c) A partner with inferior buying, marketing, merchandising and selling skills d) Both A and B e) A, B and C
d
1. Which of the following does the Price Setting worksheet analysis do? a) Tells you how much you have to sell to meet the profit targets b) Tells you what market share you have to achieve to meet the profit targets c) Specifies your allocation of fixed costs and variable costs d) All of the above
d
1. Which of the following statements best describes convenience products? a) Shoppers will go out of their way to buy the preferred alternative b) Shoppers will purchase the next preferred alternative when the product or service is not available c) The best distribution for a convenience product is to be everywhere d) Both B and C
d
1.Which of the following might be a reason for a company to distribute through new channels? a) Introduction of new products b) A different retail channel may reach a different segment of shoppers c) If the manufacturer does not supply the new retailer, other competitors will d) All of the above
d
10. The use of technology such as 800 service call numbers, cell phones, home Internet access to account records and to members of a sales support team, has: a) Made salespeople so much more efficient and productive b) Enabled many companies to greatly increase their salesforce size c) Led to less direct person to person interaction with customers d) Both A and C e) All of the above
d
10. What are the characteristics of successful order getters? a) They uncover customer needs b) They sell value-added technical and process solutions c) Honest concern for the customer d) All of the above e) Both A and C
d
10. What characteristics does a field staff support have? a) Comprised of engineering and marketers b) Available to the customer or the salesperson by various communication methods c) Interacts with customer R & D and production on the development of new products, quality control or service problem d) All of the above
d
10. Which of the following is/are advantage(s) of computerization in order-taking processes? a) It greatly increase the variability in order processing time b) It often allows immediate notification of item availability c) It can produce courtesy confirmation e-mails that are automatically sent to buyers d) Both B and C e) A, B, and C
d
2. Changing a sales territory a) Is a significant event b) Disturbs established customer relations c) Has repercussions on other territories d) All of the above
d
2. Regarding sales compensation a) The ending point for the compensation package must be the market rate in the industry, including any customary incentive schemes used by the industry b) Sales is typically the best paid entry level jo b in marketing c) Perhaps the most fundamental principle of sales compensation is to keep it as clear and simple as possible d) Both B and C e) All of the options are true
d
2. What are the characteristics of EDI (electronic data interchange)? a) Enables automated just-in-time delivery b) Close monitoring of product and service quality conformance to contract c) Greatly reduces the need for a salesperson to service an account d) All of the above
d
2.Price promotions: a) Lead to a transfer of positive feelings to the product or brand b) Are typically superior to free sample promotions c) Work best with mature brands d) Have strong reinforcing effects and train shoppers to become deal-seeking shoppers e) None of the above
d
2.Which of the following products can price skimming strategy be applied with? a) Luxury goods b) Highly demanded new drugs c) A Rolex watch d) All of the above
d
3. A company may desire to change its incentive schedule to adapt to new competitive realities or company constraints, but changing the scheme has which of the following negative effects? a) It is likely to confuse the more experienced salespeople who have worked under several different schemes b) Having adapted to them, they may find it difficult to break their behavioral adaptation and to distinguish among the schemes in their memory c) A history of such changes increases the expectations that the scheme will be changed again in the future, thus reducing commitment to the new scheme d) All of the above e) There are no negative effects to changing its incentive schedule - the more often the better
d
3. A study found that concurrent engineering ______________. a) Reduces time to market by 50-80 percent b) Development time is 20-50 percent less c) Dollar sales are 60-90 percent higher d) Overall quality is 200-600 percent higher
d
3. Relationship synergy occurs when there is a ____ served market fit and a ____ fit between the marketing strategies and the implementation skills of two trading partners. a) Low, low b) High, low c) Low, high d) High, high
d
3. Retailers and manufacturers need to seek the balance for: a) Product variety b) Quality c) Price d) Both B and C
d
3. Which of the following is an objective of personal selling? a) To keep a current customer happy and loyal b) To persuade a current customer to buy more c) To persuade a potential customer to buy a new product or service d) All of the above e) Both B and C
d
3. Which of the following is/are an advantage(s) of employing a rep salesforce? a) A fast way of building consumer franchise b) Ease of management and greater control c) Low start-up investment costs d) Both A and C e) All of the above
d
3. Which of the following statements is the key to operating multiple channels? a) Through customer research undertaken together with channel members, establish whether the current and new channels share the same customers b) The manufacturer sets and follows the same well-defined performance criteria c) Each trading relationship's uniqueness has to be recognized d) Both A and C e) A, B, and C
d
3. Which of the following statements is true about cross-functional team management? a) Has a dramatic effect on the sales management of key accounts b) A key supplier of a component cannot become a permanent member of the cross- functional account team c) May invite a supplier (vendor) to attend a special or occasional meeting d) Both A and C e) All of the above
d
3. Which of the following statements is true? a) In the 1960s, the growth of telemarketing forced many companies to re-evaluate their sales territory strategy b) In the 2000s, the growth of the Internet forced a re-evaluation of sales territories c) Technology innovations in communication sometimes necessitate a complete restructuring of sales-force territories d) Both B and C e) All of the above
d
4. Most of the focus in mass distribution is on? a) Reducing the cost of distribution b) Keeping the shelves stocked c) Keeping the quality of service high d) Both A and B e) A, B and C
d
4. Payment terms: a) Price discriminate against slow -paying customers b) Many markets use the standard term "2 -10, net 30" c) Most sellers impose and charge interest penalties on delinquent customer debt d) Both A and B
d
4. Sales managers are involved in the marketing planning for key product markets to a) Ensure line salespeople do not think about and interact with marketing b) Suggest how to re-engineer sales practices around new product launches c) Propose and provide incentives and rewards for suggested sales process improvements d) B and C
d
4. Some entrepreneurial risks may have to be taken to give heavy support and service to a) Large, slow-growth customers b) Small, slow-growth customers c) Large, high-growth customers d) Small, high-growth customers
d
4. The major difference between a prospect and a qualified prospect is: a) Prospects are more likely than qualified prospects to become customers b) Qualified prospects require a modification to the original presentation to make the sale c) There are far more qualified prospects than prospects d) Qualified prospects have not only the need or desire for your product, but the ability and authority to purchase it e) The only difference between a prospect and a qualified prospect is that a qualified prospect has purchased your product in the past and a prospect has not
d
4. Which of the following statements is true? a) If a company can, and it is legal, it will keep most of the profits earned in the country with the highest corporate income tax on profits b) If a company can, and it is legal, it will keep most of the profits earned in the country with the lowest corporate income tax on profits c) Financial accountants are likely to use the market price as a starting point and make a taxation consideration adjustment d) Both B and C e) None of the above
d
5. In markets where a company's sales are highly volatile because of frequent and dramatic changes in the trading environment or in the company's marketing strategy: a) A straight commission approach may not work b) An uncertain link exists between effort and results c) The uncertainty about these external determinants of success makes it less fair and reasonable to tie salesforce rewards directly to salesforce success d) All of the above statements are true
d
5. The concerns of "Channel Fit" can also be applied to manufacturer's reps a) Whether they are a family business or not b) In the amount of business they currently do in the target industry c) If the rep is selling leading brands of complementary products to the target industry, it implies the rep has legitimate, desirable clients d) Both B and C e) The concerns of "Channel Fit" should only apply to marketing channels
d
5. The long-term solution to the high price of gasoline is _____________. a) To find new sources of supply b) Decrease the fuel consumption of cars c) Reduce the price through government subsidy d) Increase the price further through government taxation
d
5. Which of the following is a best practice in annual sales conferences as discussed in the sales module? a) Paying $10,000 to $100,000 to have celebrity speakers at sales conferences that salespeople can take photos and shake hands with celebrity speakers b) Signal appreciation to both the salespeople and their families c) Have the marketing people party with sales people d) Both A and B e) All of the above
d
6. In addition to economic efficiency and tax arguments, most of the rest of transfer pricing is about: a) Organization politics b) Power plays c) Pushing the legal and ethical limits of tax-based transfer pricing d) All of the above
d
6. Which of the following contributes to the growth of the company culture? a) Ceremonies b) Rites of passage c) Knighting of the superstars that occur at sales conferences d) All of the above
d
6. Which of the following scenarios described in the price module best represents the advantage of differentiation over price promotion? a) Procter & Gamble's patented innovation "Pert Plus" b) Grind-your-own gourmet coffee beans by entrepreneurial firms c) Maxwell House coffee d) Both A and B
d
7. What are the possible underlying implications when companies rely on price promotions to sell their mature product? a) Companies don't have innovative strategies b) The product- development process is broken c) The product-development process needs to be fixed d) All of the above
d
7. Which of the following criteria does the basic channel choice NOT depend on? a) Capability b) Cost c) Control d) Conviviality e) All of the above
d
7. Which of the following scenarios best describe a high negative price elasticity? a) When price increases, demand decreases a lot b) When price increases, demand decreases little c) When price decreases, demand increases a lot d) Both A and C
d
7. Which of the following statements is true about reps and customer service problems? a) A customer often wants to deal directly with the supplier b) Problems occur when the reps follow up on leads c) Manufacturers' reps are good at responding to their regular customers d) Both A and C e) Most of the time, there are no problems with reps and customer service
d
7.What kind of pricing strategies have Toyota and Honda done over the last 50 years in the United States? a) Penetration pricing strategy b) Keep raising quality with each improved model c) Keep reducing prices with each improved model d) Both A and B
d
8. A movie theatre that prices afternoon showings lower than more popular evening showings: a) Is in danger of a class action lawsuit for price discrimination b) Must prove that afternoon showings cost less on average than evening showings c) Cannot sustain such a strategy over the long term d) Does so because of lower demand and because it cannot store its excess seating capacity e) Is foolishly losing revenue that could have been generated by pricing evening showings at the lower price
d
8. What is the consequence of increased general global demand that is only somewhat answered by increased supply? d) General price increases e) General price decreases f) Prices stay the same
d
8. Which of the following increases consumer price sensitivity? a) When the purchase accounts for an insignificant percentage of income b) When prices are dropping c) When product innovation increases d) When prices can be searched on the Internet
d
8. Which of the following statement is true for bridging, as described in the sales module? a) Just add a new trading dimension b) Fundamental, long-term trading processes are altered to both seller's and buyer's advantages c) It has happened between Walmart and Procter & Gamble d) Both B and C e) All of the above
d
8. Which of the following statements is true about parallel saleforces? a) A parallel salesforce organization is often created as the result of a takeover or merger b) They exist to avoid organizational politics c) Kraft had four different saleforces which have now been arranged into one with 300 customer service teams d) All of the above are true
d
8. Which of the following statements is true while using quotas to reward high performance? a) Setting quotas too high may encourage customer inventory manipulation distortions at year end b) It is only fair to use exactly the same commission or bonus plan for every territory c)A general bonus scheme encourages overall cooperation and creates a company culture where everyone is aware that the company's competitiveness depends on everyone's performance d) Both A and C e) A, B and C
d
8.The filtering, stage-gate approach in turbulent times is considered by two leading marketing scholars to be: a) Best practice b) A way of ensuring that 70% of your product development projects are successful c) A way of ensuring that 50% of your product development projects are successful d) Cumbersome and inappropriate
d
9. In determining salesforce size based on profit maximization, which of the following statements is true? a) Consider the full costs of compensating, training, managing and supporting the salesperson's operational expenses b) If the salesperson's expected incremental dollar contribution min;77us the full cost of the salesperson is positive, then a new salesperson should be hired c) If the existing salespeople generate negative cash flow and the long-term prognosis is not good, you should stop hiring new salespeople d) All of the options are true
d
9. Total Quality Management (TQM) reengineering of processes: a) Can be applied to sales b) Can produce the same benefits as it provides in manufacturing and physical distribution c) Cannot be applied to sales because it has to deal with human beings d) Both A and B
d
9. Which of the following statement is true for logrolling, as described in the sales module? a) Both the buyer and seller need to discuss the trading terms that are most important to each b) Each gives on different dimensions to make the deal c) Decrease the total value of the exchange and the relationship d) Both A and B e) None of the above
d
13. Singer sewing machine wrecked its brand equity by __________________. a) Ceasing to provide customer support and education b) Selling off all of its company owned stores c) Stopped investing in developing and innovating high quality sewing machines d) All of these options e) None of the above
d) All of these options
5. There are different types of brand loyalty that have different strengths. Which of the following is the correct order of strength presented in the section? Strongest first, weakest last. a) Identity, differentiation, emotional, service contract, convenience b) Differentiation, emotional, identity, service contract, convenience c) Emotional, differentiation, identity, convenience, service contract d) Emotional, identity, differentiation, service contract, convenience
d) Emotional, identity, differentiation, service contract, convenience
8. What is the reason for the change in brand loyalty between generations? a) Exposure to more advertising b) Greater innocence c) Much busier d) Reduced product improvement
d) Reduced product improvement
1. Product development is about strong __________________ a) Design creativity b) Leadership c) Focus d) Simplicity e) All of the above
e
1. Which of the following statement best describe rewarding the salesforce? a) Sales motivation drives how hard a salesperson wants to work to accomplish a task or achieve a goal b) Many theories and explanations for what motivates people are based on the idea that people want to work hard when outcomes are valued and when effort is linked to performance c) For one salesperson, money may be the strongest motivator, while for another, receiving an award at a banquet is the best incentive d) Both A and B e) All of the above
e
10. As markets mature: a) The need for pioneer personal selling efforts increase b) The need for pioneer personal selling efforts decrease c) The need for direct selling and billing efforts increase d) The need for pioneer personal selling, direct selling and billing efforts decrease e) Both B and C
e
10. At which stage of the personal selling process would you obtain a purchase commitment from the prospect? a) Approach b) Presentation c) Sale d) Follow-up e) Close
e
12. Kinks in the demand curve for a particular product are more likely to occur when: a) The firm has successfully distanced the product from potential substitute products b) There exist perceptual price points wherein small changes in actual price are associated with rather large changes in perceived price and hence demand c) There exist close substitute products d) Both A and B occur e) Both B and C occur
e
2. A product's packaging ______________. a) Is its dressing b) Is often its most distinctive marketing effort c) Is a critical selling tool d) May have to be designed to fit unique display locations e) All of the above
e
2. Retailing success depends on: a) Store location b) The assortment or selection of products offered for sale c) The quality of merchandise presentation d) The attractiveness of the store interior e) All of the above
e
2. Which of the following statement(s) is NOT true for salespeople? a) They hasten the adoption and diffusion of new innovations b) They hasten the adaptation of their company to market realities c) They don't know networks of customers and distributors on a personal level d) They seldom unravel the marketing mistakes made by others e) Both C and D
e
3. A method to reduce price shading's potential to lower profits is to: a) Fire employees who participate in this activity b) Prosecute employees who participate in this activity c) Educate employees regarding legal pricing practices d) Set list prices relatively low and allow unrestricted salesperson price negotiations e) Base commissions on profits and not sales volume
e
3. Which of the following statements about packaging is true? a) A one-page guide to product use is a sure sign of poor marketing b) The consumer cannot benefit from clever packaging designed for the usage situation c) Innovative packages can add real convenience to product use d) Recyclable packages will appeal to environmentally concerned market segments e) Both C and D
e
3. Which of the following statements is true about reaching target customers? a) Channel segmentation is important in distribution reach strategy b) The most common function of a marketing channel member is to provide reach and to resell the product into a market where the original seller can't reach efficiently or effectively c) Retailers can give manufacturer both location and image competitive positioning d) Both A and B e) A, B, and C
e
3.Many price discounts are wasted because: a) About two in three are not supported by special point-of-purchase displays b) About 30 percent are not passed on to consumers c) They are not noticed by buyers d) They are automatically given to all consumers e) Both B, C and D
e
4. As discussed in distribution module, retailing is about: a) Price b) Supply chain cost control c) Positioning d) Promotion e) Both B and C
e
4. What might be the objectives if a salesforce calls on retail accounts? a) Introducing new product lines b) Making sure merchandising displays are put in place c) Attempting to increase the amount and quality of shelf space given to its product d) Encouraging the account to cooperate with promotion programs e) All of the above
e
5. Which of the following is the basic channel activity discussed in distribution? a) Reaching target customers, where they are and where they shop b) Informing and serving the customer c) Moving the product d) Financing the venture e) All of the above
e
5.A seller in a high-growth market faces particular problems, such as: a) It constantly has to adjust its organization as its sales expand b) If it does not adjust its organization accordingly, it opens up the market to rivals c) It can serve all of the new customers that are springing up in a territory d) Adding salespeople until they no longer generate enough contribution to justify their employment e) A, B, and D
e
6. Consistently pricing your product below your average cost: a) Can be profitable if you can sell complementary products at a relatively high margin b) Is price discrimination if certain consumer groups do not purchase the products c) Can be considered predatory pricing if it results in taking sales away from competitors d) Can be profitable if there are multiple substitutes in the market e) Both A & C
e
6. Many representatives are eager to reduce price because a) Manufacturers' profit margins cannot be really hurt b) Manufacturers encourage them to do so c) The sale takes less time and energy d) They suffer a minor commission reduction e) Both C and D
e
6. Prices are economic stop lights. They direct buying and selling. When prices become sticky: e) The market is less efficient in allocating resources f) Demand is increasing faster than supply so invest in supply g) Supply is increasing faster than demand so divest in supply h) The market is in efficient equilibrium
e
7. A retail store's assortment of customers has varying degrees of uniqueness, measured in terms of: a) Individual differences (age or income) b) Product usage and needs c) Perceptions of the competitive offerings d) Sensitivity to different promotional strategies e) All of the above
e
7. Price discrimination: a) Is illegal in the United States b) Results when sellers maintain their prices even though competitors raise their prices c) Results when sellers maintain their prices even though competitors lower their prices d) Is a form of predatory pricing e) Results when a seller differentially adapts prices to various buyers e
e
7. Which of the following is NOT a relationship selling tactic? a) Expanding the size of the pie b) Giving back parts of the pie c) Adding a new ingredient to the pie d) Reengineering the whole pie-making process e) They all are all a relationship selling tactic
e
8. The development of a new logistics relationship between businesses and trading partners requires which of the following? a) The development of new attitudes that change old habits b) Enough trust to work together to develop competitive added value for both of you c) A willingness to not exploit the new relationship at the expense of long run cooperation d) Patience; payoff often takes time and there are always initial glitches e) All of the above
e
11. Which of the following has Virgin used to extend its brand name? a) The extension category is used in the same usage situation b) The extension category is distributed through the same channels c) The extension category is not dominated by existing, powerful brands d) All of these options e) None of the above
e) None of the above
15. Which of the following is the odd brand out? a) NoDoz b) Handy Wipes c) Slim Fast d) Mop and Glow e) Tide
e) Tide
2. The Good Grips case study highlighted best practice in __________________. a) Understanding customer product use and benefits sought b) Design c) Funding the project d) Maximizing distribution reach e) Minimizing opportunities for imitators f) All of the above
f
1. A brand is __________________________________. a) Created by memorable, meaningful and likable advertising b) A set of associations linked to a name c) A reputation d) A and B e) A and C f) B and C g) A, B and C
f) B and C