Marketing Communications, 20 questions study guide

70. Which of the following quality-control methods improves quality by saving time and allowing potential problems to be caught earlier in the product design and development process: A. Concurrent engineering B. House of quality matrix C. Lean production D. Pareto

A Concurrent engineering. Concurrent engineering is a quality-control method in which product design and development are performed simultaneously. This saves time and allows potential problems or flaws to be caught earlier in the process. House of quality matrix is a quality-control tool that helps managers to determine if a product meets customer needs or not. Lean production focuses on maximizing customer value while minimizing waste. A Pareto chart is a type of bar graph that helps identify which problems need to be addressed first.

51. What is an indirect, mechanical-observation data-collection method that a business can use to obtain accurate information about the specific types of products that its customers are buying? A. Point-of-sale scanners B. Comment cards C. Manual equipment D. Sound-wave meters

A Point-of-sale scanners. Many businesses use data from their point-of-sale devices (computerized cash registers) to collect marketing information. Because the point-of-sale scanner records all of the customers' purchases, a business can use the device to (indirectly) "observe" its customers' purchasing habits on an ongoing basis. The business can use the data to determine its fast-moving items and its customers' brand preferences. Comment cards are small, short, preprinted questionnaires. Manual equipment is too broad a term to specifically address how marketing researchers collect data. Marketing researchers do not use sound-wave meters to collect information about the types of products that customers are buying.

1. A business that effectively coordinates channel management with marketing activities is more likely to provide A. good customer service. B. attractive product displays. C. free delivery. D. flexible credit terms.

A. Good customer service. Channel management is one of the marketing functions that must work with the other marketing activities to get goods and services from producers to consumers. The goal of marketing is to satisfy consumer wants and needs while achieving company goals. Businesses cannot satisfy those needs and provide quality customer service unless all the marketing activities work together. For example, businesses are only able to serve customers when they have the advertised items on hand and at the right price. Not all businesses need or use product displays, provide free delivery, or offer flexible credit terms.

11. The human resources manager sends an email to all employees stating that they will need to park on the street on Tuesday because the maintenance department will be repairing the company's parking lot. This is an example of a(n) A. informational message. B. projection report. C. business proposal. D. formal inquiry.

A. Informational message. Communicating information involves providing others with facts. In the example, the human resources manager is informing the company's employees about an issue with the company's parking lot. The human resources manager is not writing a projection report, business proposal, or formal inquiry.

78. Which of the following is an example of a potential unethical pricing issue as it relates to social responsibility: A. A manufacturing company increases prices on certain items to cover expenses to add new pollution-control devices. B. A pharmaceutical company sells a common lifesaving drug at extremely high prices in specific geographical regions. C. A clothing retailer deeply discounts goods in an effort to reduce excess inventory from the previous selling season. D. An oil company substantially increases its gasoline prices when the workers at a large refinery go on strike.

B A pharmaceutical company sells a common lifesaving drug at extremely high prices in specific geographical regions. Social responsibility is defined as the duty of business to contribute to the wellbeing of society. Because the drug is common and has the capacity to save lives, an unethical issue is possible if the drug is sold at prices so high that some people can afford the drug while others cannot, which might be considered price discrimination. An oil company that substantially increases its gasoline prices when the workers at a large refinery go on strike does not necessarily present an unethical issue since the refinery lacks human resources to supply enough of the product to meet demand. A manufacturing company that increases prices on certain items to cover expenses to add new pollutioncontrol devices is acting in an ethical manner and employing social responsibility to the natural environment. A clothing retailer that deeply discounts goods in an effort to reduce excess inventory from the previous selling season is not conducting socially irresponsible activities.

92. Which advertising medium offers the advantage of locating the promotional message near the point of purchase? A. Newspapers B. Billboards C. Television D. Direct mail

B Billboards. Billboards are a form of outdoor media. They are often located on the business's property or quite close to it. Other advantages of outdoor media include their ability to reach people who are on the move, low cost per exposure, high repeat exposure, and flexibility. Television, newspapers, and direct mail can provide consumers with the same promotional message, but the message may be seen or heard at some distance from the business that is being promoted.

96. Which of the following is a reason why the ethical and legal issues involved in selling activities are extremely important: A. Sellers must understand how to criticize competitors. B. Buyers avoid doing business with unethical salespeople. C. Sales staff must know when they can legally bend the truth. D. Sales managers are not responsible for what the sales staff does.

B Buyers avoid doing business with unethical salespeople. Unethical salespeople often lose customers and create a negative image of their company. Making erroneous statements about competitors or bending the truth to make a sale are typical examples of unethical sales practices. Sales managers must monitor the practices of their sales staff because they are ultimately responsible for the actions and claims of their staff.

75. A basic reason for the formation of a trade association is to A. provide information for consumers. B. find solutions for common problems. C. promote goodwill for an industry. D. establish a long-term group.

B Find solutions for common problems. A trade association's members can collectively find solutions to common problems that they might have difficulty handling as individuals. The members also can share their knowledge and work together to increase the profitability of all members' businesses. Trade associations are formed and disbanded according to the changing needs of the members. Some trade associations may promote goodwill or educate consumers, but those are not basic purposes of their formation.

80. One way that advances in technology help businesses keep existing products on the market and extend their life cycle is by A. minimizing inventory. B. improving performance. C. attracting attention. D. demonstrating creativity.

B Improving performance. Advances in technology that have allowed for the development of new materials and operating techniques are helping businesses improve the performance of their products. By improving existing products, businesses are able to keep them on the market and extend their life cycle. Businesses have found that it is usually less expensive to update existing products than to develop entirely new products. Advances in technology are allowing businesses to do this. Advances in technology do not help businesses keep existing products on the market by minimizing inventory, attracting attention, or demonstrating creativity.

94. An important public relations activity in business involves giving public relations advice to A. the media. B. management. C. government. D. the public.

B Management. Some businesses maintain a public relations department while others use the services of a public relations agency. One of the functions of the department or agency is to advise management on public relations issues, such as taking a position on public issues or preparing business employees to make public appearances. Giving advice is a public relations activity intended to help management make the best decisions regarding the business's relations with the public. An important public relations activity in business does not involve giving public relations advice to the media, the government, or the public.

60. The set of computer programs that manages the hardware and software of a computer is the A. digital connection. B. operating system. C. transfer protocol. D. electronic resource.

B Operating system. The operating system manages the hardware and software and makes the computer work. The system connects the software to the hardware and controls the overall operation of the computer. The set of computer programs that manages the hardware and software of a computer is not the digital connection, the transfer protocol, or the electronic resource.

35. The entrepreneurs best equipped to work long hours and overcome obstacles are ones who possess A. financial knowledge. B. passion for their work. C. technological skills. D. confidence.

B Passion for their work. Entrepreneurs who are passionate about their work find it easier to work the long hours required. They are also more likely to overcome obstacles out of a desire to continue doing what they love. Confidence can help an entrepreneur overcome challenges, but it does not necessarily help him/her work long hours. Financial knowledge can help an entrepreneur overcome financial obstacles, but it may not help an entrepreneur solve other problems or deal with long work hours. Technological skills are very useful in solving some problems, but they don't help an entrepreneur personally work for long periods of time.

83. Why do businesses want to meet quality standards? A. To determine how much work must be done B. To reduce costs C. To decrease profit D. To examine how long it takes to get a job done

B To reduce costs. Businesses want to meet quality standards to reduce costs. Managers have recognized that if employees do their jobs right the first time, they can minimize costs. Time isn't wasted redoing work, and fewer products end up as scrap. Time standards relate to how long it takes to get a job done. Quantity standards specify how much work must be done. Managers use standards to increase, rather than decrease, profit.

100. When assessing risks associated with an upcoming event, sport/event organizations should acquire input from all levels of management and A. public relations agencies. B. vertical staff members. C. financial consultants. D. local personnel inspectors.

B Vertical staff members. Vertical staff members refers to all employees who are not in management. Ticket takers, security guards, guest relations representatives, and merchandise sales personnel are examples of employees who might provide insight when conducting risk assessment. For example, sales personnel can provide information regarding shoplifting and its risks. By gathering as much information as possible from staff members, sport/event organizations can conduct comprehensive risk assessments in many areas and develop appropriate procedures to handle each situation or issue. Public relations agencies are hired by a business to develop and manage public relations activities for the business. Financial consultants are hired by a business to manage the business's financial matters. Local personnel inspector is not a term widely used by sport/event organizations.

27. Ethical dilemmas should be thought of as A. challenges. B. opportunities. C. easily avoidable. D. emergencies.

B. Opportunities. It's important to remember that each ethical dilemma you encounter is an opportunity to make the right decision and show that you can follow ethical principles. So, it's a good idea to view ethical dilemmas not as challenges, but as opportunities. Ethical dilemmas are encountered often and are not easily avoidable. They should not be viewed as emergencies.

43. Lucia, a business owner, just hired a new employee. What is one thing she should be sure to do on the employee's first day? A. Provide the new employee with all the details of every project s/he will be working on. B. Start the new employee on work right away so that s/he becomes accustomed to his/her job duties. C. Assign the new employee a mentor who can answer any questions s/he may have. D. Let the employee work on trivial tasks for a few days so that s/he can ease into working.

C Assign the new employee a mentor who can answer any questions s/he may have. One simple way to make an employee feel comfortable is to assign a mentor. The mentor doesn't need to be the employee's direct supervisor—it just needs to be someone who can show the new employee the ropes. It will help the new employee to have one ready-made friend who can show her/him around. Lucia should provide some sort of orientation for the new employee before s/he starts working. There are many important things the employee will need to know about the company's policies and his/her benefits. Although it is important to make sure the employee has information about the projects s/he is working on, Lucia won't want to overwhelm the new employee with too much information on the first day. It's also important not to give the employee busy work that doesn't fit into his/her job description. After all, that's not why the employee was hired, and this won't help the new employee become more comfortable at work.

55. Businesses need to identify their markets in order to A. improve their research methods. B. control the costs of production. C. reach goals and satisfy customers. D. be sure to appeal to all consumers.

C Reach goals and satisfy customers. When businesses identify their target markets, they can plan their marketing activities in such a way that they can satisfy customers at the same time they are meeting their own goals. Mass marketing, rather than target marketing, tries to appeal to all consumers. Market segmentation increases the costs of production, but it has benefited both large and small companies by making the most efficient use of resources. The improvement of marketing-research methods does not depend on knowing a target market.

76. Which of the following is a common consequence for violating rules of conduct: A. Increased compensation B. Promotion C. Written warning D. Criminal charges

C Written warning. A written warning includes details about your infraction and information about any future consequences that you could receive if the offense is repeated. It is commonly used as a consequence when someone has violated a rule of conduct. Promotions are not consequences and would not be the response to a rule violation. Increased compensation is also not a consequence and would not be the response to a rule violation. Criminal charges can occur when a rule violation crosses the line into illegality, but they are not a common consequence. Rather, they happen in rare, extreme cases.

24. When your level of self-esteem is low, this causes you to have A. confidence in your ability. B. difficulty with visualization. C. doubts about yourself. D. appreciation of life.

C. Doubts about yourself. When self-doubts are present, self-esteem has dropped. These doubts and your low level of self-esteem may keep you from having confidence in your own ability or an appreciation for life. A low level of self-esteem does not necessarily cause difficulty with visualization—the practice of imagining yourself in possession of a present or desired strength. Visualization is a method of overcoming low levels of self-esteem.

85. Inventory reduction, sales stimulation, and new-product introduction are reasons that many businesses use __________ techniques. A. capital-investment B. stock-turn C. dual-sponsorship D. product-bundling

D Product-bundling. Product bundling is the practice of putting together a number of goods/services to create a one-price package. Bundled products are priced so that the consumer pays less for the bundled products than they would pay for products if the consumer purchased each product individually. The advantages to businesses that bundle products include inventory reduction for slow-moving goods, sales increases, and lower new product-introduction costs. Stock-turn, dual-sponsorships, and capitalinvestment are not techniques that provide businesses with the described advantages.