Marketing Plan CDE
If total cost is $1,000 with zero quanity produced and $1,250 with 1,000 items produced, what is the marginal cost of producing each item?
$0.25
The MOLE, a toy retailer, wants to calculate the selling price for some of their stuffed dolls. They know that they paid $400 each for the dolls, and they want a 60% markup on selling price. What should their selling price be?
$1,000
What is the retail price if the cost of a product is $400, and the markup percent on retail selling price is 60%?
$1,000
With a selling price of $2,000, and a cost of $800, what would the markup (at retail) be for this product?
$1,200
Ron and Dee own a floor tile retail outlet. They want to achieve a 40% markup at retail for all of the merchandise that they sell. If one style of floor tile retails at $3 per tile, what is the maximum that Ron and Dee can pay for the tile?
$1.80
Judy and Dale want to calculate the selling price (on COST) of an item that has a cost of $10.00 and a markup percent on cost of 40%. What is their selling price.
$14.00
Jan and Bob Winfield want to calculate the cost of a new chair they just bought. Jan told Bob that the retail selling price of the chair was $1,000, and that the markup percent on the selling price was 60%. What would their cost be?
$400
When trying to calculate markup based on product cost, Doc and Den wanted to determine the markup on a product that cost $150 and sold for $200. What is their markup?
$50
If the retail selling price of an object is $100 and the markup percent on cost is 70%, what is the cost?
$58.82
On August 4, a store purchased five sofas invoiced at $7,000, terms 2/10, n/30. The invoice was paid August 13. The store paid
$6,860
Sally Rudolph is selling a new shirt that he made to her friend for $1,000. The shirt cost Sally $400. What is her markup?
$600
Ogden & Ogden receive an invoice for $100, which they pay in nine days. The terms on the invoice indicate 2/10 net thirty. How much money did Ogden & Ogden send to the seller?
$98
Pake Productions wants to markdown a new line of speakers that they have in the stores. After they are marked down, Pake Productions wants to calculate the markdown percentage. If the original price of the speakers was $200, and the new price of the speakers is $160, what is the markdown percent?
25% and 20%
What is the mode in the following example: 5 people eat pizza 1 time a week; 7 people eat pizza 2 times a week; 10 people eat pizza 3 times a week; 8 people eat pizza 4 times a week; and 2 people eat pizza 5 times a week.
3
What is the percent markup based upon cost for a product that costs $150, and has a markup of $50?
33.33%
A local department store sold a cookware set at the retail cost of $40. The actual cost of the cookware was $25. What was the percentage markup based on retail price for the cookware set?
37.50%
A local department store sold a cookware set at the retail cost of $40. The actual cost of the cookware was $25. What was the percentage markup based on cost price for the cookware set?
60%
If Bob Peters sells a set of steak knives for $1,000, and he has a markup (or selling price) of $600, which is his markup percent?
60%
Joe Fisherman wants to know his percent markup on retail of a pair of shoes for which he paid $1,000 for. He knows the amount of markup was $600. Which of the following would answer his question?
60%
Marketing costs account for what percent of the consumer's dollars spend for food:
70%
The term 8/10, net 30 on an invoice means that a business can take a(n)
8% discount for payment within 10 days; full payment due in 30 days.
Which of the following is an example of advertisement stereotyping:
A television commercial depicts a woman mopping the kitchen with a new floor cleaner
In marketing, an analysis of a person's day-to-day patterns of living is referred to as a person's AIOs, which are also known as
Activities, Interests, Opinions
In regard to industrial marketing, the following example best exemplifies what type of pricing? "The seller determines the price (or a series of prices) for a given product, and the customer pays that specified price."
Administered pricing.
Which of the following possible advertising media is generally the most expensive?
Advertising on TV
Sad-Ohs is a themed nighclub that is aimed at the over 40's. What kind of segmentation is being used by the owners of this nightclub?
Age
Sugar Bear Fresh Farm Produce is a premium item sold in exclusive stores where freshness and quality are crucial. Which form of transportation should Sugar Bear Fresh Farm Produce utilize in order to get their goods from Colorado to Pennsylvania?
Air
Which of the following are characteristics of a good brand name?
Always timely (does not become out-of-date)
Which of the following products is the best example of a product sold to a "massmarket" segment?
Andrex toilet tissue
Which of the following statements is NOT true about the product life cycle?
As industry sales rise, industry profits also rise.
AIDA is a communication model. It stands for
Attention, Interest, Desire, Action
What level of familiarity exists when a consumer buys paper clips for the office, and she/he does not notice the brand name of the product?
Brand non-recognition
Which of the following questions should be asked by a firm that is trying to decide whether to brand its products
Can the product be easily identified by a brand?
Alarid Company purchases goods from a manufacturer who then turns around and sells them to a retailer who sells them to final customers. The Alarid Company is participating in a(n)
Channel of Distribution
________ can be described as the ability of one channel member to influence another member's goal achievement.
Channel power
Best Value Hardware, a national franchise, embarks on a nationwide ad campaign to run for two months. Rick Esquibel, an ownder of a small Best Value Hardware in Allentown, PA, has seen an increase in his store's net sales in the first months of the campaign. Rick has paid a set amount toward the cost of the campaign. This situation is an example of which of the following types of advertising?
Cooperative
Which of the following is a disadvantage of advertising farm products?
Costly.
Which of the following is NOT true about the three types of convenience products (staples, impulse products, and emergency products)?
Customers shop extensively when purchasing these items.
Which of the following is a factor that restaurants consider when determining when to buy goods:
Delivery Time
Saga offers a wide range of products such as holidays and insurance for adults aged over 55. What kind of segmentation is Saga using in its marketing strategy?
Demographic segmentation
UK house builders are increasingly focused on building flats and apartments in towns and cities that appeal to single-person households. What kind of segmentation is encouraging house builders to do this?
Demographic segmentation
An easily biodegradable plastic wrap would be which of the following?
Desirable product
Which channel of distribution is being utilized if products are sold directly from the producer of the goods to the final consumer?
Direct distribution
Which form of entry into a foreign market causes the most risk?
Direct investment
Which of the following is the best medium for a marketer that wants to target specific individuals directly?
Direct mail
The use of two or more channels to distribute the same product to the same target market is known as
Dual distribution
Turner Corporation sells its product to several competing channels that will reach the same target market. Turner Corporation is using what type of distribution?
Dual distribution
A potato farmer in Alamosa, Colorado, would be likely to have which type of demand for his potato crop?
Elastic demand
When a business would like its news release to be presented right away, the business should indicate this by typing on the release
FOR IMMEDIATE RELEASE.
Which of the following federal agencies regulates telemarketing
Federal Communication Commision
The value of all goods and services produced in a country is known as
GDP
Which of the following is NOT part of the Multiple Buying Influence, when making a decision to buy a new copy machine in a business?
General public
Which of the following types of products would have the highest percentage fo total cost in transportation?
Gravel
Which of the following is the best example of a marketing objective?
Grow market share to 17.5% by 2006
Your department head recommends using secondary data in your marketing research project. This secondary data would
Have been previously published by some agency or research organization
Jeffry's manager asked him to travel to India to meet with a potential new client. The prospective client is Dr. Banita Patel, a successful Indian doctor and businesswoman. How should Jeffry greet her?
He should wait for her to offer her hand before extending his own for a handshake.
Which of the following choices is an example of a manufacturer's brand?
Heinz ketchup
Some customers feel that certain brands of refrigerators are very similar and have the same attributes. By shopping for the best price, or lowest price, what kinds of products are these?
Homogeneous products
What are the two basic types of conflicts in channels of distribution?
Horizontal and vertical
Which of the following economies creates a new rich class and a small, but growing, middle-class that both demand new types of imported goods?
Industrializing economy
Which of the following components are elements of the situation analysis section in a business's promotional plan:
Industry analysis, demographic trends, and competitive analysis
Services that cannot be seen, touched, tasted, smelled, or possessed are examples of what kind of services?
Intangible
Which of the following is an example of electronic interactive media that allows businesses to promote their products to large audiences:
Internet
Which of the following statements is true about advertising?
It can help position a firm's marketing mix to better reach the target market.
What do individuals ofter obtain as a result of using networking techniques?
Job leads
Which of the followin is a significant cost factor for direct-mail media:
Labor
Which of the following choices best defines a change in a person's though processes caused by prior experience?
Learning
The clothing retailer Top Shop tries to appeal to the style-conscious, independent girl i.e. the "fashion junkie" who goes shopping every week in pursuit of the latest hot fashions. What kind of market segmentation is being used by Top Shop?
Lifestyle segmentation
Diane sells costume jewelry in a department store and her friend Linda sells life insurance. Given these facts, which of the following statements is true about the selling process each uses
Linda spends more time than Diane on closure
Which type of joint venturing offers a low risk method of getting into a foreign market, and yields income from the beginning?
Management contracting
A company that needs to buy cushioning protection for their porcelain figurines for shipping had only two alternatives in the past. The company could either buy plastic air bubble sheets or styrene peanuts from various firms. Recently, the company became aware of Renature--a new (2 months in production), one-hundred percent biodegradable, protective cushioning product. Renature was listed in the Federal Trade Commission report as being solely produced by a German firm named Storopack. In product testing, Renature was found to be quite pleasing to a growing number of environmentally-conscious consumers. The company decided to use Renature. In general, in what part of the product life cycle would Renature be placed?
Market introduction
Which of the following is NOT one of the five steps in a problem-solving process?
Memorize your plan of action.
Which of the following is a difference between merchant middlemen and agent middlemen?
Merchant middlemen acquire ownership of the products they sell, while agent middlemen do not
Five years after a new product has been introduced, sales begin to level off because customers are purchasing the competitors brand, What strategy would be most appropriate to use in this situation?
Modify the product to renew customer interest
Which of the following choices is NOT a level in the hierarchy of needs?
Money needs
What psychological influences within an individual are best described as basic forces that motivate a person to do something?
Needs
Which of the following is NOT a function of channels of distribution?
New product development
In what stage of a product's life cycle might a business price goods very low for the purpose of eliminating excess inventory?
Obsolescence
Which of the following is NOT one of the steps in the adoption process?
Payment
Which of the following is not associated with getting the lowest cost by combining small shipments to make one full shipment?
Piggyback service
Which of the following types of advertising develops primary demand for a product category as opposed to demand for a specific brand?
Pioneering
Making goods and services available in the right quantities and locations when the customer wants them is the definition for which one of the following marketing mix variables?
Place
Which of the traditional "4 P's" of the marketing mix concerns the various outlets and channels a business uses to distribute its products?
Place
Disposable diapers, which are not biodegradable, are what type of new product opportunity?
Pleasing products
Which element of the marketing mix is the only one that directly affects the value of sales achieved by a business?
Price
Which of the traditional "4 P's" of the marketing mix concerns how much a customer pays for the good or service being offered?
Price
Which of the following is the best choice when large volumes of goods must be stored regularly?
Private warehouse
A business wishes to meet the needs and wants of customers better by delivering a higher quality service. Which element of the marketing mix will the business focus on to achieve this?
Product
The PLC model describes how sales of a product change overtime. PLC stands for
Product Life Cycle
The "four Ps" of a marketing mix are
Product, Price, Place, Promotion
A business wants to build customer awareness of features and benefits in its products that are better than the competition. Which element of the marketing mix is most likely to help them achieve this?
Promotion
Advertising belongs to which aspect of the marketing mix?
Promotion
Which of the following is a characteristic of an effective presentation software package:
Provides large visuals
Which of the following kinds of print-based media would be best to use for an advertising campaign targeted at customers in a specific location?
Regional and/or local newspapers
What is an important outcome for salespeople of keeping customers satisfied?
Repeat business
What might a business lose if an advertisment attracted new customers, but they were greeted by a discourteous employee?
Repeat business
Which statement best describes why Dual Distribution is becoming more common with producers and retailers?
Retailers want large quantities with a lower price per unit.
Which of the following is an example of a "good?"
Sony PlayStation 2
Which of the following is one of the main components of a marketing plan:
Strategy
Which of the following is the best medium to use to increase interest in a product that requires demonstrating that product's benefits?
Television
Which of the following statements is NOT a reason for downward stretching the product line?
The company at the lower end of the market may want to enter the higher end.
Which of the following are true?
The majority of new product ideas do not make it to market AND Most firms need to continually develop new products to survive.
What is the central role of brand identity elements?
The name, logo, and possibly a brand character work together to represent the brand
Which of the following descriptions provides the best definition of the "marketing mix"?
The way a business combines the main marketing elements to sell products that meet the needs and wants of customers
Which of the followingis an industrial good:
Tires for a Sears truck
Which of the following will be the best and most effective advertising objective?
To increase shelf space in our cooperating retail outlets by 25% during the next 5 months.
What is the main goal of distribution?
To make sure the right product is at the right place at the right time for purchase
Marketing managers often claim that their product has a "USP" which makes the product attractive to customers. What does "USP" stand for?
Unique Selling Point
The stock table column that tells you how many shares were traded that day is labeled
VOL.
Which of the following market income distributions would best suit sales of a Lamborghini (an automobile costing in excess of $50,000)?
Very low and very high family incomes
Which of the following is the best example of a product a consumer would consider under the extensive problem-solving process?
Washing machine
Which of the following terms fits this definition: A business that buys goods from producers or agents and sells them to retailers.
Wholesaler
When George was interviewed for a job opening, he forgot to tell the interviewer that he had computer experience. When George writes his follow-up letter, should he include this information?
Yes, he can write a brief statement about his computer skills.
If a producer priced its products much lower than those offered by competitors, is it possible that the producer would lose customers?
Yes, the price may be so low that the producer is unable to perform certain duties.
Kimberley Scott is a large business that makes the toilet tissue known as "Andrex." What is "Andrex" for Kimberley Clark?
a brand name
A Capital item (a necessary element in setting price) is
a building or toher type of major equipment AND long-lasting products that can be depreciated.
Which of the following methods of market research is not an example of "primary research?"
a company's own sales statistics and records
A reference group is
a group where people feel they belong to
The marketing plan is based on
a marketing strategy
The most difficult purchasing situation occurs when
a new product or service is purchased
Advertising is
a non personal paid form of communication
Which of the following is the best example of a trade discount?
a producer offers a discount to retailers for promoting its product during the month of June
Family units in Smallisland Country make all the products they consume. This is an example of
a pure subsistence economy.
Church groups, fraternities, work groups, families, and peer groups are representatives of
a reference group
Money provided to a business to assist in the development and sale of its products is
a subsidy
What is market mapping?
a visual representation of how a firm's products are positioned in a market
For demand of an agricultural product to be effective, it must be backed by:
a willingness and ability of the consumer to pay the price
An effective marketing campaign must be
accurate and factual
A.I.O stands for
activities, interest and opinions
The production of a new car model includes which of the following activities?
actually making the car
Returned and replacement products
add to the seller's costs
Many businesses are using the technology developed by the space program to create
advanced new products
A firm of plumbers wishes to promote its services to customers living in a town. It has only a small advertising budget. Which of the following would be the most appropriate choice of advertising media?
advertisement in the services section of a local free newspaper
A small travel company wants to promote its range of new walking and fishing holidays. Which of the following advertising media would be likely to prove most cost-effective and successful?
advertisements in specialist walking and fishing magazines
A business wishes to reach a wide audience who would otherwise not know about its product. Which method of promotion is likely to be most effective at achieving this?
advertising
Which of the following terms refers to the paid mention of a company, a product, or a service by a form of media?
advertising
Which of the following is an example of a "service?"
advertising agency
The quantity of a luxury item purchased in comparison with a necessity item would be:
affected more by price change
Perceptual maps are used to
aid in positioning a product or service
Mass marketing is about
aiming the product at the entire market
A selective distribution policy might be used to avoid selling to wholesalers or retailers who
all of the answers listed
Advertising can be placed
all of the answers listed
Advertising can make industrial customers aware of
all of the answers listed
For selling to be effective, salespeople must receive support from
all of the answers listed
Given the following choices, which is NOT considered a retailing activity?
all of the answers listed
Some activities in the action plan will include
all of the answers listed
When a business purchase is technical or very expensive,
all of the answers listed
When entering a foreign market, a marketer may need to adapt or modify which of the following promotional methods to meet the culture norms of the target market?
all of the answers listed
Which is true about the role of small businesses in the United States?
all of the answers listed
Which of the following statements could occur in market maturity?
all of the answers listed
Which statement best describes the duties of a channel captain?
all of the answers listed
Which statement is correct about the market growth stage?
all of the answers listed
What happens to the price received and the quantity sold of an agricultural product when the demand increases and the supply remains unchanged?
an increased quantity is sold at a higher price
If both demand and supply increased equally for an agricultural product, what will be the results on the quantity of the product sold and the price received:
an increased quantity will be sold at the same price
The demand curve for a business in a monopoly
appears straight
Which of the following types of tests is designed primarily to help predict how successful a person is likely to be in learning new skills?
aptitude
What is an advantage to businesses of using Internet to search for marketing information?
around-the-clock accessibility
A provocative print-ad headline such as "How do you get 3,500 buffalo together for a cattle call?" is used to
arouse curiosity.
The market price is the actual price that prevails in a market
at any particular moment
One way of obtaining product information from other individuals within the same industry is to
attend trade shows
the wholesaler who brings buyers and sellers together and allows merchandise to be inspected prior to purchase is the
auction house
When conducting a web search, keywords entered into the query field should
be as specific as possible
Written communications in business should
be clear and easy to understand
For most businesses, competition is
becoming more intense
The use of a name, symbol or design to identify a particular product is known as
branding
How can customer satisfaction levels be measured in relation to the distribution process?
by establishing performance standards from the viewpoint of the customer
What is the second-lowest of the five levels of marketing employment?
career-level
According to the Boston Consulting Group Matrix what category refers to products that are the main generators of cash and profit and therefore support investment in new products?
cash cows
When deciding how to allocate its funds,a business can use the sales forecast as a planning tool to determine whether
cash flow will be a problem
Which of the following packaging strategies is often considered to be unethical:
cause
The consumerism movement started as a result of
changing societal values
In developing a selling vocabulary, which of the following words should you avoid using:
cheap
Which of the following is an advantage of secondary market research?
cheap to collect
Employees are more likely to be able to correctly follow directions if those directions are explained in
chronological order.
Qualitative data is about
collecting opinions and attitudes on a product/service
Which of the following is the final phase in the product development process?
commercialization
Some advertising costs are hidden because
companies barter their advertising space
Which of the following is a type of information that supervisors often communicate to employees in writing:
company policies
Goods which are bought and used by individuals and households are known as
consumer goods
Businesses began to compete with each other to get customers to buy their products because
consumers had more choices
What is the management activity that involves comparing what was planned with what actually happened?
control
Employees who use office equipment only for company business are helping to
control expenses.
Which of the following types of advertising is being used when a retail store agrees to share advertising costs for a consumer product with the national distributor of the product?
cooperative advertising
When designing products, the most fundamental level of a product which answers the question: What is the buyer really buying? Is
core product.
A business advertises that its product contains specific ingredients until a government regulatory agency forces it to run ads informing consumers that the product doesn't contain all of the ingredients that the business claims it does. This is an example of___advertising.
corrective
Businesses hope that innovators will buy new products when they are the introductory stage because this helps to
create demand for the products
A business might use an advertising database to
create interactive online services and promotions
Which of the following is not part of the promotional mix?
customer care
Which of the following is an example of effective negotiations
customers agree to a higher price
Insecure people are often afraid to become assertive because they think they will
damage their relationships
Secondary data is
data collected from published materials
Quantitative data is the collection of
data for numerical analysis
For an agricultural product, such as potatoes, which has an inelastic demand schedule, the total revenue will be:
decreased with a reduction in price
The first step in the marketing research process is to
define the problem
The amount or quantity of a goods or service that would be purchased at a given price and at a specific time and place is called:
demand
The fact that farmers receive less of the food dollar spent by housewives is a sign of:
demand by consumers for increased processing
John Randall is a purchasing agent for a rather large delivery service. John has just agreed to purchase a 1992 Chevy van from his brother's construction company, although he has never driven it or seen it. This buying approach would be an example of
description buying.
S.W.O.T analysis is predominantly used to
determine the capabilities of the organization
Marketing assists in international trade by
determining where products can be sold
Product positioning is about
developing a perception of the product/service
The accounting and finance function includes
developing budgets
Most countries with a postindustrial economy are
developing laws and procedures to encourage trade with other countries
Most organizations practice
differentiated marketing
Which of the following terms refers specifically to marketing goods directly to the consumer in the home?
direct selling
A push strategy involves
directing publicity material to retailers to convince them to hold stock
Package holiday companies often display high prices in their holiday brochures and then offer big discounts to encourage customers to book. This is an example of
discount pricing
Which of the following is not an example of a convenience good?
dishwasher
Channel members' sharing inventory and order-processing information through databases and computer systems is an example of the use of technology in
distribution
The way in which products are sold is known as a
distribution channel
Own-label brands are owned by
distributors, including wholesalers and retailers
Which of Ansoff's four marketing strategies represents the highest risk approach for a business?
diversification
A business that sells products in several quite distinct markets is said to be
diversified
Geographic segmentation is about
dividing markets based on location
The four product classification used within the BCG Matrix are
dogs, question mark, star, cash cow
Which of the following software products would a small business typically use to manage its finances?
double-entry accounting software
An increase in the supply of an agricultural commodity results in a shift of the supply curve:
downward to the right
What should a job applicant do when there is a question on a job application that does not apply to him/her?
draw a line through the blank or mark it NA
Tangible goods that normally survive many usees (last long) and may require more personal selling and service, command a higher margin, and require more seller guarantees are called
durable goods.
Workers often increase their productivity in order to
earn higher wages
Items that are used to produce goods and services are
economic resources
The expression of the responsiveness of the quantity of an agricultural product produced or consumed to a change in price within a given schedule (supply or demand) is called:
elasticity
Salespersons who view a situation as a customer sees it are exhibiting
empathy
The primary goal of a good orientation program for employees is to build a successful _______ relationship.
employer-employee
A manufacturer is looking for a way to collect information about customers' buying habits. An efficient method of obtaining this information would be to
encourage customers to complete product registations and warranties online
An important result of an effective sales approach is that it
encourages the customer to want to hear about the product
How do managers assess organizational satisfaction?
evaluate how well goals are being met
What form of distribution is used when a product requires a specialized selling effort or investment in unique facilities or inventory?
exclusive distribution
Businesses often conduct environmental scans to determine if they should
expand into other markets
Which of the following is a disadvantage of primary market research?
expensive to collect
The simplest way to enter a foreign market is through
exporting.
Which of the following is a characteristic of a mass-market product?
extensive promotion
Which part of a marketing plan includes analyzing economic conditions?
external environment analysis
How would market data, economic conditions, and competitive information be classified in a marketing-infromation system?
external information
Which of the following is an example of nonverbal communication that shows a person's level of enthusiasm:
facial expression
Fostering customer loyalty and goodwill helps to build a clientele, but these efforts can be wiped out by salespeople who
fail to keep promises
The best approach for planning compliance with the laws in other countries is for the marketer to
find competent nationals in the foreign country to assist with this task
A form of primary research is
first hand information taken from respondents
Lastminute.com was one of the first businesses to successfully exploit the Internet to sell travel and holidays. Their success is an example of
first-mover advantage
A business suffering from a high level of customer complaints about a product wants a detailed understanding about what is going wrong. Which of the following methods of market research would be best in identifying the main causes of the complaints?
focus group
Concentrated marketing is based around
focusing marketing effort on one segment
In marketing, what is the term for the usefulness of a product that is a consequence of its creation from raw material?
form utility
Wendy's sells the right to operate its restaurants to individuals who meet the company's criteria. The arrangement between Wendy's and these individuals is an example of
franchising
Which of the following is generally not recognized as a type of marketing career path?
geographic
Supermarket and other forecourt petrol stations vary the price of their fuel depending on the location of the outlet. This is an example of
geographical pricing
Your ability to adjust to change can affect your success on the job because employees with this skill are more likely to be
given new responsibilities
When an unauthorized business imports products into a country and creates a parallel distribution channel that competes with the authorized channel, this is known as
gray marketing
Brand names are primarily used to
help identify a product
Which of the following is not a characteristic of successful brands?
higher distribution costs
Positioning refers to
how consumers perceive the product
Which of the following products is an example of a "non-durable" consumer good?
ice cream
The last step in developing an international marketing strategy is to
implement final decisions about product price, promotion, and place
The United States purchases computer chips from Japan. This is an example of a U.S.
import
The overall objective of marketing research is to
improve marketing decisions and reduce risk
The role of price in a free market is to serve as a guide:
in deciding what, when, and how much to produce
The supervisor has given John directions for several new job tasks. To follow the directions effectively, John should first confirm
in what order to do the tasks
Identify the factors affecting customer needs and wants in the following situation: Because of their combined incomes, Mr. and Mrs. Roberts bought a more expensive car than Mrs. Roberts drove before their wedding.
income level and marital status
Sales promotion is primarily used to
increase sales in the short term
Which of the approaches listed below to improve farm prices and income level should be eliminated:
increase supply
As price of an agricultural product increases, the supply:
increases
Selling goods and services to consumers through the use of middlemen is known as ________ selling.
indirect
Goods which are bought and used by other businesses are known as
industrial goods
The two major economic factors that reflect a country's attractiveness as an export market are
industrial structure and income distribution.
Today, personal selling is commonly used in
industry sales
When the change in price is greater than the relative change in quantity taken or available, an agricultural commodity is said to be:
inelastic
When the change in price is less than the relative change in quantity taken or available, an agricultural commodity is said to be:
inelastic
Which of the following would not be classified as a product line?
infant toys, ready-to-eat snacks, pet beds
If the customer is dissatisfied with any part of the marketing mix or if competing products appear to meet customer needs better, the salesperson can
inform the company
Consumer questionnaires, surveys, and direct interviews are all forms of data collection used in the _____________________ function of marketing.
information management
The correct sequence of stages that businesses follow as they develop their e-commerce presence on the Internet is
information, interaction, integration
The most probable advertising strategy to use during the introduction stage of the product lifecycle is
informative advertising
All of the following are primary marketing reasons for the failure of new products EXCEPT
insignificant idea generation
Traci is going to apply for a loan at a local bank so that she can purchase a new car. For which of the following credit accounts will Traci be applying:
installment
The least expensive way that a business can approach a marketing-research project is to start by collecting __________ data.
internal, secondary
What is a company's private computer network that allows authorized users to share information?
intranet
Which phase of the product life cycle is considered to be the most critical?
introduction
The stages of the product life cycle are
introduction, growth, maturity, decline
For an American firm engaged in international marketing, a joint venture
is a partnership arrangement between the American firm and a foreign company
Which of the following is an advantage of using market segmentation?
it allows a business to target its promotional strategy more effectively
New product planning is becoming increasingly important in a modern economy because
it is not always profitable JUST to sell "me-too" products.
The amount of human effort required to deliver a service is
labor intenseness
Which of the following is an example of a market for the buying and selling of services?
labor market
What kind of production method will likely be used when labor is inexpensive?
labor-intensive
Which of the following items could be classified as a "capital good?"
large-scale digital photocopier in a printing business
A business publishes an advertisement in the newspaper that includes the business's name and popular symbol. This information is known as the
logotype
Grahams Bakery decides to offer jam doughnuts at just 5 cents each rather than the normal price of 50 cents in order to encourage shoppers to visit the bakery and buy other products too. What kind of pricing strategy is being used here?
loss leader
Intensive distribution is used commonly for
low price or impulse items
Which of the following is true based on Maslow's theory of need satisfaction
lower level needs must be satisfied before higher level needs can become important
The marketing departments of hotels often use guest history records to create
mailing lists
when writing informational messages, business employees should explain the situation and include suffiect data for the recipient to be able to
make a decision
Ben and Jerry's is in the idea evaluation stage of a new ice cream flavor called "candied apples." In this stage the company needs to
make estimates of the costs and profits associated with the new flavor AND use concept testing for the "candied apples" flavor.
A marketing manager will most likely use a marketing information system (MIS) to
make product improvements
What term identifies a person who is responsible for a business created and owned by others?
manager
Which of the following is a characteristic of a product trade-name franchise:
managerial assistance and training are usually not part of the arrangement
Business people must take criticisms of marketing seriously because
many consumers have the same attitude
A place where buyers and sellers come into contact with each other is commonly known as a
market
A business that is trying to increase its market share to become market leader is often referred to as a
market challenger
According to Ansoff's Matrix, the strategy of selling more existing products to existing customers is a strategy of
market penetration
The total revenue that can be obtained from a market segment is known as the
market potential
The proportion of the market held by one company or brand is known as
market share
What is another name for the practice of introducing a new product at a high price for a brief period, in the hopes of recouping production costs?
market-skimming pricing
A group of individuals and organizations that direct the flow of products from producers to customers are
marketing channels.
A firm's marketing department has total control of the
marketing mix
The process that helps a business to make marketing decisions scientifically is usually referred to as the
marketing model
Consumer reactions to advertising and other mass communication techniques can be tracked through
marketing research
Determining customer needs is often done through
marketing research
Products that appeal to the majority of customers are often sold through __________ marketing efforts.
mass
This kind of marketing is not directed toward specific groups
mass marketing
The primary objective of team-based selling is to
match various functional areas of the company with customer needs
The method used to communicate an advertising message is known as the
medium
Which of the following refers to a listing of the variety of merchandise lines carried and the depth and breadth in which these products are stocked?
merchandise mix
Hiring professionals to create printed advertising avoids
message being missed
The government tries to promote free competition for businesses by enforcing laws that ban
monopolies
Which of the following factors would increase the sensitivity of demand for a product to a change in price?
more substitute or alternative products available
Between the ten year periods 1866-75 and 1886-95, the output of corn doubled even though the price fell. The supply curve:
moved to the right
A strategy that consists of the seller's development of two or more brands in the same product category is called
multibrand decision.
Another name for manufacturer's brand is
national brand.
A market group possesses each of the following characteristics except the
need to only buy high-priced products
The bottom line on a business's profit-and-loss statements indicates
net income
Packaging is of important to marketers because
new packages can make a difference in a new marketing strategy.
List some formats used in mass media
newspapers and magazines
A market in which goods and services are provided to a relatively small and closely defined customer group is usually referred to as a
niche market
The strategy of selling products to small, clearly identifiable segments of a market is known as
niche marketing
If an organization is conducting marketing activities other than for the goals of profit, market share, or return on investment (ROI), these marketing activities are referred to as
non-business marketing.
Which of the following statements if NOT true when developing a marketing strategy?
none of the answers listed
What happens to the equilibrium price of a commodity when the supply increases and the demand increases?
not sufficient information available to predict
Quantitative data looks at
numerical data to aid decision making
All of the following occur in the planning phase of the strategic marketing process EXCEPT
obtaining resources
Which of the following methods of primary market research would be best for communicating with users of a popular website?
online survey
Expenses associate with the daily running of a business are____cost
operation
Short-term planning is also known as which of the following?
operational planning
A group of businesspeople purchased land to build an office complex or a condominium development. After much research and discussion, they agreed to build the office complex. The alternative that was given up is referred to as a(n)
opportunity cost
For Norwich, "growth in the fields of chemical and house products" is best defined as a(n)
overall organizational goal
What type of utility does a bag of rice acquire for the consumer upon purchase?
ownership
What is the name of the pricing strategy where a low price is set so that a firm can increase its share of the market?
penetration pricing
One of the results of freedom in the marketplace is that
people can buy anything they can afford that can legally be sold
The most common method of setting the advertising budget is
percentage of sales
The process of keeping a running account of merchandise on hand is referred to as
perpetual inventory
Marketing research can affect the business's marketing mix by providing information about various locations that will influence the business's ______ decision.
place
A target market is
potential customers with shared needs who have the desire and ability to buy a product
A chain of hotels located in a resort area that rents its rooms at extremely low rates in an effort to eliminate the competition is involved in
predatory pricing.
The capability of combining graphics, text, animation and sound is a unique characteristic of _________ software programs.
presentation
Exclusive designer fashion labels generally adopt which pricing strategy?
prestige or premium pricing
Marketing helps countries use their natural resources better by
preventing the waste of materials used to make products consumers won't buy
With the high regulation of the U.S. government before the 1980s, carriers of products did not compete in the area of ________ as they do now.
price
Business A has reduced its prices to attract customers away from Business B. Business A is engaging in
price competition.
A manufacturer sells 16,000 products annually to wholesaler A for $10 a unit and 17,000 of the same product to wholesaler B for $15 a unit. Wholesaler A and B operate in the same city. This situation is an example of
price discrimation
Businesses sometimes set different prices for different customers for the same product. For example, rail companies charge higher fares for journeys at peak times. This policy is known as
price discrimation
The extent to which demand for a product changes in response to a change in price is known as
price elasticity of demand
Products with a price elasticity of less than 1 are said to be
price inelastic
The way in which prices in a market are set by the forces of demand and supply is known as the
price mechanism
A firm launches a new and unique product and decides to charge a high price to "cream" the market before competitors respond. What kind of pricing strategy is this an example of?
price skimming
Businesses that set their prices at around the normal market level (i.e. the same as most competitors) are said to be
price takers
When a researcher stops shoppers in a mall to ask them questions about why they shop at the mall, this is an example of
primary data collection
A product's immediate container is called the
primary package.
Transportation services that are operated by the shipper are known as _____.
private carriers
A step-step process that business personnel follow in performing specific tasks is known as a
procedure
The use of computer technology can help salespeople to better serve their customers by quickly
processing orders
The traditional indirect channel of distribution involves a
producer, a retailer, and the final consumers
The most important business policy affecting customers directly is the _______ policy.
product
The complete set of all products a business offers to its market is its
product assortment
Toshiba manufactures a range of laptop computers and accessories. This range is an example of
product line
Kwachy Kwackers needs a new package design for its crackers. What marketing professional would be responsible for creating the new package?
product management
The range of products sold by a business is known as the
product mix
The set of all product lines and items that a particular seller offers for sale to buyers is call
product mix.
To make informed decisions about the marketing mix, marketers need information about
product price
The Marketing Mix consists of
product, price, place, promotion
Merchandising is classified as
production
The equilibrium price of an agricultural product is the point where:
production is equal to consumption
Which of the following best defines the term economic services:
productive acts that satisfy economic wants
What do businesses expect to make when they set prices on goods and services?
profits
A pull strategy involves
promoting the product to the consumer to create demand
Advertising agencies and public relations firms are often involved in which of the seven marketing functions?
promotion
Which of the following is an advantage of promotion:
promotion informs consumers
A carefully arranged sequence of promotions designed around a common theme responsive to specific objectives is a
promotional plan.
A local business has set an amount to spend on advertising, established a promotional goal to increase sales, and scheduled its ads. This business is engaged in creating a(n)
promotional plan.
What should job applicants offer to do in the closing paragraph of an interview follow-up letter?
provide further information
What is one way in which purchasing specialists play an important role in the success of a business?
providing a flow of goods
Marketing is predominantly about
providing benefits
Which of the following pricing strategies attempts to influence a customer's perception of price to make a product's price more attractive?
psychological pricing
A business might use routine decision-making when
purchasing operating supplies
Focus groups aim to collect
qualitative data
Focus groups are most likely used to product
qualitative information on a product or service
Market research data that explores the attitudes and opinions of customers is known as
qualitative research
Inelastic demand occurs when the
quantity demanded barely changes with a change in price
The price received for an agricultural commodity is determined by which of the following:
quantity produced and the quantity consumed or purchased
What sampling method involves selecting individuals in such a way that anyone in the total population has an equal chance of being chosen?
random sampling
When making decisions, people have little control over _________ factors.
reality
Accounting is distinct from finance because its main focus is on
record-keeping activities
What is often the best way for a hotel to increase its profit?
reduce expenses
The people to whom an individual looks when forming attitudes about a particular topic is a definition of
reference groups
You successfully sell the companys new product line to Ms. Jones and she offers to put you in touch with others businesses that might be interested in your product. What type of benefit of building a clientele is this?
referral
Beef and pork are substitutes for each other in many uses. A rise in the price of beef will normally cause the demand schedule for pork to:
remain constant, but price increases
One way for salespeople to get the attention of customers who are perfoming other activities rather than listening to the presentation is to
remain silent.
One of the purposes of promotion is to ___consumers about the existence of a product
remind
The most probable advertising strategy to use during the decline stage of the product lifecycle is
reminder advertising
What is one of the benefits of sending a job interview follow-up letter?
reminds the interviewer of the applicant
A strategy of changing a product or its promotion to appeal to a different market segment is known as
repositioning
Market research involves
researching specific industries and markets
Bliss Art Supplies is trying to decide whether they should sell paint to end users or final consumers. Currently, 60% of their business goes to organizations that utilize the paint to product other products. This figure would change to 45% if the business decides to sell to the final consumer, who would receive 55% of the business. If Bliss decides to sell to the final consumer they would be going into a new line of business called
retailing.
A product has a price elasticity of demand of more than 1. This means that
revenue falls when price rises
When Tommy realized his new home did not have a fire detector, he went out immediately and bought a fire protection system. This is an example of
safety needs.
Ogden Parts Inc. has named a new sales manager with responsibilities for market planning. Ogden's president thinks the sales manager should sell more parts and outsell the competition. It seems that this company is run as if it were in the
sales era.
Burger King runs a scratch-card competition in their stores with instant prizes ranging from a free burger to $1,000 in cash. This is an example of
sales promotion
Makers of hair conditioner and shampoo often send out free samples of their products with magazines. This illustrates use of which one of the following elements of the promotional mix?
sales promotion
A marketing researcher is conducting a survey in a large selling area by contacting a small group of people that is representative of all people in that area. The small, representative group is known as the
sample
Concept tests and weighted point systems separate good product ideas from bad ones in the ______ stage of the new product process
screening and evaluation
Information about a market that has already been collected or published is known as
secondary research
The three step process within marketing segmentation includes
segmentation, targeting and positioning
The market for a product or service can often be broken down into different areas where customers have distinct needs and wants. These areas are called market
segments
ABC Corporation sells only to wholesalers who give their product special attention. ABC Corporation is practicing what type of distribution?
selective distribution
Hanes Too is only distributed in several department stores in each major metro market area. Hanes is using
selective distribution
You finally decided (after some coaxing from your friends) that a good way to get into shape is rollerblading. You suddently become aware of television and radio advertisements about rollerblade products. This is an example of
selective exposure.
Peronal selling involves
selling a product one to one
The last thing you should do to complete a successful job interview is
send a personal note of thanks to the interviewer
Direct marketing is about
sending publicity to a named person
The role of price in a market-directed economy is to
serve as a rough measure of the value of resources used to produce goods and services.
A shoe repair shop is an example of
service retailer
One would consider an intangible deed performed by one party for another party at a cost as a
service.
Within the industrial mix, the product variable places a great deal of emphasis on
services.
Micromarketing is directed at potential buyers who
share similar attitudes and behaviors
If the price of an agricultural commodity is too low, demand will be greater than the supply resulting in a:
shortage
When marketers focus on comparing their product versus a competitor's product; they
should be concerned with total product offering AND look at the relative quality.
The most difficult type of competition businesses face is a market in which they compete with other businesses offering
similar products
According to the U.S. Federal Trade Commission, a product can be advertised as "new" up to ______ months after it enters regular distribution
six
One reason why marketing information must be processed is
so that it can be complied and communicated in a useful form for decision making
The lifestyle, values, and beliefs that are common to a group of people are known as
social class
Social behavior includes
social relations
Online chats, forums, and communities that enable businesses to learn about the wants and needs of their worldwide target market have created a new form of
social relationships
When a business divides up groups of customers using terms like "working class," "middle class," "professionals" etc., what kind of market segmentation are they using?
socio-economic segmentation
Many businesses use database sofware programs to computerize their customer mailing lists in order to istantly
sort by zip code
An example of a logistical function in a channel of distribution is
sorting and storing
The standardization and grading functions of marketing involves
sorting products according to size and quality.
A master budget is made up of information from
specialized budgets that are generated by individual departments
It is often said that marketing objectives should be "SMART." The "S" in SMART refers to objectives that are
specific
Advertising is used extensively to encourage people to consider
specific brands of products
Cost-U-Less, a local frozen food superstore, agrees to provide financial support to a local women's football team provided that its name is shown on the team's jerseys. This is an example of
sponsorship
Which of the following types of software applications is primarily used to perform calculations on numbers in columns and rows?
spreadsheet
According to the Boston Consulting Group Matrix what category refers to products that are potentially very profitable but which need large investment?
stars
Assuming that all people of a certain nationality will work long hours for low pay is an example of
sterotyping
Marketing a product in a foreign market without any change to the product is called
straight extension.
Firms that view themselves as market leaders in product quality frequently adopt a
strategy that focuses on non-price benefits
Demography is a
study of the population
Based upon retail selling price, if John Doe wants to figure out the actual amount of markup of a product he plans to retail, he should
subtract the cost from the selling price.
The amount or quantity of an agricultural product available for sale at a given price and at a specific place and time is called:
supply
An abundant crop of watermelon (larger than normal) will result in a shift of the:
supply curve downward to the right and lower price
If the price of an agricultural commodity is too high, the supply will be greater than the demand resulting in a:
surplus
Institutional promotion is sometimes attacked by critics because it
takes money away from product promotions.
The group of customers that a business plans to serve is called a
target market
The particular market segment at which a business aims its products is known as the
target market
A tariff is a(n)
tax levied by the foreign government against certain imported products.
Tariffs are
taxes on imported products
Which of the following sources of information is not an example of "secondary research?"
telephone survey of a company's customers asking questions about their use of a product
McDonalds wants to test the potential demand for a new product. It markets the product in one area of the UK only so it can study the reactions of customers before deciding whether it should be launched nationally or abandoned. What kind of market research is McDonalds doing in this example?
test marketing
Trialing a new product in a limited geographical area or with a small group of customers is known as
test marketing
Mingilton Meats increased the price of their bologna from $2.00 a pound to $3.00 a pound. After doing this they noticed a decrease in total revenue. This is because
the demand for the meat is elastic
Niche marketing is about
the firm concentrating their marketing effort on one particular segment
Which of the following is an example of a marketing strategy?
the firm plans to differentiate its products based on high quality and stunning design
Which of the following factors does not influence the choice of advertising media?
the location of the advertising agency making the advertisements
Other things being equal, the greater the supply of an agricultural product:
the lower the price paid
A series of actions and events which takes place, in some sequence, as goods and services flow from the producer to the consumer is called:
the marketing process
The production of potatoes in the United States fell 9% in a recent 5 year period even though the price remained the same. The quantity supplied fell because:
the price has no influence on the quantity supplied
Consumer advocates often object when companies reduce the size of a package and keep the same price because
the price increase is not obvious
Market segmentation refers to
the process of dividing markets into distinct groups of buyers
A marketing channel is:
the route a product takes on its way from producer to consumer
Which of the following is an example of an external constraint on a firm's marketing objectives?
the serling exchange rate is make the firm's products too expensive in target export markets
If aggressive promotion is desired at the retail level, the producer chooses
the shortest available channel
Why do top-level managers usually receive high salaries?
their decisions affect the entire company
Written selling policies are preferred by some businesses because
they give employees guidelines for decision making
One of the functions involved in marketing citrus fruit is storage. What type of utility is created?
time
Which of the following is an advantage of using secondary data in marketing research?
time and money are saved
Why would the federal government invoke price controls, freeze prices at a certain level, and determine rates at which prices can be increased?
to curb inflation
Why would a business's stockholders be interested in the business's accounting records?
to know whether they have made a good investment
Companies using a sales-based objective will sell their products
to markets with a large number of available customers
Which of the following is a function of an information system that businesses use to fill customers' orders:
to prepare shipping instructions
Why is it important for businesses to coordinate distribution with other marketing activities?
to provide customer service
Which of the following is a way that an investment company can use customer service to faciliate order processing:
to provide information within a specified amount of time
Jamie, a small-business owner, was frustrated over the new labor requirements and didn't know how to fight them. Jim, a fellow business owner, suggested that Jamie join their trade association, What major benefit of trade associations does this illustrate?
trade associations enable individuals to work together to solve problems that are common to their occupations
Credit offered by one business to another business is
trade credit.
The type of financeing businesses use most frequently for the purchase of resale goods is
trade credit.
The form of labor specialization that involves the type of work that individuals perform in order to earn a living is known as specialization by
trade or profession
Which of the following gives the owner exclusive rights by law to use a brand?
trademark
A brand or part of a brand that is given legal protection because it is capable of exclusive appropriation is called:
trademark.
Which of the following is a type of government a buyer and a seller that the Clayton Act makes illegal:
typing contract
Marketing is the performance of all business activities involved in the flow of goods and services from the point of initial production until they are in the hands of the:
ultimate consumer
Lifestyle segmentation is about
understanding how people live and developing products/services that match that way of life
Goods that the consumer does not know about or knows about but does not normally think of buying, such as cemetery plots, are called:
unsought goods.
Secondary research is
using published data for decision making
The decision to use resources in a way that results in the greatest satisfaction of wants and needs is
value
What is one method of approaching prospective employers in order to look for a job?
visit personnel offices to pick up applications
When a firm continues to violate what the Better Business Bureau believes to be good business practices, what is one of the main actions that the Bureau will take?
warn customers of the unfair practices
A seller of clock radios provides purchasers with an assurance that any problem with the radios will be repaired or the radios will be replaced if they stop working within a year's time. This promise by the seller is an example of a
warranty
By definition, "Price" is
what is charged for something (product or service).
The term "micro-macro dilemma" means that
what is good for some producers may not be good for society
Many professional salespeople feel that the best time to try for a close is
when the customer seems ready to make a buying decision
Penetration pricing is
where the firm charges a low price to gain sales
Differentiated target marketing is
where the organization decides to target several segments
Which of the following terms fits this definition: A business that buys goods from producers or agents and sells them to retailers.
wholesaler
The higher the price of milk, other things being equal, the quantity consumed:
will be decreased
Information spread by friends about a service is
word-of-mouth promotion
