Marketing 2

Availability or having a product in stock is a primary distribution concern for convenience products. True False

True

A ____________ is a retail concept where, typically a smaller retailer provides highly personalized service through a single retail outlet? a. Franchise b. Independent store c. Co-op d. Corporate Chain e. Contractual system

b. Independent store

A brand can be thought of as a promise you make to your customers. In order for the brand to be successful, the promise must be _____________? a. In writing b. Kept. c. Changed as circumstances change. d. A warranty e. Implied

b. Kept.

Which of these is NOT a tool you can use to communicate the brand experience? a. All of these are tools you can use to communicate the brand experience. b. Positioning c. Message strategy d. Brand name e. Advertising

a. All of these are tools you can use to communicate the brand experience.

Which of the following is NOT one of the dimensions customers use to evaluate service quality? a. Price b. Empathy c. Responsiveness d. Assurance e. Reliability

a. Price

Frodo was a massage therapist. He was very good at dealing with lower back pain. The walls of his waiting room were covered with framed documents. Some of them were diplomas from the massage schools he had attended. Others were copies of testimonial letters from well known people. Still others were reprints of favorable news articles that had been published in newspapers and magazines. Frodo was using the ___________ approach to making his service seem 'real'? a. Association b. Documentation c. Visualization d. Physical representation e. Word of mouth

b. Documentation

Bruce ordered a test bank from teachersupplies.com. The cost of the package was $39.95 plus sales tax (you are responsible for California sales tax, even if you order online). He chose to have the product shipped via UPS ground because it was the least expensive shipping option. Teachersupplies.com is using a ___________ approach to geographic pricing? a. Zone delivered price b. FOB (free on board) c. Freight absorption d. Promotional allowance. e. Uniform delivered price

b. FOB (free on board)

_________ is the amount of money or other consideration, which is exchanged or offered for a product, or other desired outcome. a. Expense b. Price c. Value d. Revenue e. Barter

b. Price

Which of the following is NOT a cost typically associated with logistics? a. Storage b. Product development c. Order processing d. Stockout. e. Materials handling

b. Product development

With _________________ the roles of the various channel partners are specified by a formal contract. a. Franchises b. The roles of the channel partners are specified by contract in all of these situations c. Vertical marketing systems d. Co-operative associations

b. The roles of the channel partners are specified by contract in all of these situations

Materials handling deals with loading and unloading products and moving them short distances from place to place. One of the biggest issues in material handling is? a. Breakage b. Theft c. All of these are issues associated with materials handling d. Keeping track of where things are e. Damage control

c. All of these are issues associated with materials handling

One of the issues facing _______________, people born between 1946 and 1964 is coming to terms with growing older? a. Co-generators b. Generation Y'ers c. Baby boomers d. Generational marketers e. Generation X'ers

c. Baby boomers

In order for a firm to have an increase in market share as a pricing objective, it is assumed that the firm has? a. no competition b. value. c. profits d. leading market share e. social responsibility

c. profits

Bruce went into an appliance store to purchase a 32" HD tv for $249 as advertised online. When he got to the store, he was told that all of the $249 tv's had been sold, but there was a 32" HD tv available for $299 that he could purchase today. Bruce may have been a victim of? a. advertised pricing b. Reference pricing c. Price fixing d. Bait and switch pricing e. Price discrimination

d. Bait and switch pricing

Kendra runs a wholesale distribution center for candy. Each week she receives a truckload of candy from her supplier and unpacks it so that her customers only have to buy a case at a time. Kendra is adding value by ___________? a. Grading. b. Transporting c. Storing d. Breaking bulk e. Creating assortment

d. Breaking bulk

_____________ is when a business uses one brand name to cover a variety of products? a. Generic branding b. Individual product branding c. Rubber branding. d. Family branding e. Private branding.

d. Family branding

Which of the following is NOT a functional benefit of packaging? a. Acting as a silent salesperson b. Meeting intermediary needs. c. Allowing the retailer to display the product on store shelves d. Protecting the product e. Keeping the product dry.

a. Acting as a silent salesperson

Why is it important to develop contingency plans when you adopt a sales forecast? a. Because once a plan is underway, there is a tendency to explain away unexpected results rather than try to adapt the plan to the new circumstances b. A contingency plan is what you do if a forecast is incorrect. c. A contingency plan is what you do if the forecast is correct. d. Because you need the best case and worst case scenarios. e. Because you create a best case, a worst case, and a most likely scenario.

a. Because once a plan is underway, there is a tendency to explain away unexpected results rather than try to adapt the plan to the new circumstances

BruceCo introduced a new blend of coffee for amateur athletes. To encourage people to try the new product, the company ran advertisements in the local newspaper. People could cut out the advertisement and bring it in to the store for a free cup of the new coffee blend. This is an example of a ___________ sales promotion? a. Coupon b. Rebate c. Loyalty d. Contest e. Premium

a. Coupon

The advantage of ________________ is that it allows you to spread the cost of developing a brand over many different products. a. Family branding b. Generic branding c. Private branding. d. Excessive branding. e. Individual product branding

a. Family branding

What is the relationship between the richness of an information channel and the ability to stimulate emotions? a. In order to stimulate emotions with advertising, you need an information rich medium such as television. b. It is more expensive to stimulate an emotional response with an information-sparse medium such as print ads. c. The sparser the information channel, the easier it is to stimulate emotions. d. You can only influence people emotionally in a face-to-face situation. e. There is no relationship between the ability to stimulate emotions and the richness of the information channel.

a. In order to stimulate emotions with advertising, you need an information rich medium such as television.

When it comes to setting budgets, a bottom-up budget...? a. Is developed by the managers responsible for implementing the plan b. Represents a strategic investment in marketing as opposed to other alternative investments. c. Is the most common approach to allocating resources. d. Is the best approach to allocating resources. e. Is determined at the corporate level

a. Is developed by the managers responsible for implementing the plan

The SWOT analysis can be used to develop marketing strategies by ____________ a. Minimizing a weakness or a threat b. Minimizing an opportunity or a strength c. Building on a strength or a threat d. These are all ways to develop a strategy using the SWOT analysis. e. Identifying an opportunity or a strength

a. Minimizing a weakness or a threat

The _________________ channel flow involves two-way communication between producer and consumer? a. Negotiation b. Risking c. Ownership d. Promotion e. Ordering

a. Negotiation

According to a Harvard Business Review article by Nohria and colleagues, of more than 200 management practices, there are four basic business practices that really make a difference in a company's performance. For example successful companies have clearly stated and focused ____________? a. Strategies b. Pricing c. Promotion d. Metrics e. Plans

a. Strategies

Which of the following is a major disadvantage of the market testing approach to forecasting. a. The time it takes to conduct the test market may put you at a competitive disadvantage in the marketplace. b. Test markets can only provide short-term (1 year or less) market forecasts.. c. It only works in markets where demand is relatively stable. d. Test markets only work in markets where demand fluctuates wildly (high volatility). e. Tests markets for new products tend to have relatively short-term (1 year or less) forecasts.

a. The time it takes to conduct the test market may put you at a competitive disadvantage in the marketplace.

When you are dealing with the ____________ characteristic of a service, one approach is to institute procedure manuals and training programs so that your service employees will know how they are supposed to deal with customers. a. Variability b. Invisibility c. Inseparability d. Intangibility e. Perishability

a. Variability

Carlina operates a tofu making factory in Taiwan. She uses soybeans grown in Northwest Ohio for her tofu because they are very high quality and the prices are low. Soybeans will keep for a very long time without spoiling. Because her main concern is how to get the thousands of bushels of soybeans to her factory for the least cost, Carlina uses _________ transportation for this part of her business? a. Water b. Pipeline c. Truck d. Rail e. Air

a. Water

The two major costs associated with an advertising campaign are? a. media, creative b. advertising, collaterals c. Reach, frequency d. Capital, operating e. Research, opportunity

a. media, creative

Developing a ______________ involves identifying critical points in the plan, anticipating what could go right or what could go wrong and determining in advance what course of action you will take? a. Tactical plan b. Contingency plan c. Strategic plan d. Outcome measure e. Diagnostic measure

b. Contingency plan

Unlike a product advertisement, an institutional advertisement may have __________ as an objective? a. Coercing b. Damage control c. Persuading d. Reminding e. Informing

b. Damage control

What is a major disadvantage of the market factor analysis method of forecasting? a. You can only use it to generate short-term (1 year or less) forecasts. b. In order to use it, there has to be a known market factor that correlates with your product's sales c. It is a very difficult method to use effectively. d. The factors associated with a market change each season. e. It only works in industrial markets.

b. In order to use it, there has to be a known market factor that correlates with your product's sales

BruceCo is a small coffee company. Recently, the surgeon general announced that students who consume massive amounts of coffee the night before an examination tended to perform better than students who do not drink coffee. In terms of a SWOT analysis, this would be considered a (n) ________ for BruceCo? a. Point of difference b. Opportunity c. Weakness d. Strength e. Threat

b. Opportunity

A marketing organization using (the) _____________ will have a set of marketing functions such as sales, advertising, research, for each product line? a. Geographic structure b. Product structure c. Matrix structure d. Functional structure e. Market structure

b. Product structure

The basic communication model describes how a message is transmitted from a sender to a receiver. The receiver's _________ depends on how the message was interpreted by the receiver? a. Channel of communication b. Response c. Field of experience d. Feedback e. Noise

b. Response

A _______________ is a public relations activity where a company makes a financial or in-kind contribution to another organization in exchange for public recognition of the company's association with the organization? a. News release b. Sponsorship c. Press kit d. Press conference e. Publicity stunt

b. Sponsorship

BruceCo planned to introduce a new line of herbal coffees in its coffee shops. Using the chain ratio method, they estimated they would have 300 people walk through the door every day and that 1/3 of these people would notice a sign advertising the new coffee and ask about it. If the price were the same as its regular coffee, they estimated half of the people would try the new blend. If the price were higher than the regular coffee, they estimated only one out of 10 would request the new blend. The goal was to sell 50 cups of the new blend each day. Which of the following would be a diagnostic measure associated with the plan? a. The number of people who don't buy any coffee at all. b. The number of people who walked through the store each day c. All of these are diagnostic measures for this plan. d. The number of cups of the new blend sold each day. e. The price of the regular blend of coffee

b. The number of people who walked through the store each day

Which of these stores might want to locate next to each other in order to increase traffic for both of them? a. Two dry cleaners b. Two automobile dealerships c. Two grocery stores d. All of these stores would want locate near each other in order to increase customer traffic. e. Two drugstores

b. Two automobile dealerships

After the superbowl football game, Mark got a phone call from a Polling organization. The person on the phone read a list of all comercials that ran during the game and asked Mark if he remembered seeing each one. This is an example of a(n) ________________ test of advertising effectiveness? a. Open ended response b. Attitude change c. Aided recall d. Behavioral measures e. Unaided recall

c. Aided recall

Which of these is NOT a measure generally used in advertising? a. Reach b. Aided recall c. All of these are measures commonly used in advertising d. Impressions e. Unaided recall

c. All of these are measures commonly used in advertising

Many inexperienced sales reps fail to establish rapport with the customer in the __________ stage of the personal selling process, making it difficult to uncover needs during the presentation? a. Close b. Presentation c. Approach d. Pre approach e. Follow-up f. Prospecting

c. Approach

When is the best time to establish a metric to measure the performance of a promotion? a. Before the promotional budget is determined b. The last thing you should do when developing a promotion is to establish the metric. c. At the time the promotion objective is established d. After the results of the campaign are available e. The first thing you should do when developing a promotion is to establish the metric.

c. At the time the promotion objective is established

The best understanding of market dynamics comes when sales is expressed in? a. Dollars b. Percentage change from year ago. c. Both dollars and units d. Sales per square foot. e. Units

c. Both dollars and units

The last stage in developing a marketing plan involves a. Developing marketing tactics using the marketing mix b. Setting the marketing objectives c. Establishing the budget and the timetable d. Conducting a SWOT analysis e. Conducting a situation analysis

c. Establishing the budget and the timetable

The ___________ sales presentation format, frequently used with inexperienced sales representatives involves memorizing a standardized sales presentation? a. High Pressure b. Need-satisfaction c. Formula selling d. Stimulus-response e. Adaptive

c. Formula selling

Coors light ran a series of beer advertisements where footage of Bill Walsh, the former head coach of the San Francisco 49ers, taken from press conferences was edited to make it appear that he was answering questions about beer asked by intoxicated fans. This is an example of a(n) ___________ appeal in advertising? a. Slice of life b. Unique selling proposition c. Humor d. Slogans/jingles e. Demonstration

c. Humor

In many market situations, such as an oligopoly or monopolistic competition, there is a very strong expectation of what the price for a product should be. In these situations, many businesses engage in ____________ by using advertising, free-product offers or bonus packaging to differentiate their product. a. Above or below pricing b. Price line pricing c. Non-price pricing d. Oligopoly pricing. e. Loss-leader pricing

c. Non-price pricing

Mickey was hired by Metropolitan Life Insurance Company as a sales representative. The first task was to generate a list of 100 close friends and relatives who might be interested in talking about life insurance. This is an example of the ____________ phase of the personal selling process? a. Approach b. Follow-up c. Prospecting d. Pre approach e. Presentation f. Close

c. Prospecting

Which of the following statements about an organization's mission statement is FALSE? a. A mission statement is frequently perceived as being inspirational b. The organization's stakeholders should be aware of the mission statement. c. The mission statement is something that only applies at the corporate level d. The mission statement should be specific enough to allow managers to determine whether or not a proposed strategy is appropriate for the organization. e. The mission statement should be vague enough to allow managers to respond to changes in customers or markets.

c. The mission statement is something that only applies at the corporate level

The _____________ is the result of eliminating middle management positions in order to shorten lines of communication within the organization? a. Trend toward hierarchical organizations b. Trend toward empowering employees c. Trend toward flatter organizations d. Development of cross-functional teams e. Trend toward matrix organizations

c. Trend toward flatter organizations

Merchandise assortments can be described in terms of breadth and depth. How would you classify Home depot - a large retailer that carries hundreds of fasteners such as nails and screws, as well as lines of lumber, paint, plants, tools, and appliances? a. Narrow and shallow b. broad and narrow c. broad and deep d. High and mighty e. Narrow and deep

c. broad and deep

The __________ stage of the personal selling process involves asking for the order? a. Follow-up b. Presentation c. Pre approach d. Closing e. Approach f. Prospecting

d. Closing

Which of the following is one of the two questions that should be answered when evaluating a marketing plan according to the material presented in class? a. To whom should I report these results? b. Did we exceed our budget? c. Does this plan make my butt look big? d. Did we achieve our goals? e. Was credit given to the appropriate people?

d. Did we achieve our goals?

Many sales managers report that _____________ is a high priority for them because turnover in the sales force is so high that they are always looking for good people? a. Motivation b. Supervision c. Performance evaluation d. Recruitment and selection e. Compensation f. training g. Assimilation

d. Recruitment and selection

Many strategic plans are not executed well because? a. All of these are reasons given by the instructor why strategic plans may not be implemented well b. They are too ambitious and it is impossible to implement all of the strategies called for in the plan. c. Top-level executives are trained in strategic planning, but not in plan implementation. d. The long-term strategic objectives are not translated into specific, actionable tasks to be done by people in the organization. e. Many strategic plans are never intended to be implemented; rather they are designed to stimulate critical thinking about the organization.

d. The long-term strategic objectives are not translated into specific, actionable tasks to be done by people in the organization.

Which of these is something you need to consider when it comes time to develop the marketing budget? a. You need to be able to make a case as to why the money you requested in your budget is necessary. b. You need to have contingency plans in place in case not all of the money requested in the budget is approved. c. In a larger organization, there will be several groups competing for budget dollars. d. These are all things you need to have in mind when it is time to negotiate a budget e. Sometimes the top-down approach and the bottom-up approach come up with very different budget estimates.

d. These are all things you need to have in mind when it is time to negotiate a budget

After the superbowl football game, Mark got a phone call from a Polling organization. The person on the phone asked Mark which commercials he remembered seeing during the Super Bowl. This is an example of a(n) ________________ test of advertising effectiveness? a. Aided recall b. Attitude change c. Open ended response d. Unaided recall e. Behavioral measures

d. Unaided recall

What do we mean when we speak of advertising 'campaigns'? a. A series of persuasive advertisements designed to overcome a competitor's position in the marketplace. b. A communications program paid for by an institution that uses mass media and personal selling. c. All of the advertising associated with a specific election. d. The internal process where marketing managers develop support for the advertising component of an integrated marketing communications program. e. A group of advertisements and related promotional activities conducted over a specific period of time in order to achieve a desired outcome.

e. A group of advertisements and related promotional activities conducted over a specific period of time in order to achieve a desired outcome.

Every business will use a different combination of promotional tools. The actual tools selected will depend on? a. Where you are in the product diffusion process b. Where you are in the product life cycle c. The nature of the product d. How much money you have available for promotion e. Actually, it depends on all of these

e. Actually, it depends on all of these

In the California general election, it is not unusual for a company to run an advertisement for/against a proposition stating that the proposition is good/bad for the economy and a waste of tax dollars/source of tax revenue. This would probably be considered a(n) ____________ ad? a. Comparative b. Trigger c. Coercing d. Pioneering e. Advocacy

e. Advocacy

Which of the following is an inside sales job? a. The person who sits at the information desk at Borders bookstore b. The salesman who helps you to select a television at Best Buy c. The teller who cashes your check for you at Bank of America d. The counter person who asks if you would like fries with that at McDonalds e. All of these are inside sales jobs

e. All of these are inside sales jobs

As a rule, when it comes to choosing between advertising media, the higher the _________, the higher the cost? a. Motivation b. CPM c. Pre-test d. Placement on the page e. Channel richness

e. Channel richness

Traditionally, which of the bases for segmentation is most frequently used by marketers? a. Buying situation b. Statistical c. Geographic. d. Psychographic. e. Demographic

e. Demographic

The first thing to do when a customer asks a difficult question during the sales presentation is to? a. Speak louder b. Handle the objection c. Back up and start over d. Answer the question honestly e. Make sure you understand the question

e. Make sure you understand the question

A ____________ is a collection of key marketing metrics organized in a way to highlight patterns of performance? a. Strategic plan b. Business plan c. Marketing plan d. Diagnostic measure e. Marketing dashboard

e. Marketing dashboard

Bruce is introducing a new kind of test grading machine. The machine is very complicated, but it can save college professors a lot of time and money once they understand how to use it. College professors don't watch a lot of television. Which promotional tool might work best in this situation? a. Public Relations b. Advertising c. Sales Promotion d. Packaging e. Personal selling

e. Personal selling

The McKay 66 is a list of questions every salesperson at the McKay envelope company was expected to know about his or her customers. Obviously the __________ stage of the personal selling process is important at this company? a. Prospecting b. Presentation c. Approach d. Closing e. Pre approach f. Follow-up

e. Pre approach

During the ________ stage of the personal selling process, it is important to learn as much about the customer as time and money allow you to do? a. Close b. Prospecting c. Presentation d. Approach e. Pre-approach

e. Pre-approach

When using the consultative approach to selling, part of the _____________ stage of the personal selling process involves developing a proposed solution to meet the customers need? a. Closing b. Follow-up c. Prospecting d. Pre approach e. Presentation f. Approach

e. Presentation

An inexpensive package shows the customer that you focus on making quality products rather than making pretty packages. True False

False

From a channel flow perspective, ownership of a product changes from producer to consumer when the consumer takes physical possession of the product. True False

False

In a performance-oriented culture, people at every level are encouraged to develop their own tactics for executing the strategic plan True False

False

It is more important to evaluate positive information than it is to evaluate negative information when trying to understand how customers perceive your product. True False

False

Up until 2006, it was legal for manufacturers to dictate the prices at which retailers can sell their products. True False

False

When retrieving memories, most people access the exemplar and up to two additional memories in the category. True False

False

A distributor is simply a wholesaler serving the B2B (business to business) market True False

True

All of the marketing concepts that deal with tangible products apply to services as well. True False

True

Carlina operates a wholesale flower market serving florists in her city. She orders her roses from Ecuador because the quality is good and the prices are very competitive. Because the roses become unsalable after a day or two, Carlina uses _________ transportation for this part of her business? a. Air b. Rail c. Water d. Pipeline e. Truck

a. Air

The goal of a marketing channel is to? a. Create the most efficient way to move products from producer to consumer b. Create a network of suppliers, intermediaries and customers to support long-term sales of the product. c. Identify groups of people with needs that are similar to each other and different from everyone else d. Communicate with groups of people who are similar to each other and different from everyone else. e. Create economies of scale for the producer.

a. Create the most efficient way to move products from producer to consumer

____________ are the costs of production that do not change with the number of units produced? a. Fixed costs b. Variable Costs c. Total costs d. Opportunity costs e. Marginal costs

a. Fixed costs

_______________ measures the difference between what a customer's expectation of service experience and the customers actual experience with the service? a. Gap analysis b. Credence qualities c. The critical incident technique d. Service shortfall e. Recovery strategy

a. Gap analysis

Tami owned the Subway franchise in Centennial Village at San Francisco state University. She heard that another franchisee had been granted permission to open a Subway in the student union. She immediately complained to whoever would listen to her that the new store would take away most of her business. This is an example of? a. Horizontal conflict b. Vertical conflict. c. Vertical integration d. A price war e. Disenfranchisement

a. Horizontal conflict

Roxanne has completed her positioning analysis and has decided that she needs to reposition her product to a more attractive segment. In order to do this she needs to consider? a. She needs to consider all of these things. b. Does she have the money to make the change c. What changes she will need to make to the product d. Whether the organization can support the new product position e. What are her competitors likely to do when they notice she is changing her strategy

a. She needs to consider all of these things.

The biggest difference between a merchant wholesaler and an agent or broker is that the merchant wholesaler? a. Takes ownership of the products it carries. b. Doesn't have to call on customers. c. Doesn't bring buyers and sellers together. d. Is paid a commission on what it sells e. Deals with more than one company's products.

a. Takes ownership of the products it carries.

In a market with four producers and six retailers, the addition of a wholesaling middleman can decrease the number of transactions needed to have an efficient market form 24 to 10. This is an example of? a. The economy of transactions b. Disintermediation c. Selective distribution d. Disruptive innovations e. Economies of scale

a. The economy of transactions

Which of the following is a condition that must be met before you can consider a group of people to be a market segment? a. There must be a way to communicate with them. b. They must appreciate your product for different reasons. c. They must be wealthy. d. They must be the same as each other. e. They must be geographically close to each other.

a. There must be a way to communicate with them.

One way to segment markets for business customers is by industry type. This approach is attractive because many industries have __________ which makes it cost effective to communicate with businesses in that Industry? a. Trade associations. b. Point of purchase displays c. Cable television d. Regional differences e. Local newspapers.

a. Trade associations.

Unlike a storage warehouse, a distribution center is primarily for? a. Transshipment of products b. Reintermediation c. Storage d. Climate control e. Vertical integration

a. Transshipment of products

BruceCo is planning on selling coffee cups for $14 each. The company can buy the cups for $2.00 and have them printed for $1.50 each. The package costs fifty cents per cup. There is a one-time set up charge from the printer of $1,000. How many coffee cups will BruceCo have to sell in order to break even? a. cannot be determined with this information b. 100 c. 250 d. 72 e. 84

b. 100

An inverted demand curve is usually associated with luxury or prestige goods. With an inverse demand curve, within a certain range of prices... a. There is no limit to the quantity demanded. b. An increase in price will lead to an increase in the quantity demanded c. An increase in price will lead to a decrease in the quantity demanded d. A discount will lead to an increase in the quantity demanded e. A decrease in price will lead to an increase in the quantity demanded

b. An increase in price will lead to an increase in the quantity demanded

According to Michael Porter, there are three fundamental marketing strategies. Why is this important to understand in a discussion of market segmentation? a. Because all strategies require appropriate market segmentation in order to be successful. b. Because there is only room for one low-cost producer in an industry, everybody else will need to use a differentiation or focus strategy. Market segmentation is a tool you can use to help differentiate your product. c. Because there is only room for one low-cost producer and one differentiated product in an industry, businesses need to use segmentation to determine which strategy will be best for their product. d. Because there is only room for one low-cost producer in an industry, everyone else will need to segment their markets in order to keep their costs competitive with the low cost producer.

b. Because there is only room for one low-cost producer in an industry, everybody else will need to use a differentiation or focus strategy. Market segmentation is a tool you can use to help differentiate your product.

Which of the following is NOT a way perceptual maps can help you with your positioning strategy? a. Determine how crowded a market position might be. b. Determine which of two alternative products your customers will prefer. c. Identify changes that can be made to product attributes to improve your competitive position d. Identify areas where there unmet needs e. Understand where your products are positioned relative to competitive produtcts.

b. Determine which of two alternative products your customers will prefer.

Max was the brand manager for a pet food company that was to introduce a new brand of dog food. Through research, they had discovered that many dogs do not get enough exercise and this new dog food had stimulants added to give these sedate dogs energy. He thought of the brand name "Jump Start Your Fat, Lazy, Puppy" and asked your opinion. You said? a. It is a good brand name because it is catchy and has lots of words. b. It is not a good brand name because it is too long. c. It is a good brand name because it is true. d. It is not a good brand name because it doesn't suggest a product benefit. e. It is not a good brand name because it is easy to pronounce.

b. It is not a good brand name because it is too long.

Pearl went shopping for school supplies at Target. She found the pencils, paper, and binders easily. However, there was a special kind of graphing calculator that her school required and she couldn't find it on the shelf. She pressed the customer assistance button and within a minute a friendly associate was there to help her. The associate told her that they were currently out of stock on the calculator. She could wait until the new shipment arrived tomorrow or, if she wanted to go to a nearby store where the calculator was in stock, the associate would be happy to call ahead and have one reserved for pearl. This is an example of _____________ retailing? a. Self-service b. Limited service c. Full service d. Extended service e. Co-op

b. Limited service

How many segments should a company target? a. You can only 'target' one segment. The rest are secondary markets. b. The number that allows you to maximize profits with the resources available to you. c. As many segments as you can afford to target with existing financial resources. d. You should target one market segment for each product the company offers. e. You should determine what is the normal number of segments targeted by companies sharing the same NAICS code with you and use that at a guideline for how many segments to target.

b. The number that allows you to maximize profits with the resources available to you.

Which of these statements about Porter's fundamental strategies is true? a. In order to succeed, a company has to differentiate and become the low cost producer. b. There is only room for one low cost producer in a market. c. There are three fundamental strategies, demographics, behavioral, and geographic. d. In order to be the low cost producer, you have to differentiate. e. There is only room for one company to differentiate itself in a market.

b. There is only room for one low cost producer in a market.

The ____________ approach to new product pricing sets prices low for a while in order to encourage people to try the product and then raises the price once the new product gained traction in the marketplace? a. new and improved b. Trial pricing c. Penetration d. Skimming e. Variable price

b. Trial pricing

I can't believe it, said Wiley Coyote, I am the president of Acme enterprises and we make $200,000 a year profit with me working my tail off. Our distributor, Road Runner Representatives, made over $800,000 in commissions. I don't understand why they are making all of that money when all they do is run around all day and say beep-beep to customers. I think we should lower the commission rate to bring their income down to a more reasonable level. This is an example of? a. Horizontal conflict b. Vertical conflict c. A price war d. Suspended animation e. Vertical integration

b. Vertical conflict.

Which of these would be considered an indirect marketing channel? a. A producer, a wholesaler, and a retailer b. A producer and a customer c. A customer, a retailer, and a producer d. A producer and a retailer e. A retailer and a customer

c. A customer, a retailer, and a producer

Which of the following is NOT an example of a third-party provider of logistics? a. An export/import firm b. A parcel delivery company c. A design firm d. A public warehouse. e. A freight forwarder

c. A design firm

In the three circles positioning framework presented in class, what does "the bar" represent? a. Products you do not need to carry because there are planty of businesses who will provide them b. Opportunities to differentiate your product based on industry standards c. Areas where you need to be competitive, but will not give you a competitive advantage d. Areas that are more important to your customers than to your competitors' customers e. A place to go to overhear conversations about your competitors' products.

c. Areas where you need to be competitive, but will not give you a competitive advantage

Intel corporation created the Intel Inside campaign to make consumers aware that an important component of any computer is the quality of the microprocessor (computer chip) that makes the machine work. They negotiated with computer manufacturers to include a sticker on the outside of the computer - regardless of the brand - showing that there was an Intel chip inside. This is a classic example of _____________? a. Cannibalization b. Licensing. c. Co-branding d. Joint venture branding e. Thinking outside of the box.

c. Co-branding

When dealing with logistics there is a fundamental trade-off between ________ and ________. The goal is to keep one high and the other low, but they tend to increase together. a. Service, responsiveness b. Profit, revenue c. Cost, service level d. Cost, efficiency e. Upstream, downstream.

c. Cost, service level

Bruce wanted to open a coffee shop. He knew his coffee was way better than anything Starbucks could do because he ran taste tests with people in the neighborhood. He found that people in his area preferred their coffee with just a hint of cinnamon in it. When he opened his first store across the street from a Starbucks store, he ran advertisements claiming "Bruce's Brew is the spice of life," and offered a coupon good for a free cinnamon grinder with purchase of Bruce's Best. Bruce is using a _______________ positioning strategy. a. More is better b. Flanker c. Differentiation d. Head to head e. Follow the leader

c. Differentiation

The basic trade-off in logistics is between ________ and ________? a. Upstream and downstream b. Time and money c. Efficiency and responsiveness. d. Revenue and costs e. Storage and transportation.

c. Efficiency and responsiveness.

The three steps for developing a market position (or for developing any strategy, really) are? a. Define the problem, hire consultants, implement their recommendations. b. Determine which positions look attractive, select the position you want to achieve, develop a plan to achieve the position. c. Figure out where you are now, figure out where you want to end up, develop a plan to get you from where you are to where you want to be. d. Ready, fire, aim. e. Determine your current situation, do a cost/benefit analysis of the desirability of changing, implement and evaluate the plan.

c. Figure out where you are now, figure out where you want to end up, develop a plan to get you from where you are to where you want to be.

Bruce wanted to open a coffee shop. He knew his coffee was way better than anything Starbucks could do so he opened his first store across the street from a Starbucks Store. He ran advertisements in the local paper claiming "Bruce's Brew is better than Starbucks Stuff" and offered a money back guarantee to any Starbucks customer who was willing to try a cup of Bruce's Coffee. Bruce is using a _______________ positioning strategy. a. Differentiation b. More is better c. Head to head d. Different attributes e. Follow the leader

c. Head to head

The decision to hold inventory is critical to providing customer service through the supply chain. There are both costs and benefits. Which of these is NOT a cost of holding inventory? a. The risk of damage or spoilage b. The need to purchase inventory insurance c. Increased number of stock outs d. Materials handling costs e. Inventory taxes

c. Increased number of stock outs

Roxanne has completed her positioning analysis and now understands why her line of adult milk beverages has been performing so badly. There are too many competitors out there and she hasn't been able to gain market share from the category leader - Bruce's Power Gulp, a vitamin enhanced milk beverage. She believes there are people out there who would prefer a less-processed product at a lower price. She decides to change her advertising slogan to "The Fresh Alternative to enhanced milk beverages". Roxanne is trying to? a. Reduce her production costs b. Make people believe that the market leader is selling an unhealthy drink c. Reposition her product against the competition d. Reposition her product against itself e. She is trying to do all of these things.

c. Reposition her product against the competition

Which of these is NOT a tool used in materials handling? a. Bar code scanners b. Forklifts c. Safety stock d. Conveyor belts e. RFID (radio frequency identification)

c. Safety stock

Kendra runs a wholesale distribution center for candy. Each month she receives a shipment of candy from her supplier. She always has enough inventory on hand so that her retail customers can buy cases of candy whenever they need it. Kendra is adding value by ___________? a. Creating assortment b. Breaking wind c. Storing d. Transporting e. Grading.

c. Storing

The Broyhill furniture company designed a sofa that retailers could sell for $699 and still make a profit. This was because retailers had told the company they needed a promotional sofa that would cost less than the $1000 or more for a typical sofa. They would feature the promotional sofa in their advertisements to bring customers into the store. This is an example of? a. Penetration pricing b. Captive pricing c. Target profit pricing d. Flexible pricing. e. Prestige pricing.

c. Target profit pricing

What do we mean when we say a market segment is "reachable"? a. People in the segment use social media. b. We mean all of these things when we say a market segment is "reachable." c. There is a way of communicating with people in the segment. d. There is a way for people in the segment to contact the manufacturer in case there is a problem. e. People in the segment are open to new ideas.

c. There is a way of communicating with people in the segment.

What is the hard way to become the category leader? a. Find an attribute that nobody else is talking about and develop a market position featuring that unique attribute. b. Spend money on advertising to make consumers think your product is superior when, in fact, it is not. c. Use the marketing mix to improve your position in an existing category. d. To acquire the leading products in the category through merger and acquisition. e. To close your eyes and wish really, really hard that you are the category leader; then open your eyes and see if you have become the category leader.

c. Use the marketing mix to improve your position in an existing category.

Frodo was a massage therapist. He was very good at dealing with lower back pain. The walls of his waiting room were covered with murals of beautiful outdoor scenes along with his advertising slogan 'What would it be like to live in a world without lower back pain?. There was soft, relaxing music playing in the background. He used these same themes in his print and radio advertisements. Frodo was using the ___________ approach to making his service seem "real"? a. Physical representation b. Word of mouth c. Visualization d. Association e. Documentation

c. Visualization

When goods and services are exchanged for other goods and services, rather than for money, it is referred to as __________? a. Non-revenue b. Off-book. c. B2B d. Barter e. Trade

d. Barter

Bruce recently went to the eye doctor because he couldn't see clearly enough to do the sudoko puzzle on his iPad. He could see well enough to drive, just not well enough to do the puzzle. His eye doctor said he had presbyopia, a condition that is common in people who are middle aged. The doctor said that Bruce could continue to do the crossword puzzle, but he would need to wear reading glasses. Clearly, a manufacturer of reading glasses would benefit from using a ______________ segmentation approach. a. Psychographic. b. Statistical c. Buying situation d. Demographic e. Geographic.

d. Demographic

One of the reasons the examples in class may seem obscure to you is that your instructor was born between 1946 and 1964 and most of the students in marketing 431 are members of ______________, born between 1977 and 1994? a. Baby boomers b. Co-generation c. The Republican Party d. Generation Y (Millennials) e. Generation X

d. Generation Y (Millennials)

For a store using ______________, many items will go on sale each week? a. Flexible pricing b. Dynamic pricing c. Price discrimination d. High-low pricing e. Odd-even pricing

d. High-low pricing

What is the 80-20 rule? a. Relationships are more profitable than transactions b. All of these statements about the 80-20 rule are true c. 80% of your business should come from customer relationships d. In general, 80% of your business comes from 20% of your customers e. 20% of you business should come from individual transactions

d. In general, 80% of your business comes from 20% of your customers

____________ is understanding how customers perceive your product and managing their perceptions relative to competing products? a. Rebranding b. Target marketing c. Deception d. Positioning e. Segmentation.

d. Positioning

For companies operating in an oligopoly market structure, prices tend to be very stable. In these situations, the company with the largest market share might raise its prices in hopes that other, smaller companies will follow. If this happens, the price will increase. This is called the ____________ to setting prices? a. Above or below approach b. Price line approach c. Customary pricing approach d. Price leadership approach e. loss-leader approach

d. Price leadership approach

Coca Cola's basic strategy is they you should never be more than an arms length away from a cold, refreshing Coke. In order to achieve this strategy they try to make Coke products available for sale through as many outlets as possible. You can buy bottled Coke in the grocery store, fountain coke at a restaurant, single cans and bottles at convenience stores and gas stations, and individual cans from vending machines while you are waiting in line for a ride at an amusement park. Because the goal of the supply chain is to maximize __________, Coke is willing to bear the expense of having several different channels of distribution? a. Downstream activities. b. Variety c. Efficiency. d. Responsiveness e. Upstream activities

d. Responsiveness

Many retail stores use "secret shoppers," people who pretend to be customers, go into a store and do all sorts of things. They take notes and are able to report back what is really happening in the stores. This technique is used for _____________? a. Measuring service quality b. Gap analysis c. Identifying differences between management perception of quality and written quality standards d. Secret shoppers are used for all of these things. e. Identifying differences between quality standards and service delivery

d. Secret shoppers are used for all of these things.

One of the advantages of ____________ is that they can be moved from one platform to another without having been loaded or unloaded. Names such as piggyback, fishyback relate to the variety of transportation options? a. Forklifts b. Trucks c. Packages d. Shipping containers e. Conveyer belts

d. Shipping containers

The idea behind _____________ is that people who are born at the same time share similar experiences growing up and, therefore are similar in some of their attitudes and behaviors? a. Co-generation b. Generation X c. Baby boomers d. Generation Y e. Generational marketing

e. Generational marketing

A(n) ____________ is an entity that assists in the movement of products through the channel? a. Customer b. Supplier c. Principal d. End user e. Intermediary

e. Intermediary

Many television infomercials advertise a product at a very low price. After you order the product, you find there is a fairly substantial shipping and handling charge. When you figure in the extra charges, the product may be more expensive than other, similar products that you were considering. This is an example of a ________tactic? a. Flexible price b. Single price c. Discount price d. Captive price e. Multiple price

e. Multiple price

A(n) ______________ is an organization created to provide a public or mutual benefit other than the pursuit or accumulation of profits for investors. a. Service provider b. Not-so-smart c. Small business d. Informal organization e. Not-for-profit

e. Not-for-profit

A(n) ______________ is an organization whose business purpose has been designated as being in the public interest and may have received preferential tax status? a. Quasi-governmental agency b. Interest group c. Not-for-nothing d. Fundraiser e. Not-for-profit

e. Not-for-profit

Age cohorts are an effective basis for market segmentation because a. Children have more disposable income now then they did after World war II b. It is easy to determine a person's age c. Age is a better indicator of consumption patterns than is gender. d. Baby boomers were born after World War II e. People in the same age group share many similar experiences which could affect their consumption patterns

e. People in the same age group share many similar experiences which could affect their consumption patterns

Carlina operates a wholesale lumber business serving contractors in her Midwestern city. She takes orders from a central location and delivers the lumber and other building materials to the contractor's jobsite using her own trucks. She orders her lumber from a mill in Washington State. Because the lumber is bulky and she orders large quantities she uses _________ transportation to ship the lumber from Washington? a. Pipeline b. Truck c. Water d. Air e. Rail

e. Rail

The three circles positioning framework presented in class suggests using all of the following EXCEPT ___________ to help clarify a market position? a. Customer needs b. Competitor offerings c. Company's offerings d. Points of difference e. Related industries

e. Related industries

Two things to consider when developing a brand are? a. Initial market entry and follow-on strategies. b. The size of the target market and competitive intensity. c. Early adopters and the development gap. d. The cognitive and the intellectual components. e. The brand experience and the brand expression.

e. The brand experience and the brand expression.

The supply chain centers on the producer. Downstream activities consist of? a. The channel flows that deal with the physical product. b. Actions that will allow the company to exit from an unattractive market. c. The flow of raw materials from the supplier to the producer d. Quality control and service monitoring after production begins e. The flow of finished product from the producer to the end user

e. The flow of finished product from the producer to the end user

Iago and Desdemona were merchants selling a variety of goods in Venice Beach. They felt they had saturated the local market and were thinking of expanding their business to a nearby community. What factors should they consider as they decide which geographic segment to enter next? a. Can they save money by serving both communities out of the same warehouse? b. Are there competitors already in place in the new market? c. Is the community growing or shrinking? d. Is there a market for their products in the new community? e. They should consider all of these factors.

e. They should consider all of these factors.

Retailers attempt to make the shopping experience fun because people put a different value on the products they buy when they are having fun. True False

True

If you are the first to use a brand name in business you have the right to use that name even if another company later trademarks the same brand name. True False

True

It is more common to use negotiated prices in B2B markets than it is in consumer markets? True False

True

One drawback to adopting an intensive market coverage strategy is that there is no incentive for channel partners to promote your product because it isn't "special". True False

True

One of the advantages of the three circles positioning framework is that it shows you where your competitors are wasting their time True False

True

Roxanne has completed her positioning analysis and believes she understands why her adult milk beverage has been performing so badly. Her product was the first product to use aseptic packaging, which allows milk to be stored at room temperature for long periods of time. Introduced in 1999, the product was positioned as a survival food because everybody was worrying about Y2K problems at the turn of the century. Today people are more concerned about nutrition and her aseptic milk is very low in fat. To take advantage of this, she changes her advertising slogan from "It will keep you alive in the next century" to "A healthy beverage, ready and waiting". Roxanne is trying to? a. Reposition her product against itself b. Make people believe that the market leader is selling an unhealthy drink c. Reposition her product against the competition d. Reduce her production costs e. She is trying to do all of these things.

a. Reposition her product against itself

The most attractive market segment for fast food restaraunts is heavy users (no pun intended). These customers visit fast food restaraunts 14 or more times per month on average. This is an example of _______________ segmentation in the fast food industry? a. Demographic b. Psychographic. c. Statistical d. Geographic. e. Buying situation

e. Buying situation

Which of the following sources of information is frequently ignored when determining a company's actual market position? a. The judgment of top executives. b. Information provided by retailers who sell your product. c. Information provided by the company's advertising agency. d. Information about how the product is selling. e. Complaints from dissatisfied customers.

e. Complaints from dissatisfied customers.

Hermione was the office manager for a small business in the city. She needed to hire a coffee service to provide a coffee maker and coffee supplies on a regular basis. Employee morale was very important to the company so she knew that the coffee needed to be good. She went online and searched for several coffee services. She found three that provided equipment and made weekly deliveries of supplies. She called all three and asked them to come in and put on a demonstration so that the employees could decide which coffee they liked best. The winner of the taste test would get the contract Hermione used ____________ to evaluate the quality of the service? a. Comparatives b. Search attributes c. Intangibles d. Credence attributes e. Experiential attributes

e. Experiential attributes

BruceCo makes novelty products such as whoopee cushions and plastic vomit. The company sells about $2 million dollars worth of product. The major customers for BruceCo products are small independent novelty shops that will typically order less than $200 worth of product at a time. Which of these marketing channels would be the best for BruceCo to adopt? a. Hire a manufacturer's representative to call on independent novelty shops and send the orders into the factory. b. Set up a series of regional warehouses to keep inventory nearer to the customer. c. Recruit junior high school students to demonstrate the product during lunch. d. Work with a broker to negotiate deals with each of the novelty shops who wish to carry BruceCo products. e. Work with a distributor who carries a variety of products sold in novelty shops.

e. Work with a distributor who carries a variety of products sold in novelty shops.

Price elasticity is the slope of the demand curve. When price elasticity is HIGH? a. You can decrease profits by decreasing prices b. You can decrease revenues by cutting prices c. You can increase revenue by increasing prices d. You can increase profits by cutting prices e. You can increase revenues by cutting prices.

e. You can increase revenues by cutting prices.