MKTG 342 MC

E-channels can be used by business marketing firms for

(1) information platforms, (2) transaction platforms, and (3) platforms for managing customer relationships.

As a controllable element in the logistics system, ____ triggers the logistics process and directs the activities necessary to deliver products to customers. a. order processing b. customer service c. production planning d. inventory management e. information management

A. order processing

Which of the following statements is (are) true about the Internet's impact on marketing communications?

All of the above

When compared to logistics management, supply chain management is:

Broader

Advertising objectives are typically stated in terms of:

Communication goals

_____ represents a business customer's overall assessment of the utility of a relationship with a supplier based on the benefits received and sacrifices made.

Customer value

The need to employ more than one type of industrial channel of distribution arises as a result of: a. Different target markets sought by the firm. b. A geographically concentrated market. c. Different marketing tasks associated with different products produced by the firm. d. Both (a) and (c) e. All of the above

D. Both a and c

In the management of logistical activities, the performance variable(s) of prime interest (is) are: a. number of products handled. b. total distribution costs. c. inventory movement per warehouse facility. d. the level of logistical service provided to customers. e. both (a) and (d)

D. the level of logistical service is provided to customers

Which of the following statements regarding direct mail is incorrect?

Direct mail is a viable medium when potential buyers cannot be clearly identified.

The most commonly reported benefits for firms that adopt supply chain management are: a. higher profit margins. b. enhanced cash flow. c. higher order-to-delivery cycle time. d. all of the above. e. (a) and (b) only.

E. A and B only

Which of the following statements is false regarding the relationship of the Internet and SCM? a. The Internet promotes efficiency across the supply chain. b. The Internet promotes effectiveness across the supply chain. c. The Internet permits suppliers to gain real-time knowledge of their customer's needs for materials and components. d. The use of the Internet as a part of supply chain management has allowed business marketers develop new products in a more timely manner. e. The Internet has provided companies the opportunities to increase channel inventories

E. The Internet has provided companies the opportunities to increase channel inventories

A penetration policy is appropriate when there is: a strong threat of imminent competition. b. inelastic demand. c. an opportunity for a substantial reduction in production costs as volume expands. d. all of the above e. (a) and (c) only

E. a and c only

True or false A key account represents a customer that purchases a significant volume as a percentage of a seller's total sales but is easier to manage because there are only a few organizational members involved in the purchasing process.

False

True or false Vertical publications are directed at a specific task, technology, or function whatever the industry.

False

True or false Industrial distributors are generally large business firms that cover broad geographical markets.

False

True or false Organizational buyers tend to retain messages that clash with their attitudes, needs, and beliefs.

False

True or false Salesperson job satisfaction decreases when there is increased uncertainty about expectations and the length of the product line increases.

False

True or false The industrial distributor takes title to the products sold but rarely maintains an inventory.

False

True or false. Firms that adopt supply chain management generally find that costs increase but are more than offset by higher profit margins and revenue growth.

False

True or false: An increase in the supplier's delivery time performance permits a buyer to hold less inventory.

False

True or false: Warehousing is usually the largest single logistical expense.

False

True or false: A business marketer that uses industrial distributors will usually, as a matter of policy, not utilize any manufacturers\' representatives.

False

True or false: A penetration pricing policy is optimal if there is a relatively low repurchase rate for durable goods

False

True or false: If the business marketer\'s product input plays an insignificant role in the final product\'s total cost, demand is likely elastic.

False

True or false: Indirect distribution is appropriate when control of the selling job is necessary to ensure proper implementation of the total product package and to guarantee a quick response to market conditions.

False

True or false: Properly implemented, supply chain management will lead to longer order-to-delivery cycle time.

False

True or false: The faster modes of transportation result in higher levels of customer service, but also higher investments in inventory.

False

True or false: To sustain profitability, price reductions should be avoided by strategists in hypercompetitive environments.

False

The sales resource grid indicates that a particular territory (planning and control unit) possesses high PCU opportunity and high sales organization strength. This suggests which of the following sales resource assignments?

Invest a high level of sales resources to take advantage of opportunity.

In deciding which trade shows to attend, some business marketing strategists turn to reports published by Exhibit Surveys, Inc., a company that surveys trade show audiences. One useful measure that they provide isolates the percentage of the show audience that has decision authority for the types of products being exhibited. This is called:

Net buying influences

The manufacturer-rep channel is generally used when:

Restricted to a limited area

___ provides the guidelines for company and advertising agency personnel on how the product is to be \"positioned\" in the marketplace

The creative strategy statement

Concerning speed of service in the logistical system, which of the following is(are) accurate?

The longer the delivery time, the more inventory customers must maintain to service their needs while the shipment is in transit.

True or false Generally, social media can augment an offering to expand the value proposition, thereby changing what people buy and how they relate to a brand

True

True or false Smaller firms often reduce training costs by hiring experienced and more expensive salespersons.

True

True or false Although certain mechanical aspects help create awareness and interest in the advertisement, its ultimate success will depend on how well the message is targeted to the benefits sought by the buying influential.

True

True or false Changes in business marketing strategy requires corresponding changes in personal selling styles.

True

True or false Frequently, the manager has little flexibility in the selection of channel structures because of trade, competitive, company, and environmental factors.

True

True or false If the territory is geographically dispersed, sales will probably be lower due to time wasted in travel by the salesperson.

True

True or false Salespersons tend to have a higher level of job satisfaction when they perceive that their first-line supervisor closely directs and monitors their activities.

True

True or false: Supply chain management, as a source of competitive advantage, should be seen as a source of revenue as well as a means of reducing costs.

True

True or false: Channel member motivation begins with the understanding that the channel relationship is a partnership.

True

True or false: Differentiation value is the value associated with product features that are unique and different from competitors

True

True or false: Logistics management is primarily concerned with movement and storage activities.

True

True or false: Supply chain management is both a boundary and function spanning endeavor.

True

True or false: The goals of a cost classification system are to properly classify cost data in to fixed and variable components and to properly link costs to the activities causing them.

True

True or false: The planning and budgeting for trade shows must focus on specific objectives to be accomplished.

True

True or false:The primary reason for using more than one type of intermediary for the same product is that different market segments require different channel structures.

True

A business marketer who places the highest priority on achieving control in the channel of distribution should use:

a direct channel.

Pine River Equipment has developed a distinctly new product that offers considerable promise. By exploiting the experience effect, management believes that there are opportunities for a substantial reduction in production costs as volume expands. While the market is quite large, there is a strong threat of imminent competition. The firm should likely use:

a penetration approach to pricing

A useful method for determining the size of the business or industrial advertising budget is: a. the objective-task method. b. the percentage of sales approach. c. the competitive parity approach. d. the affordable approach. e. the trend line approach.

a. the objective task method

An e-mail list can be created by:

all of the above

Research suggests that successful national account units:

all of the above

The Internet has allowed business marketers to realize several supply chain related benefits, including more timely:

all of the above

The important elements of perception include:

attention

The use of faster modes of transportation within the logistical network results in a. lower variable costs for product movement. b. higher customer service levels. c. higher investments in inventory. d. all of the above e. (a) and (c) only

b. higher customer service levels.

During the innovative firm\'s monopoly period, a _____ is optimal if the demand curve is stable over time (no diffusion) and production costs decline with accumulated volume. a. life cycle costing pricing policy b. skimming policy c. penetration policy d. time segmentation policy e. bid price policy

b. skimming policy

High-performing salespeople are generally set apart from low performing sales people on the basis of a. their time on the job b. their ability to recruit desired ad hoc members on to their sales team c. their past experience in new task selling situations d. all of the above e. none of the above

b. their ability to to recruit ad hoc members on their sales team

The _____ measurement approach of salesperson performance is best suited for the emerging emphasis on relationship selling.

behavior based

If the business marketer\'s product input assumes an insignificant role in the final product\'s total cost, demand is likely: a. elastic. b. price sensitive. c. inelastic. d. small.

c. inelastic

Sales managers use a variety of measures to evaluate salesperson performance. When the measurement system is behavior-based, the sales manager: a. employs objective measures to evaluate performance. b. emphasizes a compensation system with a large incentive component. c. monitors and directs the activities of salespeople. d. indirectly supervises salesperson activities. e. measures the self-esteem of each salesperson.

c. monitors and directs the activities of sales people

The policy of using a skimming pricing approach when a product is introduced, followed by penetration pricing as the product matures, is referred to by Joel Dean as: a. product differentiation. b. market segmentation. c. time segmentation. d. price administration. e. life cycle pricing.

c. time segmentation

The first phase of for selecting key accounts:

centers on the profit potential of a customer.

The characteristic of a sales territory that refers to the degree to which potential is available in the larger accounts in a particular territory is called:

concentration

Concerning pricing and the competitive environment, which of the following statements is(are) accurate? a. Competition establishes an upper limit on price. b. Late entrants to the market often enjoy potential cost advantages over the pioneering firm. c. Competitors will be more sensitive toward price reductions that threaten market segments that they deem important. d. all of the above e. (a) and (b) only

d. all of the above

In serving JIT customers, business marketers find that: a. the typical order size shrinks. b. more frequent deliveries are required. c. relationships with JIT customers are longer lasting and often formalized with a written contract that may span up to five years. d. all of the above e. (b) and (c) only

d. all of the above

Supply chains should manage _____ in an integrated manner across organizational borders. a. relationships b. information c. material flow d. all of the above. e. (b) and (c) only.

d. all of the above

The advantages of third-party warehouses are that they allow the business marketing firm to: a. increase or decrease warehouse space in a given market. b. replace the distributor channel when the sales function can be performed by a direct sales force or by manufacturers' representatives. c. reduce expenditures on company-owned warehouses. d. all of the above e. (a) and (c) only

d. all of the above

In evaluating the effectiveness of a business-to-business advertising program, the manager should center on: a. changes in the target market's purchase rate. b. changes in the target market's product awareness. c. changes in the target market's product knowledge. d. both (b) and (c) e. none of the above

d. both b and c

The most appropriate channel of distribution for an industrial product is:

dependent upon a host of product, company, market, and competitive conditions.

Expertise coordination is the process of

diagnosing customer requirements and assembling an ad hoc team of internal experts who possess the skills to deliver a superior customer solution.

The channel strategy that does not utilize any manufacturers\' representatives, industrial distributors, or other kinds of middlemen is referred to as:

direct distribution.

Robert Morgan and Shelby Hunt suggest that relationship commitment and trust develop when: a. Firms align themselves with partners that have distinctly different corporate values. b. Firms share valuable information on expectations, markets, and performance. c. Firms offer benefits and resources that are superior to what other partners could offer. d. All of the above. e. (B) and (c) only.

e. b and c only

The "best" mode of transportation to use in moving industrial products to customers is: a. rail. b. air. c. truck. d. barge. e. dependent upon cost, service and investment tradeoffs.

e. dependent upon cost, service and investment trade offs.

When compared to a traditional selling focus, a key account selling focus is different in which of the following ways? a. Uses a longer-term time horizon. b. Wants to lower customer's total costs. c. Individual salesperson is primary link to customer organization. d. All of the above. e. Only (a) and (b).

e. only a and b

The final, and critical, step for managing Business-to-Business advertising is:

evaluating the effectiveness of the campaign.

The business marketer will find that total revenue will ____ if the price is decreased and demand is price inelastic.

fall

Concerning business-to-business advertising media, the publications Purchasing, Advertising Age, and Materials Handling Engineering would be classified as a:

horizontal publication

The second phase of for selecting key accounts:

identifies those customer accounts that have unique support requirements.

direct sales force is best used for

most complex sales opportunities: highly customized solutions, large customers, and complex products

The competitive bidding approach that may include deliberations with suppliers throughout the bidding process is referred to as:

open bidding

In hypercompetitive environments,

successful firms sustain quality but drive to the next lower price point to enjoy a burst of volume and an expansion of market share.

Motorola introduced a new personal communicator priced at a significant premium over competing models. Initially, Motorola will concentrate on the business user but the firm plans to reduce the price later and capture a share of the consumer market. This policy of beginning with a high price and then moving to a lower price is referred to as:

time segmentation

Concerning business-to-business advertising media, _____ publications are directed at a specific industry and may be read by everyone from foreman to company president

vertical