Business Exam #3

Which of the following would be classified as a limited-function wholesaler? A. Autunes stocks shelves in drugstores and supermarkets with audio CDs and cassettes of "golden oldies" from the 70s and 80s, which it sells on consignment. B. RightWrite sells all types of fine stationery and pens to the general public. C. Jim Thigpen helps buyers and sellers of used heavy construction equipment negotiate the terms and conditions of their transactions, but does not actually take title to any of the equipment. D. Sav-A-Bundle sells discontinued merchandise, floor samples, and open-box items at heavy discounts to the general public.

Autunes stocks shelves in drugstores and supermarkets with audio CDs and cassettes of "golden oldies" from the 70s and 80s, which it sells on consignment.

Currently, which of the following products would most likely be considered in the growth stage of the product life cycle? A. VCRs B. Welch's grape jelly C. Camel filtered cigarettes D. HDTV (High-Definition TV)

HDTV (High-Definition TV)

Which of the following is the best example of a product line? A. Hewlett Packard offers scanners, printers and personal computers. B. General Motors offers passenger cars, small trucks, and tractor trailers. C. Kellogg offers Special K, Raisin Bran, Corn Flakes, and a variety of other cold ready-to-eat cereals. D. Sony offers DVD players, compact disk players, and video games.

Kellogg offers Special K, Raisin Bran, Corn Flakes, and a variety of other cold ready-to-eat cereals.

Which of the following statements about marketing is the most accurate? A. Because nonprofit organizations are not motivated by profit, marketing activities are not consistent with their goals. B. To be successful, marketers must be able to persuade consumers to purchase goods they don't really need. C. Once a product is sold, focus on the next customer. D. Marketers recognize the need to learn as much as possible about customers and do everything possible to satisfy them.

Marketers recognize the need to learn as much as possible about customers and do everything possible to satisfy them.

The significant increase in consumer demand following World War II marked the beginning of the: A. production era B. selling era C. marketing concept era D. customer relationship era

Marketing concept era

Consumer research indicates that the public is very concerned about teenagers' texting while driving. In response, Ringtone Phones Inc. has created a website providing parents with information to help avoid texting while driving. The firm also provides materials to cell phone retailers to help train their employees to speak with minors about this habit. What will be the most likely result of these efforts? A. They represent a key step in a good public relations program. B. They will distract the firm from its primary mission of selling phones to adults. C. They will likely backfire, since few people will believe a phone company would seriously support a program that might reduce their sales. D. They illustrate a push strategy applied to public relations.

They represent a key step in a good public relations program.

People with unsatisfied wants and needs who have both the ability and the willingness to buy are: A. a market. B. stockholders. C. a profit center. D. a marketing mix.

a market

One way a small firm can succeed against larger competitors is to: A. use break-even segmentation. B. add value to their product offering. C. eliminate the fringe benefits offered to frequent customers. D. determine their break-even point price.

add value to their product offering

saws and More promotes its services through Northwest Woods Today, a trade magazine that charges Saws and More and other companies $5,000 per page for __________ to help offset the magazine's publishing costs. A. public relations B. publicity C. trade shows D. advertising

advertising

_________ advertising supports a particular view or position on an issue. A. Institutional B. Advocacy C. Comparison D. Trade

advocacy

A (n) _________ is one type of marketing intermediary that brings together buyers and sellers and assists in negotiating an exchange, but does not take title to the goods. A. agent B. retailer C. drop shipper D. merchant wholesaler

agent

Soprano Manufacturing acquired several pieces of expensive heavy machinery it intends to use in its operations. As an industrial good, this heavy machinery represents: A. an intermediate good. B. a shopping good. C. accessory equipment. D. an installation.

an installation

Treena just finished giving a sales presentation to a major prospect. Next, Treena will likely be A. processing the customer's order. B. setting an appointment for the customer to meet with her boss. C. closing the sale, by asking the customer to make a commitment. D. answering customer questions and dealing with objections.

answering customer questions and dealing with objections.

Which of the following statements about wholesaler-sponsored chains is most accurate? In a wholesaler-sponsored chain all stores: A. are independently owned, but cooperate as a unified system of stores. B. act independently except for an agreement to share the costs associated with distribution. C. are owned by a single wholesaler, but operate under separate management. D. share profits and losses according to a contractual arrangement.

are independently owned, but cooperate as a unified system of stores.

Business sponsorship of events, such as the Winston-Salem stock car races or NASCAR's Nextel Cup Series, is intended to increase: A. the availability of knockoff brands. B. brand awareness. C. the quality of the event. D. the promotional budget.

brand awareness

Limited-function wholesalers that mainly serve small businesses by selling them a limited assortment of goods are known as: A. backdoor wholesalers. B. consolidated wholesalers. C. cash-and-carry wholesalers. D. agency wholesalers.

cash-and-carry wholesalers

A(n) ____________ consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user. A. channel of distribution B. marketing network C. input-output matrix D. mode of distribution

channel of distribution

Patrick Bolger is convinced that his product idea has tremendous potential. He has decided to produce the product himself, but plans to use other firms who specialize in storing and transporting to help him move the product along its path to the final consumer. These specialists Patrick uses will be part of his: A. wheel of retailing. B. market network. C. channel of distribution. D. franchise system.

channel of distribution

Which of the following is considered a stage of the new-product development process? A. automation B. commercialization C. media screening D. selective perception

commercialization

Which of the following describes individuals that want goods and services for personal consumption and have the resources to buy them? A. secondary market B. business-to-business market C. market segmentation D. consumer market

consumer market

Companies that adopt a pull strategy target their promotional efforts toward A. wholesalers. B. consumers. C. manufacturers. D. retailers.

consumers

Franchise systems are one type of __________ distribution system. A. corporate B. wholesale C. contractual D. administered

contractual

A _____________ orientation refers to the process of determining the wants and needs of buyers and then providing goods and services to meet or exceed their expectations. A. market B. profit C. customer D. production

customer

A successful social media promotional campaign includes A. daily postings of images your customers want to see. B. hashtags for everything you post. C. strictly factual information for customers to read without distractions from other promotional efforts. D. monthly photo postings.

daily postings of images your customers want to see.

Federated Grocery Stores operates a large chain of stores across several mid western states. While Federated doesn't actually produce any canned foods, it markets a line of foods under its own brand name that were actually produced by another company. Federated canned foods represent a: A. manufacturers' brand. B. knockoff brand. C. generic brand. D. dealer (private) brand.

dealer (private) brand.

The first step in the marketing research process is to: A. define the problem and determine the present situation. B. collect relevant data from primary and secondary sources. C. analyze the research data. D. decide upon the best ethical solution.

define the problem and determine the present situation.

Firms that adopt a relationship marketing strategy attempt to: A. develop products that meet the specific requirements of individual customers. B. maximize their market share by designing products that appeal to large numbers of customers. C. develop their promotional efforts utilizing mass media such as television, newspapers and radio in order to relate to a large audience. D. maximize market share by controlling production costs and maintaining low prices.

develop products that meet the specific requirements of individual customers.

Companies who send salespeople to customers' homes or places of work are making use of __________ selling. A. direct B. point of contact C. downline D. nonretail

direct

In evaluating the best advertising medium to reach a specific target market the clear choice is A. direct mail. B. network television. C. newspapers. D. cable television.

direct mail

Robert Martinez is a marketing manager for Friendly Financial Services. He has been looking at a variety of factors, such as technological, socio-cultural and economic trends as well as competitive conditions. Martinez is confident that these factors will impact Friendly's future marketing success. His efforts are an example of: A. target marketing. B. competitive benchmarking. C. relationship marketing. D. environmental scanning.

environmental scanning

A ___________ group consists of a small group of people who meet under the direction of a discussion leader to discuss opinions about an organization, its products, or other issues. A. concept B. focus C. peer D. consumer interest

focus

A promotional campaign begins by A. developing a unifying message. B. identifying a target market. C. determining a promotional budget. D. defining the objectives for each element of the promotion mix.

identifying a target market

Television programs devoted exclusively to promoting goods and services are called A. interactive television. B. infomercials. C. testimonials D. online advertising.

infomercials

When an organization uses advertising to create an attractive image for itself, this type of advertising is called A. comparison advertising. B. retail advertising. C. trade advertising. D. institutional advertising.

institutional advertising.

The management at Avenue Apparel Inc. designed a strategy that unifies advertising, personal selling, public relations, and sales promotion activities creating a consistent message. This effort to promote a positive brand image represents a(n) __________ program. A. integrated marketing communication B. supply chain C. interactive promotion D. global marketing

integrated marketing communication

A firm that wants to distribute its products as widely in a market as possible would use a(n) ___________ distribution strategy. A. extensive B. shotgun C. universal D. intensive

intensive

Which of the following products would normally be classified as a shopping good or service? A. chewing gum B. laptop computers C. fur coats D. newspapers

laptop computers

A key element of customer relationship management is to: A. keep the price of goods as low as possible B. develop a strategy to achieve the largest possible market share. C. allow customers to participate in the management decisions of the firm. D. learn as much as possible about customers.

learn as much as possible about customers.

Restaurants, like other businesses, often find that the best way to succeed in the market is to: A. create a product for which he could charge an exceptionally high price. B. open more stores in a single year than other foodservice operators. C. create a winning combination of advertising and personal selling for all of the stores in the chain. D. listen to customers and adapt products to their needs.

listen to customers and adapt products to their needs.

When consumers calculate the value of a product, they: A. eliminate all non-tangible elements that might affect their perception of the product. B. identify the variable and the fixed components of the product's benefits. C. look at the benefits the product provides then subtract the cost. D. subtract the cost of production from the market price.

look at the benefits the product provides then subtract the cost.

A major responsibility of the public relations department is to A. identify appropriate markets for the firm's products, and then select the most likely customers in each market. B. maintain close ties with the media, community leaders, government officials, and other stakeholders. C. train salespeople to interact better with their company's customers. D. decide on the appropriate mix of advertising media.

maintain close ties with the media, community leaders, government officials, and other stakeholders.

Which of the following firms would be most likely to use a selective distribution strategy for its products? A. Newspaper publisher B. Maker of name brand men's suits C. Super luxury car manufacturer D. Maker of snack foods such as potato chips and pretzels

maker of name brand mens suit

__________ may represent several producers in a specific territory, as long as they do not represent competing products. A. Consignment brokers B. Sales contractors C. Manufacturer's agents D. Freight forwarders

manufacturers agent

The brand names that are used by producers that distribute products nationally are called: A. manufacturers' brand names. B. generic brand names. C. product category brands. D. universal brand names.

manufacturers' brand names

Roosevelt Community College has experienced declining enrollment for the past three years. In the past the college has relied strictly on enrollment from newly graduated high school students. In order to identify other potential markets, Roosevelt Community College would benefit from: A. test marketing. B. sales promotions. C. marketing research. D. a stakeholder audit.

marketing research

A ____________ marketing strategy develops products and promotions designed to please large groups of people. A. volume B. mass C. relationship D. value

mass

During the ________ stage of the product life cycle sales reach a peak, profits are declining, and the number of competitors starts to decrease. A. maturity B. saturation C. growth D. decline

maturity

Which of the following refers to a marketing strategy in which the focus is on small but profitable market segments? A. micro targeting B. narrowcast marketing C. focused marketing D. niche marketing

niche marketing

Baker Investing wants to build strong relationships with its customers and is looking to create a more interactive approach to advertising. Which advertising medium should the company use to achieve their goal? A. radio B. television C. online D. newspapers

online

_________ is an important part of the total product offer for a product. A. Management style B. Packaging C. Consumer income D. Employee personality

packaging

Bob has the responsibility for product development, pricing, promotion, and distribution of Hi Vee Vitamins for children. Bob's job would not involve: A. test marketing B. concept testing C. pollution control D. getting the product to the right place

pollution control

Hottaire Heating and Cooling offers customers who buy air conditioners and furnaces free delivery and low installation charges. The company also offers a free follow-up inspection of the new equipment one month after it is installed. These services are ways that Hottaire provides its customers with __________ utility. A. possession B. time C. marginal D. situational

possession

Marketers define a _________________ as any physical good, service, or idea that satisfies a want or need. A. product B. copyright C. prototype D. concept

product

The ____________ is a theoretical model that describes the sales and profit performance of a product class over time. A. market stages model B. marketing template C. product life cycle D. commercialization time line

product life cycle

Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market? A. product line B. product matrix C. total product offer D. product mix

product line

The Wisconsin Department of Travel and Tourism promotes the state by sending travel agents and tour bus companies information about the state's many attractions. The hope is that by stimulating interest in tour and travel agents, they will in turn encourage their customers to visit Wisconsin. This example represents a __________ promotional strategy. A. sampling B. product placement C. push D. pull

product placement

Which of the following is a relevant criterion for the product screening process? A. the stage of the product life cycle B. production capacity of competitors C. profit potential D. sales forecasts for the product

profit potential

Simone is a new salesperson for a medical supply company. She is compiling a list of pharmacies and independent stores that make medical supply buying decisions and plans to contact these businesses to determine what supplies they are currently using, and if they plan to purchase any additional supplies in the future. Identifying those decision makers who are willing to consider her products is called A. the supply chain. B. sales identification. C. prospecting and qualifying D. Correcta trial close.

prospecting and qualifying

The primary purpose of a push strategy is to A. push the product down the distribution channel to retail stores. B. rush the production schedule for products and beat competitors to the market. C. push products away from traditional channels of distribution to save costs. D. push products on consumers and convince them that they need the products.

push the product down the distribution channel to retail stores.

The goal of ____________ is to keep individual customers over time by offering them new products that exactly meet their requirements. A. niche marketing B. mass marketing C. relationship marketing D. segment marketing

relationship marketing

Nina Corby owns a card shop in a small shopping center where she sells cards produced by a national company. Nina sells to final customers, so she is a(n): A. merchant wholesaler. B. retailer. C. rack jobber. D. channel captain.

retailer

New Age Books partnered with Amazon to offer a unique __________. If you purchase 1 of 12 paperback books published by New Age, you can choose 1 of 12 Kindle versions for $3 (a much lower price than a regular Kindle version). A. advertisement B. sales promotion C. publicity stunt D. direct marketing opportunity

sales promotion

A(n) ___________ distribution strategy distributes a product through only a preferred group of retailers in a given area. A. intensive B. selective C. exclusive D. restrictive

selective

One way traditional retailers have maintained customers in the face of increasing competition from online sellers and other direct markers is to place more emphasis on providing _________ utility. A. psychographic B. place C. service D. form

service

Which of the following are products consumers buy after comparing quality, price, and style from a variety of sellers? A. unsought goods B. convenience goods C. specialty goods D. shopping goods

shopping goods

A firm's marketing mix refers to the combination of: A. goods the firm offers to different market segments. B. advertising media the firm utilizes to promote its products. C. strategies regarding product, price, place and promotion. D. people directly involved in making marketing decisions.

strategies regarding product, price, place and promotion.

Taken together, all of the organizations that move goods from the sources of raw materials to ultimate consumers is known as a(n): A. multifunction network. B. supply chain. C. critical distribution path. D. marketing priority network.

supply chain

__________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm. A. Cost-based pricing B. Price discrimination C. Target costing D. Price leadership

target costing

Cool People Publications focuses their marketing efforts on reaching African-American teenage girls. The firm believes that they are positioned to profitably serve this group of consumers. Cool People utilizes the strategy of: A. narrowcasting. B. target marketing. C. primary marketing. D. focus group selection.

target marketing.

Sports Coasters sells good quality athletic wear by sending its customers a catalog nine times a year. The company has no retail stores, but offers a toll free order number that operates 24 hours a day, 365 days a year. Sports Coasters sells using a technique known as: A. tel-tailing. B. indirect marketing. C. telemarketing. D. multilevel marketing.

telemarketing

___________ is the sale of goods and services by telephone. A. Cel-tailing B. Teleselling C. Telemarketing D. Direct marketing

telemarketing

H2 O'Yeah has designed a water purification device that is drastically different and far superior to any product currently on the market. Although consumer response was positive to the idea of the new product, management wants to find out more before committing to full-scale production. The next step H2 O'Yeah's marketing department is likely to take is to: A. locate a low cost production site. B. seek a joint venture with a larger competitor. C. test market the product among potential users. D. develop an advertising campaign to persuade consumers of the value of the new water purifier system.

test market the product among potential users.

The effectiveness of direct mail advertising suffers from A. the limited length of the message B. its inflexibility. C. the consumer perception that it is junk mail. D. its inability to target specific markets

the consumer perception that it is junk mail

Marketing intermediaries add ________ utility to products by having them available when consumers want them. A. time B. allocative C. response D. form

time

The purpose of a __________ is to move the selling process toward an actual product purchase. A. follow-up B. commission C. trial close D. closing

trial close

__________ goods and services represent those products that consumers are unaware of or haven't thought of buying. A. Shopping B. Inferior C. Convenience D. Unsought

unsought

__________ is the value or want-satisfying ability that is added to products by organizations that make the product more useful or accessible to consumers. A. Utility B. Applicability C. Functionality D. User friendliness

utility

_______ costs are those costs that increase as the level of production increases. A. Variable B. Uncontrollable C. Mixed D. Fixed

variable

A __________ is designed to allow B2B buyers to see products online 24/7 without having to leave their office. A. virtual trade show B. television infomercial C. direct mail promotion D. marketing portfolio

virtual trade show

Which of the following is consistent with relationship marketing? A. maintaining transactional relationships with customers B. working with buyers to determine their individual needs C. developing market share through mass media advertising D. focusing more on obtaining new customers than on retaining existing customers

working with buyers to determine their individual needs