Marketing Exam 2 (ch 8 and 10-14)

The Learning Institute recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Learning Institute managers will most likely use​ ________ next to arrive at a realistic number of ideas to adopt.

A.
crowdsourcing
B.
idea screening
.C.
business analysis
D.
concept development
E.
concept testing

B. Idea Screening
Which of the following would be an appropriate strategy during the maturity stage of the product​ lifecycle?

A.
Produce basic versions of the product and focus on selling to those buyers who are the most ready to buy.
B.
Modify the​ market, product offering and marketing mix.
Your answer is correct.C.
Shift some advertising from building product awareness to building product conviction and purchase.
D.
Select products to​ maintain, harvest or drop.
E.
Use promotional spending to inform consumers and get them to try the product.

B.
Modify the​ market, product offering and marketing mix.
Your answer is correct.C.
Shift some advertising from building product awareness to building product conviction and purchase.
Through​ _____ a company can obtain new products by buying a whole​ company, a​ patent, or a license to produce someone​ else’s product.

A.
internal​ R&D
B.
idea generation
C.
product life cycle strategies
D.
new product development
E.
acquisition

E.
acquisition
In the early​ 1970’s, Gary Dahl sold pet rocks. The product had a​ short, temporary period of unusually high sales driven by consumer enthusiasm and immediate product​ popularity, but then sales declined very quickly. The PLC sales pattern for pet rocks is known as​ ______.

A.
a style
B.
a fad
C.
a normal product life cycle curve
D.
a fashion
E.
a failure

B.
a fad
To create successful new​ products, a company must​ _______.

A.
understand its​ consumers, markets, and competitors and develop products that deliver superior value
B.
obtain successful products through acquisitions instead of doing internal development
C.
cut costs to keep the price of new products low
D.
focus their new product development efforts only on consumers
E.
spend more on​ R&D that its competitors

A.
understand its​ consumers, markets, and competitors and develop products that deliver superior value
Which of the following statements about new product development strategy is​ correct?

A.
Innovation can be very expensive and very risky.
B.
New products are usually successful because consumers like new things.
C.
A new product will succeed as long as it is priced correctly.
D.
New products are not a major source of growth for companies.
E.
Good advertising creates successful new products.

A.
Innovation can be very expensive and very risky.
Which of the following statements is true regarding product life cycle​ curves?

A.
Managing products through their life cycle is an easy task.
B.
Marketers do not know the exact shape and length of their​ product’s life cycle in advance.
C.
All products follow the traditional​ 5-stage PLC model.
D.
Once a product reaches the decline​ stage, it cannot be recycled back to growth.
E.
Marketing strategies do not change for different life cycle stages.

B.
Marketers do not know the exact shape and length of their​ product’s life cycle in advance.
Which of the following statements is true regarding standardizing products for international​ markets?
A.
Standardization helps a company develop a different image in different countries.
B.
Standardization decreases product​ design, manufacturing, and marketing costs.
C.
Standardization increases product​ design, manufacturing, and marketing costs.
D.
Markets and consumers all over the world are​ alike, so a company should always standardize international products.
E.
Standardization ensures that products will succeed in foreign markets.
B.
Standardization decreases product​ design, manufacturing, and marketing costs.
When a product is in the decline stage of the​ PLC, a company may reduce various costs​ (plant and​ equipment, maintenance,​ R&D, advertising, sales​ force), hoping that sales hold up. In other​ words, they are​ ________ the product.
A.
dropping
B.
milking
C.
growing
D.
maintaining
E.
harvesting
E.
harvesting
Which of the following statements concerning new products is​ correct?
A.
Modified and improved products are considered new.
B.
A modified product is not considered a new product.
C.
Products that are merely improved in some way are not considered new.
D.
Most new products succeed within two years of their introduction.
E.
To be considered​ new, the product must be something consumers have not seen before.
A.
Modified and improved products are considered new.
Sales are rising​ rapidly, competitors are growing in number and the customers are early adopters. Which stage of the PLC does this​ describe?
A.
Introduction
B.
Decline
C.
Growth
D.
Product development
E.
Maturity
C.
Growth
To be more socially​ responsible, some companies are appointing​ _____________. Their job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
A.
product champions
B.
product managers
.C.
product stewards
.D.
brand managers
E.
attorneys
.C.
product stewards
Most products are at which stage of their product​ lifecycle?
A.
Maturity
B.
Product development
C.
Growth
D.
Decline
E.
Introduction
A.
Maturity
Installing an innovation management system to​ collect, review,​ evaluate, and manage new product ideas represents​ a(n) ______________ approach to new product development.
A.
systematic
B.
crowdsourced
C.
​team-based
D.
​customer-centered
E.
sequential
A.
systematic
Which of the following is NOT a product life cycle​ (PLC) stage?
A.
Maturity
B.
Commercialization
C.
Decline
D.
Introduction
E.
Growth
B.
Commercialization
A company launching a new product at the commercialization stage of new product development must first decide on​ ___________.
A.
the target market
B.
introduction timing
C.
market share goals
D.
profit goals
E.
the value proposition
B.
introduction timing
Which of the following is an external source of new product ideas for a​ company?
A.
Hackathons
B.
​R&D
C.
Trade magazines
D.
Innovation
E.
Intrapreneurial programs
C.
Trade magazines
When Dr. Lawncare developed his revolutionary new solar powered​ lawnmower, he knew that during the introductory stage of the product lifecycle​ ___________.
A.
profits would rise quickly and there would be rapid market acceptance of his product.
B.
sales would be slow and profits​ non-existent
C.
sales would be low but profits would be high
D.
sales would fall and profits would drop
E.
sales would be slow and profits would level off or decline
B.
sales would be slow and profits​ non-existent
At which stage of the new product development process is a physical product first​ developed?
A.
Concept development and testing
B.
Product development
C.
Marketing strategy development
D.
Test marketing
E.
Idea generation
B.
Product development
Intuit follows a​ “Design for Delight​ (D4D)” development philosophy that products should delight customers by providing experiences that exceed expectations. Which new product development approach is Intuit​ using?
A.
​Team-based new product development
B.
Crowdsourcing
C.
Marketing strategy development
D.
​Customer-centered new product development
E.
Systematic new product development
D.
​Customer-centered new product development
Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of​ short-listed ideas will be adequately rewarded. In this​ case, Goldtone is using​ ________ to generate new product ideas.
A.
crowdsourcing
B.
business analysis
C.
concept development
D.
marketing strategy development
E.
test marketing
A.
crowdsourcing
At which stage of the new product development process is crowdsourcing​ used?
A.
Commercialization
B.
Product development
C.
Marketing strategy development
D.
Idea generation
E.
Idea screening
E.
Idea screening
Which of the following statements regarding socially responsible product decisions is​ correct?
A.
Companies can safely ignore patent laws.
B.
Safety legislation has been passed to regulate chemical substances and drugs and​ poisons, but not​ toys, automobiles and fabrics.
C.
Manufacturers are generally not concerned with product liability.
D.
When companies drop​ products, they do not have any obligations to​ suppliers, dealers and customers.
E.
The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition.
E.
The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition.
After ideas are​ screened, the next stage of the new product development process is​ _____.
A.
test marketing
B.
concept development and testing
C.
idea generation
D.
commercialization
E.
product development
B.
concept development and testing
Which of the following statements is correct concerning service marketers going​ global?
A.
Compared to product​ marketers, service marketers do not face any additional challenges when going global.
B.
One industry that still has not globalized is retailing.
C.
Due to the nature of their​ business, professional service firms cannot expand their business to foreign markets.
D.
The trend toward growth of global service companies is expected to continue in the near future.
E.
The growth of global service companies is expected to decline in the near future.
D.
The trend toward growth of global service companies is expected to continue in the near future.
Which of the following describes a​ just-in-time logistics​ system?
A.
​Just-in-time logistic systems eliminate the need for forecasting.
B.
​Just-in-time logistics systems allow producers and retailers to carry large amounts of inventory.
C.
​Just-in-time logistics systems ensure that new stock arrives at least one week before it is needed.
D.
​Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.
.E.
​Just-in-time logistics systems greatly increase​ inventory-carrying and​ inventory-handling costs.
D.
​Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.
What is the most common type of a contractual​ VMS?
A.
A supplier
B.
A channel intermediary
C.
A franchise
D.
A wholesaler
E.
A retailer
C.
A franchise
​A(n)_______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to find the final buyer.
A.
supply chain
B.
value delivery network
C.
contact
D.
channel level
E.
marketing channel
D.
channel level
Online marketers taking business from traditional​ brick-and-mortar retailers is an example of​ _____.
A.
horizontal conflict
B.
vertical conflict
C.
disintermediation
D.
an administered VMS
E.
franchising
C.
disintermediation
Under which type of system does the customer share​ real-time data on sales and current inventory levels with the​ supplier, and the supplier then takes full responsibility for managing inventories and​ deliveries?
A.
​Just-in-time logistics
B.
Reverse logistics
C.
RFID
D.
Piggybacking
E.
​Vendor-managed inventory
B.
Reverse logistics
What is the first step in marketing channel​ design?
A.
Identifying the types of intermediaries to use.
B.
Analyzing consumer needs.
C.
Setting channel objectives.
D.
Evaluating major channel alternatives.
E.
Identifying the number of intermediaries to use.
B.
Analyzing consumer needs.
​A(n) _____ is made up of one or more independent​ producers, wholesalers,​ retailers, and consumers.
A.
corporate vertical marketing system
B.
administered vertical marketing system
C.
channel level
D.
franchise
E.
conventional distribution channel
E.
conventional distribution channel
Which of the following is a reason that producers use marketing channels and channel​ intermediaries?
A.
Using channel intermediaries increases the number of contacts with customers.
B.
Marketing channel decisions only require a​ short-term commitment.
C.
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
.D.
Using marketing channels allows producers to retain control over how and to whom they sell their products.
E.
The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels.
C.
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
The length of a channel is indicated by​ ___________.
A.
the number of final consumers
B.
the number of producers
C.
the number of retailers in the channel
D.
the number of intermediary levels
E.
the number of wholesalers in the channel
D.
the number of intermediary levels
When setting channel​ objectives, companies should state the objectives in terms of​ ______.
A.
exclusive distribution arrangements
B.
​competitor’s objectives
C.
expected profitability
D.
targeted levels of customer service
E.
the length of the channel
D.
targeted levels of customer service
Which technology could one day make the entire supply chain intelligent and​ automated?
A.
Vendor managed inventory
B.
Third party logistics
C.
Radio frequency identification
D.
​Just-in-time
E.
Electronic data interchange
C.
Radio frequency identification
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this​ represent?
A.
Corporate VMS
B.
Administered VMS
.C.
Franchise
D.
Contractual VMS
E.
Conventional distribution channel
B.
Administered VMS
What are the four major functions of​ logistics?
A.
​Retailing, inventory​ management, transportation, and logistics information management
B.
Inventory​ management, transportation,​ shipping, warehousing
C.
​Warehousing, inventory​ management, retailing, logistics information management
D.
​Warehousing, inventory​ management, transportation, logistics information management
Your answer is correct.E.
​Warehousing, inventory​ management, transportation, retailing
E.
​Warehousing, inventory​ management, transportation, retailing
D.
​Warehousing, inventory​ management, transportation, logistics information management
Your answer is correct.E.
​Warehousing, inventory​ management, transportation, retailing
​_______ involves​ reusing, recycling,​ refurbishing, or disposing of​ broken, unwanted, or excess products returned by consumers or resellers.
A.
Reverse logistics
B.
Inbound logistics
C.
Outbound logistics
D.
Warehousing
E.
Inventory management
A.
Reverse logistics
When the company has defined its channel​ objectives, it should next identify its major channel alternatives in terms of the types of​ intermediaries, the number of​ intermediaries, and​ __________________.
A.
the profitability of the channel
B.
consumer needs
C.
economic criteria
D.
whether to use intensive or exclusive distribution
E.
the responsibilities of channel members
E.
the responsibilities of channel members
Full-line forcing is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line. Which of the following statements is true regarding​ full-line forcing?
A.
It is always illegal.
B.
It is always legal.
C.
It may or may not be legal.
D.
It is only legal in New​ York, California and Texas.
E.
It is only illegal in Europe.
C.
It may or may not be legal.
Channels often involve​ long-term commitments and companies have many alternatives. What type of criteria should be used if the company wants to keep the channel flexible so that it can respond to environmental​ changes?
A.
Profitability criteria
B.
Sales criteria
C.
Adaptability criteria
D.
Investment criteria
E.
Control criteria
C.
Adaptability criteria
​A(n) _______ is made up of the​ company, suppliers,​ distributors, and,​ ultimately, customers who​ “partner” with each other to improve the performance of the entire system.
A.
channel level
B.
marketing channel
C.
contact
D.
value delivery network
E.
supply chain
D.
value delivery network
Companies today see channel members as​ first-line customers and practice strong​ ________.
A.
partner relationship management
B.
B2B selling
C.
consumer advertising
D.
trade promotions
E.
discount pricing
A.
partner relationship management
One key function performed by channel members is​ ___________, or shaping offers to meet the​ buyer’s needs, including activities such as​ manufacturing, grading,​ assembling, and packaging.
A.
promotion
B.
matching
C.
risk taking
D.
negotiating
E.
contact
D.
negotiating
Which channel partners in a​ company’s supply chain are upstream from a manufacturer or​ producer?
A.
Business distributors
B.
Suppliers.
C.
Retailers
D.
Wholesalers
E.
Customers
B.
Suppliers.
Companies now use​ ________ and supply chain management software to help​ recruit, train,​ organize, manage,​ motivate, and evaluate relationships with channel partners.
A.
customer relationship management
B.
partner relationship management
C.
logistics
D.
channel management
E.
distribution
B.
partner relationship management
​Sherwin-Williams sells its paint and other branded products exclusively through​ company-owned retail stores.​ Sherwin-Williams has established​ a(n) _________.
A.
conventional distribution channel
B.
contractual VMS
C.
administered VMS
D.
vertical marketing system
E.
corporate VMS
E.
corporate VMS
Which of the following is an example of horizontal channel​ conflict?
A.
A retailer complaining about a​ producer’s pricing.
B.
A consumer complaining to a retailer about the service he received.
C.
A consumer complaining to a producer about the quality of a product.
D.
A retailer complaining about receiving damaged goods from a wholesaler.
E.
A Ford dealer complaining that another Ford dealer is advertising in its territory.
E.
A Ford dealer complaining that another Ford dealer is advertising in its territory.
Producers of convenience products typically use​ ______ distribution.
A.
intensive
.B.
exclusive
C.
direct
D.
franchise
E.
selective
C.
direct
Hotels and​ motels, banks,​ airlines, restaurants,​ colleges, hospitals, movie​ theaters, tennis​ clubs, bowling​ alleys, repair​ services, hair​ salons, and dry cleaners are all examples of​ ________.
A.
service retailers
B.
franchises
C.
​non-retailers
D.
specialty stores
E.
wholesalers
A.
service retailers
By practicing​ ______ retailing,​ today’s retailers are increasingly adopting environmentally sustainable practices.
A.
green
B.
service
C.
experiential
D.
​off-price
E.
independent​ off-price
A.
green
Retailers must decide on which three major product​ variables?
A.
Product​ assortment, services​ mix, and price
B.
Product​ assortment, price, and location
C.
Product​ assortment, store​ atmosphere, and price
D.
Product​ assortment, services​ mix, and store atmosphere
E.
Product​ assortment, services​ mix, and location
D.
Product​ assortment, services​ mix, and store atmosphere
By performing the channel function of​ ________, wholesalers’ sales forces help manufacturers reach many small customers at a low cost.
A.
risk bearing
B.
​bulk-breaking
C.
financing
D.
selling and promoting
E.
buying and assortment building
D.
selling and promoting
Which of the following statements about retailer marketing decisions is​ correct?
A.
Many retailers identify three critical factors for retail​ success: location,​ location, and location.
B.
Stores do not need to differentiate and position themselves.
C.
Most retailers seek either high markups on higher volume or low markups on lower volume.
D.
Retailers do not have to segment and target their markets.
E.
Retailers do not differentiate themselves on their service mix.
A.
Many retailers identify three critical factors for retail​ success: location,​ location, and location.
Which wholesaler channel function helps reduce inventory holding costs and the risks of suppliers and​ customers?
A.
Warehousing
B.
Financing
C.
Buying and assortment building
D.
Transportation
E.
Risk bearing
A.
Warehousing
What is the overall goal when retailers choose their product​ assortment?
A.
Offer products that will appeal to as many segments as possible.
B.
Offer as many products as they can fit on the shelves.
C.
Offer the same products as their competitors.
D.
Differentiate the retailer while matching target​ shoppers’ expectations.
E.
Only choose products that will maximize profits.
D.
Differentiate the retailer while matching target​ shoppers’ expectations.
​________ refers to the activities involved in selling products or services directly to final consumers for their​ personal, nonbusiness use.
A.
Shopper marketing
B.
Wholesaling
C.
Retailing
D.
Warehousing
E.
Manufacturing
C.
Retailing
Which of the following statements about shopping centers is​ correct?
A.
The most common type of shopping center is a strip mall.
B.
Shopping centers cannot have more than 10 stores because of zoning laws.
C.
Banks cannot be part of a shopping center.
D.
Retailers in a shopping center are independently owned and managed.
E.
Shopping centers are only found in rural areas.
A.
The most common type of shopping center is a strip mall.
What are the four major types of retail​ organization?
A.
Discount​ stores, service​ retailers, superstores, and supermarkets.
B.
Corporate​ chains, voluntary​ chains, retailer​ cooperatives, and franchise organizations.
C.
Corporate​ chains, wholesalers,​ superstores, and franchise organizations.
D.
Corporate​ chains, voluntary​ chains, wholesalers, and franchise organizations.
E.
Corporate​ chains, voluntary​ chains, retailer​ cooperatives, and wholesalers
B.
Corporate​ chains, voluntary​ chains, retailer​ cooperatives, and franchise organizations.
Carefully orchestrating the​ store’s layout and​ displays, background​ music, colors, and smells is related to​ ________.
A.
green retailing
B.
online retailing
C.
experiential retailing
D.
social media retailing
E.
megaretailing
C.
experiential retailing
Which of the following statements about wholesaling is​ true?
A.
Wholesalers do not need to define a target market.
B.
Wholesalers must make decisions regarding their marketing mix.
C.
Wholesalers do not make positioning decisions.
D.
Wholesalers do not need to differentiate themselves.
E.
Wholesalers do not need to segment their markets.
B.
Wholesalers must make decisions regarding their marketing mix.
​___________ are the largest single group of​ wholesalers, accounting for roughly 50 percent of all wholesaling.
A.
​Manufacturers’ representatives
B.
Agents
C.
​Manufacturers’ agents
D.
Brokers
E.
Merchant wholesalers
E.
Merchant wholesalers
One retail trend resulting from economic conditions is​ ________.
A.
green retailing
B.
the rise of megaretailers
C.
​pop-up stores
D.
the growth of social media retailing
E.
tighter consumer spending
E.
tighter consumer spending
A discount store​ (for example,​ Target, Kohl’s, or​ Walmart) sells standard merchandise at lower prices. To do​ this, discount stores accept which of the following two​ conditions?
A.
lower margins and lower sales volume
B.
operating at a loss and higher sales volume
C.
lower margins and higher sales volume
D.
higher sales volume and inefficient operations.
E.
higher margins and lower sales volume
C.
lower margins and higher sales volume
​Macy’s carries several product lineslong dash—typically ​clothing, home​ furnishings, and household goodslong dash—with each line operating as a separate department managed by specialist buyers or merchandisers.​ Macy’s is best described as​ a(n) ________.
A.
superstore
B.
specialty store
C.
department store
D.
discount store
E.
​off-price retailer
C.
department store
Superstores that are actually giant specialty stores and have seen tremendous growth recently are called​ _______.
A.
discount stores
B.
category killers
C.
​off-price retailers
D.
supermarkets
E.
service retailers
B.
category killers
The retail marketing mix consists of which of the​ following?
A.
Product and service​ assortment, retail​ prices, promotion, and store positioning
B.
Product and service​ assortment, retail​ prices, promotion, and retail targeting
C.
Product and service​ assortment, retail​ prices, promotion, and retail segmentation
D.
Product and service​ assortment, retail​ prices, promotion, and location
E.
Product and service​ assortment, retail​ prices, promotion and store differentiation.
D.
Product and service​ assortment, retail​ prices, promotion, and location
​Increasingly, different types of retailers now sell the same products at the same prices to the same consumers. This trend is called​ ___________.
A.
retail convergence
B.
social media retailing
C.
megaretailing
D.
green retailing
E.
retail blending
A.
retail convergence
Which type of retailer carries a narrow product line with deep assortments within those​ lines?
A.
Specialty stores
B.
Convenience stores
C.
Department stores
D.
Supermarkets
E.
Superstores
A.
Specialty stores
Which of the following statements about major retail trends is​ true?
A.
The green movement has not yet affected retailing.
B.
The global expansion of major retailers into other countries has slowed down.
C.
Online buying is growing at a much brisker pace than retail buying as a whole.
D.
The lifecycle of new retail forms is getting longer.
E.
Retail convergence has decreased competition for retailers.
C.
Online buying is growing at a much brisker pace than retail buying as a whole.
After segmenting and defining their target​ markets, what should retailers do​ next?
A.
Decide how they will differentiate and position themselves in the market.
B.
Decide on the level of service.
C.
Decide on the store atmosphere
D.
Decide on the location.
E.
Decide on the product assortment.
A.
Decide how they will differentiate and position themselves in the market.
The practice of coming into retail stores to check out merchandise and prices but making purchases online using a computer or mobile device is called​ _______.
A.
​off-price retailing
B.
shopper retailing
C.
mobile retailing
D.
showrooming
E.
experiential retailing
D.
showrooming
Which of the following correctly describes the retail practice known as​ high-low pricing?
A.
​High-low pricing means some products are priced high and others are priced low.
B.
​High-low pricing means retailers charge an everyday low price.
C.
​High-low pricing means the retailer does not have to run sales on selected items.
D.
​High-low pricing means retailers do not have to use promotions.
E.
​High-low pricing means charging higher prices on an everyday​ basis, coupled with frequent sales and other price promotions.
E.
​High-low pricing means charging higher prices on an everyday​ basis, coupled with frequent sales and other price promotions.
​_______ involves focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale.
A.
Shopper marketing
B.
Retailing
C.
Showrooming
D.
Warehousing
E.
Internal marketing
A.
Shopper marketing
Specific promotional tools used in​ ______ include direct​ mail, catalogs, online and social​ media, mobile​ marketing, and more.
A.
sales promotion
B.
public relations
C.
advertising
D.
direct and digital marketing
E.
personal selling
D.
direct and digital marketing
One reason integrated marketing communications is necessary is​ __________.
A.
consumers​ don’t distinguish between content sources the way marketers do
B.
messages from companies come from a single source
C.
companies have always integrated their various communication channels
D.
consumers can easily distinguish brand content from different sources
E.
communication channels today are less fragmented than in the past
A.
consumers​ don’t distinguish between content sources the way marketers do
In the promotion​ mix, ________ refers to any paid form of nonpersonal presentation and promotion of​ ideas, goods, or services by an identified sponsor.
A.
public relations
B.
sales promotion
C.
personal selling
D.
crowdsourcing
E.
advertising
E.
advertising
Which of the following statements about public relations is​ correct?
A.
Public relations is only used to promote products.
B.
The lines between advertising and public relations are becoming more and more blurred.
C.
The impact of public relations on public awareness comes at a much higher cost than advertising.
D.
Trade associations do not use public relations.
E.
Public relations cannot be used to engage consumers.
B.
The lines between advertising and public relations are becoming more and more blurred.
The​ _____________ message execution style shows one or more​ “typical” people using the product in a normal setting.
A.
slice of life
B.
mood or image
C.
scientific evidence
D.
fantasy
E.
lifestyle
A.
slice of life
What is the goal of a pull​ strategy?
A.
To give channel members incentives to carry the product
B.
To increase sales calls to distributors
C.
To build trade demand
D.
To save money by only focusing on consumers
E.
To build consumer demand
E.
To build consumer demand
Companies who primarily direct their promotional activities to channel members are using​ a(n) ______ strategy.
A.
integrated
B.
push
C.
sales force
D.
pull
E.
product
B.
push
​________ advertising is utilized most often by​ mature, well-known brands.
A.
Attack
B.
Comparative
C.
Informative
D.
Persuasive
E.
Reminder
E.
Reminder
Which advertising objective is used heavily when introducing a new product​ category?
A.
Attack
B.
Comparative
C.
Reminder
D.
Persuasive
E.
Informative
E.
Informative
​Logos, stationery,​ brochures, signs, business​ forms, business​ cards, buildings,​ uniforms, and company cars and trucks are examples of which promotional​ tool?
A.
Public service activities
B.
Special events
C.
Corporate identity materials
D.
News
E.
Written materials
C.
Corporate identity materials
What is the goal of integrated marketing​ communications?
A.
To lower overall marketing expenditures
B.
To integrate communications via online and mobile technologies
C.
To deliver​ clear, consistent, and compelling messages about the organization and its brands
D.
To have different media carry different messages about a brand
E.
To maximize return on investment
C.
To deliver​ clear, consistent, and compelling messages about the organization and its brands
What are the two major elements in developing advertising​ strategy?
A.
Creating advertising messages and setting the advertising budget
B.
Creating advertising messages and selecting advertising agencies
C.
Creating advertising messages and selecting advertising media
D.
Determining the target audience and selecting advertising media
E.
Determining the advertising budget and evaluating results
C.
Creating advertising messages and selecting advertising media
Which advertising objective is best suited to building selective​ demand?
A.
Reminder
B.
Humorous
C.
Persuasive
D.
Attack
E.
Informative
C.
Persuasive
​Generally, _________ is a​ company’s most expensive promotional tool.
A.
Public relations
B.
Advertising
C.
personal selling
D.
direct and digital marketing
E.
Sales promotion
C.
personal selling
One popular method of branded entertainment is​ ________, which embeds brands as props within other​ programming, for​ example, television shows and movies.
A.
native advertising
B.
advertainment
C.
webisodes
D.
viral marketing
E.
product placement
E.
product placement
The public relations function of​ _______ is used to build and maintain national or local community relationships.
A.
press relations
B.
investor relations
C.
development
D.
public affairs
E.
lobbying
D.
public affairs
Specific promotional tools used in​ _______ include press​ releases, sponsorships,​ events, and web pages.
A.
advertising
B.
personal selling
C.
public relations
D.
direct and digital marketing
E.
sales promotion
C.
public relations
When advertisers determine the qualitative value of message exposure through a given​ medium, they are assessing​ ________.
A.
frequency
B.
engagement
C.
media impact
D.
reach
E.
impressions
C.
media impact
Which of the following statements is correct regarding the use of advertising as a promotional​ tool?
A.
Advertising reaches many people slowly.
B.
Advertising can reach masses of people only if they are geographically concentrated.
C.
The cost per exposure of advertising is high.
D.
Consumers tend to view advertised products as more legitimate.
E.
Advertising allows marketers to communicate with buyers in a personal way.
D.
Consumers tend to view advertised products as more legitimate.
Advertising appeals should have three characteristics. These characteristics​ are:
A.
to be​ meaningful, to be​ believable, and to be humorous.
B.
to be​ believable, to be distinctive and to be consumer generated.
C.
to be​ meaningful, to be​ distinctive, and to use scientific evidence.
D.
to be​ meaningful, to be​ believable, and to use scientific evidence.
E.
to be​ meaningful, to be​ believable, and to be distinctive.
E.
to be​ meaningful, to be​ believable, and to be distinctive.
Which promotional tool engages directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer​ relationships?
A.
Personal selling
B.
Advertising
C.
Direct and digital marketing
D.
Sales promotion
E.
Public relations
C.
Direct and digital marketing
Which of the following statements regarding the changing communications landscape is​ correct?
A.
Marketers today are shifting their efforts to mass marketing.
B.
The digital age has had little impact on marketing communications.
C.
More than​ ever, consumers are relying on marketers for information.
D.
In terms of​ communication, today’s consumers are less empowered.
E.
The dominance of​ television, magazines, newspapers and other traditional mass media is declining.
E.
The dominance of​ television, magazines, newspapers and other traditional mass media is declining.
Which promotional tool is best suited to deliver a personalized and immediate message to a specific customer or customer​ community?
A.
Direct marketing
B.
Public relations
C.
Sales promotion
D.
Advertising
E.
Personal selling
A.
Direct marketing
Working with donors or members of nonprofit organizations to gain financial or volunteer support represents which public relations​ function?
A.
Investor relations
B.
Lobbying
C.
Development
D.
Press relations
E.
Public affairs
C.
Development
​________ is a​ short-term incentive to encourage the purchase or sale of a product or service.
A.
Advertising
B.
Direct and digital marketing
C.
Public relations
D.
Personal selling
E.
Sales promotion
E.
Sales promotion
Which of the following statements about sales promotions is​ correct?
A.
Sales promotions are only offered to consumers.
B.
The use of sales promotions has declined in recent years.
C.
Companies that use sales promotions usually do not use any other promotional mix tools.
D.
The growing use of sales promotion has resulted in promotion clutter.
E.
Sales promotions offer​ long-term incentives to buy a product.
D.
The growing use of sales promotion has resulted in promotion clutter.
Which of the following statements about personal selling is​ correct?
A.
Many customers are unable to distinguish the salesperson from the company.
B.
The role of personal selling is very consistent from company to company.
C.
Personal selling is the nonpersonal arm of the promotional mix.
D.
Personal selling is a fairly new profession.
E.
Salespeople represent the company to​ customers, but they do not represent customers to the company.
A.
Many customers are unable to distinguish the salesperson from the company.
​Justin, Inc., a​ U.S.-based watch​ manufacturer, sells its products in​ China, Russia,​ France, and India. To manage​ sales, Justin appoints a number of sales representatives to each location. Justin has adopted a​ ________ sales force structure.
A.
customer
B.
complex
C.
market
D.
product
E.
territorial
E.
territorial
In complex selling​ situations, personal selling can be more effective than advertising because it is​ ______________.
A.
less engaging than advertising
B.
nonpersonal
C.
designed to reach large groups of consumers
D.
only used for face to face customer interactions
E.
interpersonal
E.
interpersonal
What is the final step in the​ seven-step personal selling​ process?
A.
Qualifying
B.
Closing
C.
​Follow-up
D.
Presentation
E.
Prospecting
C.
​Follow-up
Which of the following statements about coordinating marketing and sales is​ correct?
A.
Coordination between marketing and sales is not necessary because companies today see them as the same function.
B.
Coordinating marketing and sales has little effect on customer relations.
C.
Coordinating marketing and sales can be improved by increasing communication between the two groups.
D.
Marketing and sales do not require coordination.
E.
The sales force only needs to coordinate its efforts with marketing planners.
C.
Coordinating marketing and sales can be improved by increasing communication between the two groups.
Which consumer promotion tool is like coupons except that the price reduction occurs after the purchase rather than at the retail​ outlet?
A.
Digital coupons
B.
Samples
C.
Rebates
D.
Contests
E.
Premiums
C.
Rebates
Which of the following occurs during the presentation step in the personal selling​ process?
A.
The salesperson attempts to​ “razzle dazzle” the buyer.
B.
The salesperson closes the deal.
C.
The salesperson handles objections.
D.
The salesperson meets the buyer for the first time.
E.
The salesperson tells the buyer a value story.
E.
The salesperson tells the buyer a value story.
At which step in the personal selling process does a salesperson meet the customer for the first​ time?
A.
Qualifying
B.
Prospecting
C.
Presentation
D.
Approach
E.
Preapproach
D.
Approach
GE Healthcare employs different sales forces for diagnostic​ imaging, life​ sciences, and integrated IT products and services. GE Healthcare has adopted​ a(n) ______ sales force structure.
A.
product
B.
complex
C.
market
D.
customer
E.
territorial
A.
product
One consumer promotion tool is​ _______, which are goods offered free or at a low cost as an incentive to buy a product.
A.
premiums
B.
advertising specialties
C.
​point-of-purchase promotions
D.
coupons
E.
rebates
A.
premiums
​It’s time for the Super​ Bowl, and the​ end-of-the-aisle displays at the supermarket feature​ chips, dips, and soft drinks. What type of sales promotion tool is​ this?
A.
Allowance
B.
Premium
C.
Sponsorship
D.
​Point-of-purchase
E.
Sample
D.
​Point-of-purchase
What are the four elements of a compensation plan for​ salespeople?
A.
A fixed​ amount, a variable​ amount, expenses, and fringe benefits
B.
A fixed​ amount, a variable​ amount, stock​ ownership, and fringe benefits
C.
A fixed​ amount, a variable​ amount, expenses, and commission
D.
A fixed​ amount, a variable​ amount, salary and commission
E.
A fixed​ amount, a variable​ amount, expenses and salary
A.
A fixed​ amount, a variable​ amount, expenses, and fringe benefits
Helping salespeople to​ “work smart” by doing the right things in the right ways is the goal of which area of sales force​ management?
A.
training programs
B.
motivation
C.
compensation plans
D.
recruitment
E.
supervision
E.
supervision
Most companies today want their salespeople to​ _______, which means demonstrating and delivering superior customer value and capturing a return on that value that is fair for both the customer and the company.
A.
practice value selling
B.
use a​ transaction-oriented sales approach
C.
close sales
D.
cut prices to make the sale
E.
capture​ short-term business
A.
practice value selling
After the presentation and demonstration step in the sales​ process, a salesperson should next be prepared to​ _______.
A.
handle objections
B.
approach qualified customers
C.
immediately close the sale
D.
prospect the customer
E.
follow up with the customer
A.
handle objections
Which of the following are objectives of trade​ promotions?
A.
Boosting consumer brand involvement and​ short-term buying
B.
Generating business​ leads, stimulating​ purchases, rewarding​ customers, and motivating salespeople
C.
Urging​ short-term customer buying and gaining customer loyalty
D.
Getting retailers to carry new items and more​ inventory, buy​ ahead, or promote the​ company’s products and give them more shelf space
E.
Getting more sales force support for current or new products and getting salespeople to sign up new accounts
D.
Getting retailers to carry new items and more​ inventory, buy​ ahead, or promote the​ company’s products and give them more shelf space
After recruiting and selecting​ salespeople, what is the next major step in sales force​ management?
A.
Training salespeople
B.
Supervising salespeople
C.
Compensating salespeople
D.
Evaluating salespeople
E.
Designing sales force strategy and structure
A.
Training salespeople
What is the first decision made in sales force​ management?
A.
Training salespeople.
B.
Evaluating salespeople.
C.
Designing sales force strategy and structure.
D.
Recruiting and selecting salespeople.
E.
Compensating salespeople.
C.
Designing sales force strategy and structure.
Which of the following are common trade promotion​ tools?
A.
​Rebates, samples, coupons and price packs
B.
​Discounts, free​ goods, allowances and free advertising specialty items
C.
​Rebates, discounts, free​ goods, and allowances
D.
​Discounts, free​ goods, allowances and price packs
E.
​Discounts, free​ goods, coupons and rebates
B.
​Discounts, free​ goods, allowances and free advertising specialty items
What is the fastest growing sales trend​ today?
A.
Outside sales
B.
Social selling
C.
Eliminating expense reports
D.
Team selling
E.
Telemarketing
B.
Social selling
To set its sales force​ size, a company can first group accounts into different classes according to​ size, account​ status, or other factors related to the amount of effort required to maintain the account. It then determines the number of salespeople needed to call on each class of accounts the desired number of times. This is called the​ ______ approach.
A.
workforce
B.
complex
.C.
inside
D.
field
E.
workload
E.
workload
The​ seven-step selling process takes​ a(n) __________ approach to selling. In other​ words, its aim is to help salespeople close a specific sale with a customer.
A.
​customer-oriented
B.
​value-oriented
C.
​relationship-oriented
D.
​profit-oriented
E.
​transaction-oriented
E.
​transaction-oriented
Which of the following statements is true regarding​ salespeople?
A.
Salespeople must be fast talkers.
B.
Salespeople do not play a role in solving customer problems.
C.
Salespeople are not well educated.
D.
Most salespeople lack common sense and social skills.
E.
The best salespeople are the ones who work closely with customers for mutual gain.
E.
The best salespeople are the ones who work closely with customers for mutual gain.
​________ promotions are used to generate business​ leads, stimulate​ purchases, reward​ customers, and motivate salespeople.
A.
Trade
B.
Business
C.
Clutter
D.
Consumer
E.
Sales force
B.
Business
Because social media are ​_____​, they are ideal for starting and participating in customer conversations and listening to customer feedback.
A.
immediate and timely
B.
targeted and personal
C.
engaging
D.
interactive
E.
​cost-effective
D.
interactive
Which of the following statements about blogs is​ correct?
A.
Companies cannot gain insights from their blogs.
B.
Blogs are a​ company-controlled medium.
C.
Blogs can be difficult for the company to control.
D.
They are expensive to start and maintain.
E.
For​ consumers, they are impersonal.
C.
Blogs can be difficult for the company to control.
​____________ is perhaps the toughest public policy issue now confronting the direct marketing industry.
A.
Invasion of privacy
B.
Irritation
C.
Junk mail
D.
Deceptive pricing
E.
Deceptive advertising
A.
Invasion of privacy
​Webites, online​ advertising, email, online​ video, and blogs are all forms of​ ______.
A.
telemarketing
B.
social media marketing
C.
online marketing
D.
mobile marketing
E.
traditional direct marketing
C.
online marketing
The primary purpose of​ _________ websites is to present brand content that engages consumers and creates​ customer-brand community.
A.
content
B.
​e-mail
C.
branded community
D.
search engine
E.
marketing
C.
branded community
​________ involves sending an​ offer, announcement,​ reminder, or other item to a person at a particular address.
A.
Kiosk marketing
B.
Telemarketing
C.
Catalog marketing
D.
​Direct-response television marketing
E.
​Direct-mail marketing
E.
​Direct-mail marketing
According to the​ text, _______ is perhaps the biggest advantage of social media.
A.
return on investment
B.
the low cost
C.
the potential for intrusiveness
D.
​user-controlled content
E.
engagement and social sharing capabilities
E.
engagement and social sharing capabilities
Many consumers today rent DVDs from a vending machine called​ Redbox, which can be found in retail stores and other locations. Redbox is type of direct marketing tool called​ a(n) _________.
A.
iTV
B.
DRTV
C.
website
D.
infomercial
E.
kiosk
E.
kiosk
​H&M recently ran ads that let viewers with certain Samsung smart TVs use their remotes to interact directly with the commercials. This recent form of direct response television marketing is called​ ________.
A.
TV
B.
phishing
C.
TVsquared2
D.
an infomercial
E.
iTV
E.
iTV
Consumers may receive an​ e-mail, supposedly from their bank or credit card​ company, saying that their​ account’s security has been compromised. The sender asks consumers to log on to a provided Web address and confirm their account and other personal information and then steals this private information. This is a fraudulent practice called​ ______.
A.
telemarketing
B.
mobile marketing
C.
phishing
D.
infomercials
E.
spamming
C.
phishing
Which of the following statements about mobile marketing is​ correct?
A.
Mobile advertising spending in the U.S. is declining.
B.
Mobile marketing is not used by companies to stimulate immediate buying.
C.
Most smartphone owners do not use mobile apps.
D.
Smartphones can be very useful in shopping situations.
E.
Like other types of​ advertising, mobile ads are not very engaging.
D.
Smartphones can be very useful in shopping situations.
Which of the following is true regarding the forms of direct and digital​ marketing?
A.
Marketers today only use direct and digital marketing.
B.
Traditional direct marketing tools are still used but are no longer important.
C.
Both the new digital and the more traditional forms of direct marketing must be blended into a fully integrated marketing communications program.
D.
Direct and digital marketing does not include mobile marketing.
E.
Online marketing is the only form of direct and digital marketing.
C.
Both the new digital and the more traditional forms of direct marketing must be blended into a fully integrated marketing communications program.
The digital version of​ word-of-mouth marketing that involves creating​ videos, ads, and other marketing content that is so infectious that customers will seek them out or pass them along to their friends is called​ _______.
A.
​e-mail marketing
B.
​omni-channel marketing
C.
viral marketing
D.
search engine marketing
E.
online marketing
C.
viral marketing
Which of the following is a form of traditional direct​ marketing?
A.
Kiosk marketing
B.
Social media marketing
C.
Blogs
D.
Websites
E.
Mobile marketing
A.
Kiosk marketing
Marketers use​ __________ to engage customers​ anywhere, anytime during the buying and​ relationship-building processes.
A.
online advertising
B.
blogs
C.
branded web communities
D.
​permission-based e-mail marketing
E.
mobile marketing
E.
mobile marketing
​Geico’s website is designed to quickly turn an inquiry into a sale. Geico has designed​ a(n) ______ website.
A.
phishing
B.
marketing
C.
search engine
D.
branded community
E.
​e-mail
C.
search engine
One challenge of social media marketing is that​ ___________.
A.
it is​ cost-effective
B.
very few companies use it
C.
social networks are largely​ user-controlled
D.
it is used for​ real-time marketing
E.
it has not spread globally
C.
social networks are largely​ user-controlled
A blog is​ a(n) ______.
A.
online forum
B.
type of targeted​ e-mail
C.
​text- and​ image-based ad and link that appears atop or alongside search engine results
D.
mobile app
E.
type of online advertising
A.
online forum
The benefits of direct and digital marketing for buyers are that it is​ _________.
A.
​easy, convenient and impersonal
B.
​easy, convenient and private
C.
​easy, convenient and public
D.
​convenient, private and hard to use
E.
​easy, private and expensive
B.
​easy, convenient and private
How does Google earn approximately​ 90% of its​ revenues?
A.
Selling subscriptions to the site.
B.
Selling information to technology businesses
C.
Selling contextual advertising
D.
Selling search results
E.
Through​ fund-raising
C.
Selling contextual advertising
To avoid being intrusive and​ annoying, most legitimate​ e-mail marketers practice​ ______, which means sending​ e-mail pitches only to customers who​ “opt in.”
A.
​permission-based e-mail marketing
B.
viral marketing
C.
phishing
D.
unsolicited​ e-mail marketing
E.
spamming
A.
​permission-based e-mail marketing
Which form of marketing involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer​ relationships?
A.
Direct and digital marketing
B.
Sales promotion
C.
advertising
D.
Personal selling
E.
Public relations
A.
Direct and digital marketing
Which of the following statements is true regarding sellers and their use of direct and digital​ marketing?
A.
For​ sellers, direct and digital marketing is inflexible.
B.
For​ sellers, using direct and digital marketing is expensive.
C.
Sellers using direct and digital marketing cannot solicit questions and feedback from customers.
D.
For​ sellers, direct and digital marketing is very inefficient.
E.
Sellers have opportunities to engage in​ real-time marketing.
E.
Sellers have opportunities to engage in​ real-time marketing.
Forms of digital and social media marketing include​ ______.
A.
​telemarketing, direct-mail​ marketing, and catalog marketing
B.
online​ marketing, social media​ marketing, and mobile marketing
C.
​direct-response TV​ marketing, telemarketing and​ direct-mail marketing
D.
​telemarketing, face-to-face​ selling, and kiosk marketing
E.
kiosk​ marketing, telemarketing and​ direct-response TV marketing
B.
online​ marketing, social media​ marketing, and mobile marketing
Companies like Amazon and Expedia.com that sell products and services directly to final buyers over the Internet are known as​ _______.
A.
content sites
B.
online social media
C.
​e-tailers
D.
transaction sites
E.
​search-engine portals
C.
​e-tailers