Marketing Principles Module 8 & 9 , 7 & Presentation questions

Creative, win-win process improvements give the trading relationship a differentiation that benefits:
Both the buyer and the seller.
Which of the following statement(s) is NOT true for salespeople:
c) They don’t know networks of customers and distributors on a personal level.
d) They seldom unravel the marketing
What is the first principle of sales management?
a) A company needs to hire people with excellent personal selling skills.
b) Be able to organize and lead such people, otherwise it cannot win in the marketplace.
Both A and B.
Which of the following statement is true for bridging as described in the sales module:
Which of the following statement is true for logrolling as described in the sales module:
a) Both the buyer and seller need to discuss the trading terms which are most important to each.
b) Each gives on different dimensions to

BOTH A AND B

What are the characteristics of successful order getters:
a) They uncover customer needs.
b) They sell value-added technical and process solutions.
c) Honest concern for the customer.
All of the above.
Which of the following is an objective of personal selling
a) To keep a current customer happy and loyal.
b) To persuade a current customer to buy more.
c) To persuade a potential customer to buy a new product or service.

ALL OF THE ABOVE

Which of the following is NOT a relationship selling tactic:
They all are all a relationship selling tactic.
According to the sales module, what percentage of time spent with customers is high sales force efficiency:
50%
What might be the objectives if a salesforce calls on retail accounts:
a) Introducing new product lines.
b) Making sure merchandising displays are put in place.
c) Attempting to increase the amount and quality of shelf space given to their product.
d) Encouraging the account to cooperate with promotion programs.
ALL OF THE ABOVE
Which of the following statements is true about cross-functional team management:
Both A and C.
The use of technology such as 800 service call numbers, cell phones, home Internet access to account records and to members of a sales support team, has:
Both A and C.
Which of the following statements is true about parallel sale forces:
a) A parallel sales force organization is often created as the result of a takeover or merger.
b) They exist to avoid organizational politics.
c) Kraft had four different sale forces, and now has been arranged into one with 300 customer service teams.
ALL OF THE ABOVE ARE TRUE.
The old-fashioned geographical sales territory is often still preferred over other sales organizational structures designed around customers or products because:
It offers the firm the greatest control at a lower cost.
What may occur if firms do not handle the redefining of the salesperson’s role in the new age of team selling:
Both A and B.
Some entrepreneurial risks may have to be taken to give heavy support and service to __________.
Small, high-growth customers
Regardless of the approach used to organize the sales force, which of the following environmental realities must be recognized by the selling firm:
The competition in the market.
What are the characteristics of EDI (electronic data interchange):
a) Enable automated just in time delivery.
b) Close monitoring of product and service quality conformance to contract.
c) Greatly reduces the need for a salesperson to service an account.
ALL OF THE ABOVE
A seller in a high-growth market faces particular problems such as:
It constantly has to adjust its organization as its sales expand.
b) If it does not adjust its organization accordingly, it opens up the market to rivals.
d) Adding salespeople until they no longer generate enough contribution to justify their employment.

ABD

Total Quality Management(TQM)reengineering of processes:
a) Can be applied to sales.
b) Can produce the same benefits as it

BOTH A & B

Which of the following is the second step in the process used to determine salesforce size?
c) Total the amount of time required in a year to service all accounts by multiplying the number of each account category by the minutes per year to service that category and summing the totals of AA, A, B, C, and D accounts.
2) A firm has a total of 800 of all types of customers, and the time required to service all those customers totals 16,000 hours per year. The firm’s salespeople have 1,000 hours of selling time per year, 25 hours of selling time per week, multiplied by 40 weeks [remember to subtract vacations (3 weeks), holidays (1 week), and sick days (2 weeks), and 30 training days (6 weeks) from 52]. How many salespeople are needed to cover the market?
16
3) In determining sales force size based on profit maximization, which of the following statements is true?
a) Consider the full costs of compensating, training, managing, and supporting the salesperson’s operational expenses.
b) If the salesperson’s expected incremental dollar contribution minus the full cost of the salesperson is positive, then a new salesperson should be hired.
c) If the existing salespeople generate negative cash flow and the long-term prognosis is not good, you should stop hiring new salespeople.
ALL OF THE OPTIONS ARE TRUE
4) The basic principle behind best practice in increasing salesforce size is?
Marginal return.
5) Which of the following statements is true?
b) In the 2000s, the growth of the Internet forced a reevaluation of sales territories.
c) Technology innovations in communication sometimes necessitate a complete restructuring of sales-force territories.

Both B and C!

6) Which of the following is the first step in the process used to determine salesforce size?
a) Set the average time that salespeople are to spend with AA to D accounts.
7) Changing a sales territory?
a) Is s significant event.
b) Disturbs established customer relations.
c) Has repercussions on other territories.
ALL OF THE ABOVE.
8) Which of the following is the third step in the process used to determine sales-force size?
Divide the total time required to service accounts by the selling time available to the average salesperson.
9) A firm has a total of 40 of all types of customers, and the time required to service all those customers totals 100 hours per year on average for each customer. The firm�s salespeople have 1,000 hours of selling time per year, that was calculated by multiplying 25 hours of selling time per week that typically the salesperson has available to be on the job with the customer, multiplied by 40 weeks [remember to subtract vacations (3 weeks), holidays (1 week), and sick days (2 weeks), and 30 training days (6 weeks) from 52]. How many salespeople are needed to cover the market?
4
10) What characteristics does a field staff support have?
a) Comprised of engineering and marketers.
b) Available to the customer or the salesperson by various communication methods.
c) Interacts with customer R & D and production on the development of new products, quality control, or service problem.
ALL OF THE ABOVE
1. If it takes a rep longer than 3-6 months to start moving the product, then:
a) The rep is more than likely just doing nothing
b) The rep is not selling it to his or her existing customers
c) The rep may be trying to use the product to break into new markets
ALLL OF THE ABOVE
2. The fair and honourable way of handling non-performance is:
a) For the firm to inform the rep that it will follow up any leads if the manufacturer’s rep does not
3. Which of the following is/are an advantage(s) of employing a rep salesforce?
d) Both A and C
4. Which of the following is a disadvantage(s) of employing a rep salesforce?
c) Product knowledge training
5. The concerns of “Channel Fit” can also be applied to manufacturer’s reps _________.
b) In the amount of business they currently do in the target industry
c) If the rep is selling leading brands of complementary products to the target industry, it implies the rep has legitimate, desirable clients
Both B and C
6. Many representatives are eager to reduce price because ________.
c) The sale takes less time and energy
7. Which of the following statements is true about reps and customer service problems?
d) Both A and C

a) A customer often wants to deal directly with the supplier
c) Manufacturers’ reps are good at responding to their regular customers

8. Which of the following is/are NOT an advantage(s) of employing a rep salesforce?
b) Economies of scale
9. Which of the following is/are NOT a disadvantage(s) of employing a rep salesforce?
c) Low start-up investment cost
1. The basic cost involved in a poor recruiting effort is __________.
a) The wasted cost of spending a great deal of time and effort training
b) The cost of exposing the customer to a poor salesperson
c) The strain on the enterprise and its management
All of the above
2. Which of the following statements is true about a sales representative’s job description?
b) A good job description details the specific responsibilities of the position, the skills required and the person to whom the new hire will report
3. What are some characteristics described in the module to be a successful salesperson?
d) Both A and C

a) Obtain a deep reservoir of technical knowledge
c) Making the customer’s problems your own

4. In selecting salespeople ____________.
c) It is important to conduct a job analysis at regular intervals to identify the typical salesperson’s actual daily activities
5. Which of the following criteria is more important in selecting salespeople as discussed in the sales module?
a) A personal interview
6. What is true in the salesperson selection process?
d) Both A and B
7. Which statement is true about training salespeople?
b) Training is an investment in human capital that can produce a highly profitable return from each call
8. As discussed in the sales module, which types of training can increase the loyalty of the salesperson and reduce turnover?
b) Company-specific training
9. Which of the following is important while training salespeople?
a) All salespeople need to hear, “You can do it, too”
b) The inspirational part of training should be continued throughout the salesperson’s career
c) The best way to preparing people for training and learning is to place them in the shoes of the teacher
d) Knowledge about an emerging usage market segment should be taught by experienced salespeople because they are not blinded by past beliefs
All of the above
10. Mentoring is about ______________.
c) A mentoring system that encourages members of both groups to see the others as interesting and capable individuals
1. Which of the following statement best describe rewarding the salesforce?
a) Sales motivation drives how hard a salesperson wants to work to accomplish a task or achieve a goal
b) Many theories and explanations for what motivates people are based on the idea that people want to work hard when outcomes are valued and when effort is linked to performance
c) For one salesperson, money may be the strongest motivator, while for another, receiving an award at a banquet is the best incentive

All of the above

2. Regarding sales compensation _____________.
b) Sales is typically the best paid entry level job in marketing
c) Perhaps the most fundamental principle of sales compensation is to keep it as clear and simple as possible
d) Both B and C
3. A company may desire to change its incentive schedule to adapt to new competitive realities or company constraints, but changing the scheme has which of the following negative effects?
d) All of the above
4. In considering whether or not a salesforce be paid a salary or a commission, which is NOT true?
a) For the first year, a salesperson may be paid a lower base salary to compensate for time in training
5. In markets where a company’s sales are highly volatile because of frequent and dramatic changes in the trading environment or in the company’s marketing strategy:
d) All of the above statements are true
6. Generally, the overall objective of an enterprise is to increase profitability. From this perspective, which factor should a salesforce’s compensation scheme be connected to in order to maximize its profitability?
c) Gross margin
7. What type of information needs to be disclosed to salespeople if basing compensation on gross margin is applied?
a) The relative profitability of the item
8. Which of the following statements is true while using quotas to reward high performance?
d) Both A and C
a) Setting quotas too high may encourage customer inventory manipulation distortions at year end
c) A general bonus scheme encourages overall cooperation and creates a company culture where everyone is aware that the company’s competitiveness depends on everyone’s performance
9. What might be the drawback in using commission compensation schemes as discussed in the sales module?
b) They tend to encourage a short-term and selfish perspective
1. A salesforce should be led from front means ____________.
a) Salespeople should not be asked to do things that the sales manager and senior management would not do
b) CEOs convey their product enthusiasm to the public and this inspires their salesforce
c) Both A and B
2. Which of the following is one of the three major benefits from requiring the senior executive team to spend time out on the road with salespeople calling on small accounts?
b) It helps senior executives understand the effects of their decision-making on the salesperson
3. Sensible marketing planners ____________________.
c) Consult and work with sales to ensure they are 100 percent behind the marketing plan
4. Sales managers are involved in the marketing planning for key product markets to __________.
d) B, C and D
5. Which of the following is a best practice in annual sales conferences as discussed in the sales module?
d) Both A and B

a) Paying $10,000 to $100,000 to have celebrity speakers at sales conferences that salespeople can take photos and shake hands with celebrity speakers
b) Signal appreciation to both the salespeople and their families

6. Which of the following contributes to the growth of the company culture?
a) Ceremonies
b) Rites of passage
c) Knighting of the superstars that occur at sales conferences
All of the above
7. Which of the following is the most powerful motivator for salespeople?
a) Peer recognition
8. How can recognition at a conference be made even more powerful?
b) Recognition made in front of a “significant other” attending the conference
1. A good trade show team employs ___________.
a) At least two people: a screener and a closer
b) A screener at the front of the exhibit to meet people
c) A good closer spend his or her time at the back of the booth or in a hotel suite with serious prospects, closing deals
All of the above
2. In some specialized markets, the annual trade show is ________________.
a) An absolute must attend
3. Qualifying is ___________________.
b) Establishing a customer is a hot prospect
4. The major difference between a prospect and a qualified prospect is: a) Prospects are more likely than qualified prospects to become customers
d) Qualified prospects have not only the need or desire for your product, but the ability and authority to purchase it
5. What presentation format is being used when the following statement is conveyed to every prospect? “Hello, Mrs. X, my name is Y. I’m calling for Samantha’s fashions. We carry a complete line of little girls’ playwear…”
a) Formula-selling presentation
6. Which type of sales presentation is represented by the following statement? “What type of driving do you do? How many people will you usually have in the car? Maybe you should look at vans instead of sedans.”
c) Need-satisfaction presentation
7. Why does personal selling work better than other communication options available to firms selling in the business-to-business market?
c) Salespeople are able to tailor unique messages for each prospective buyer
8. The primary objective of the partnering-oriented salesperson is to:
c) Develop long-term relationships with customers
9. Which statement represents a correct response to postponing an objection?
a) “I think I might be able to explain that better to you after showing you this diagram”
10. At which stage of the personal selling process would you obtain a purchase commitment from the prospect?
e) Close
1. Regarding the expression “Keep the message simple,” which is true?
c) It is an advertising principle that is violated by most advertising campaigns
2. Which of the following is NOT one of the fundamental advertising principles?
e) None of the above
As attention-grabbing advertising devices continually advance on the supply side, the
sensory-system adaptation of buyers and their ability to screen out advertising continually
advance on the demand side
a) True
4. In which of the following countries is advertising much more effective?
e) Both C and D
Answers to “How believable are ads?” scored _____ out of 9 in the 1950s and
_______ out of 9 in the 1970s?
b) Around 8, under 3,
Advertising in the new media such as the Internet is trusted ________ television,
newspaper, magazine, radio and billboard advertising.
c) More than
Which of the following advertising functions is a hierarchy-of-effects model of
advertising effect because consumer learning about the product leads to belief changes,
which lead to changes in feelings (attitude) toward the product, which lead to buying the
product?
b) LFB
8. Which advertising model assumes thoughtful decision-making?
a) LFB
9. Romantic fragrance ads are an example of which advertising model?
c) FBL
What type of advertising persuasion is the basis for the advertising message theme
“Try me”?
b) BFL messages
What type of advertising persuasion is the basis for the advertising message theme “Have
you got this problem? I have the solution”?
c) LFB messages
Whose responsibility is it to put together a creative brief that describes the target
market, product competitive positioning, quality-added claims and sales increase
goals?
b) The company
1. Regarding where to place your ads, which of the following statements is correct?
d) Both A and B
With each revolution in marketing communication, the entire media market is spurred on by the new competition to become
d) Both B and C
3. Media suitability depends on:
d) All of the above

a) The target market
b) The basic message strategy
c) The creative tactics used to execute the message strategy

4. Regarding POP advertising:
c) It is the first priority in advertising placement
5. The price per click is increasing as advertisers discover:
d) Both A and C
a) The payoff they get from search advertising
c) It is more subjective to rapid improvement than the traditional mass media
6. Which of the following statements is true about Internet advertising?
Internet advertising can be fine-tuned and improved in a few days of testing in ways that no TV or other mass media advertising can
7. The problem with Facebook’s business model is?
c) Very low click-through rates
The productivity of advertising expenditure can be improved by one or more of the following approaches
e) All of the above

a) Improving the way you find media that delivers the lowest cost-perthousand
members of the target audience
b) Achieving the most effective mix of ad reach and exposure frequency
c) Improving the timing of the ad campaign

2. How are media costs generally measured?
c) Cost-per-thousand of delivered audience (CPM)
3. A number of researchers have argued that having ________________ exposures
b) Three exposures
4. The effective reach of a proposed media schedule is:
The percentage of the target audience exposed to an ad the minimum number of times (frequency) that is judged necessary for the ad to be effective
According to the article “More Weeks, Less Weight: The Shelf-Space Model of
Advertising,” what kind of products need to have constant advertising to maintain their share-of-voice, share-of-mind and market shares?
Low-involvement products that sell as much on their brand name as on their
features and have short repurchase cycles
6. How should small companies advertise?
d) Both B and C

b) They should maintain a low level of advertising, often in a single medium
c) They should use pulsed bursts of increased advertising timed around peak

7. Which of the following do magazines sometimes use to try to cheat advertisers?

Which of the following can be a possible alternative magazines try to cheat advertisers:

Magazines sometimes try to cheat advertisers by claiming more sales and a larger circulation than they actually have
8. Which of the following does television sometimes use to try to cheat advertisers?
Television networks sometimes cheat by offering celebrity-loaded programs during ratings weeks, thus boosting audience size
Which of the following statements is appropriate to describe pay-per-click
advertising fraud?
It is when a Google partner pays others to click, thus creating a flood of fraudulent clicks that the advertiser must pay for
Marketers must decide whether to concentrate advertising seasonally or to give it
greater continuity. A lot depends on:
Both A and C
1. An advantage of publicity over advertising is:
d) Both A and C
The huge success of blog and social network sites on the Internet has become a powerful
new source of publicity and WOM, particularly among which age group?
a) People under 30
3. Which of the following is an advantage of publicity over advertising?
d) All of the above

Its creation of public interest
b) Its word-of-mouth momentum
c) Excitement that few advertising campaigns can match

4. The disadvantage of publicity is:
c) Both A and B
a) The lack of control of whether you get the coverage or not
b) It is often an all-or-nothing proposition
5. Regarding sponsorship advertising:
Your target segments attend the event and some of the event halo attaches to your product or service
6. Regarding Buzz marketing, which of the following statements is true?
d) None of these social sites are generating cash flows that come anywhere
close to justifying the values Google, You Tube and NewsCorp are paid
7. About publicity:
c) You may get no coverage if no editor or major blog site is interested
1. Public relations is directed at:
e) All of the above
a) Employees
b) Stakeholders
c) Politicians
d) Media commentators and the general public
2. When consumers buy products, they are essentially saying that they trust the products to
satisfy their needs. This trust can result from:
d) Both B and C
b) Their past experiences with products
c) The companies that make those products
3. Public relations (PR) is:
e) Both B and C

b) The management function that evaluates public attitudes, identifies the
policies and procedures of an organization with the public interest, and
executes a program of action and communication to earn public
understanding and acceptance
c) Is a conscious and targeted attempt to shape a company’s image

4. Corporate advertising has been:
b) Controversial and unproven to work
5. Which of the following statements is true about PR, as discussed in advertising module?
e) B, C and D

b) In 2006, BP experienced a pipeline oil spill in Alaska and the extensive bad
publicity this created totally swamped BP’s previous environment-friendly
PR image
c) The general public is addressed through corporate advertising
d) Public relations is used to stabilize the share price of a company

1. Which of the following activities comes first in the direct marketing process?
b) Database elements are specified, including shopping behavior history
2. Which of the following activities comes second in the direct marketing process?
a) Customer sends in warranty card, enters sweepstake or name is on list
3. Which of the following activities comes third in the direct marketing process?
b) Record is added to database
4. Which of the following activities comes fourth in the direct marketing process?
c) Customer is assigned to a product, channel, or profitability segment
5. Which of the following activities comes fifth in the direct marketing process?
b Most appealing direct marketing campaign is designed to promote most appealing products and se4rvices to each individual customer
When choosing a list for direct marketing, which criteria are often considered to be
critical?
c) Both A and B

a) How old the list is
b) The amount of money spent on direct buying by each individual on a list

7. The growth potential for direct marketing is limited:
b) By the type of people who patronize direct marketers
8. Direct marketing is facing the following issue(s):
d) All of the above
9. Direct marketing has become popular mainly because of:
The availability of computer hardware and software to undertake data mining and list Creation, thereby enhancing contact efficiency
10. Which of the following statement is NOT true about direct advertising?
Direct advertising is about one third of all advertising, as measured by
expenditure
1. Which of the following cities were innovative distribution hubs because their canals allowed goods to be loaded and unloaded directly into a merchant’s warehouse?
d) Both A and B
2. Intermediaries add what type of utility to a manufacturers’ product?
c) Time and place utiliy
3. Which of the following statements is true about reaching target customers?
e) A, B, and C
4. Reach is short for?
a) % of target customers the company distribution reaches
5. Which of the following is the basic channel activity discussed in distribution?
e) All of the above

a) Reaching target customers, where they are and where they shop
b) Informing and serving the customer
c) Moving the product
d) Financing the venture

6. Risk-taking and financing activities of channel intermediaries _____________
c) Have been greatly reduced over the last one hundred years
7. Which of the following criteria does the basic channel choice NOT depend on?
d) Conviviality
8. Channel evolutionary rigidity occurs when channels___________________.
b) Very slowly adopt new technology and processes that increase efficiency
9. In markets suffering from evolutionary rigidity, the potential rewards from innovating are
a) Significant
10. As markets mature:
e) Both B and C
b) The need for pioneer personal selling efforts decrease
c) The need for direct selling and billing efforts increase
1. Which of the following statements best describes convenience products?
d) Both B and C

b) Shoppers will purchase the next preferred alternative when the product or service is not available
c) The best distribution for a convenience product is to be everywhere

2. What kinds of products are best suited for mass distribution?
a) Products that are frequently purchased
3. Reseller, image, services and marketing are NOT as important in?
b) Mass distribution
4. Most of the focus in mass distribution is on?
d) Both A and B

a) Reducing the cost of distribution
b) Keeping the shelves stocked

5. Which of the following statements is true about franchising?
c) Franchising is a way for an innovator to earn higher innovation profits
6. Which of the following products is suited for mass distribution?
c) A pack of Charmin toilet paper
7. A retail store’s assortment of customers has varying degrees of uniqueness, measured in terms of:
e) All of the above

a) Individual differences (age or income)
b) Product usage and needs
c) Perceptions of the competitive offerings
d) Sensitivity to different promotional strategies

8. As discussed in the distribution module, what is the major concern for a supplier of a mass distribution product?
c) How to get into the mass distribution channels
1.When choosing a channel partner, a manufacturer seeks:
d) Both A and B
2. Relationship synergy occurs when the effectiveness, capability and success of the partnership is:
c) More than the sum of the seller’s and buyer’s separate capabilities
3. Relationship synergy occurs when there is a ____ served market fit and a ____ fit between the marketing strategies and the implementation skills of two trading partners.
d) High, high
4. In trading relationship and processes, which of the following statements is true?
c)Both A and B
1. What is/are the competitive advantage(s) for IKEA?
d) Both B and C

b) Flat packing furniture saves manufacturing and distribution costs for IKEA
c) Customer convenience and lower final delivery costs for IKEA compared to other furniture competitors

2. When containers were first introduced, a Harvard University transportation economist _______ container-based transportation would lead to a reduction in U.S. manufacturing jobs.
b) Could not see how
3. Four of the following phrases appear in the physical distribution QFD figure. Please indicate which of the phrases appears in the box on the right side
. a) Transportation process quality and cost
4. Four of the following phrases appear in the physical distribution QFD figure. Please indicate which of the phrases appears in the box on the left side.
b) Order-taking, picking, and packing process quality and costs
5. When you make a physical distribution system more reliable and regular in its processes:
c) You reduce the need for inventory
6. If the reliability of a delivery system (longest time – average time) is reduced by five days for a buyer who uses 100 boxes a day and the annual inventory carrying cost of each box is $12, how much does the buyer save annually?
b) $6,000
7. If the reliability of a delivery system (longest time – average time) is reduced by 10 days for a buyer who uses 200 boxes a day, and the annual inventory carrying cost of each box is $150, how much does the buyer save annually?
c) $300,000
8. The development of a new logistics relationship between businesses and trading partners requires which of the following?
e) All of the above

a) The development of new attitudes that change old habits
b) Enough trust to work together to develop competitive added value for both of you
c) A willingness to not exploit the new relationship at the expense of long run cooperation
d) Patience; payoff often takes time and there are always initial glitches

9. Safety stock is held:
b) Against running out of supply because of order-delivery process unreliability
10. Which of the following is/are advantage(s) of computerization in order-taking processes?
d) Both B and C

b) It often allows immediate notification of item availability
c) It can produce courtesy confirmation e-mails that are automatically sent to buyers

1. Which of the following might be a reason for a company to distribute through new channels?
d) All of the above

a) Introduction of new products
b) A different retail channel may reach a different segment of shoppers
c) If the manufacturer does not supply the new retailer, other competitors will

2. A manufacturer has to reach its target customers, and if those customers shift which channels they shop, then the manufacturer has to ____________.
a) Add those channels
3. Which of the following statements is the key to operating multiple channels?
d) Both A and C
4. Which of the following companies successfully added new distribution channels, as discussed in the distribution module?
b) Levi Strauss
5. When a manufacturer creates its own retail outlets, what is the real rationale for it?
c) The manufacturer can make higher profits by retailing as well as manufacturing them
6. A manufacturer prefers:
a) Intra-brand competition
7. A manufacturer’s launching of its own outlet stores is mainly because____________.
c) Retail channels take advantage of generous buy-back programs and return a lot of stuff
8. As discussed in the distribution module, a common source of conflict between manufacturers and partners is misunderstanding the other party’s viewpoint when it comes to planning and implementing joint marketing programs. These misunderstandings may include:
b) Manufacturers get upset when they run advertisements that draw prospective customers into the retail store but lose sales because the in-store marketing push is missing
Which of the following is the biggest retail line of business in the U.S., according to U. S. Commerce Department Statistics?
c) Automotive dealer retailing
2. Retailing success depends on:
e) All of the above

a) Store location
b) The assortment or selection of products offered for sale
c) The quality of merchandise presentation
d) The attractiveness of the store interior

3. Retailers and manufacturers need to seek the balance for:
d) Both B and C

b) Quality
c) Price

4. As discussed in distribution module, retailing is about:
e) Both B and C

b) Supply chain cost control
c) Positioning

5. Which of the following statements is true about Walmart in Britain?
c) Walmart continued to promote every-day low prices, ignoring the fact that rivals were flourishing by marketing selection, quality, organic brands and prepared foods
6. Which of the following retailing areas has been greatly impacted by Internet marketing, as mentioned in the distribution module?
b) Auto market
7. Which of the following channel members was negatively affected by Internet marketing?
a) Travel agencies
When supply increases faster than demand increases
price decreases
when demand increases faster than supply increases
price increases
when demand decreases faster than supply decreases
price decreases
when supply decreases faster than demand decreases
price increases
The long-term solution to the high price of gasoline is ____.
Increase the price further through government taxation
prices are economic stop lights. they direct buying and selling. when prices become sticky:
the market is less efficient in allocating resources
In which of the following continents do prices change most often?
north america
What is the consequence of increased general global demand that is only somewhat answered by increased supply?
general price increases
Which of the following does the price setting worksheet analysis do?
All of the above
What can you learn from the price change worksheet?
Both A and B
a) what price sensitivity it will take to make a price reduction pay off
B) what price sensitivity it will take to make a price promotion pay off
What is gross contribution?
quality sold times contribution
if the contribution margin percentage is currently 40 Percent and a price reduction of 20 percent is proposed, by what percentage will sales have to increase for the price reduction to be worthwhile?
100%
if you face fierce competition, the short-term effect on sales of a price reduction will be:
greater than the long-term effect of a price reduction
The price change worksheet uses the “wisdom of the crowd” by”
Using the forecasts of everyone involved
Which of the folllowing scenarios best describe a high negative price elasticity?
When price increases, demand decreases alot.
When price decreases, demand increases alot
Which of the following increases consumer price sensitivity?
When prices can be searched on the internet
Which of the following decreases consumer price ssensitivity?
when the purchase is a necessity
which of the following price proints should markets focuson?
both supplyu curve and demand curve kink points
optimal price is very likely to be at one of the demand curve kinks because it produces the:
Highest gross contribution
An enterprising manufacturer of filing-cabinet hanging folders makes them in several bright, modern colurs rather than the standard, dull cardboard green, which of the following reasons contributed to the great success of this very successful and very profitable quality-added product feature and product positioning differentiation?

The different colours are more aesthetically attractive:

yes
An enterprising manufacturer of filing-cabinet hanging folders makes them in several bright, modern colurs rather than the standard, dull cardboard green, which of the following reasons contributed to the great success of this very successful and very profitable quality-added product feature and product positioning differentiation?

The Colours can be used to organize files:

yes
An enterprising manufacturer of filing-cabinet hanging folders makes them in several bright, modern colurs rather than the standard, dull cardboard green, which of the following reasons contributed to the great success of this very successful and very profitable quality-added product feature and product positioning differentiation?

The folders are made of recycles paper

No
An enterprising manufacturer of filing-cabinet hanging folders makes them in several bright, modern colurs rather than the standard, dull cardboard green, which of the following reasons contributed to the great success of this very successful and very profitable quality-added product feature and product positioning differentiation?

The extra cost is only a cent or so per file

yes
An enterprising manufacturer of filing-cabinet hanging folders makes them in several bright, modern colurs rather than the standard, dull cardboard green, which of the following reasons contributed to the great success of this very successful and very profitable quality-added product feature and product positioning differentiation?

Customers have to keep a larger inventory of files

Yes
When administered according to a careful feeding schedule, a premium nutritional additive called Supercowchow increases milk production earnings in a dairy herd to $1,050,000 from the $1,000,000 using the standard Cowchow that costs $50 a sack for the farmer to buy. the farmer uses 1,000 sacks of cowchow a year. supercowchow costs $10 per sack extra to manufacture and the farmer would use 1,000 sacks of it. Thus the added-value of the Supercowchow over regular cowchow is $50,000/1000 sacks which is $50, per sack. which of the following would be the farmers’ highest acceptable price for the new supercowchow per sack?
$90
Which of the following would the manufacturer find to be the lowest aceptable per sack price for the new super chow?
$70
Which of the following do you think is the fairest price for the Supercowchow?
$80
If all dairy farmers adopt supercowchow and overall supply increases by 10 percent, which of the following will happen to the long-term income of the farmers who adopted it first? their long-term income compared to their short-term income will
decrease
Dell computer sets the price of its added-value notepad features based on:
both the cost and the perceived value
Kinks in the demand curve for a particular product are more likely to occur when:
B) There exist perpetual price points wherin small changes in actual price are associated with rather large changes in perceived price and hence demand
C) There exist close substitute products
When the market has distinguishable segments that very in their degree of price sensitivity, the best pricing strategy to use when initially introducting a new product is likely
Price Skimming
Which of the following products can price skimming strategy be applied with?
Luxury goods
highly demanded new drugs
a rolex watch
A price skimming strategy
is more likely to attract competitors
lower introductory prices can lead to higher per unit margins by:
increasing sales volume and achieving economies of scale and sales efficiencies
According to the module, which of the following products/services uses a premium pricing strategy?
extended appliance warranties of Best Buy
Consistently pricing your product below your average cost
Both A&C

– Can be profitable if you can sell complementary products at a relatively high margin
– Can be considered predatory pricing if it results in taking sales away from competitiors

What kind of pricing strategies have Toyota and Honda done over the last 50 Years in the united states?
-Penetration pricing strategy
-Keep Raising quality with each improved model
Both A B
a penetration pricing strategy can be attractive when
-Creating the necessary long-term aftermarket relationship with a customer that generates profitability
-It creates an industry platform or standard to which all other rivals must use or conform

– Both A and B

Price Shading
Allows sellers to lower prices for buyers who are knowledgeable about competitive suppliers
in a market where price shading is relatively common sellers who do not shade their prices:
may be perceived as uncooperative and unreasonable
A method to reduce price shading’s potential to lower profits is to
Base commissions on profits and not sales volume
Payment terms:
-Price discriminate against slow-paying customers
-Many markets use the standard term “2-10, net 30”
Both A and B
Volume discounting:
is a form of price discrimination
A tied pricing contract
Is illegal in the United states
Price discrimination:
Results when a seller differentially adapts prices to various buyers
a movie theatre that prices afternoon showing slower than more popular evening showings:
does so because of lower demand and because it cannot store its excess seating capacity
Electric utilities have developed _____ to compete in the home heating market segment
Usage segment discounting
What impact(s) might occur when off-peak demand pricing is applied?
reducing the annual overall contribution margin
A negative aspect of price promotions in a mature market is
that they can reduce the degree of brand loyalty in the market
price promotions:
have strong reinforcing effects and train shoppers to become deal-seeking shoppers
many price discounts are wasted because
-About two in three are not supported by special point-of-purchase displays
-about 30 percent are not passed on to consumers
-They are not noticed by buyers
Both B and D, C
Research suggests that compared to price promotions, consumers may have a more positive feeling about:
coupons and rebates
which of the following statements is true?
in the fashion world, promotions running late in the season are designed to reduce inventory carrying costs and the risk of fashion obsolescence
Which of the following scenarios described int he price module bst represents the advantage of differentiation over price promotion?
-Procter & gamble’s patented innovation “Pert Plus”
– Grind-Your-Own Gourmet coffee beans by entrepreneurial firms
What are the possible underlying implications when companies rely on price promotions to sell their mature product”
-Companies don’t have innovative strategies
– The product- development process is broken
– The product- development process needs to be fixed
What can be done to discourage price promotions?
Operate close to production capacity
Transfer pricing is
The price you charge another unit or subsidiary of your company for a product or service
The most efficient transfer price is:
The market price of the goods and services that the subsidiary faces
Transfer prices are most often adjusted beacuse of
Tax implications
which of the following statements is true?
– If a company can, and it is legal, it will keep most of the profits earned int he country with the lowest coorporate income tax on profits.
– Financial accountants are likely to use the market price as a starting point and make a taxation consideration adjustment
It is likely that the internal buyer will suggest that the transfer price should be the market price:
Less the cost in sales commisions and distribution that result from selling to a subsidiary (an internal buyer)
In addition to economic efficiency and tax arguements, most of the rest of transfer pricing is about
– organization politics
– power plays
– pushing the legal and ethical limits of tax-based transfer pricing
When morpace did their survey this past May, what fraction of people paid they would external appearance
2/3
Which is away to drive customers away
Both B and C
– Handwritten sign
– Crowded aisles
How many basic store styles layouts
5
what are three types of interior displays
-Point of sale
– Merchandise display
-Visual architecture
What are the advantages of e-retailing for customers
the building of sustainable capabilities
1. How many pharmaceutical sales people are there?
a. 81000
2. As of what year do drug companies have th start reporting gifts to physicians to the federal gove?
a. 2013
. The president of the pharmaceutical research and manufacturers of America told the trade group’s board members that ” would support the bill” if the industry is given less than 12 years?
B) Falls.
– what are the requirements for doctors prescribing inferior performing drugs?
– Both A and B
How many marketing strategies are there regarding controlling a zone?
– Dual objective protect and devlop build market share.
3) A number of researchers have argued that how many exposures within a purchase cycle (time between purchases) is optimal:
a) Two exposures.
b) Three exposures.
NOT C
d) Five exposures.
e) It is irrelevant.