MKG Exam 3

The product life cycle has four stages. Which of the following is not one of these?
Economic Competition
As a product moves through its product life cycle:
Customers’ needs and attitudes change.
During the market introduction stage of the product life cycle:
Funds are being invested in marketing with the expectation of future profits.
Total industry profits reach their maximum during the _________ stage of the product life cycle.
Market Growth
Health Care Products Company has noticed that in one of its product-markets industry sales have leveled off and competition has been getting tougher. This product-market appears to be in the ______ stage of the product life cycle.
Market Maturity
Midway, Inc. has seen most of its competitors drop out of its product-market due to declining industry sales and profits. But Midway still has much demand for its product form a small group of loyal customers. This product-market is in which product life cycle stage?
Sales Decline
Which of the following observations concerning the product life cycle is not true?
The sales and profits of an individual brand follow the life-cycle pattern.
In the market introduction stage of a fast product life cycle, _______ helps develop loyal customers early and keeps competitors out.
A low initial penetration price.
Which of the following is less likely to happen as a product moves through the last stages of the product life cycle?
Place – move toward selective distribution.
According to your text, which of the following is an example of a “new product”?
All of the above.
According to the FTC, for a producer to call a product “new,” the product:
Must be entirely new or changed in functionally significant or substantial respect.
Which of the following is not a separate stage of the new-product development process?
Marketing Research
Which of the following is an effective source of ideas at the ideas generation stage of the new-product development process?
All of the above
The Consumer Product Safety Commission can:
All of the above
It is difficult to maintain consistent quality in services because
The server is inseparable from the service.
______ means giving employees the authority to correct a problem without first checking with management.
Empowerment
Regarding product life cycles, which is true?
Product life cycles describe industry sales and profits within some product-market.
According to the text, product life cycles are:
Getting shorter
As a product moves into the market maturity stage of its life cycle, the marketing manage should:
Expect the market to move toward pure competition.
Regarding product life cycles, good marketing managers know that:
Product life cycles can be extended through product modifications.
A channel of distribution:
Is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.
Which of the following statements about Place is false?
Place decisions have relatively little impact on competition in a product-market.
Which of the following statements about Place is true?
Place decisions are usually harder to change than other marketing mix decisions.
A direct-to-customer change
Usually helps the product to be more aware of changes in final customer attitudes.
In which of the following distribution channels is the firm most likely to maintain control of the marketing mix?
Direct
Direct _____ involves personal sales contact between a representative of the company and an individual consumer.
Selling
Indirect channels are probably a better choice than direct channels when:
All of the above
Which of the following is a function that an intermediary is likely to provide for customers?
All of the above are functions provided for customers
“Discrepancies of quantity” occur because
Producers seek economies of scale
Sony manufactures clock radios in quantities of more than 100,000 in a given time period — but the average consumer wants only one clock radio at a time. This difference is an example of
A discrepancy of quantity
“Discrepancies of assortment” means:
the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users.
Which of the following best illustrates adjusting “discrepancies of assortment?”
A hardware store sells all the hardware items wanted by most people.
All of the following are regrouping activities EXCEPT
Channeling
The regrouping activity which involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called:
Accumulating
The “regrouping activity” which involves breaking carload or truckload shipments into smaller quantities as products get closer to final customers is called:
Bull-breaking
_____ means separating products into grades and qualities desired by different target markets.
Sorting
The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:
Assorting
When a channel has a “product-market commitment”:
All members focus on the same target market at the end of the channel, and its members attempt to share the various marketing functions in appropriate ways.
Channels of distribution
usually require longer-term planning than other market mix elements because channel decisions are more difficult to change quickly
A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict.
Vertical
Some channel conflict may
All of the above are true
To reduce conflicts in channels, a firm should
All of the above
A manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts is a
Channel captain
A “channel captain”
All of the above
Which of the following is NOT one of the degrees of market exposure?
Multichannel Distribution
“Intensive distribution” means selling through:
all responsible and suitable retailers or wholesalers.
Intensive distribution:
is often used for convenience products and business supplies.
From a producer’s viewpoint, which of the following is an advantage of INTENSIVE DISTRIBUTION over selective distribution?
Intermediaries’ facilities will be more convenient for customers.
______________ means selling a product only through those intermediaries who will give the product special attention.
Selective distribution
Which of the following is true of selective distribution?
It is selling through only those intermediaries who will give the product special attention.
______________ means selling a product through only one wholesaler or retailer in a particular geographic area.
Exclusive distribution
Horizontal arrangements among competing retailers, wholesalers, or producers to limit sales by customer or territory have consistently been
Ruled illegal by the U.S. Supreme Court
Multichannel distribution:
All of the above
The need for reverse channels may arise in all of the following situations EXCEPT
All of the above create a need for reverse channels.
Selling products manufactured in the United States to foreign customers–often without any product changes–is called:
Exporting
The lowest cost and lowest risk way to enter a foreign market is through
Exporting
_____ means selling the right to use some process, trademark, patent, or other right for a fee or royalty.
Licensing
If a firm’s involvement in international marketing is limited to managing others’ production facilities, it is using:
Management Contracting
When the Rosco International chain of restaurants enters foreign markets, locals own the restaurant facilities, but look to Rosco to provide expertise in management and marketing. Rosco uses the _______ approach to enter international markets.
Management contracting
Oceanside Tools, Inc. of Newport, Rhode Island has agreed to work with a Thai company to produce and sell chemicals in Thailand. The U.S. firm will provide technical and marketing know-how, while its Thai partner will provide knowledge of Thai markets and political connections. The partners will share the costs and profits 50/50. This type of international involvement is called:
Joint venturing
Using the ______ approach to entering international markets gives a firm complete control of marketing strategy planning in the foreign market.
Direct investment
When planning physical distribution, the marketing manager should:
minimize the cost of distribution for a given customer service level.
The ______________ concept says that all transporting, storing, and product-handling activities of a business and a channel system should be thought of as part of one system which should seek to minimize the cost of distribution for a given customer service level.
Physical distribution
Which of the following statements best reflects a marketing-oriented approach to physical distribution?
“We should choose the physical distribution alternative that will minimize the total cost of achieving the level of customer service our target market requires.”
A merchant wholesaler is considering four physical distribution systems and estimates the total cost and customer service level for each as follows:

The best alternative is:

Cannot be determined without knowing how the target customers feel about the customer service level
Physical distribution decisions interact with which other marketing mix decisions?
All of the above
A supply chain:
requires skill in coordinating activities among different firms, and this has prompted many firms to seek help from outside experts.
Electronic data interchange
All of the above
Which of the following statements about the transporting function is TRUE?
Pharmaceuticals
More freight is carried more miles ______ than any other mode of transportation.
By railroads
All of the following are advantages of using trucks except
Serving a limited number of locations
At least ____ percent of all freight shipped in the United States moves by trucks–at least part of the way–from producer to user.
75
Which of the following transportation modes is “best” at handling a variety of goods?
Water
_____ as a mode of transport serves a very limited number of locations but has a high dependability in meeting schedules.
Pipelines
Regarding airfreight, which of the following statements is NOT true?
Inventory costs usually increase, since only small quantities can be shipped at a time.
Inventory refers to
the amount of goods being stored.
Storing:
is necessary because production does not always match consumption.
Which of the following statements is NOT TRUE?
Storing can increase the value of goods, but does not involve costs.
Distribution centers:
are designed to facilitate the flow of products through the channel.
When a department store manager decides to make a personal shopper available to its career-oriented female shoppers, this is a decision about:
Product
When a supermarket manage decides to offer online ordering at the store’s web site, this is a decisions about:
Place
When a department store manager decides to offer its female shoppers a free trial of Clinique’s new skin cream, this is a decision about:
Promotion
Most conventional retailers in the U.S. are:
Limited-line stores
A limited-line store is to a single-line store as
A tennis shop is to a sporting goods store.
A _______ aims at a carefully defined target market by offering a unique product assortment, knowledgeable salesclerks, and better service.
Specialty shop
Department stores:
All of the above are true
Compared to conventional retailers, which of the following types of retailers offer a wider product assortment but less service?
Supermarkets
Regarding supermarkets, which of the following statements is true?
None of the above are true
Regarding discount houses, which of the following statements is true?
All of the above are true
Supercenters are also known as
Hypermarkets
Which of the following would be considered a retailing “category killer”?
All of the above
Vending machine
Sales are now include higher-margin products like digital cameras and bathing suits.
Identify the characteristics of vending machines and door-to-door retailing.
Added convenience and higher than conventional margins, usually reduced assortment.
Most catalog retailers, like Macy’s and L.L. Bean, now use a multichannel approach but when they mail catalogs to potential customers’ homes, they are using _________ retailing.
Direct-mail
Expanded assortment, reduced margins, and more information are characteristics of
Internet
Which of the following statements about retailing on the Internet is (are) true?
All the above are true
The “Wheel of Retailing” theory suggests that:
New types of retailers enter as low-price operators and eventually begin to offer more services and charge higher prices.
“Scrambled merchandising” refers to:
Retailers carrying any product lines they can sell profitabilty
Franchisers:
All of the above are true statements.
Business firms that sell to retailers and other merchants, and/or to industrial, institutional, and commercial users–but which do not sell in large amounts to final consumers–are:
Wholesalers
Regarding wholesales, which of the following is the most numerous?
Merchant wholesalers
The main difference between merchant wholesalers and other wholesales is that they:
Own (take title to) the products they handle.
The two basic types of merchant wholesalers are:
Service and limited function
Which of the following is not a full-service merchant wholesaler?
Broker
Which of the following is not a limited function merchant wholesaler?
A general-line wholesaler
_________ are a type of limited-function wholesaler that owns products they sell, but do not actually handle, stock, or deliver them.
Drop-shippers
A grocery store or mass-merchandiser might rely on a ______ to decide which paperback books or magazines it sells.
Rack jobber
The main difference between agent wholesalers and merchant wholesalers is:
That agent wholesalers do not own the products they sell–while merchant wholesalers do.
Which of the following is not an agent wholesaler?
A drop-shipper
A manufacturers’ agent:
All of the above
All of the following are true of brokers except
The usually have a permanent relationship with the buyer and seller.
Sandi Barefoot sells the entire output of several small companies based in Silicon Valley. Each of the companies designs and produces remote control devices. Sandi has almost complete control of pricing and selling–because the engineers who started the companies are mainly interested in inventing things. In addition, Sandi often provides working capital to the producers, who have very limited financial resources. Sandi is paid a substantial commission on all sales. Sandi is a:
Selling agent