Exam 21: Marketing Implementation and Evaluation

If the Denman Tire Company assigns one sales person to each of its Midwest territories without concern for the number or type of customers in each area, a substantial difference in the potential volume and profit from the various territories is likely to occur. This would be an example of:

In the _____ approach to marketing cost analysis, only direct expenses are allocated to each marketing unit being analyzed.

Pernod Ricard, the French distiller, is planning on expanding into the Chinese market. Its goal is $25 million in sales by the end of this decade. During the _____ stage, it would determine if the Chinese market was as profitable as it had hoped.

Wade bought a CD player. He broke the compartment where the CD is placed when he tried to open it by hand, instead of using the opening mechanism. Wade took it back to the store and asked to exchange the broken one for a working model. The store honored his request without asking any questions about how the break occurred. The retailer was:

For years, Jeeps were the vehicles of choice for rural route postal carriers. Jeeps were also used extensively by U.S. military. In addition, it was a popular car for people who liked driving off the paved road. Which form of organization would be best suited for its sales force?

Supporters of the contribution-margin approach to marketing cost analysis believe that:

In a marketing-oriented organization, all marketing activities are coordinated under one marketing executive, who is usually at the vice presidential level.

As part of a marketing cost analysis, the activities of order filling and shipping are _____ costs.

The Krups automatic ice cream maker came with a notice that read, "This one-quart ice cream maker turns out frozen desserts in only 20 to 30 minutes." This is an example of a(n) _____ warranty.

The Grand Casino in Tunica markets to customers on the basis of how much money they wagered on the gaming floor during an average visit-not on how much a customer wins or loses. From $25,000 to $99,999 is one group, less than $25,000 is one group, and the third group wagers $100,000 and more per visit to the gaming floor of the casino. What form of organization is described in this example?

By using the _____ approach to marketing cost analysis, management allocates all costs to determine the net profits of each unit being analyzed.

Caterpillar is the world's largest manufacturer of medium speed engines and high speed diesel engines. In 1990 the company decentralized its structure, reorganizing into three business units, each responsible for return on assets and customer satisfaction. The three business units are machines, engines, and insurance/ financing services to help customers around the world acquire and use Cat and related equipment. The machine unit is further divided into a division that has sole responsibility for negotiating all contracts with U.S. government agencies. The company has experienced continuous growth except during the worldwide recession in 1981-1983, which cost Caterpillar the equivalent of $1 million a day and forced it to dramatically reduce its number of employees. -The marketing department at Caterpillar has a:

Major-accounts specialization relies on individual sales people engaging in relationship marketing.

The distribution goal for the retailer Zara is to "have the world's most responsive supply chain." Its team of logistics specialists is constantly tweaking everything from the sequence and size of store deliveries to truck routes and rail configurations during the _____ stage in its marketing management process.

_____ organization is a variation of customer specialization and is viewed by many companies as an efficient way to deal with large, important customers.

Express warranties, in effect, protect the seller from the buyer's claims.

Daniel bought a pair of 100 percent cotton chinos from a Lands' End retail catalog. On the label inside the pants waistband was a notice that read "These pants are guaranteed not to wrinkle." This is an example of a(n) _____ warranty.

Wendy bought a new $50 blouse without trying it on at the store. When she tried to wear it, she saw that the front of the blouse puckered because the buttons and buttonholes were not aligned. As a result of an _____ warranty, Bridgette could rightfully expect the store to refund her money or give her another blouse.

A company that tries to organize its sales force according to customer specialization may experience a problem with:

Caterpillar is the world's largest manufacturer of medium speed engines and high speed diesel engines. In 1990 the company decentralized its structure, reorganizing into three business units, each responsible for return on assets and customer satisfaction. The three business units are machines, engines, and insurance/ financing services to help customers around the world acquire and use Cat and related equipment. The machine unit is further divided into a division that has sole responsibility for negotiating all contracts with U.S. government agencies. The company has experienced continuous growth except during the worldwide recession in 1981-1983, which cost Caterpillar the equivalent of $1 million a day and forced it to dramatically reduce its number of employees. -A(n) _____ would have revealed what action Caterpillar needed to take to stay in business during the recession.