Question 1

Which of the following is NOT an explanation for why MICRO-marketing may cost too much in some firms?

Accepted Answer

A)  Some managers make decisions as if customers are eagerly awaiting any product they produce. 
B)  Production managers focus on designing products that are easy to make. 
C)  Financial managers reduce finished-product inventories and force "out of stock" situations. 
D)  Marketing managers do target marketing. 
E)  Some managers don't see a business as a "total system" focused on customers. 
A)  Some managers make decisions as if customers are eagerly awaiting any product they produce. 
B)  Production managers focus on designing products that are easy to make. 
C)  Financial managers reduce finished-product inventories and force "out of stock" situations. 
D)  Marketing managers do target marketing. 
E)  Some managers don't see a business as a "total system" focused on customers.

Question 2

A marketing plan usually spells out the time schedule for a marketing strategy as well as the time-related details.

Accepted Answer

A) True 
 B)False

Question 3

The fact that many firms are too production-oriented and inefficient is one reason why so many new products fail.

Accepted Answer

A) True 
 B)False

Question 4

As a product moves from the early to the later stages of the product life cycle:

Accepted Answer

A)  distribution moves toward being more intensive. 
B)  firms either cut prices or just meet competition. 
C)  promotion becomes frantically competitive. 
D)  products tend to become more similar. 
E)  All of these alternatives are correct. 
A)  distribution moves toward being more intensive. 
B)  firms either cut prices or just meet competition. 
C)  promotion becomes frantically competitive. 
D)  products tend to become more similar. 
E)  All of these alternatives are correct.

Question 5

Identify the component of the marketing mix that involves advertising and hiring sales people.

Accepted Answer

A)  Price 
B)  Product 
C)  Place 
D)  Promotion 
E)  Production 
A)  Price 
B)  Product 
C)  Place 
D)  Promotion 
E)  Production

Question 6

Which of the following is NOT a current trend affecting marketing strategy planning?

Accepted Answer

A)  more attention to environmental issues 
B)  growth of ethnic submarkets 
C)  growth of product placement promotion 
D)  growth of senior citizen submarket 
E)  shift away from exporting 
A)  more attention to environmental issues 
B)  growth of ethnic submarkets 
C)  growth of product placement promotion 
D)  growth of senior citizen submarket 
E)  shift away from exporting

Question 7

Which of the following is an unethical behavior on the part of a consumer?

Accepted Answer

A)  abusing policies about returning goods 
B)  changing price tags in self-service stores 
C)  being abusive to salespeople 
D)  shoplifting 
E)  all of these are examples of unethical behavior 
A)  abusing policies about returning goods 
B)  changing price tags in self-service stores 
C)  being abusive to salespeople 
D)  shoplifting 
E)  all of these are examples of unethical behavior

Question 8

Use the following information to answer question that refer to the Jewel Craft case. Jewel Craft, Inc. is a leading producer in the United States' women's costume jewelry and accessories market. Its brands are well known and are sold by department stores and better women's stores. Several stores in a city may carry Jewel Craft's brands because most of Jewel Craft's customers will not consider any other brand.
Jewel Craft's sales force calls on one wholesaler in each state. Gemco, Inc., of Boston, Massachusetts, is the Jewel Craft distributor in that state. Gemco stocks and sells women's accessories (noncompeting lines) for several manufacturers like Jewel Craft. Wholesalers are allowed a 20 percent markup by Jewel Craft-but pay the freight charges to their warehouses. Jewel Craft's policy of using one wholesaler per state comes from its desire to control its distribution. Jewel Craft uses national magazine advertising and also supports a cooperative ad program with retailers.
Jewel Craft's prices allow for a 40 percent retail markup-an attractive percent when one considers that Jewel Craft's products require little in-store selling because of their well-established reputation.
Recently, Jewel Craft was approached by a watch producer with the idea of expanding to watches under the Jewel Craft name. It was argued that although national watch sales have leveled off, Jewel Craft could enjoy growing sales for several years because of the fine reputation the company has achieved. If watches are added, Jewel Craft will use its present policies regarding distribution, pricing, and advertising. Further, it will offer the wholesalers and retailers an attractive "package" deal as an incentive to carry Jewel Craft watches. Intermediaries will be required to carry the watches if they wish to handle the jewelry and accessories.
Jewel Craft's distribution policy-at the retail level-seems to be:

Accepted Answer

A)  direct distribution. 
B)  exclusive distribution. 
C)  intensive distribution. 
D)  selective distribution. 
A)  direct distribution. 
B)  exclusive distribution. 
C)  intensive distribution. 
D)  selective distribution.

Question 9

A firm faces the high cost of missed opportunities when:

Accepted Answer

A)  it introduces a marketing mix which fails. 
B)  it doesn't offer a new marketing mix. 
C)  its products are rejected by a certain market segment. 
D)  it has an ineffective positioning statement. 
E)  the purchasing power of its target customers is low. 
A)  it introduces a marketing mix which fails. 
B)  it doesn't offer a new marketing mix. 
C)  its products are rejected by a certain market segment. 
D)  it has an ineffective positioning statement. 
E)  the purchasing power of its target customers is low.

Question 10

The job of integrating the four Ps strategy decisions is the responsibility of the company controller since the money to do so must be available.

Accepted Answer

A) True 
 B)False

Question 11

Use this information to answer the following question that refer to the PSI case. Pump Systems, Inc. (PSI) produces two major kinds of water pumps. The smaller pumps range in price from $5-$30, and are used in drinking fountains and soft-drink machines. Most of these pumps are bought by manufacturers of these machines and built into their product. PSI also builds larger pumps used in swimming pools and reservoirs. The prices of these items range from $250-$500. These are usually purchased by contractors, who build the pools and reservoirs.
PSI sells nationally through sales reps located in the large industrial centers. These reps handle the selling function for PSI in their geographic areas and provide market information. They usually do the same thing for 10 to 20 similar manufacturers of noncompeting products-and are paid on a commission basis.
There are no other producers of the smaller pumps in the United States-because PSI has patent protection. As a result of this, management has decided to follow a policy of pricing high-to maximize profits-while the patent lasts.
Several competitors are in the market for the larger pumps. Industry prices and profits of these pumps have dropped in the past few years as a result of firms trying to increase their market shares. The product design has remained fairly stable over the last few years-and one firm dropped out as it saw that it would lose more money with its "me-too" product. Industry sales are increasing-but at a very slow rate. The price of these products is determined by adding a standard markup percentage to the variable cost of the items-to cover fixed costs and profit. For instance, pump Z has variable costs of $250 per unit, and a markup of 40 percent of this cost is added to the $250 to get its selling price. Management has estimated that fixed costs applicable to this product are $200,000 per year.
PSI publishes a product catalog which is revised annually. Also, it exhibits in most trade shows. PSI follows a policy of charging the same price to all customers-so all will have the same costs at their own plants. All purchases are shipped directly from PSI's factory to its customers-and title passes at PSI's factory.
What is the contribution to fixed cost and profit of PSI's pump Z?

Accepted Answer

A)  $100 per unit 
B)  $75 per unit 
C)  $50 per unit 
D)  $25,000 
E)  Cannot be determined unless you know the sales volume. 
A)  $100 per unit 
B)  $75 per unit 
C)  $50 per unit 
D)  $25,000 
E)  Cannot be determined unless you know the sales volume.

Question 12

A market-directed economic system implies that:

Accepted Answer

A)  society lacks both political and economic freedom. 
B)  people have political freedom but economic objectives are determined by the government. 
C)  political freedom and economic freedom go hand in hand. 
D)  the needs of consumers are not part of marketing objectives. 
E)  very little importance is attached to customer satisfaction. 
A)  society lacks both political and economic freedom. 
B)  people have political freedom but economic objectives are determined by the government. 
C)  political freedom and economic freedom go hand in hand. 
D)  the needs of consumers are not part of marketing objectives. 
E)  very little importance is attached to customer satisfaction.

Question 13

A good marketing plan will work well throughout the different stages of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 14

Advertising is probably the most criticized of all micro-marketing activities.

Accepted Answer

A) True 
 B)False

Question 15

At the macro level, consumer satisfaction is difficult to measure and interpret so any evaluation is in part subjective.

Accepted Answer

A) True 
 B)False

Question 16

Consumerism has encouraged

Accepted Answer

A)  nutritional labeling. 
B)  truth-in-lending. 
C)  unit pricing. 
D)  plain-language contracts and warranties. 
E)  all of these alternatives are correct. 
A)  nutritional labeling. 
B)  truth-in-lending. 
C)  unit pricing. 
D)  plain-language contracts and warranties. 
E)  all of these alternatives are correct.

Question 17

The legal environment sets the minimum standards of ethical behavior in a society.

Accepted Answer

A) True 
 B)False

Question 18

_____ can be used as a rough measure of a firm's efficiency in satisfying customers.

Accepted Answer

A)  Production 
B)  The marketing mix 
C)  Profits 
D)  Macro-marketing 
E)  Returns 
A)  Production 
B)  The marketing mix 
C)  Profits 
D)  Macro-marketing 
E)  Returns

Question 19

When companies in a market-directed economy try to find "little monopolies" for themselves,

Accepted Answer

A)  success is likely to attract more competitors-and squeezing of the innovators' profits. 
B)  they will fail. 
C)  this reduces innovation, new investment, and economic growth. 
D)  the allocation of resources will be the same as in a purely competitive economy. 
E)  this forces consumers to buy new-possibly more expensive-products that they do not want. 
A)  success is likely to attract more competitors-and squeezing of the innovators' profits. 
B)  they will fail. 
C)  this reduces innovation, new investment, and economic growth. 
D)  the allocation of resources will be the same as in a purely competitive economy. 
E)  this forces consumers to buy new-possibly more expensive-products that they do not want.

Question 20

MICRO-marketing effectiveness can be measured by:

Accepted Answer

A)  the profits of business firms. 
B)  the opinions of intermediaries. 
C)  consumer complaints. 
D)  attitude research studies. 
E)  All of these are good measurements for MICRO-marketing. 
A)  the profits of business firms. 
B)  the opinions of intermediaries. 
C)  consumer complaints. 
D)  attitude research studies. 
E)  All of these are good measurements for MICRO-marketing.

Which of the following is NOT an explanation for why MICRO-marketing may cost too much in some firms?

A marketing plan usually spells out the time schedule for a marketing strategy as well as the time-related details.

The fact that many firms are too production-oriented and inefficient is one reason why so many new products fail.

As a product moves from the early to the later stages of the product life cycle:

Identify the component of the marketing mix that involves advertising and hiring sales people.

Which of the following is NOT a current trend affecting marketing strategy planning?

Which of the following is an unethical behavior on the part of a consumer?

A firm faces the high cost of missed opportunities when:

The job of integrating the four Ps strategy decisions is the responsibility of the company controller since the money to do so must be available.

A market-directed economic system implies that:

A good marketing plan will work well throughout the different stages of the product life cycle.

Advertising is probably the most criticized of all micro-marketing activities.

At the macro level, consumer satisfaction is difficult to measure and interpret so any evaluation is in part subjective.

Consumerism has encouraged

The legal environment sets the minimum standards of ethical behavior in a society.

_____ can be used as a rough measure of a firm's efficiency in satisfying customers.

When companies in a market-directed economy try to find "little monopolies" for themselves,

MICRO-marketing effectiveness can be measured by:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Market Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Filters

Exam 18: Ethical Marketing in a Consumer-Oriented World: Appraisal and Challe

Which of the following is NOT an explanation for why MICRO-marketing may cost too much in some firms?

A marketing plan usually spells out the time schedule for a marketing strategy as well as the time-related details.

The fact that many firms are too production-oriented and inefficient is one reason why so many new products fail.

As a product moves from the early to the later stages of the product life cycle:

Identify the component of the marketing mix that involves advertising and hiring sales people.

Which of the following is NOT a current trend affecting marketing strategy planning?

Which of the following is an unethical behavior on the part of a consumer?

A firm faces the high cost of missed opportunities when:

The job of integrating the four Ps strategy decisions is the responsibility of the company controller since the money to do so must be available.

A market-directed economic system implies that:

A good marketing plan will work well throughout the different stages of the product life cycle.

Advertising is probably the most criticized of all micro-marketing activities.

At the macro level, consumer satisfaction is difficult to measure and interpret so any evaluation is in part subjective.

Consumerism has encouraged

The legal environment sets the minimum standards of ethical behavior in a society.

_____ can be used as a rough measure of a firm's efficiency in satisfying customers.

When companies in a market-directed economy try to find "little monopolies" for themselves,

MICRO-marketing effectiveness can be measured by:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Market Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Filters