Question 1

Which of the following statements about putting together an innovative marketing plan is True?

Accepted Answer

A)  The marketing plan blends the elements of the marketing mix. 
B)  The marketing plan forecasts the size of the target market and potential sales. 
C)  The marketing plan includes implementation plans. 
D)  All of the above. 
E)  A and B only. 
A)  The marketing plan blends the elements of the marketing mix. 
B)  The marketing plan forecasts the size of the target market and potential sales. 
C)  The marketing plan includes implementation plans. 
D)  All of the above. 
E)  A and B only.

Question 2

Use the following information to answer questions 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 3

Use the following information to answer questions 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 wholesale level--is:

Accepted Answer

A)  selective distribution. 
B)  direct distribution. 
C)  exclusive distribution. 
D)  intensive distribution. 
E)  for the wholesaler to be the channel captain. 
A)  selective distribution. 
B)  direct distribution. 
C)  exclusive distribution. 
D)  intensive distribution. 
E)  for the wholesaler to be the channel captain.

Question 4

Use this information to answer the following questions that refer to the CPI case
Conservo Products, Inc. (CPI), with annual sales of $200 million, is a well-known producer of a variety of paper products, almost all of which are made from recycled materials. Picnic plates account for about 70 percent of CPI's sales. The rest of the firm's sales comes from custom-designed materials--such as box liners and spacers, small boxes, and disposable products--like trays, towels and napkins.
CPI's picnic plates are sold through "sales reps" to grocery wholesalers and retail grocery chains. The sales reps are paid a 5 percent commission on all sales in their assigned territories. They usually handle related--but noncompeting--lines for several other manufacturers. Along with their selling duties, the sales reps help CPI with local advertising and sales promotion efforts. Orders for the custom products are obtained by area managers who are paid a straight salary to call on business and institutional customers. The area managers are trained paper specialists and often help their customers design the products they order.
The picnic plates are priced to give CPI a 90 percent markup on the cost of producing the product--with the cost figured by taking the total factory cost for the previous year and dividing that total cost by the number of units produced and sold during that period. The firm's invoices read "F.O.B.--Delivered" and "1/10, net 30." Customers are allowed to deduct 3 percent from the face value of the invoice for buying plates in carload quantities, and another 2 percent for advertising them locally.
The custom products are sold "F.O.B. mill"--with CPI offering a price for each job. Competition is strong from many other manufacturers who are able to offer very similar products which meet the customers' specifications.
CPI forecasts that sales will increase to $250 million by 1999. However, much of this growth is tied to picnic plates--a market in which the firm has about a 7 percent market share and faces aggressive price competition from many smaller firms with greater brand familiarity. Further, CPI has been late with more than 50 percent of its plate orders due to scheduling conflicts with orders for custom products.
-Sure Foot is probably in what stage of the product life cycle in the "high quality" market?

Accepted Answer

A)  Market maturity 
B)  Market growth 
C)  Market introduction 
D)  Sales decline 
A)  Market maturity 
B)  Market growth 
C)  Market introduction 
D)  Sales decline

Question 5

Measuring macro consumer satisfaction:

Accepted Answer

A)  is easy--just add up all the marketing mixes. 
B)  is difficult because consumer satisfaction depends on the level of consumer aspiration. 
C)  must be done quantitatively. 
D)  uses MIS techniques. 
E)  None of the above is true. 
A)  is easy--just add up all the marketing mixes. 
B)  is difficult because consumer satisfaction depends on the level of consumer aspiration. 
C)  must be done quantitatively. 
D)  uses MIS techniques. 
E)  None of the above is true.

Question 6

Better performance of our market-directed MACRO-marketing system may require:

Accepted Answer

A)  newer and tougher laws--because the present laws don't do enough to protect competing firms from each other. 
B)  more consumer responsibility. 
C)  less emphasis on consumer privacy. 
D)  All of the above. 
E)  None of the above. 
A)  newer and tougher laws--because the present laws don't do enough to protect competing firms from each other. 
B)  more consumer responsibility. 
C)  less emphasis on consumer privacy. 
D)  All of the above. 
E)  None of the above.

Question 7

The marketing manager:

Accepted Answer

A)  Must make independent decisions and assemble them into a marketing mix. 
B)  Must creatively blend the four Ps so the firm develops the best mix for the target market. 
C)  Must integrate the ideas of specialists, such as the product manager, advertising manager, and sales manager. 
D)  Must make sure that each marketing mix decision works well with the others. 
E)  All of the above. 
A)  Must make independent decisions and assemble them into a marketing mix. 
B)  Must creatively blend the four Ps so the firm develops the best mix for the target market. 
C)  Must integrate the ideas of specialists, such as the product manager, advertising manager, and sales manager. 
D)  Must make sure that each marketing mix decision works well with the others. 
E)  All of the above.

Question 8

A S.W.O.T. analysis

Accepted Answer

A)  should help a manager develop a strategy that leads to a competitive advantage. 
B)  seeks to improve strategy planning by "scanning for warnings, omens, and tips" about competitors' plans. 
C)  is not necessary if competitors have already entered the market. 
D)  defends against potential competitive threats by planning specific "safeguards, weapons, or tactics." 
E)  None of the above is a good answer. 
A)  should help a manager develop a strategy that leads to a competitive advantage. 
B)  seeks to improve strategy planning by "scanning for warnings, omens, and tips" about competitors' plans. 
C)  is not necessary if competitors have already entered the market. 
D)  defends against potential competitive threats by planning specific "safeguards, weapons, or tactics." 
E)  None of the above is a good answer.

Question 9

A good business manager should adhere to the idea "if it ain't broke, don't fix it."

Accepted Answer

A) True 
 B)False

Question 10

As a product moves through its product life cycle stages:

Accepted Answer

A)  consumers are offered less product variety. 
B)  distribution tends to become more and more exclusive. 
C)  competition forces firms to skim instead of just meeting competition. 
D)  the promotion emphasis is on building selective demand. 
A)  consumers are offered less product variety. 
B)  distribution tends to become more and more exclusive. 
C)  competition forces firms to skim instead of just meeting competition. 
D)  the promotion emphasis is on building selective demand.

Question 11

Use this information to answer the following questions that refer to the CPI case
Conservo Products, Inc. (CPI), with annual sales of $200 million, is a well-known producer of a variety of paper products, almost all of which are made from recycled materials. Picnic plates account for about 70 percent of CPI's sales. The rest of the firm's sales comes from custom-designed materials--such as box liners and spacers, small boxes, and disposable products--like trays, towels and napkins.
CPI's picnic plates are sold through "sales reps" to grocery wholesalers and retail grocery chains. The sales reps are paid a 5 percent commission on all sales in their assigned territories. They usually handle related--but noncompeting--lines for several other manufacturers. Along with their selling duties, the sales reps help CPI with local advertising and sales promotion efforts. Orders for the custom products are obtained by area managers who are paid a straight salary to call on business and institutional customers. The area managers are trained paper specialists and often help their customers design the products they order.
The picnic plates are priced to give CPI a 90 percent markup on the cost of producing the product--with the cost figured by taking the total factory cost for the previous year and dividing that total cost by the number of units produced and sold during that period. The firm's invoices read "F.O.B.--Delivered" and "1/10, net 30." Customers are allowed to deduct 3 percent from the face value of the invoice for buying plates in carload quantities, and another 2 percent for advertising them locally.
The custom products are sold "F.O.B. mill"--with CPI offering a price for each job. Competition is strong from many other manufacturers who are able to offer very similar products which meet the customers' specifications.
CPI forecasts that sales will increase to $250 million by 1999. However, much of this growth is tied to picnic plates--a market in which the firm has about a 7 percent market share and faces aggressive price competition from many smaller firms with greater brand familiarity. Further, CPI has been late with more than 50 percent of its plate orders due to scheduling conflicts with orders for custom products.
-CPI's product line includes:

Accepted Answer

A)  only convenience products. 
B)  impulse products and natural products. 
C)  specialty products and supplies. 
D)  shopping products and raw materials. 
E)  staple products and component parts. 
A)  only convenience products. 
B)  impulse products and natural products. 
C)  specialty products and supplies. 
D)  shopping products and raw materials. 
E)  staple products and component parts.

Question 12

Many Internet sites, such as Autobytel.com and Edmunds.com, have extensive information about the prices of new and used vehicles that anyone can use for free. In light of the availability of this information, what is the responsibility of consumers to use it?

Accepted Answer

A)  Consumers shouldn't use it because it gives them an unfair advantage over car dealers. 
B)  Consumers have a responsibility to use the information and be smarter customers. 
C)  Consumers can use it, but should not feel a responsibility to do so. 
D)  Consumers should not trust any information they receive from any source except the government. 
E)  None of the above. 
A)  Consumers shouldn't use it because it gives them an unfair advantage over car dealers. 
B)  Consumers have a responsibility to use the information and be smarter customers. 
C)  Consumers can use it, but should not feel a responsibility to do so. 
D)  Consumers should not trust any information they receive from any source except the government. 
E)  None of the above.

Question 13

Use this information to answer the following questions 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 kind of promotion is PSI using when it publishes catalogs and exhibits in trade shows?

Accepted Answer

A)  Advertising 
B)  Publicity 
C)  Sales promotion 
D)  Personal selling 
A)  Advertising 
B)  Publicity 
C)  Sales promotion 
D)  Personal selling

Question 14

__________ is one of the most criticized of all marketing activities.

Accepted Answer

A)  Packaging 
B)  Advertising 
C)  Placement 
D)  Pricing 
E)  Production 
A)  Packaging 
B)  Advertising 
C)  Placement 
D)  Pricing 
E)  Production

Question 15

Advertising

Accepted Answer

A)  always results in higher prices for products. 
B)  is a waste of resources. 
C)  costs so much that it reduces the chance to achieve economies of scale in production. 
D)  guarantees a product's success. 
E)  None of the above is true. 
A)  always results in higher prices for products. 
B)  is a waste of resources. 
C)  costs so much that it reduces the chance to achieve economies of scale in production. 
D)  guarantees a product's success. 
E)  None of the above is true.

Question 16

The American Customer Satisfaction Index makes it possible to track changes in consumer satisfaction measures over time and even allows comparison among countries.

Accepted Answer

A) True 
 B)False

Question 17

When evaluating the effectiveness of the macro-marketing systems of different countries:

Accepted Answer

A)  the evaluation should be limited to basic economic objectives which are common across countries. 
B)  the best approach is to see if firms are making a profit. 
C)  it doesn't make sense to try to compare the effectiveness of systems for different nations that have different objectives. 
D)  the evaluation should be based on how well each system satisfies consumers' needs as they--the consumers--see them. 
E)  All of the above are true. 
A)  the evaluation should be limited to basic economic objectives which are common across countries. 
B)  the best approach is to see if firms are making a profit. 
C)  it doesn't make sense to try to compare the effectiveness of systems for different nations that have different objectives. 
D)  the evaluation should be based on how well each system satisfies consumers' needs as they--the consumers--see them. 
E)  All of the above are true.

Question 18

MICRO-marketing effectiveness is ______________ to measure than MACRO-marketing effectiveness.

Accepted Answer

A)  harder 
B)  not any easier or harder 
C)  easier 
A)  harder 
B)  not any easier or harder 
C)  easier

Question 19

Which of the following is NOT a trend affecting marketing strategy planning in the area of Channels and Logistics?

Accepted Answer

A)  Growth of Internet selling. 
B)  More logistics outsourcing. 
C)  Less attention to distribution service. 
D)  More vertical marketing systems. 
E)  Growth of mass-merchandising. 
A)  Growth of Internet selling. 
B)  More logistics outsourcing. 
C)  Less attention to distribution service. 
D)  More vertical marketing systems. 
E)  Growth of mass-merchandising.

Question 20

According to the text, micro-marketing may cost too much because:

Accepted Answer

A)  too many managers seize on whatever strategy seems easiest. 
B)  too many managers are slow and bureaucratic. 
C)  too many managers jump on the "what's new" bandwagon without a strategy that ensures customer satisfaction and company profits. 
D)  All of the above are correct. 
E)  None of the above--marketing never costs too much! 
A)  too many managers seize on whatever strategy seems easiest. 
B)  too many managers are slow and bureaucratic. 
C)  too many managers jump on the "what's new" bandwagon without a strategy that ensures customer satisfaction and company profits. 
D)  All of the above are correct. 
E)  None of the above--marketing never costs too much!

Which of the following statements about putting together an innovative marketing plan is True?

Measuring macro consumer satisfaction:

Better performance of our market-directed MACRO-marketing system may require:

The marketing manager:

A S.W.O.T. analysis

A good business manager should adhere to the idea "if it ain't broke, don't fix it."

As a product moves through its product life cycle stages:

Many Internet sites, such as Autobytel.com and Edmunds.com, have extensive information about the prices of new and used vehicles that anyone can use for free. In light of the availability of this information, what is the responsibility of consumers to use it?

__________ is one of the most criticized of all marketing activities.

Advertising

The American Customer Satisfaction Index makes it possible to track changes in consumer satisfaction measures over time and even allows comparison among countries.

When evaluating the effectiveness of the macro-marketing systems of different countries:

MICRO-marketing effectiveness is ______________ to measure than MACRO-marketing effectiveness.

Which of the following is NOT a trend affecting marketing strategy planning in the area of Channels and Logistics?

According to the text, micro-marketing may cost too much because:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Demographic Dimensions of Global Consumer Markets

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

Implementing and Controlling Marketing Plans: Evolution and Revolution

Managing Marketings Link With Other Functional Areas

Economics Fundamentals

Marketing Arithmetic

Filters

Exam 21: Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Which of the following statements about putting together an innovative marketing plan is True?

Measuring macro consumer satisfaction:

Better performance of our market-directed MACRO-marketing system may require:

The marketing manager:

A S.W.O.T. analysis

A good business manager should adhere to the idea "if it ain't broke, don't fix it."

As a product moves through its product life cycle stages:

Many Internet sites, such as Autobytel.com and Edmunds.com, have extensive information about the prices of new and used vehicles that anyone can use for free. In light of the availability of this information, what is the responsibility of consumers to use it?

__________ is one of the most criticized of all marketing activities.

Advertising

The American Customer Satisfaction Index makes it possible to track changes in consumer satisfaction measures over time and even allows comparison among countries.

When evaluating the effectiveness of the macro-marketing systems of different countries:

MICRO-marketing effectiveness is ______________ to measure than MACRO-marketing effectiveness.

Which of the following is NOT a trend affecting marketing strategy planning in the area of Channels and Logistics?

According to the text, micro-marketing may cost too much because:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Demographic Dimensions of Global Consumer Markets

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

Implementing and Controlling Marketing Plans: Evolution and Revolution

Managing Marketings Link With Other Functional Areas

Economics Fundamentals

Marketing Arithmetic

Filters