Question 1

There are a number of different possible sources of capital, but:

Accepted Answer

A)  the sale of stock or bonds is considered to be an internal source of capital. 
B)  debt financing is now illegal in the U.S. 
C)  they are all likely to have the same effect when it comes to the time horizon within which a marketing manager's plan is expected to be profitable. 
D)  a firm that is not yet profitable is likely to need to use external sources. 
E)  a firm isn't likely to be able to sell stock unless its marketing plan is a sure thing. 
A)  the sale of stock or bonds is considered to be an internal source of capital. 
B)  debt financing is now illegal in the U.S. 
C)  they are all likely to have the same effect when it comes to the time horizon within which a marketing manager's plan is expected to be profitable. 
D)  a firm that is not yet profitable is likely to need to use external sources. 
E)  a firm isn't likely to be able to sell stock unless its marketing plan is a sure thing. D

Question 2

A firm's working capital may come from either internal sources--such as sales revenue and profits--or external sources--such as money from sales of stocks or bonds.

Accepted Answer

A) True 
 B)False  True

Question 3

Capital is the financial term for the amount of money invested in a firm.

Accepted Answer

A) True 
 B)False  True

Question 4

The marketing manager needs to work with the human resources manager--or with other managers--who will participate in preparing the firm's personnel for changes required by a new marketing strategy.

Accepted Answer

A) True 
 B)False

Question 5

Firms that use mass customization

Accepted Answer

A)  may target either business customers or final consumers. 
B)  may be able to take advantage of the Internet for orders. 
C)  may be able to give their customers more or better choices. 
D)  are likely to have higher costs than do firms who produce more standardized products, but may earn better profit margins. 
E)  All of the above 
A)  may target either business customers or final consumers. 
B)  may be able to take advantage of the Internet for orders. 
C)  may be able to give their customers more or better choices. 
D)  are likely to have higher costs than do firms who produce more standardized products, but may earn better profit margins. 
E)  All of the above

Question 6

ConnectSys is a California-based manufacturer of computer networking equipment for home and small business users. When people call the company's toll-free customer support telephone number, they are connected to a customer service representative in India. ConnectSys uses this arrangement because the wages for customer service representatives are lower in India than in the United States. This is an example of:

Accepted Answer

A)  A virtual corporation. 
B)  Exporting telecommunications. 
C)  An indirect distribution channel. 
D)  A task transfer service. 
E)  None of the above. 
A)  A virtual corporation. 
B)  Exporting telecommunications. 
C)  An indirect distribution channel. 
D)  A task transfer service. 
E)  None of the above.

Question 7

The challenges of matching supply and demand often occur when a marketing plan calls for:

Accepted Answer

A)  an international roll out instead of a regional roll out. 
B)  quick expansion into many different types of channels. 
C)  simultaneously expanding into many different market areas rather than expanding into one market after another. 
D)  Any of the above would increase the challenge of matching supply and demand. 
E)  none of the above. 
A)  an international roll out instead of a regional roll out. 
B)  quick expansion into many different types of channels. 
C)  simultaneously expanding into many different market areas rather than expanding into one market after another. 
D)  Any of the above would increase the challenge of matching supply and demand. 
E)  none of the above.

Question 8

According to the text, one of the main reasons that IKEA has been able to grow rapidly without greater capital investments is that

Accepted Answer

A)  it operates in tax havens. 
B)  most of its production is outsourced to other firms. 
C)  it is a privately held company. 
D)  it has relied more on local production. 
E)  it sells at the lowest cost price in the market. 
A)  it operates in tax havens. 
B)  most of its production is outsourced to other firms. 
C)  it is a privately held company. 
D)  it has relied more on local production. 
E)  it sells at the lowest cost price in the market.

Question 9

A new marketing strategy often upsets established ways of doing things in the organization.

Accepted Answer

A) True 
 B)False

Question 10

Capital sources include:

Accepted Answer

A)  bonds 
B)  profits 
C)  loans 
D)  stocks 
E)  all of the above 
A)  bonds 
B)  profits 
C)  loans 
D)  stocks 
E)  all of the above

Question 11

Any increase in profit contribution that a strategy generates, without increasing capital invested,

Accepted Answer

A)  is an impossible task. 
B)  increases the firm's return on investment. 
C)  reduces shareholder value. 
D)  increases the debt to equity ratio. 
E)  increases the risk associated with that strategy. 
A)  is an impossible task. 
B)  increases the firm's return on investment. 
C)  reduces shareholder value. 
D)  increases the debt to equity ratio. 
E)  increases the risk associated with that strategy.

Question 12

Capital requirements are likely to be less when intermediaries take on much of the responsibility for promotion in the channel.

Accepted Answer

A) True 
 B)False

Question 13

When a marketing strategy increases profit contribution without increasing capital invested, the firm's return on investment also increases.

Accepted Answer

A) True 
 B)False

Question 14

Mass customization serves individual needs.

Accepted Answer

A) True 
 B)False

Question 15

Turning a strategy into a profitable business usually requires money, people, and other resources, such as production capacity, as well as a marketing plan.

Accepted Answer

A) True 
 B)False

Question 16

Mass customization applies the principles of mass production to the challenge of meeting the unique needs of individual customers.

Accepted Answer

A) True 
 B)False

Question 17

Mass customization means using the principles of mass production to appeal to the unique needs of individual customers and smaller segments of the market.

Accepted Answer

A) True 
 B)False

Question 18

In serving individuals within target segments, _____ tries to get a competitive advantage by finding a low-cost way to give each customer more or better choices.

Accepted Answer

A)  mass marketing 
B)  standardization 
C)  traditional manufacturing 
D)  outsourcing 
E)  mass customization 
A)  mass marketing 
B)  standardization 
C)  traditional manufacturing 
D)  outsourcing 
E)  mass customization

Question 19

Working capital may be used to pay for:

Accepted Answer

A)  what it costs to store inventory 
B)  marketing research 
C)  advertising 
D)  what a firm owes suppliers 
E)  all of the above 
A)  what it costs to store inventory 
B)  marketing research 
C)  advertising 
D)  what a firm owes suppliers 
E)  all of the above

Question 20

Cost advantages that are gained from economies of scale in production may later be lost to inventory carrying costs.

Accepted Answer

A) True 
 B)False

Exam 20: Managing Marketings Link With Other Functional Areas

There are a number of different possible sources of capital, but:

A firm's working capital may come from either internal sources--such as sales revenue and profits--or external sources--such as money from sales of stocks or bonds.

Capital is the financial term for the amount of money invested in a firm.

The marketing manager needs to work with the human resources manager--or with other managers--who will participate in preparing the firm's personnel for changes required by a new marketing strategy.

Firms that use mass customization

The challenges of matching supply and demand often occur when a marketing plan calls for:

According to the text, one of the main reasons that IKEA has been able to grow rapidly without greater capital investments is that

A new marketing strategy often upsets established ways of doing things in the organization.

Capital sources include:

Any increase in profit contribution that a strategy generates, without increasing capital invested,

Capital requirements are likely to be less when intermediaries take on much of the responsibility for promotion in the channel.

When a marketing strategy increases profit contribution without increasing capital invested, the firm's return on investment also increases.

Mass customization serves individual needs.

Turning a strategy into a profitable business usually requires money, people, and other resources, such as production capacity, as well as a marketing plan.

Mass customization applies the principles of mass production to the challenge of meeting the unique needs of individual customers.

Mass customization means using the principles of mass production to appeal to the unique needs of individual customers and smaller segments of the market.

In serving individuals within target segments, _____ tries to get a competitive advantage by finding a low-cost way to give each customer more or better choices.

Working capital may be used to pay for:

Cost advantages that are gained from economies of scale in production may later be lost to inventory carrying costs.

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

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

Economics Fundamentals

Marketing Arithmetic

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