Question 1

Regarding capital:

Accepted Answer

A)  Few firms have a separate financial manager who works with top management on major financial decisions. 
B)  In most firms, different possible opportunities compete for capital. 
C)  The marketing manager should leave all decisions about a marketing plan's budget to the firm's financial manager. 
D)  Marketing managers do not consider financial measures as screening criteria when evaluating opportunities. 
E)  None of these. 
A)  Few firms have a separate financial manager who works with top management on major financial decisions. 
B)  In most firms, different possible opportunities compete for capital. 
C)  The marketing manager should leave all decisions about a marketing plan's budget to the firm's financial manager. 
D)  Marketing managers do not consider financial measures as screening criteria when evaluating opportunities. 
E)  None of these.

Question 2

Indirect distribution typically requires less capital than direct distribution because:

Accepted Answer

A)  agent wholesalers may take on much of the selling effort and not expect any compensation until the revenue is in on what they've sold. 
B)  intermediaries may provide the capital required for logistics facilities. 
C)  merchant wholesalers and retailers usually pay for products when they purchase them and then take over the costs of carrying inventory. 
D)  All of these. 
E)  None of these-indirect distribution usually requires more capital. 
A)  agent wholesalers may take on much of the selling effort and not expect any compensation until the revenue is in on what they've sold. 
B)  intermediaries may provide the capital required for logistics facilities. 
C)  merchant wholesalers and retailers usually pay for products when they purchase them and then take over the costs of carrying inventory. 
D)  All of these. 
E)  None of these-indirect distribution usually requires more capital.

Question 3

There's more risk for financial investors when the potential profits from a marketing plan are off in the future rather than immediate.

Accepted Answer

A) True 
 B)False

Question 4

Working capital may be used to pay for:

Accepted Answer

A)  what a firm owes suppliers. 
B)  what it costs to store inventory. 
C)  employee salaries. 
D)  marketing research. 
E)  All of these. 
A)  what a firm owes suppliers. 
B)  what it costs to store inventory. 
C)  employee salaries. 
D)  marketing research. 
E)  All of these.

Question 5

A virtual corporation:

Accepted Answer

A)  acts primarily as a coordinator. 
B)  has no need for suppliers because it produces everything it needs or sells. 
C)  does none of its production "in house". 
D)  All of these. 
E)  Acts primarily as a coordinator and does none of its production "in house" only. 
A)  acts primarily as a coordinator. 
B)  has no need for suppliers because it produces everything it needs or sells. 
C)  does none of its production "in house". 
D)  All of these. 
E)  Acts primarily as a coordinator and does none of its production "in house" only.

Question 6

Task transfer is using telecommunications to move service operations to places where there are pools of skilled workers.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Nikeid.com, where customers can design a shoe to their own preferences, is a good example of mass customization.

Accepted Answer

A) True 
 B)False

Question 9

Regarding marketing cost analysis, which of the following statements is TRUE?

Accepted Answer

A)  Natural accounts are set up to indicate the purpose for which the expenditures were made. 
B)  The contribution-margin approach focuses attention on all costs equally. 
C)  The first step is to reclassify all costs in the natural accounts into functional accounts. 
D)  The total of costs in the natural accounts will often differ from the total of those in the functional accounts. 
E)  All of these are true. 
A)  Natural accounts are set up to indicate the purpose for which the expenditures were made. 
B)  The contribution-margin approach focuses attention on all costs equally. 
C)  The first step is to reclassify all costs in the natural accounts into functional accounts. 
D)  The total of costs in the natural accounts will often differ from the total of those in the functional accounts. 
E)  All of these are true.

Question 10

Which of the following aspects of production capacity should be considered in marketing planning?

Accepted Answer

A)  A firm can produce only limited quantities of its current product without a major investment in new facilities. 
B)  Other firms are available to handle production on a contract or supplier basis. 
C)  A firm's production capacity allows it to produce some products quickly but not others. 
D)  A firm has more production capacity than it can use. 
E)  All of these. 
A)  A firm can produce only limited quantities of its current product without a major investment in new facilities. 
B)  Other firms are available to handle production on a contract or supplier basis. 
C)  A firm's production capacity allows it to produce some products quickly but not others. 
D)  A firm has more production capacity than it can use. 
E)  All of these.

Question 11

Service firms are finding ways to reduce the cost of some of their production work with _____, using telecommunications to move service operations to places where there are pools of skilled workers.

Accepted Answer

A)  skill transfer 
B)  task transfer 
C)  knowledge transfer 
D)  turnkey projects 
E)  mobile environments 
A)  skill transfer 
B)  task transfer 
C)  knowledge transfer 
D)  turnkey projects 
E)  mobile environments

Question 12

It is the chief executive's job to communicate with others in the organization and explain the new marketing strategy, what needs to happen, and why.

Accepted Answer

A) True 
 B)False

Question 13

With the mass customization approach, a firm

Accepted Answer

A)  tailors the principles of mass production to meet the unique needs of individual customers in its target market. 
B)  tries to justify high prices by customizing its offering for everyone in a mass market. 
C)  gives up segmenting to go after the mass market. 
D)  All of these. 
E)  None of these. 
A)  tailors the principles of mass production to meet the unique needs of individual customers in its target market. 
B)  tries to justify high prices by customizing its offering for everyone in a mass market. 
C)  gives up segmenting to go after the mass market. 
D)  All of these. 
E)  None of these.

Question 14

Which of the following statements about mass customization is true?

Accepted Answer

A)  Anderson's windows, which an architect can order in just about any combination of size, 3 Hardware, and style, is a good example of mass customization for business markets. 
B)  Mass customization avoids the need for working capital. 
C)  Mass customization requires a firm to give up segmentation thinking to pursue larger, more heterogeneous markets. 
D)  The mass-customization approach applies only to services, and they often must be custom produced anyway. 
E)  Mass customization reduces production costs but it's less likely to meet a customer's needs. 
A)  Anderson's windows, which an architect can order in just about any combination of size, 3 Hardware, and style, is a good example of mass customization for business markets. 
B)  Mass customization avoids the need for working capital. 
C)  Mass customization requires a firm to give up segmentation thinking to pursue larger, more heterogeneous markets. 
D)  The mass-customization approach applies only to services, and they often must be custom produced anyway. 
E)  Mass customization reduces production costs but it's less likely to meet a customer's needs.

Question 15

When a new marketing plan is more successful than expected,

Accepted Answer

A)  scarce supply may result in a waste of marketing resources, especially promotion spending. 
B)  the firm may face problems finding enough well-trained people to handle the growth that occurs. 
C)  the firm is more likely to be able to fund expansion through its own cash flow. 
D)  All of these are correct. 
E)  None of these is correct. 
A)  scarce supply may result in a waste of marketing resources, especially promotion spending. 
B)  the firm may face problems finding enough well-trained people to handle the growth that occurs. 
C)  the firm is more likely to be able to fund expansion through its own cash flow. 
D)  All of these are correct. 
E)  None of these is correct.

Question 16

Each month the sales staff of TechPro Products makes an average of 209 sales calls on prospective customers at a cost of about $4,600 (salary plus expenses). What is the average cost of a sales call (to the nearest dollar amount)?

Accepted Answer

A)  $22 
B)  $25 
C)  $28 
D)  $31 
E)  $34 
A)  $22 
B)  $25 
C)  $28 
D)  $31 
E)  $34

Question 17

It makes sense for a firm to produce where it can produce most economically-if the cost of transporting and storing products to match demand doesn't offset the production savings.

Accepted Answer

A) True 
 B)False

Question 18

A marketing manager who wants to calculate the cost of marketing several products to several target markets will probably have to:

Accepted Answer

A)  read all requisitions very carefully. 
B)  allocate advertising expense to general overhead. 
C)  reorganize some of the company`s functional cost accounts to natural accounts. 
D)  reclassify all natural accounts into functional accounts. 
E)  None of these-it is impossible to link the costs of marketing to target markets. 
A)  read all requisitions very carefully. 
B)  allocate advertising expense to general overhead. 
C)  reorganize some of the company`s functional cost accounts to natural accounts. 
D)  reclassify all natural accounts into functional accounts. 
E)  None of these-it is impossible to link the costs of marketing to target markets.

Question 19

Which of the following statements about mass customization is true?

Accepted Answer

A)  Mass customization means that a firm is targeting the mass market but that it tries to customize the design of a product so it is different from what a competitor offers. 
B)  Mass customization requires a firm to give up segmentation thinking to pursue larger, more heterogeneous markets. 
C)  The mass-customization approach applies only to services, and they often must be custom produced anyway. 
D)  ChemStation's industrial detergents, which a business customer can order to fit any special cleaning need, is a good example of mass customization. 
E)  None of these is true. 
A)  Mass customization means that a firm is targeting the mass market but that it tries to customize the design of a product so it is different from what a competitor offers. 
B)  Mass customization requires a firm to give up segmentation thinking to pursue larger, more heterogeneous markets. 
C)  The mass-customization approach applies only to services, and they often must be custom produced anyway. 
D)  ChemStation's industrial detergents, which a business customer can order to fit any special cleaning need, is a good example of mass customization. 
E)  None of these is true.

Question 20

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.

Regarding capital:

Indirect distribution typically requires less capital than direct distribution because:

There's more risk for financial investors when the potential profits from a marketing plan are off in the future rather than immediate.

Working capital may be used to pay for:

A virtual corporation:

Task transfer is using telecommunications to move service operations to places where there are pools of skilled workers.

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

Nikeid.com, where customers can design a shoe to their own preferences, is a good example of mass customization.

Regarding marketing cost analysis, which of the following statements is TRUE?

Which of the following aspects of production capacity should be considered in marketing planning?

Service firms are finding ways to reduce the cost of some of their production work with _____, using telecommunications to move service operations to places where there are pools of skilled workers.

It is the chief executive's job to communicate with others in the organization and explain the new marketing strategy, what needs to happen, and why.

With the mass customization approach, a firm

Which of the following statements about mass customization is true?

When a new marketing plan is more successful than expected,

Each month the sales staff of TechPro Products makes an average of 209 sales calls on prospective customers at a cost of about $4,600 (salary plus expenses). What is the average cost of a sales call (to the nearest dollar amount)?

It makes sense for a firm to produce where it can produce most economically-if the cost of transporting and storing products to match demand doesn't offset the production savings.

A marketing manager who wants to calculate the cost of marketing several products to several target markets will probably have to:

Which of the following statements about mass customization is true?

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

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing 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

Promotionintroduction 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

Filters

Exam 19: Managing Marketings Link With Other Functional Areas

Regarding capital:

Indirect distribution typically requires less capital than direct distribution because:

There's more risk for financial investors when the potential profits from a marketing plan are off in the future rather than immediate.

Working capital may be used to pay for:

A virtual corporation:

Task transfer is using telecommunications to move service operations to places where there are pools of skilled workers.

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

Nikeid.com, where customers can design a shoe to their own preferences, is a good example of mass customization.

Regarding marketing cost analysis, which of the following statements is TRUE?

Which of the following aspects of production capacity should be considered in marketing planning?

Service firms are finding ways to reduce the cost of some of their production work with _____, using telecommunications to move service operations to places where there are pools of skilled workers.

It is the chief executive's job to communicate with others in the organization and explain the new marketing strategy, what needs to happen, and why.

With the mass customization approach, a firm

Which of the following statements about mass customization is true?

When a new marketing plan is more successful than expected,

Each month the sales staff of TechPro Products makes an average of 209 sales calls on prospective customers at a cost of about $4,600 (salary plus expenses). What is the average cost of a sales call (to the nearest dollar amount)?

It makes sense for a firm to produce where it can produce most economically-if the cost of transporting and storing products to match demand doesn't offset the production savings.

A marketing manager who wants to calculate the cost of marketing several products to several target markets will probably have to:

Which of the following statements about mass customization is true?

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

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing 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

Promotionintroduction 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

Filters