1. The car company developed a concept statement, "An inexpensive subcompact ¨green' car appealing to environmentally conscious people who want practical transportation and low pollution." This concept statement would be used

a) to develop concepts
b) for concept testing
c) to prepare for idea screening
d) to help generate new ideas
e) to brainstorm on new products

2. How does a company estimate sales?

a) it examines past sales history of similar products
b) it conducts market research to survey consumers
c) it discusses manufacturing capacity with the plant manager
d) a and b
e) a, b and c

3. The strategy used during maturity to attempt to increase the consumption of the current product is called

a) customer modification
b) market modification
c) product modification
d) marketing mix modification
e) strategic renovation

4. As a product manager on a product in the mature stages of the product life cycle, what should you specifically do to best market your product?

a) defend against competitive marketing tactics
b) prepare to discontinue the product
c) modify the product, market and the marketing mix
d) increase sampling programs
e) none of the above

5. Setting prices as low as possible typically supports which of the following marketing objectives?

a) survival
b) current profit maximization
c) market-share leadership
d) product-quality leadership
e) sales revenue maximization

6. Compaq Computer Corporation determined at what price they had to sell a computer for it to appeal to its target market. It then designed a computer with the cost structure to meet the targeted price. This is called

a) a non-price position
b) partial cost recovery
c) social price
d) target costing
e) a break-even analysis

7. The assistant category manager was told to use cost-plus pricing to evaluate the profit potential of new products. This involves

a) setting prices to reach a specific rate of return
b) adding a standard markup to the cost of the product
c) pricing products with the buyer's sense of value in mind
d) basing the prices on what the competition charges
e) calculating a break-even analysis

8. Before setting his prices, Zach conducted a market research study to learn what consumers would pay. Zach appears to be using which type of pricing method?

a) cost-plus
b) target profit
c) value-based
d) going-rate
e) a tender

9. When automobile manufacturers offer options in specially priced deals, they are practicing a form of

a) product-line pricing
b) product-bundle pricing
c) captive-product pricing
d) by-product pricing
e) seasonal discounts

10. Which, if any, of the following are reasons producers use intermediaries?

a) because of their greater efficiency in making goods available to target markets
b) because of their contacts and experience with retailers
c) because of their specialization in delivering goods as needed
d) a and b
e) a, b and c
 

a) Paula felt that J. Sammons should stock the product in as many outlets as possible.
b) Quincy worried about the company spreading its efforts in too many outlets but felt that more than one outlet per territory was necessary.
c) Regina believed that J. Sammons would get stronger selling support if it used a limited number of dealers who would be the only resellers authorized to market the new line in a given area.
d) Sara wanted a better-than-average selling effort but pushed for good market coverage with more control at a lower cost.
e) Tom was open to suggestions but felt strongly that the distribution choice should support a prestigious image for the line.

11. Table 12-4 describes which distribution strategy as favoured by Sara?

a) selective
b) horizontal
c) exclusive
d) intensive
e) dominant

12. Tom's emphasis on a prestige image is best supported by which type of distribution strategy as described in Table 12-4?

a) intensive
b) selective
c) horizontal
d) exclusive
e) dominant

13. Provi-Soir in Quebec and 7-11 in Western Canada carry a limited line of high-turnover, readily available goods. These stores are classified as

a) supermarkets
b) specialty stores
c) convenience stores
d) superstores
e) limited-line stores

14. The difference between a voluntary chain and a retail cooperative is

a) only one does group buying
b) in the merchandising and promotional aspects
c) one is independent, the other is not
d) there is no difference
e) one sells hard goods the other soft goods

Table 13-1

At a retailers' convention, five store managers were talking about the type of organization they worked for.

a) Larry's store belonged to a wholesaler-sponsored group of independent retailers that bought as a group and did common merchandising.
b) Lew's store was one of a group of independent retailers that jointly owned a central wholesale operation.
c) Lilla managed one of ten stores owned and controlled by a single company. She liked that the company hired staff specialists to help with inventory control and forecasting.
d) Lisa was an independent business person with a contractual association with a service provider who took care of advertising and training and to whom she paid a fee.
e) Lenny's store was one of several different types of retailing forms under central ownership. Even though Lenny managed a department store, his organization also supplied a wholesaler and discount store from the same central warehouse.

15. In Table 13-1, Lew's store belongs to which type of the following retail organizations?

a) retailer cooperative
b) franchise organization
c) voluntary chain
d) merchandising conglomerate
e) none of the above
 

a) integrated direct marketing
b) the marketing mix
c) direct marketing communications
d) integrated marketing communications
e) none of the above

18. Which of the following factors should be considered when setting the advertising budget?

a) stage in the product life cycle
b) market share
c) product features
d) a and b
e) a, b and c

19. Low competition, high repeat exposure, and low cost are advantages of which type of media?

a) magazines
b) newspaper
c) television
d) outdoor
e) radio

20. Which consumer promotion tool consists of certificates that give buyers a saving when they purchase specified products?

a) samples
b) cash refunds
c) sweepstakes
d) coupons
e) rebates

Table 16-2

At a recent salesforce management conference sponsored by Consolidated Diversified's consumer products division, several managers were sharing their experiences from the previous year.

a) Alvin talked about how important he considered making sure his salespeople felt good about their opportunities, value, and rewards.
b) Arnie related how working out a customer classification system based upon sales volume was helping direct salesforce efforts.
c) Brenda told of how responsive her salesforce had been to the most recent sales contest in her division.
d) Bobbie mentioned that her people were responding well to the new annual call schedule and time and duty analysis planner she had developed.
e) Charles said that the new selling targets were really helping focus salesforce efforts.

21. According to Table 16-2, Alvin is discussing which aspect of supervising salespeople?

a) developing customer targets and call norms
b) using sales time efficiently
c) organizational culture
d) sales quotas
e) incentives
 

a) sales quota reports
b) expense reports
c) call reports
d) annual territory marketing plans
e) sales reports

24. The inside salesperson was screening out good leads from poor ones by contacting all prospects on the telephone. The inside salesperson is

a) following-up
b) closing
c) prospecting
d) approaching
e) closing

25. Setting call objectives is done during this stage

a) preapproach
b) follow-up
c) approach
d) presentation
e) qualifying

26. The marketing manager was asked to update the sales force on direct marketing. She should explain that direct marketing is

a) one-to-one communication
b) used to match marketing offers to individual buyers of narrowly defined segments
c) another word for sophisticated direct mail programs
d) a and b
e) a, b and c

27. A corporate website is designed to do all the following except

a) directly sell products
b) build customer goodwill
c) respond to communications initiated by the consumer
d) indirectly sell company products
e) provide opportunities for customers to learn more about the company and its products