Q&A Hero

Q: Identify the incorrect statement about market-directed economies. A. A market-directed economy adjusts itself. B. The American economy is completely market-directed. C. Consumers in a market-directed economy decide what is to be produced and by whomthrough their dollar "votes." D. Consumers in a market-directed economy enjoy great freedom of choice.

Q: Which of the following statements about a market-directed economic system is True? A. Consumers enjoy substantial freedom of choice. B. Profit, growth and survival are guaranteed. C. Government has no role. D. There is very little interaction between producers and consumers.

Q: _____ NOT the government's job in a market-directed economy. A. Protecting property and enforcing contracts are B. Regulating radio and television broadcasting is C. Setting import and export rules is D. Determining what and how much is to be produced is E. Controlling interest rates and the supply of money are

Q: Marketing can be viewed as a social process, but not as a set of activities performed by organizations.

Q: Marketing is both a set of activities performed by organizations and a social process.

Q: _____ in the marketplace are a rough measure of how society values particular goods and services. A. Inventories B. Prices C. Cost of labor and materials D. The number of producers E. Discrepancies of quantity

Q: According to the text, marketing means "selling" or "advertising."

Q: _____ refers to the way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption by various people and groups in society. A. Resource utilization B. Socio-economic policy C. The way a firm measures value D. Separation of values E. Economic system

Q: Concerning the "universal functions of marketing," it is true that: A. these functions must be performed in all macro-marketing systems. B. these functions can be performed by producers or intermediariesbut not by consumers. C. from a micro viewpoint, every firm must perform all of the functions. D. responsibility for performing these functions can be shifted and sharedand some functions can be completely eliminated to reduce costs.

Q: Lipton has increased sales by developing ads that encourage it current customers to drink Lipton tea instead of coffee at morning "coffee breaks." This effort focuses on A. diversification. B. market penetration. C. product development. D. mass marketing. E. market development.

Q: _______ means that the marketing mix is distinct from and better than what is available from a competitor. A. Operational B. Visible C. Differentiation D. Competitive E. None of these is correct

Q: Customer value is the difference that a customer sees between the benefits of a firm's offering and the costs of obtaining those benefits.

Q: Low price and high customer value is one and the same thing.

Q: "Positioning": A. applies to new productsbut not existing products. B. helps strategy planners see how customers view competitors' offerings. C. is concerned with obtaining the best shelf space in retail outlets. D. is useful for combining but not for segmenting. E. eliminates the need for judgment in strategy planning.

Q: A product-market is a market with broadly similar needsand sellers offering various, often diverse, ways of satisfying those needs.

Q: Which of the following statements about market-oriented strategy planning is true? A. Segmenters aim at more heterogeneous markets than combiners. B. Both "segmenters" and "combiners" can be target marketers. C. All segmenters follow the single target market approach. D. Combiners follow a mass marketing strategy. E. None of these statements is true.

Q: Which of the following statements about market segmentation is NOT true? A. It starts by segmenting broad product-markets. B. It involves naming broad product-markets. C. A market grid with submarkets can be a visual aid to market segmentation. D. It segments broad product-markets in order to develop suitable marketing mixes. E. First-time market segmentation efforts often fail.

Q: Marketing does not occur unless two or more parties are willing to exchange something for something else.

Q: Marketing means "promotion and selling."

Q: A market-directed economy is one in which government officials decide what and how much is to be produced and distributed by whom, when, to whom, and why.

Q: Price fixing is completely illegal in the United States.

Q: Unfortunately, no laws prevent a retailer from using a phony list priceto make a consumer think that the price being charged offers a really big discount.

Q: A good job description will help a new sales manager see:A. the kind of training needed.B. the kind of salespeople to be selected.C. what selling tasks are needed.D. how salespeople should be paid.E. All of these alternatives are correct.

Q: Manufacturers' agents do not take title to the products they selland are paid a commission on sales.

Q: Carol Lamb has lived in Centerville all her life. She owns a retail store that sells hobby and craft supplies. She bought the store after working there for 7 years. Carol has just been asked to head up the Retailers and Wholesaler Group of the Centerville Chamber of Commerce. The most active chamber members in her group are described below: Walden's Leather is part of a regional chain of stores that sells leather goodsmostly men's and women's clothingwith the upscale Walden's brand name. Walden's primarily relies on its own stores where knowledgeable salespeople offer great service. Walden products are also sold, on a limited basis, in some fine department stores. Publisher's Helper is a small business started by Audrey Yang that provides and stocks display racks for paperback books and magazines. Most retailers welcome the service Audrey provides, in part because she does her own research to determine which paperback books and magazines sell best in Centerville. Cuzco's is Centerville's alternative to Walmart. The store sells a wide variety of merchandise. The company used to concentrate its product mix on small appliancesbut now Cuzco's carries any product that it can sell profitably. Its low prices stimulate faster turnovers and higher sales volumes. Games Unlimited sells video games. Jamie Carraway, who owns the local store, signed a contract with Games Unlimited and follows strict rules covering her store's operations and the Games Unlimited marketing strategy. She pays that company a fee for promotion it provides as well as commissions on her sales. Johnson's Health and Beauty Supplies sells cosmetics and other health and beauty products to retailers and salons throughout the greater Centerville area. It owns the goods it sells to these retailer customers, and it provides all the wholesaling functions they need. Valu Grocer is an independent grocery store that belongs to an organization sponsored by a large food wholesaler. The fifty stores grocery stores that share the Valu Grocer name are linked by contracts that include basic operating procedures, storefront designs, and joint promotion efforts. Reddy and Sons sells equipment for several different manufacturers of plastic molding in the Centerville area. It earns a commission from each manufacturer on the products it sells for that manufacturer, but it does not take ownership of the equipment it sells nor does it install the equipment. Katrina's Salon started out as a low-status, low-price, low-margin hair salon 15 years ago. After some success, the company moved into a nicer storefront, raised prices, and now operates in the middle of the market. Which of these businesses best fits the definition of a service merchant wholesaler? A. Publisher's Helper B. Valu Grocer C. Reddy and Sons D. Johnson's Health and Beauty Supplies

Q: A broker's "Product" is: A. financial skillsand perhaps credit. B. market contacts for new products. C. information about what buyers need and what supplies are available. D. good storage and transportation facilities. E. All of these are included in a broker's "Product."

Q: Mass-merchandisers: A. face a bright future and increasing profitsbecause of decreasing competition. B. usually operate with low margins on individual items. C. operate on the "buy low, sell high" philosophy. D. try to reduce costs by reducing inventory turnover. E. None of these alternatives is correct for mass-merchandisers.

Q: Kelly Stich, marketing manager for Yummy Ice Cream Products, is thinking about some of her products and her promotion plans for the coming year. Yummy Ice Cream Products is introducing a new ice cream treat called PlanetSavers. This treat uses ice cream produced with environmentally friendly processes that save energy and protect the ozone. Yummy plans to send articles to magazines, local newspapers, and environmental groups that explain the environmentally safer treat. The product also has a unique texture and different flavor. Stich wants to use counter cards and in-store signs to let people know about Cherry Walrus, the company's new flavor. She is also developing sales training materials that will teach ice cream scoopers in Yummy's ice cream stores to promote the product. Right after Cherry Walrus is introduced each store will also hand out coupons that are good for one day only. Yummy Mondaes is a product that has been around for 25 years. It is Yummy's take on the classic ice cream sundae, but white-brownie and coffee-flavored crumbles are added to make it extra special. The company sells this product in one and two quart containers through major grocery store chains. It relies on personal selling and price discounts to retailers to move more of the product. The company does very little consumer promotion for this product. Yummy Fudge on a Stick is a new product of fudge-flavored ice cream on a stick. Yummy plans to sell it through retail grocery stores also and is launching an aggressive advertising program that will use television, radio, newspaper, magazines, and the Internet. Most of its promotion will be directed at consumers. Two years ago the company introduced Yummy Fruit on a Stick, an all-natural frozen fruit product on a stick. The product category has been popular, continues to grow, and is in the market growth stage of the product life cycle. If Yummy wanted to target opinion leaders, which of the following groups is most likely to include them? A. innovators B. early adopters C. laggards D. late majority E. early majority

Q: _____ is communicating information between the seller and potential buyer or others in the channel to influence attitudes and behavior. A. Price B. Product C. Promotion D. Place E. Process

Q: A major advantage of mass selling is that the sourcethe sellercan get immediate feedback from the receiver.