Reference no: EM13738494

1. The sales manager of the Butterfly Chair Corp. wishes to compensate his sales force in a way that will provide some security, incentive, flexibility, and control. The company should offer its sales force:

straight salaries.

straight commissions.

a combination plan.

a value plan.

2. Which of the following statements BEST describes "order getters"?

Order getters are concerned with establishing relationships with new customers and developing new business.

Order getters sell to the regular or established customers, complete most sales transactions, and maintain relationships with their customers.

Order getters usually handle all adjustments or complaints.

Order getters routinely complete sales made regularly to target customers.

3. Hannah Spiritway works for a cable TV company in a large city. She handles telephone calls from customers who are having problems with their cable service. Hannah is:

a sales promotion specialist.

a customer service rep.

an order taker.

an order getter.

4. A job description for a sales person provides:

basis for pay, general tasks and generic guidelines.

general tasks, basic expectations, and generic guidelines.

basis for pay, generic guidelines, general tasks

basis for pay, clear guidelines, and specific tasks.

5.Budgeting for marketing expenses by computing a percentage of forecasted sales:

is especially suitable for new products.

may lead to a drop in marketing expenses when the firm wants to maintain or expand sales.

is very complicated--and thus this method is not used very often.

always results in an increased expenditure level from year to year.

6.The AIDA model consists of four promotion jobs:

getting attention, building intrigue, arousing desire, and obtaining action.

becoming aware, holding interest, arousing desire, and providing assistance.

getting attention, holding interest, creating demand, and obtaining action.

getting attention, holding interest, arousing desire, and obtaining action.

7. Clearwater Office Supply sells frequently purchased office supplies to businesses in a metropolitan area. It is well established with a large share of the market. Its promotion should probably focus on:

reminding.

stimulating primary demand.

informing.

innovators.

8. A professional salesperson:

is only expected to "get rid of the product."

has only one basic job, which is to communicate the company's story to customers.

may be given a title such as field manager or market specialist.

is expected to overcome the customer's objection--whatever it may be.

9. Determining the blend of promotion methods is a strategy decision, which is the responsibility of the:

brand ambassador.

finance manager.

personnel manager.

marketing manager.

10. In light of continuous focus on planning marketing strategies to reach objectives, the most sensible approach to budgeting promotion expenditure is:

basing the budget on the job to be done.

basing the budget on any uncommitted revenue.

setting the budget as a certain number of cents or dollars per sales unit.

matching expenditures with competitors.

11. Which of the following statements BEST describes advertising spending?

Advertising spending by U.S. corporations averages about 25% of their sales dollars.

Advertising spending exceeded $1.5 trillion in 2008.

Advertising spending represents only a small portion of what people pay for products.

Advertising spending has increased more with the downturn in the economy.

12. Advertising agencies:

may do a better job at less cost than firms' own advertising departments because they are specialists with an outside viewpoint.

earn a mandatory 15% commission on all local media buys.

usually do marketing strategy planning for their clients.

obtain most of their income from advertisers in the form of service fees.

13. Which of the following BEST describes behavioral targeting?

Behavioral targeting tries to place ads on websites that are designed to appeal to the firm's target market.

Behavioral targeting delivers ads to consumers based on previous websites the customer has visited.

Behavioral targeting allows advertisers to pay only when a customer clicks on the ad and links to the advertiser's website.

Behavioral targeting tries to reach target customers who are actually interested in what the firm has to communicate.

14. The following terms appeared on an invoice dated May 22nd, which was sent by a manufacturer to a retail store: 2/10, net 30. The amount of the invoice was $2,000. Assuming the retailer paid the invoice on June 1 (within 10 days after the products were delivered), how much should he have paid?

$1,900

$1,800

$2,040

$1,960

15. A leading hard-disk manufacturer introduces a new line of high-capacity disk drivers. After selling to elite customers at a high price point, the company slowly reduces its prices over a period of time. The company is engaging in:

single pricing.

introductory price dealing.

price skimming

penetration pricing.

16. The marketing manager for Aerial Photography, Inc. says his sales reps have gotten in the habit of setting prices for products that do not produce a profit. Aerial Photography apparently is using:

penetration pricing.

introductory price dealing.

administered pricing.

flexible pricing.

17. Pricing objectives should flow from, and fit in with:

shareholder expectations and market practices.

company-level and marketing objectives.

regulatory policies.

market price leader actions.

18. Regarding message planning and the AIDA model:

"getting action" is the final and easiest step in the process.

focusing on one unique selling proposition is one way to arouse desire.

a successful attention-getting device assures "holding interest."

"arousing desire" is the first and hardest step in the process.

19. A one-price policy means:

offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities.

never using temporary sales or rebates.

selling to different customers at different prices.

setting a price at the right level from the start and never changing it.

20. Most firms operate in monopolistic competition, where products and whole marketing mixes are not exactly the same. This implies that:

there are pricing options.

value pricing has no advantage.

it's foolish to offer products above the market price.

there are no price choices in most markets.

21. The reason that MICRO-marketing costs too much in many firms is that:

the marketing concept has not been accepted and implemented.

most new products are not necessary to meet competition.

marketing is not really needed.

advertising is usually ineffective.

22. Which of the following statements is a challenge facing marketers?

If it ain't broke, don't fix it.

Change is the only thing that is constant.

We need to reject international competition.

We need to use technology as much as possible.

23. Which of the following statements BEST describes a marketing manager?

A marketing manager should know that most consumer complaints do not require a response because the consumer's dissatisfaction is beyond the control of the firm.

A marketing manager should recognize that many consumers who complain are troublemakers and that not much can or should be done about their complaints.

A marketing manager should assume that most customers who are dissatisfied will complain, but that people who are satisfied will not.

A marketing manager should be concerned that many of the complaints that are reported are never resolved.

24. If a profit-oriented marketing manager does not know the exact shape of the firm's demand curve, marginal analysis:

is useless.

will suggest the same price as break-even analysis.

may be useful anyway since a profitable region usually surrounds the best price.

suggests that the only sensible approach is to use average-cost pricing.

25. Michael Soles--owner of Soles Shoe Store--recently discovered that shoe stores in his trading area have an average markup of 40%. Upon investigation, Michael found that his average markup is $15 on shoes that he sells for $45. This suggests that:

Michael has higher-than-average costs.

Michael is pricing his products higher than his competitors are.

Michael is taking a smaller average markup than his competitors are.

Michael's markups in dollar amounts are about the same as his competitors.

26. Trends affecting marketing strategy planning in the Pricing area include:

interactive media, sales technology, and use of a laptop.

economic deadline, addressing environmental concerns, and less business regulation.

electronic bid pricing, overuse of sales and deals, and more attention to exchange rates.

product placement, event sponsorship, and customer loyalty programs.

27. Gabriella Sax believes that customers in her dress shop find certain prices very appealing. Between these price levels, all prices are seen as roughly the same, and price cuts in these ranges generally do not increase the quantity sold (i.e., the demand curve tends to drop vertically within these price ranges). Therefore, Sax prices her items as close as possible to the top of each such price range. This is referred to as:

bait pricing.

leader pricing.

prestige pricing.

psychological pricing.

28. In the development of a marketing plan, blending the marketing mix would not generally involve

predicting future behavior.

product lines.

product life cycle.

sales promotion.

29. Marketers estimating the demand curve:

do not have to worry about price competition due to the nature of the demand curve.

can use marginal analysis to help it maximize profits.

will have to charge the market price which is set by the intersection of industry supply and demand.

could use marginal analysis to compare alternatives--but this would not help in pricing because this method focuses on selling one more unit and therefore ignores total profitability.

30. Elijah has classified the following items under variable costs. Which item has he classified INCORRECTLY?

expenses for parts

wages

outgoing freight

property taxes

The following 4 questions are short  and each should be a minimum of 300 words. APA is not required, but strong, factual, and original  s are.

31. Provide three examples when advertising to intermediaries might be necessary? What are the objective(s) of such advertising?

32. What is the difference between one-price and flexible-price policies? Which is most appropriate for a hardware store? Explain your reasoning in detail with examples or citations from the textbook.

33. What is the difference between leader pricing and bait pricing? What do they have in common? How can their use affect a marketing mix? Explain your  .

34. Why do many department stores seek a markup of about 30% when some discount houses operate on a 20% markup? Identify and explain at least three reasons.