Marketing Basics
lev_ra
marketing_5.docxQuestion 1
Health Care Products Company has noticed that in one of its product-markets, industry sales have leveled off and competition has been getting tougher. This product-market appears to be in the __________ stage of the product life cycle.
Answer
market maturity
market introduction
market growth
sales decline
4 points
Question 2
Product or brand managers are commonly used when a firm:
Answer
has several different kinds of product categories or brands.
wants to eliminate the job of the advertising manager.
wants one person to have authority over all the functional areas that affect the profitability of a particular product.
wants to eliminate the job of sales manager.
4 points
Question 3
A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time. But a bookstore orders only a few copies of each book since its customers want to select from a wide variety. This example shows:
Answer
why discrepancies of quantity occur.
why both discrepancies of quantity and assortment occur.
neither discrepancies of assortment or quantity.
multichannel distribution.
4 points
Question 4
From a social responsibility viewpoint, marketers should try to design and sell:
Answer
deficient products.
salutary products.
pleasing products.
desirable products.
4 points
Question 5
As a product moves through its product life cycle:
Answer
a firm should change its target market--but not its marketing mix.
the competitive situation moves toward monopoly.
industry profits keep increasing along with industry sales.
customers' needs and attitudes may change.
4 points
Question 6
It is difficult to maintain consistent quality in services because:
Answer
services are nonperishable.
as opposed to products, services are tangible in nature.
the server is inseparable from the service.
variability is reduced as more humans are involved in delivery.
4 points
Question 7
A good reason for developing or joining a vertical marketing system:
Answer
is that the whole channel focuses on the same target market at the end of the channel and seems to be more effective.
market competition at each level of the channel eliminates inefficient firms and serves consumers' needs better.
is that no member of the channel has to bear the costs of the regrouping activities.
is that no member of the channel has to plan for the whole channel since good decisions at each level run the channel.
4 points
Question 8
Seeking to stop declining sales for an established mouthwash, a sales manager suggests that new coloring be added to the product and a major promotion effort be started for the new product. The Federal Trade Commission would:
Answer
be concerned about the possibility of the firm getting a monopoly.
allow the company to call the product new for only six months.
probably not approve of this at all because the product doesn't meet the FTC's definition of new.
allow the promotion effort if it felt that consumers would think the coloring made it new.
4 points
Question 9
Ravi Singh is working his way through college as an independent distributor of the Rapier Knife Co. The Rapier product line includes kitchen knives, hunting knives, and special-purpose cutlery. Ravi makes sales presentations to potential customers in their homes. If a customer wants to make a purchase, Ravi buys the knives from Rapier and sells them to the customer at a markup. For example, Rapier's most popular knife is a chef's knife that Ravi buys for $25 and resells to the consumer for $50. Ravi:
Answer
is part of a direct-to-customer channel.
is engaged in direct marketing.
is engaged in indirect marketing.
is engaged in direct selling, but is part of an indirect channel.
4 points
Question 10
Jack Johnson uses a Pareto chart to identify the frequency of different complaints from his customers. After identifying the biggest problem, he may create a __________ to solve it.
Answer
demographic report
waterfall chart
competitor profile
fishbone diagram
Question 11
Compare and contrast exporting, management contracting and joint venturing as approaches to international market entry. If you wanted to expand your successful solar panel business to Mexico which approach would you use, and why?
Your response should be at least 300 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Question 12
Explain in detail how you would use the new-product development process if you were thinking about offering some kind of summer service to residents in a beach resort town.
