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CLEP Principles of Marketing

Terms in this set (199)

The production of a new car model includes which of the following activities?
Actually making the car
The terms "micro-macro dilemma" refers to
what is good for some producers may not be good for society as a whole
An organized way of continually gathering and analyzing data to provide marketing managers with the most up to date information they need to make decisions is called
marketing information systems
Ogden Parts Inc. has named a new sales manager with responsibilities for market planning. Ogden's president thinks the sales manager should sell more parts and outsell the competition. It seems that this company is run as if it were in the
sales era
the "four P's" of a marketing mix are
Product, price, place, promotion
The role of price in a markt-directed economy is to
serve as a rough measure of the value of resources used to produce goods and services
Which of the following statements about marketing is FALSE?
Marketing does not apply to nonprofit organizations
Family units in Smalisland County make all the products they consume. This is an example of
Pure substance economy
Tariffs are
taxes on imported products
As XYZ Company produces larger quantities of watches, the cost of producing each watch goes down. This is known as
economies of scale
The Magnuson Act of 1975 says that
producers must provide a clearly written warranty
When marketers focus on comparing their product versus a competitor's product, they
-should be concerned with total product offering
-look at the relative quality
One would consider an intangible deed performed by one party for another party at a cost as a
service
which of the following is NOT true about the three types of convenience products (staples, impulse products, and emergency products)?
Customers shop extensively when purchasing these items
New product planning is becoming increasingly important in a modern economy because...
It in not always profitable just to sell "me-too" products
A capital item ( a necessary element in setting price) is best described as
A building or other type of major equipment
Long-lasting products that can be depreciated
The practice of tailoring products and marketing programs to suit the needs of specific individuals is called
micro-marketing
Packaging is of importance to marketers because
new packages can make a difference in new market strategy
What level of familiarity exists when a consumer buys paper clips for the office, and she/he does not notice the brand name of the product?
brand nonrecognition
Some customers feel that certain brands of refrigerators are very similar and have the same attributes. By shopping for the best price, or lowest price, what kinds of products are these?
Homogeneous products
When Progresso makes Cajun gumbo soup for Louisiana and nacho cheese soup for Texas, what kind of segmentation is it practicing?
Geographic
Which of the following statements is NOT true about the product life cycle?
As industry sales rise, industry profits also rise
Which statement is correct about the market growth stage?
-Industry profits tend to increase in the beginning of the stage
-Industry profits decrease toward the end of the stage
-More companies enter the industry
-Industry sales increase
All of the following would be ways to segment a market within the category of "psychographic segmentation" Except
occupation
All of the following are considered to be major variables for segmenting markets EXCEPT
Moods
Mingilton Meats increased the price of their bologna from $2.00 a pound to $3.00 a pound. After doing this they noticed a decrease in total revenue. This is because
Demand for meat is elastic
The Yearous Group saw an increase in total revenue when the company decreased the price of its golf bags. The marketing manager can assume that the demand is
Elastic
A potato farmer in Alamosa, Colorado, would be likely to have which type of demand for his potato crop?
Elastic demand
Bob opened a new restaurant featuring "Crab Legs a la bob." As he experimented with the price offering, he found that no matter if he raised or lowered his price total revenue from "Crab Legs a la bob" stayed the same. He could conclude that his product had what kind of elasticity?
He has a situation where there is unitary elasticity
Given the standar commission used in advertising agencies, what would as agancy recieve for a magazine ad that cost $20,000
3000 (15%)
GIven the following choices, which is NOT considered a retailing activity?
All of the above are examples of retailing.
If a firm were to obtain information about light, medium, and heavy users of a product as a means to segment their market, the firm would be practicing what kind of segmentation?
Behavioral
Positioning is
giving a product meaning that distinguishes it from its competition
occupying a specific place in consumers minds relative to completing products
Disposable diapers, which are not biodegradable, are what type of new product opportunity?
Pleasing products
Which of the following statements could occur in market maturity?
-industry sales become stable
-Profits can increase for an individual company
-Individual firms drop out of the industry
-promotion cost rises
Stetson's use of the American cowboy in its advertising is an example of a positioning strategy based on

A. a product attribute

B. the product's users

C. a cultural icon

D. against competition

E. a product benefit
A cultural Icon
John Randall is a purchasing agent for a rather large delivery service. John has just agreed to purchase a 1992 Chevy van from his brother's construction company, although he has never driven it or seen it. This buying approach would be an example of
description buying
Which of the following is NOT part of the Multiple Buying Influence, when making a decision to buy a new copy machine in a business
General Public
By defnintion, "Price" is
what is charged for something (product or service)
Sally Rudolph is selling a new shirt, which she made, to her friend for $1,000. The shirt cost Sally $400. What is her markup?
$600
If Bob Peters sells a set of steak knives for $1,000, and he has a markup (or selling price) of $600, what is his markup percent?
60%
A store owner pays $400 for a chair. He marks the price of the chair up by 60%. What is the new selling price of the chair after the 60% markup?
$640
Ron and Dee own a floor tile retail outlet. They want to achieve a 40% markup at retail for all of the merchandise that they sell. If one style of floor tile retails at $3 per tile, what is the maximum that Ron and Dee can pay for the tile?
$2.14
Pake Productions wants to markdown a new line of speakers that they have in the stores. After they are marked down, Pake Productions wants to calculate the markdown percentage. If the original price of the speakers was $200, and the new price of the speakers is $160, what is the markdown percent?
20% ( and 25%???)
Ogden & Ogden receive an invoice for $100, which they pay in nine days. The terms on the invoice indicate 2/10 net 30. How much money did Ogden & Ogden send to the seller?
$98
Making goods and services available in the right quantities and locations when the customer wants them is the definition for which of the following marketing mix variables
Place
Alarid Company purchases goods from a manufacturer who then turns around and sells them to a retailer who sells them to final customers. The Alarid Company is participating in a(n)
channel of distribution
In terms of direct marketing expenses, the second biggest category after telemarketing is
Direct mail
Which of the following is an important advantage of direct marketing?
Ability to tailor messages to a specific audience
ABC Corporation sells only to wholesalers who give their product special attention. ABC Corporation is practicing what type of distribution?
Selective Distribution
Public relations firms are often evaluated by the number of "hits" they obtain. a "hit" is
the mention of a company's name in a news story
Turner Corporation sells its product to several competing channels that will reach the same target market. Turner Corporation is using what type of distribution?
Dual distribution
Which statement best describes why Dual Distribution is becoming more common with producers and retailers?
retailers want large quantities of with a lower price per unit
The publice relations tool that is mostly internally oriented is the
company newsletter
What are the two basic types of conflicts in channels of distribution
horizontal and vertical
Within the industrial mix, the product variable places a great deal of emphasis on
services
In regard to industrial marketing, the following example best exemplifies what type of pricing? "The seller determined the price (or a series of prices) for a given product, and the customer pays that specified price."
Administering price
A "perceptual map" is a marketing tool that helps managers with
positioning decisions
Advertising can make industrial customers aware of
-new products or brands
-product features
-organizations
-representatives
Which of the following statements is NOT true when developing a marketing strategy?
-It allows flexibility in providing for customer service
-it allows the hiring of high-quality personnel
-it may help to resolve problems in regard to service
-It provides for the use of high technology, allowing for lower cost services.
None of the above
If an organization is conduction marketing activities other than for the goals of profit, market share, or return on investment (ROI), these marketing activities are referred to as
nonbusiness marketing
Generally speaking, a department store salesperson who stands behind a counter and performs a cashier's role can be classified as a(n)
order taker
What is the key to creating value and customer satisfaction?
Total quailty
Which of the following choices is NOT a level in the hierarchy of needs?
Money Needs
Which of the following choices best defines a change person's thought process caused by prior experience?
Learning
In marketing, an analysis of a person's day-to-day patterns of living is referred to as a person's AIOs, which are also known as
Activities, Interests, Opinions
The American market is changing and therefore businesses must adapt to these changes. Today, most successful companies are moving away from:
mass marketing
Carefully arranging for a product or service to occupy a clear, distinctive, and desirable place relative to competing products or services in the minds of target consumers is called
positioning
Which of the following is the best example of a product a consumer would consider under the extensive problem-solving process?
Washing Machine
Which of the following is NOT one of the steps in the adoption process?
Payment
Which of the following is NOT a function of channels of distribution?
New product development
Which of the following is NOT a regrouping activity used bu channel specialists?
Transforming
Which of the following is one of the reasons that personal selling can be more effective than advertising in a complex selling situation
vertical channel integration?
Which type of distribution would best be used for products such as soap, food, and personal care products when consumers desire wide availability of the products?
Intensive distribution
Which type of distribution technique used a single outlet ina fairly large geographical area to distribute a product or service suce as jaguar and Rolls Royce automobiles?
Exclusive
A major reason why some shoppers are reluctant to make internet purchases is because of
concern about security
Forbidding an intermediary to carry products of a competing manufacturer is known as
exclusive dealing
A coupon on a bottle of Pepsi offering a deal on a bag of potato chips is called
cross-ruff coupon
Which of the follow is the most widely used positioning strategy?
Product attribute
Which of the following factors is at the core of the marketing concept
Customer Satisfaction
The strategy of choosing one attribute to excel or to create competitive advantage is called
A) overpositioning
B) unique selling proposition
C) undifferentiated marketing
D) relationship marketing
E) concentrated marketing
unique selling proposition
the combining of two or more stages of the channel under one management, in which each channel member is seen as an extension of their own operations, is described as
vertical channel integration
Which of the following procing policies seems to be the one favored by e-commerce and internet-based businesses?
Dynamic pricing policies
Which of the following choices is and example of a manufacturer's brands?
Heinz ketchup
A strategy that consists of the seller's development of two or more brands in the same product category is called
multibrand decision
Setting priced as low as possible typically supports which of the following pricing objectives?
Current profit maximization
Rent, heating and air-conditioning, interest, and executive salaries would all be examples of
A) standard costs
B) variable costs
C) fixed costs
D) independent costs
E) monopoly costs
fixed costs
Which of the following statements is NOT a reason for downward stretching the product line?
he company at the lower end of the market may want to enter the higher end
The most important factor in pushing marketers toward integrated marketing communication is
increased competition
Electronic monitoring systems that link consumers' exposure to TV advertising (measured using television meters) with what they actually buy in stores (measured by store checkout scanners) are called
single-source data systems
The two major economic factors that reflect a country's attractiveness as an export market are
industrial structure and income distribution
Which of the following economies creates a new rich class and a small, but growing, middle-class that both demand new types of imported goods?
industrializing economy
Whenever possible smart marketers will take a ______ rather than ________ approach to the marketing environment. (choose the best combination from the options below)
proactive; reactive
The simplest way to enter a foreign market is:
exporting
Marketing a product in a foreign market without any change to the product is called
straight extension
Which form of entry into a foreign market causes the most risk?
Direct investment
Which type of joint venturing offers a low-risk method of getting into a foreign market and yield income from the beginning?
management contracting
With the high regulation of the U.S. government before the 1980s, carriers of products did not compete in which of these areas, as they do now?
Price
Sandy just bought a new Ford Taurus. Three weeks later, she received a rebate check for $300 in the mail. Which of the following forms of promotion was used in this example?

A. Advertising

B. Direct marketing

C. Sales promotion

D. Personal selling

E. Public relations
Sales Promotion
Based upon retail selling price, if John Doe wants to figure out the actual amount of markup of a product he plans to retail, he should
Subtract the cost from the selling price
with a selling price of $2,000 and a cost of $800, what would the markup (at retail) be for this product?
$1,200
Joe Fisherman wants to know his percent markup on retail of a pair of shoes for which he paid $1,000. He knows the amount of markup was $600. Which of the following would answer his question?
60%
The MOLE, a toy retailer, wants to calculate the selling price for some of their stuffed dolls. They know that they paid $400 each for the dolls, and they want a 60% markup on selling price. What should their selling price be?
$1000
Jan and Bon Winfield want to calculate the cost of a new chair they just bought. Jan told Bob that the retail selling price of the chair was $1,000, and that the markup percent on the selling price was 60%. What would their cost be?
$400
The McHenry Store, a retailer of fine clothing, wants to calculate both the cost and selling price of a new suit they received from a fine clothing tailor. The amount of markup on selling price was 20%, and the amount of markup is $100. Can they calculate both the cost and the selling price of the product?
Certainly; the selling price is $500 and the cost is $400
When trying to calculate markup based on product cost, Doc and Den wanted to determine the markup on a product that cost $150 and sold for $200. What is their markup?
$50
Which of the following is a marketing management tool that shows how customers perceive proposed and/or present brands?
Positioning
Judy and Dale want to calculate the selling price (on COST) of an item that has a cost of $10.00 and a markup percent on cost of 40%. What is their selling price.
$14.00
Which of the following statements about positioning is FALSE? Positioning techniques:
A) require a firm to collect data about consumer perceptions of products
B) are typically called perceptual mapping techniques
C) typically rely on a "product space" diagram to show the relationship among cometing products
D) may use information on consumers' "ideal products" so that the preferences of different consumer segments can be considered
E) place products on a graph based on price level and quantity demanded
place products on a graph based on price level and quantity demanded
When entering a foreign market, a marketer may need to adapt or modify which of the following promotional methods to meet the culture norms of the target market?
Theme
Copy Color
Product's Name
Media
When preparing to market internationally, what is the typical chronological progression (or order) that most companies would follow?
Export department: international division; multinational organization
Sugar Bear Fresh Farm Produce is a premium item sold in exclusive stores where freshness and quality are crucial. Which form of transportation should Sugar Bear Fresh Farm Produce utilize in order to get their goods from Colorado to Pennsylvania?
Air
When demand curve is "inelastic"
total revenues go down if price goes down
Which of the following is the best choice when large volumes of goods must be stored regualry?
Private warehouse
All of the following are criticisms leveled against marketing by critics EXCEPT
A) selling shoddy or unsafe products
B) forcing consumers to shop online
C) using high pressure selling
D) using deceptive advertising
E) having excessive markups
forcing consumers to shop online
You finally decided (after some coaxing from your friends) that a good way to get into shape is rollerblading. You suddenly become aware of television and radio advertisements about rollerblade products. This is an example of
selective exposure
advertising belongs to which aspect of the marketing mix?
Promotion
The was a product is perceived by customers on important attributes is called
product position
Choosing a product difference that competitors cannot easily copy would be an example of which of the following kids of differentiation?
Preemptive
Which of the follwoig types of advertising develops primary demand for a product category as opposed to demand for a specific brand?
Pioneering
Burdwick's Menswear Store has decided to segment its market based on gender, income, and occupation. Which of the following would most appropriately describe their form of segmentation?
Demographic segmentation
when a company enters a new product category for which its current brand names are not appropriate, it will likely follow which strategy?
New Brand
Which of the following dimensions of service marketing refers to the notion that the quality of a service depends upon who provided it as well as when, where, and how it is provided?
Variability
When choosing the best medium to deliver a firm's message, the first and most importat factor to be decided is
to specify the target market and target audience
the stage of product life cycle characterized by overcapacity, intense competition, and the eventual elimination of weaker competitors is called the
maturity stage.
If mark pays the Hershey Company for the right to use its name on his line of T-shirts, then Mark is using which strategy?
Licensed Branding
Which type of new product test is most likely to answer the questions: "How does the customer perceive the product?" and "who would use the product?"
the concept test
The process of offering a product for sale on a limited basis in a defined geographic area in order to gauge consumer reaction to the actual product is known as
test markets
What is meant by commercialization of a new product?
Postion and offer the product in the marketplace
Which of the follwoing are NOT exapmles of support goods?
A) Services
B) Supplies
C) Installations
D) Accessory equipment
E) All of the above
All of the above are examples of support goods
The manufacturing of a telephone, using various raw materials, is an example of what type of utility?
Form
In macro-marketing, which of the following universal functions of marketing have been performed?
-Buying
-Transporting
-Marketing information
The marketing concept came to the forefront of American business during which of the following eras?
Marketing Company Era
Which of the following is NOT a step in the approach to segmenting product markets?
Form a heterogeneous market
Which of the following is the best example of product development?
Suave boosted sales by introducing a new line of shampoo products
A routine repurchase that may have been made many times before is called
straight rebuy
Employers hire buying specialists. These specialists are called what?
Purchasing agents
By evaluating suppliers and how they are working out for a company, buyser can make better (and more informed) decisions. A formal rating of supplier on all relevant areas of performance is called a(n)
vendor analysis
Multiple buying influence means that several people share in makeing purchase decisions. these people are called
-users
-buyers
-influencers
-gatekeepers
What typeof buying is required for non-standardized products that require careful examination
Inspection buying
Which of the following is the first step in undertaking a marketing research project?
Define the problem
Which of the following steps of the market research process typically takes over half the time in completing the research?
Problem defintion
A research proposal
-is a plan that specifies what information will be obtained and how
-can include information about costs
Which of the following research methods require the most care in interpreting the results?
-Random Sampling
-Mail Surveys
-Telephone surveys
-Personal interview surveys
Marketing research
is needed to keep isolated marketing managers in touch with their markets
Which of the following is a major DISADVANTAGE associated with the collection of primary data in the course of marketing research
It is typically expensive
The birthrate in the United States is currently
-starting to drop because more couples are waiting to have children
- dropping because more women are entering the workforce and there is less of a want for large families.
The United States
has the highest divorce rate in the world- about 38% of marriages end in divorce
A widely available measure of the output of the whole economy and the total market value of goods and services produced in a year in the United states is called
gross domestic product
The income that is left after taxes for a family to make payments on necessities is called
disposable income
Sales promotion refers to a promotion activities that simulate interest, trial, or purchase by consumers. It would thus include activities other than
-Advertising
-publicity
-personal selling
With regard to Internet marketing, which of the following statements is FALSE?
Primary users of the Internet are baby boomers
Managers who are satisfied with their current market share and profit situation sometimes adopt "status quo" objectives. Which of the following phrases would not be used in status quo pricing?
Slightly raise prices
During the communication process, the same message may be interpreted differently by various audiences. How the message is translated by the buyer/receiver is called
decoding
The adoption curve, which shows how products are adopted once introduced into the market place, defines several differnt groups, and how they accept ideas. The largest percentage of adopters fall into which group(s)
Early and late majority
"Pulling" a product through the distribution channel refers to
getting customers to ask intermediaries (or middlemen) for the product
Selective demand for a company's own brand would most likely occur in which stage of the product life cycle?
Market growth
An example of sales promotion activity aimed at a final consumer or user could be
banners and streamers
Trucks are expensive, but much more flexible than other types of transportation modes. Approximately what percentage of consumer products travel from the produce to the final consumer by truck?
75%
If a firm's total revenue decreases when the price of its product is raised from $50 to $55, the demand for this product between these two prices is
elastic
Pure competition occurs when a market has
-many buyers and sellers
-informed buyers and sellers
-homogeneous (similar) products
-Easy entry for new sellers
The firm can vary its marketing mix through the storing function of physical distribution in which of the following ways?
-Adjusting the time the goods are held
-Sharing the storing costs
-Delegating the job to a specialized storing facility
Storing is the marketing function of holding goods. Which of the following economic utilities does it provide?
Time
The Wall Street Journal has been trying to attract new customers by promoting its newspaper for students use in business classses. this is an example of
market development
When groups of shippers pool their shipments together, what is this called?
Pool car service
A tarrif is a
tax levied by a government against imported products
in relation to Maslow's hierarchy of needs, the need for self-esteem, acomplishment, fun, freedom, and relatation are attributed to which of the following needs?
Esteem, love and belongingness
Differences in perceptions affect how consumers gather and interpret information from their environment. the selective processes influencing these perceptions including
-selective retention
-selective perception
-selective exposure
Countertrade is
a transaction that may not involve an exchange of money
"Psychographics" is (are)
-lifestyle analyses
-an analysis of a person's day-to-day pattern of living expressed as activities, interests, and opinions
A reference group may influence one's purchases because
people make comparisons between themselves and others, or try to imitate other's behavior or purchase decisions
Which of the following statements about personal selling is (are) true?
-There should be a desire to combine mass selling and sales promotion with personal selling
-It has flexibility
-It is direct spoken communication between buyer and seller
-It is expensive, especially per contract
Spending out unsolicited e-mail ads is reffered to as
spamming
It is MOST difficult to measure the response rate in
billboard advertisements
Regarding direct marketing programs, which of the following statements is TRUE?
they bypass wholesalers
A Hispanic fiesta funded by a food company is an example of
event marketing
A local race car driver who displays advertising on his car is involved in
sponsorship marketing
Consider the following scenario. A company's sales force workload is 60,000 calls per year; the average salesperson can make 1,000 calls per year. Using the workload approach, how many salespeople does the company need?
60
During the market introduction phase of the product life cycle, the basic promotional objective is informing. If the product is a really new idea, the promotion needs to develop and build demand. This demand is known as
primary demand
Which of the following is the best response for the statement, "Anyone seeking a profit maximizations objective will charge high prices"?
This is not always true
A key point regarding sales-oriented objectives is
larger sales volume, by itself, does not necessarily lead to higher profits
The type of price policy that tries to cell the top of the demand curve utilizing a high price, before aiming at more price-sensitive consumers, is called
skimming pricing
Which of the following discounts refer to a list price reduction given to channel members for the specific jobs they are doing for the manufacturer or producer?
Trade discounts
Which of the followingterms allows a buyer to take 4% dicount off the face value of the invoice if the invoice is paid within 20 days, and if not, the full face value of the invoice becomes due in 60 days?
4/20, net 60
Which of the following makes illegal selling the products to different buyers at different prices?
Robinson-Patman Act
Price fixing falls under which act or amendment?
Sherman Act
According to the U.S. Census Bureau, wholesalers are defined as those who sell to
retailers and other merchants
industrial users
institutional users
commercial users
The most risky and challenging marketing opportunities usually involve:
diversification
Which of the following activities do wholesalers perform?
Store inventory
supply capital
reduce credit risk
provide market information
Marine-Unlimited buys tropical fish from local fish growers. The company takes title to the tropical fish for some period of time before selling to the many pet shops around the area on a cash or credit basis. Marine Unlimited is called a
merchant wholesaler
Service wholesalers provide all the wholesaling functions. Service wholesalers include
general merchandise wholesalers
single-line (general-line) wholesaler
specialty wholesaler
A service wholesaler that carries a wide variety of nonperishable items such as hardware, electrical supplies, furniture, drugs, etc., is called a
general merchandise wholesaler
Market segmentation
tries to identify homogeneous submarkets within a larger market
Some of the features of cash-and-carry wholesalers include
catering to retailers too small to be served profitably by service wholesalers
accepting only cash
Sylvia Garcia brings buyers and sellers together. She is called a
Broker
ABC Company segmented its broad product market and decided to target two segments, offering each segment a different marketing mix. Which approach is ABC Company following?
Differentiated segmentation
The "law of diminishing returns" states that
if the price of a product is raised, a smaller quantity will be demanded
Annie loves her Guess Jeans. She wands another pair of Guess jeans, but if there is a brand that has a lower price with similar quality, she will buy that pair instead. this is an example of
brand preference
Kenmore appliances (sold by Sears) are an example of a(n)
family brand
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