FINAL SAMPLE QUESTIONS

Chapter 16 Personal Selling and Sales Promotion

1) Which of the following elements of the promotion mix involves making personal connections with customers for the purpose of making sales?A) personal sellingB) advertisingC) e-commerceD) publicityE) public relations

2) A ________ is an individual acting on behalf of a company who performs one or more of the following activities: prospecting, communicating, servicing, and information gathering.A) press agentB) media plannerC) marketing directorD) salespersonE) publicist

3) ________ involves two-way, personal communication between salespeople and individual customers, either in person, by telephone, or through Web conferences.A) AdvertisingB) Public relationsC) Personal sellingD) TelemarketingE) Integrated marketing communication

4) Whom do members of a sales force typically represent?A) They represent the company to customers.B) They represent the company to investors.C) They represent the customer to the company.D) A and CE) all of the above

5) A company can unite its marketing and sales functions through all of the following activities EXCEPT ________.A) assigning a telemarketer the task of visiting a customerB) arranging joint meetings to clarify all aspects of communicationC) appointing an executive to oversee both departments D) having a salesperson preview ads and sales-promotion campaignsE) sending brand managers on sales calls with a salesperson

6) When a company sets out to analyze, plan, implement, and control sales force activities, the company is undertaking ________.A) sales designB) sales force managementC) group sales effortsD) co-op selling and advertisingE) promotional objectives

7) Of the three typical types of sales force structures, which one is often supported by many levels of sales management positions in specific geographical areas?A) territorialB) productC) customerD) complex systemsE) A and B

8) All of the following are considered advantages of a territorial sales force structure EXCEPT ________.A) travel expenses can be minimizedB) each salesperson's job is clearly definedC) accountability is clearly defined for each salespersonD) salespeople develop in-depth knowledge of a product lineE) salespeople have the opportunity and incentive to build strong relationships with customers

9) Which of the following is NOT a disadvantage of a product sales force structure?A) extra selling costs involved with multiple sales visits from separate divisionsB) overlapping use of resources with big customers C) salespeople spending time to see the same customer's purchasing agentsD) increased customer delivery timeE) B and C

10) Companies that use a customer sales force structure organize their salespeople by ________.A) productB) territoryC) industryD) demandE) hierarchy

11) Which of the following would a company most likely use to determine sales force size?A) the workload approachB) product availabilityC) demographic characteristics of the sales forceD) the outside sales force method E) profit margin

12) What is the term used to identify the individuals in a company who travel to call on customers in the field?A) product sales forceB) outside sales forceC) inside sales forceD) complex sales forceE) customer sales force

13) Members of a company's ________ conduct business from their offices using telephones, e-mails, or visits from prospective buyers to generate sales. A) outside sales forceB) inside sales forceC) complex sales forceD) customer sales forceE) product sales force

14) To reduce time demands on their outside sales forces, many companies have increased the size of their inside sales forces, which include technical support people, sales assistants, and ________.A) retail supervisorsB) sales managersC) telemarketersD) accountantsE) programmers

15) A sales assistant working for an outside sales force will most likely have all of the following duties EXCEPT ________.A) answering customer's questions when a salesperson is unavailable B) providing administrative backupC) confirming appointments D) following up on deliveriesE) determining price points

16) The growing trend of using a group of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts is known as ________ selling.A) department B) multiple C) team D) personal E) complex

17) Which of the following best explains why companies are adopting the team selling approach to service large, complex accounts?A) Products have become too complicated for one salesperson to support.B) Customers prefer dealing with many salespeople rather than one sales representative.C) Salespeople prefer working in groups because of the opportunity for flex hours and job sharing. D) A group of salespeople assigned to one account is cost effective for corporations.E) Fewer skilled salespeople are working in the high-tech industry.

18) All of the following are disadvantages of the team selling approach EXCEPT which one?A) Selling teams can overwhelm customers.B) Many salespeople are unaccustomed to working with others. C) Selling teams decrease costs. D) Individual contributions and compensations can be difficult to assess.E) Most salespeople are trained to excel in individual performance.

19) All of the following are problems associated with the poor selection of salespeople EXCEPT ________.A) lower salesB) costly turnoverC) less productivityD) less office supportE) disrupted customer relationships

20) According to research by the Gallup polling organization, which of the following is one of the four key talents a successful salesperson must possess?A) managerial skillsB) disciplined work style

C) aggressive personalityD) technological know-howE) fluency in a second language

21) During the hiring process, companies that test sales applicants typically measure all of the following abilities EXCEPT ________.A) sales aptitudeB) organizational skillsC) accounting skillsD) analytical skillsE) personality traits

22) The purpose of a training program for salespeople is to teach them about all of the following EXCEPT ________.A) customers' buying habitsB) customers' buying motivesC) the company's main competitorsD) the company retirement benefits E) the company's organizational structure

23) Which of the following is a primary reason that companies use e-learning to conduct sales training programs?A) Customer needs and habits are easily conveyed through e-learning.B) Customers appreciate the flexibility of e-learning. C) E-learning allows for more employee feedback.D) E-learning is the best way to simulate sales calls.E) E-learning cuts training costs.

24) Commissions or bonuses that a salesperson receives from a company are categorized as the ________ of a compensation plan.A) base salaryB) fixed amountC) variable amountD) fringe benefitE) pension component

25) All of the following are basic types of compensation plan for salespeople EXCEPT ________.A) straight commissionB) straight salaryC) salary plus commissionD) commission plus bonusE) salary plus bonus

26) Companies are increasingly moving away from high commission compensation plans because such plans often lead to salespeople ________.A) undermining the work of the inside sales team B) ignoring management and marketing objectivesC) being too pushy and harming customer relationships D) working multiple sales jobs to maximize their incomeE) spending too much time traveling between customers

27) Helping the sales force "work smart" is the goal of ________.A) sales supervisionB) sales motivationC) sales compensationD) the organizational climateE) return on sales investment

28) The aim of sales management motivation is to encourage salespeople to ________.A) "work smart"B) "work hard"C) "work cooperatively"D) "work creatively"E) "work quickly"

29) Which sales management tool helps a salesperson know which customers to visit and which activities to carry out during a week?A) time-and-duty analysisB) sales force automation systemsC) call planD) sales quota planE) positive incentives plan

30) Companies are always looking for ways to increase face-to-face selling time. All of the following are ways to accomplish this goal EXCEPT ________.A) using phones and video conferencing instead of travelingB) simplifying record keeping and other administrative tasksC) developing better sales-call and routing plansD) reducing the number of customers each sales rep must visitE) supplying more and better customer information

31) Which of the following is an advantage created by the use of a sales force automation system?A) lower costs for training sales personnelB) increased motivation to acquire new customersC) decreased need for an inside sales forceD) stronger organizational climate developed by the sales teamE) more efficient scheduling of sales calls and sales presentations

32) Which of the following is a potential drawback of using Web-based technologies for making sales presentations and servicing accounts?A) Salespeople have to invest more time in preparing for this type of interaction with customers.B) The cost of the technology outweighs any savings gained by eliminating the need for travel.C) The systems can intimidate salespeople who are unfamiliar with the technology. D) Customers are less likely to buy the product when a Web conference is used.E) Customers lack the technology required to participate in a Web conference.

33) A company that treats its salespeople as valuable contributors with unlimited income opportunities has developed a(n) ________ that will have fewer turnovers and higher sales force performance.A) sales force systemB) organizational climateC) compensation packageD) sales structureE) workload

34) A sales ________ is the standard that establishes the amount each salesperson should sell and how sales should be divided among the company's products.A) goal

B) taskC) quotaD) incentiveE) contest

35) Sales ________ encourage a sales force to make a selling effort that is above and beyond the normal expectation.A) contestsB) quotasC) meetingsD) reportsE) plans

36) A salesperson's ________ is often related to how well he or she meets a sales quota. A) profit-sharing planB) compensationC) call reportD) sales reportE) expense report

37) A(n) ________ is a salesperson's write-up of his or her completed sales activities.A) call planB) call reportC) sales reportD) expense report E) time-and-duty analysis

38) Which of the following questions would provide management with the LEAST beneficial information regarding the performance of its sales force?A) Is the sales force meeting its profit objectives?B) Is the sales force working well with the marketing team?C) Are sales force costs in line with sales force outcomes?D) Is the sales force accomplishing its customer relationship objectives?E) Does the sales force complete its sales reports and expense reports in a timely manner?

39) The selling process consists of several steps that the salesperson must master, focusing on the goals of ________ and ________ from them.A) closing sales; getting ordersB) getting new customers; obtaining service ideasC) getting new customers; obtaining ordersD) overcoming objections; developing relationshipsE) managing old customers; following up

40) Prospecting is the step in the selling process in which the salesperson ________.A) gathers information about a prospective customer before making a sales callB) meets the customer for the first timeC) identifies qualified potential customersD) tells the product's "value story" to the customerE) clarifies and overcomes customer objections to buying

41) A salesperson in the prospecting stage most likely uses of the following methods EXCEPT ________.A) referrals from competing salespeopleB) referrals from current customersC) referrals from dealersD) referrals from suppliersE) cold calling

42) Which of the following is the LEAST relevant characteristic that a salesperson should consider when qualifying a prospect?A) financial abilityB) longevity in the marketC) special needsD) locationE) volume of business

43) During the prospecting stage, a salesperson needs to discriminate between good leads and poor leads, a process known as ________.A) closingB) referringC) presentingD) qualifyingE) approaching

44) A salesperson who researches a company's buying styles and product line is most likely in the ________ stage of the selling process. A) prospectingB) preapproachC) approachD) presentationE) closing

45) The salesperson meets the customer for the first time in the ________ step of the selling process.A) prospectingB) qualifyingC) preapproachD) approachE) presentation

46) Technologies such as handheld computers and interactive whiteboards enable salespeople to enhance the ________ stage of the selling process.A) prospecting B) preapproachC) presentation and demonstrationD) qualifyingE) follow-up

47) Which type of sales approach is best for today's customers who expect answers, results, and useful products? A) hard-sell B) customer-solutionC) razzle-dazzle D) sales development E) personal relationship

48) The qualities that buyers value most in salespeople include empathy, honesty, dependability, thoroughness, follow-through, and ________.A) good listeningB) good presentingC) sympathyD) caringE) candor

49) A salesperson should seek out, clarify, and overcome any customer objections during the sales presentation in order to ________.A) offer the buyer a discount for placing an order B) minimize the buyer's concerns about the product C) compliment the buyer for mentioning the objections D) turn the objections into reasons for buyingE) turn the objections into an opportunity for humor

50) The qualities buyers dislike most in salespeople include all EXCEPT which of the following?A) being pushyB) being deceitfulC) being reliant on technology

D) being unpreparedE) being disorganized

51) The step of ________ is difficult for some salespeople because they lack confidence, feel guilty about asking for an order, or may not recognize the right time to ask for an order.A) approaching the prospectB) making a presentationC) handling objections D) closing the saleE) following up

52) Salespeople should be trained to recognize ________ signals from the buyer, which can include physical actions such as leaning forward and nodding or asking questions about prices and credit terms.A) qualifyingB) approachC) objectionD) closingE) follow-up

53) Which of the following is NOT a closing technique?A) asking for the orderB) reviewing points of agreementC) offering to help write up the orderD) explaining that the buyer will lose out if the order isn't placed nowE) asking the buyer to clarify any objections

54) Which step in the sales process is most focused on ensuring customer satisfaction and repeat business?A) proper approachB) professional presentationC) handling objections D) qualifying prospectsE) follow-up

55) Which of the following best describes the practice of value selling?A) earning business from customers based on low pricesB) delivering superior customer value and capturing a fair return on that valueC) closing deals quickly to meet team sales quotasD) gaining short-term sales that increase annual sales volumeE) challenging customers to find better deals for products and services

56) A ________ is a short-term incentive used to encourage the immediate purchase of a product or service.A) sponsorshipB) press releaseC) bonusD) sales promotionE) publicity stunt

57) Sales promotions are targeted toward all of the following EXCEPT ________.A) retailersB) investorsC) final buyersD) business customersE) members of the sales force

58) The rapid growth of sales promotions in consumer markets is most likely the result of all of the following factors EXCEPT ________.A) consumers and large retailers becoming more deal orientedB) product managers facing pressure to increase current salesC) competing brands attempting to differentiate from each otherD) declining advertising costsE) advertising efficiency on the decline because of media clutter

59) Consumers are increasingly ignoring promotions and not making immediate purchases because of ________.A) advertising specializationB) promotion clutterC) promotional marketingD) advertising clutterE) promotion differentiation

60) Sellers use trade promotions for all of the following reasons EXCEPT to ________.A) encourage retailers to carry more inventoryB) convince retailers to advertise the productC) gain more shelf space for the productD) encourage salespeople to sign up new accountsE) persuade retailers to buy products in advance

61) Of the main consumer promotion tools, which is the MOST effective for introducing a new product or creating excitement for an existing one?A) couponsB) samplesC) cash refundsD) price packsE) contests

62) Which of the following consumer promotion tools is the MOST costly way for companies to introduce a new product?A) samplesB) couponsC) premiumsD) cash refundsE) price packs

63) Which consumer promotion tool requires consumers to send a proof of purchase to the manufacturer?A) cents-off dealsB) couponsC) samplesD) cash refundsE) promotional products

64) Which of the following involves marking a reduced price directly on a product's packaging and often results in the stimulation of short-term sales? A) promotional productsB) patronage rewardsC) price packsD) samplesE) rebates

65) ________ are goods offered either free or at low cost as an incentive to buy a product.A) CouponsB) PremiumsC) Price packsD) Cash refund offersE) Point-of-purchase promotions

66) A ________ has the advertiser's name on it and is given as a gift to consumers.A) sampleB) price packC) cents-off dealD) promotional productE) sweepstake

67) Which consumer promotion offers consumers the chance to win something by presenting them with an item such as a scratch-off card or a bingo number ?A) gameB) contestC) price packD) sweepstakesE) point-of-purchase promotion

68) Marketers who send coupons to customers' cell phones are using ________.A) trade promotionsB) mobile marketingC) premiumsD) point-of-purchase promotionsE) sampling69) Marathons, concerts, and festivals with corporate sponsors are examples of ________.A) point-of-purchase promotionsB) business promotionsC) trade promotionsD) event marketingE) personal selling

70) Manufacturers direct more sales promotion dollars toward ________ than to ________.A) consumers; retailersB) customers; wholesalersC) retailers and wholesalers; consumersD) salespeople; retailersE) retailers; wholesalers

Chapter 17 Direct and Online Marketing: Building Direct Customer Relationships

1) Amazon.com was the first company to use ________, which is technology that sorts through customer purchasing patterns to create personalized site content.A) database marketingB) personalized marketingC) records managementD) customer filteringE) collaborative filtering

2) What are the two main goals of direct marketing?A) to identify a potential customer and obtain an immediate responseB) to obtain an immediate response and to facilitate a purchaseC) to obtain an immediate response and build a lasting customer relationshipD) to provide information and build a lasting customer relationshipE) to save marketing dollars and facilitate a purchase

3) Modern direct marketers rely heavily on database technologies and the Internet, while early direct marketers primarily used direct mailers, telemarketing, and ________.A) door-to-door salespeopleB) catalogsC) POP promotionsD) e-mailE) inside salespeople

4) Amazon.com, eBay, and GEICO employ ________ as their only method of doing business with customers.A) mass marketingB) sales promotion C) direct marketingD) public relationsE) personal selling

5) Direct marketing is continuing to become more ________ oriented.A) televisionB) WebC) mail

D) telephoneE) radio

6) All of the following are benefits of direct marketing for buyers EXCEPT ________.A) access to numerous productsB) access to product reviewsC) guaranteed low pricesD) convenienceE) privacy

7) All of the following are benefits of direct marketing for sellers EXCEPT ________.A) efficiency in reaching marketsB) price and program flexibilityC) mass reach and frequencyD) lower cost-per-contactE) efficiency in order processing

8) One of the advantages of direct marketing for sellers is that direct marketing ________.A) offers access to buyers outside local marketsB) eliminates the need for a company to employ a sales forceC) provides statistical information about industry buying habitsD) provides comparative information about customers and competitorsE) avoids expenses such as rent, insurance, and utilities

9) Which of the following is essential for direct marketing to be effective?A) an online presenceB) a good customer databaseC) a well-trained sales forceD) inbound telephone marketingE) digital direct marketing technologies

10) A typical customer database is an organized collection of geographic, demographic, psychographic, and ________ data about individual customers or prospects.A) ethicalB) culturalC) medicalD) behavioralE) emotional

11) Information about a customer's age, income, and family makeup is in the ________ category of a customer database.A) demographicB) psychographicC) geographicD) behavioral

E) assessment

12) Data about the recency, frequency, and monetary value of past purchases are included in the ________ category of a customer database.A) demographicB) psychographicC) geographicD) behavioralE) assessment

13) Psychographic data in a customer database used by direct marketers includes information regarding a customer's ________ and ________.A) interests; incomeB) activities; opinionsC) age; buying preferencesD) opinions; ageE) hobbies; income

14) All of the following are common uses for a direct marketing customer database EXCEPT ________.A) generating sales leadsB) identifying prospective customersC) profiling customers based on previous purchasesD) gathering marketing intelligence about competitorsE) building long-term customer relationships

15) How does database marketing benefit consumers?A) Companies make name-brand products and images readily available to customers.B) Companies match customer needs and interests with products and services. C) Customers receive better prices on products and services that they need.D) Customers receive faster and more reliable service from companies.E) Customers receive instant credit from more companies.

16) All of the following are forms of direct marketing EXCEPT ________.A) personal sellingB) public relationsC) telemarketingD) direct-mail marketingE) kiosk marketing

17) Which kind of marketing involves sending an offer, announcement, reminder, or other item to a person at a particular physical or virtual address?A) kiosk marketingB) digital direct marketingC) catalog marketingD) direct-mail marketing

E) telephone marketing

18) Catalogs, brochures, samples, and DVDs can all used in which type of marketing?A) direct-response marketingB) direct-mail marketingC) digital direct marketingD) kiosk marketingE) online marketing

19) Which of the following reasons is LEAST likely to explain why direct-mail marketing drives more than a third of all U.S. direct marketing sales?A) less expensive than mass media ads per thousand people reachedB) high target market selectivityC) ability to be personalizedD) measurable resultsE) flexibility

20) Which of the following is an individualized Web site that allows a customer to directly connect to a marketer?A) kioskB) PURLC) DMAD) FTCE) spam

21) Most companies that create print catalogs now also provide ________ catalogs.A) DVDB) e-mailC) storeD) Web-basedE) personalized

22) Which of the following is an advantage of printed catalogs over digital catalogs?A) the ability to offer an almost unlimited amount of merchandiseB) efficiencies in production, printing, and mailing costsC) a stronger emotional connection with customersD) less competition for customers' attentionE) real-time merchandising

23) Why are historically online shops such as Zappos.com adding catalogs to their marketing methods? A) to provide comparative information for customersB) to offer a wider array of merchandiseC) to save production money spent onlineD) to drive online salesE) to reduce the need for telemarketers

24) Marketers use ________ telephone marketing to receive orders from television ads and catalogs. A) inboundB) outboundC) interactiveD) direct-responseE) business-to-business

25) Using ________ telephone marketing to contact potential customers, marketers sell directly to consumers.A) inboundB) outboundC) direct-responseD) opt-outE) business-to-business

26) Which of the following is an advantage of a well-designed and targeted telemarketing plan?A) exemption from the National Do Not Call RegistryB) high recruitment and referral rateC) purchasing convenience for customersD) emotional connections with customersE) limitless merchandise available to customers

27) How has the National Do Not Call Registry changed the telemarketing industry?A) Telemarketing for nonprofit groups has become nonexistent.B) Telemarketing is no longer used by small and medium sized companies.C) Telemarketing has replaced direct mail and personal selling because of low costs.D) Telemarketers are more effectively developing relationships with new customers.E) Telemarketers are more likely to use "opt-in" calling systems.

28) Which of the following is the most accurate name for a 30-minute television advertising program marketing a single product?A) direct-response TV advertisementB) home shopping channelC) integrated marketingD) direct-response commercialE) infomercial

29) What are two major forms of direct-response television marketing?A) home television response and direct-response TV advertisingB) home shopping channels and infomercialsC) home-selling and toll-free responseD) call-in response and Web-site responseE) home shopping channels and podcasts

30) Direct-response advertisements always contain ________, making it easier for marketers to gauge the effectiveness of their sales pitches.A) a mailing address for commentsB) a 1-800 number or Web addressC) a hit button to record the number of viewers D) an account numberE) pop-ups

31) A television program or entire channel dedicated to selling goods and services is known as a(n) ________.A) direct-response television advertisementB) home shopping channelC) infomercialD) digital catalogE) kiosk

32) According to your text, ________ "bridge the gap between old-fashioned stores and online shopping."A) kiosksB) home shopping channelsC) online catalogsD) infomercialsE) mobile phones

33) Firms such as Kodak and Fuji are placing ________ in stores, airports, and other locations to provide people with information about products and services or to enable customers to place orders.A) kiosksB) TV monitorsC) wireless networksD) cell phonesE) vending machines

34) Ring-tone giveaways, mobile games, and text-in contests are all examples of ________ marketing.A) kioskB) onlineC) podcastD) vodcastE) mobile phone

35) Marketers view mobile phones as the next big marketing medium for all of the following reasons EXCEPT which one?A) More consumers are using their cell phones for text messaging, surfing the Web, and watching videos.

B) Unlike telemarketing, mobile phone marketing is initially appealing to most cell phone users.C) Cell phones are very popular with the highly desirable 18-to-34-year-old demographic.D) Cell phone users can respond instantly to time-sensitive offers.E) Most consumers always have their cell phones with them.

36) Which of the following enables consumers to download files from the Internet to a handheld device?A) telemarketingB) interactive TVC) podcastingD) infomercialsE) direct mail

37) ________ allows consumers to gain additional information about a product through the use of a remote control.A) Mobile phone marketingB) The home shopping channelC) PodcastingD) VodcastingE) Interactive television

38) What is the fastest growing form of direct-marketing?A) mobile-phone marketingB) online marketingC) interactive TVD) direct-response televisionE) podcasts

39) Consumers and companies connect to each other and access and share huge amounts of information through a public web of computer networks called ________.A) a transaction siteB) a content siteC) the InternetD) an extranetE) an intranet

40) Which of the following operate only on the Internet?A) brick-and-mortar companiesB) click-and-mortar companiesC) big box companiesD) click-only companiesE) Web-and-mortar companies

41) As one of the first ________, Amazon.com changed the rules of marketing and set

the bar high for the online customer experience.A) e-tailersB) transaction sitesC) content sitesD) search enginesE) click-and-mortar companies

42) New York Times on the Web, ESPN.com, and Encyclopaedia Britannica Online are known as ________ because they provide financial, research, and other information. A) search enginesB) content sitesC) portalsD) ISPsE) e-tailers

43) ________ is the term used to describe a company that does not use online marketing.A) Offlist businessB) Brick-and-mortarC) Click-and-mortarD) E-businessE) Corporate site

44) The growth of the Internet caused many brick-and-mortar firms to ________ in response to customer demands and a changing marketplace. A) become click-only firmsB) send out more catalogs C) become click-and-mortar firmsD) develop more infomercialsE) expand their outside sales forces

45) Which of the following is NOT one of the four major online marketing domains?A) B2C (business-to-consumer)B) B2R (business-to-retailer)C) B2B (business-to-business)D) C2C (consumer-to-consumer)E) C2B (consumer-to-business)

46) The popular press has paid the most attention to ________ online marketing, which is the online selling of goods and services to final consumers. A) B2CB) B2BC) C2CD) C2BE) B2R

47) Online trading networks aimed at obtaining buying efficiencies and better prices are

most closely associated with ________ online marketing.A) B2CB) B2BC) C2CD) C2BE) B2R

48) The online exchange of goods and information between final consumers is called ________. A) B2CB) B2BC) C2CD) C2BE) social networking

49) Overstock.com Auctions and eBay are popular market spaces that facilitate the online exchange of goods and information and are examples of ________ online marketing.A) B2CB) B2BC) C2C D) C2BE) global commerce

50) Blogs are ________ that are usually focused on a narrowly defined topic.A) online social networksB) online journalsC) online videosD) personalized Web sitesE) malware

Chapter 18 Creating Competitive Advantage

1) Gaining ________ requires delivering more value and satisfaction to target consumers than competitors do.A) competitive advantageB) competitor analysisC) benchmarkingD) a market-centerE) a target advantage

2) The first step in initiating competitive marketing strategies is to conduct ________.A) a private screeningB) a competitive advantage analysisC) management modificationsD) competitor analysis

E) absolute advantage processing

3) Part two of a competitor analysis is assessing all of the following EXCEPT a company's ________.A) objectivesB) employeesC) strategiesD) strengths and weaknessesE) reaction patterns

4) Strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage are ________.A) competitor analysesB) customer relationship strategiesC) competitive marketing strategiesD) competitive relationship strategiesE) universal strategy analyses

5) ________ involves first identifying and assessing competitors and then selecting which competitors to attack or avoid.A) Competitor analysisB) BenchmarkingC) Customer-centered analysisD) Market leadingE) The marketing management process

6) To plan effective marketing strategies, the company needs to find out all it can about its competitors. It must constantly compare its marketing strategies, products, prices, channels, and promotion with those of close competitors. This is an example of ________.A) benchmarkingB) competitor analysisC) customer value analysisD) product leadershipE) continuous innovation

7) Companies can identify competitors from a ________ point of view by defining competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group.A) customer'sB) market nicher'sC) marketD) databaseE) industry

8) Companies can identify ________ from both the industry and market point of view.A) competitorsB) productsC) customersD) locationsE) employees

9) A company is guilty of ________ if the company forgets latent competitors and only focuses on current competitors.A) marketing myopiaB) misdirected segmentationC) competitor synergyD) competitor phobiaE) competitor myopia

10) From a(n) ________ point of view, Pepsi might see its competition as Coca-Cola, Dr Pepper, 7UP, and the makers of other soft drink brands. From a(n) ________ point of view, however, the customer really wants "thirst quenching."A) market; industryB) market; consumer'sC) industry; competitiveD) industry; marketE) company's; consumer's

11) Each competitor has a mix of objectives. The company wants to know the relative importance that a competitor places on all of the following EXCEPT ________.A) company historyB) current profitabilityC) market share growthD) cash flowE) technological and service leadership

12) A company that pursues ________ leadership will react much more strongly to a competitor's ________ manufacturing breakthrough than to the same competitor's advertising increase.A) high-cost; cost reducingB) low-cost; cost reducing

C) service; cost reducingD) high-cost; efficiency improvingE) market share; efficiency improving

13) The more that one firm's strategy resembles another firm's strategy, the more likely the two firms are to ________.A) competeB) joinC) growD) partnerE) succeed

14) Companies need to know each competitor's product quality, features, and mix; customer services; pricing policy; distribution coverage; sales force strategy; and advertising and sales promotion programs. These are all the dimensions that identify ________ groups within the industry. A) target B) leading C) geographic D) strategic E) competing

15) ________ is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance.A) Competitive advantageB) Advertising synergyC) Sales promotionD) BenchmarkingE) Publicity

16) Benchmarking has become a powerful tool for increasing a company's ________.A) brand imageB) mass appealC) employee training services D) distribution channelsE) competitiveness

17) Knowing how major competitors react gives the company clues on how best to ________ competitors or how best to ________ the company's current positions.A) remove; decreaseB) attack; increaseC) attack; defendD) value; changeE) decrease; defend

18) Most companies prefer to aim competition against ________.A) their biggest competitorB) the market leaderC) weak competitorsD) new competitorsE) distant competitors

19) A firm should compete with ________ competitors in order to sharpen its abilities. Succeeding against these competitors often provides greater returns.A) strongB) internationalC) weakD) distantE) smaller

20) Analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers is known as ________.A) customer value analysisB) competitive customer analysisC) power analysisD) advertising specialty analysisE) benchmarking

21) The purpose of ________ is to find the place where a company meets customers' needs in a way that rivals can't.A) customer value analysisB) benchmarkingC) entrepreneurial marketingD) intrapreneurial marketingE) overall cost leadership

22) If the company's offer delivers greater value by exceeding the competitor's offer on important attributes, the company can charge a higher price and ________, or it can charge the same price and ________.A) earn lower profits; gain higher profitsB) earn higher profits; lose profitsC) earn higher profits; gain more market shareD) lose profits; gain more market shareE) lose profits; gain higher profits

23) Most companies will compete with ________ rather than ________.A) distant competitors; close competitorsB) close competitors; distant competitorsC) benchmarkers; distant competitorsD) market challengers; market followersE) market challengers; market nichers

24) The following are all examples of close competitors EXCEPT ________.A) Nike and AdidasB) Walmart and TargetC) Pepsi and Coca-ColaD) Neiman Marcus and NordstromE) Nike and Timberland

25) A company's close competitors are ________.A) considered "bad" competitorsB) those that least resemble the company's operationC) those that most resemble the company's operationsD) a negligible threatE) the sole focus of successful companies

26) All of the following statements identify benefits from the existence of competitors EXCEPT?A) Competitors may share the costs of market and product development.B) Competitors help legitimize new technologies.C) Competitors serve less-attractive segments or lead to more product differentiation.D) Competitors fracture the target market.E) Competitors may help increase total demand.

27) An industry often contains "good" and "bad" competitors. Good competitors ________.A) break the rules of fair competitionB) value excellent customer serviceC) play by the rules of the industryD) dominate the marketE) share their marketing strategies

28) Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces. They try to create products and services for which there are no direct competitors. This is called a ________.A) "red ocean strategy"B) "strategic sweet spot"C) "common platform"D) "blue ocean strategy"E) "strategic platform"

29) Tomorrow's leading companies will succeed by seeking out unoccupied positions in uncontested market spaces. Such strategic moves, termed ________, create powerful leaps in value for both the firm and its buyers, creating new demand for new products.A) "strategic sweet spots"B) "common platforms"C) "value innovation"D) "strategic platforms"E) "service nichers"

30) There are specific kinds of information that companies need about their competitors. The ________ system first identifies the vital types of competitive information and the best sources of this information.A) marketing informationB) global network C) competitive intelligenceD) marketing researchE) marketing database

31) Which statement does NOT accurately describe a competitive intelligence system?A) The system identifies the vital types of competitive information needed and the best sources of this information.B) The system creates a new brand image and marketing concept.C) The system collects information from the field and from published data.D) The system checks information for validity and reliability, interprets it, and organizes it in an appropriate way. E) The system sends key information to relevant decision makers and responds to inquiries from managers about competitors.

32) A manager who used to work for a competitor might follow that competitor closely to see what it does in the marketplace. Such a manager would be considered your company's ________ expert.A) market leaderB) market followerC) strategyD) in-houseE) technical

33) Having identified and evaluated its major competitors, the company now must design broad competitive marketing strategies by which it can gain competitive advantage through superior ________.A) customer valueB) compensationC) employee valueD) employee serviceE) target locations

34) Companies that operate large marketing departments, conduct expensive marketing research, spell out elaborate competitive strategies, and spend huge sums on advertising are using ________ competitive marketing strategies.A) informalB) formalC) blue oceanD) red oceanE) innovative

35) Approaches to marketing strategy and practice often pass through which of the three following stages?A) formulated marketing, intrepreneurial marketing, and innovative marketingB) entrepreneurial marketing, intrepreneurial marketing, and innovative marketingC) entrepreneurial marketing, formulated marketing, and strategic marketingD) entrepreneurial marketing, formulated marketing, and intrepreneurial marketingE) innovative marketing, strategic marketing, and formulated marketing

36) Most companies are started by individuals who live by their wits. They visualize an opportunity, construct flexible strategies on the backs of envelopes, and knock on every door to gain attention. What stage in marketing strategy are these individuals in?A) exponential marketingB) formulated marketingC) entrepreneurial marketingD) intrepreneurial marketingE) innovative marketing

37) As small companies achieve success, they inevitably move toward more ________ marketing. They pore over the latest Nielsen numbers, scan market research reports, and try to fine-tune their competitive strategies and programs.A) niched B) formulated C) entrepreneurial D) intrepreneurial E) targeted

38) Companies that have been in existence for some time often lose the marketing creativity and passion that they had at the start. They now need to refresh their marketing

strategies and try new approaches. This is known as ________.A) network marketingB) formulated marketingC) entrepreneurial marketingD) intrepreneurial marketingE) blue sky marketing

39) There will be a constant tension between the formulated side of marketing and the ________.A) creative sideB) competitor sideC) customer sideD) overall cost leadershipE) product value

40) Michael Porter suggests four basic competitive positioning strategies that companies can follow-three winning strategies and one losing one. Which of the following are considered winning strategies?A) middle-of-the-roader, focus, and overall cost leadershipB) focus, differentiation, and middle-of-the-roaderC) overall cost leadership, differentiation, and middle-of-the-roaderD) overall cost leadership, differentiation, and focusE) differentiation, operational excellence, and focus

41) Companies that pursue a clear strategy will likely perform well. Firms that do not pursue a clear strategy are called ________.A) challenger risk-takersB) middle-of-the-roadersC) nichersD) analyzersE) overall cost leaders

42) Sears and Holiday Inn encountered difficult times because they did not stand out as the lowest in cost, highest in perceived value, or best in serving some market segment. Both companies are ________.A) nichersB) challenger risk-takersC) middle-of the roadersD) differentiatedE) formulated

43) Companies can pursue any of which of the following three strategies, called value disciplines, for delivering superior customer value?A) operational excellence, overall cost leadership, and differentiationB) customer intimacy, operational excellence, and focusC) employee relations, product leadership, and overall cost leadershipD) product leadership, customer intimacy, and focusE) operational excellence, customer intimacy, and product leadership

44) When a company provides superior value by leading its industry in price and convenience, it has obtained what is called ________.A) product leadershipB) employee excellenceC) operational excellenceD) employee intimacyE) focus leadership

45) When customers are willing to pay a premium to get precisely what they want and a company responds quickly to satisfy customer needs, the company has achieved what is called ________.A) customer intimacyB) employee intimacyC) operational excellenceD) promotional intimacyE) marketing intelligence

46) If a company's aim is to make its own and competing products obsolete and serve customers who want state-of-the-art products and services, it is using a value discipline called ________.A) captive-product innovationB) promotional innovationC) new product innovationD) product leadershipE) market leadership

47) Which of the following is NOT an example of the competitive positions or roles that firms play in the target market?A) market leaderB) market challengerC) market followerD) market nicherE) market provider

48) Most of the market is in the hands of the ________, the firm with the largest market share.A) market challengerB) market follower

C) market leaderD) market nicherE) market provider

49) Firms that serve small segments not being pursued by other firms are called ________.A) market followersB) direct marketersC) market challengersD) market nichersE) market leaders

50) ________ are those runner-up firms that are working to increase their market share in an industry.A) Market leadersB) Market challengersC) Market followersD) Market analyzersE) Market nichers

51) What is the benefit to companies of using blogs as marketing tools?A) Blogs provide companies with additional revenue.B) Blog content is easy to filter, monitor, and control.C) Lifetime customer value can be evaluated through blogs.D) Demographic information about customers can be easily tracked. E) Blogs are an inexpensive yet personal way to reach a fragmented audience.

52) Which of the following is a potential drawback to advertising on a blog?A) The content of a blog is difficult to control.B) Advertising on a blog is typically expensive.C) It is difficult to use blogs to reach highly targeted audiences.D) Blogs are gaining popularity as consumers move away from newer Internet forums.E) Blogs do not provide the kind of personalized medium that today's marketers want.

53) ________ online marketing sites are online exchanges in which consumers search out sellers, learn about their offers, and initiate purchases.A) B2CB) B2BC) C2CD) C2BE) B2R

54) Which of the following Web sites facilitates consumer-to-business online marketing?A) eBay.comB) cisco.comC) Craigslist.com

D) Kaboodle.comE) PlanetFeedback.com

55) When consumers can drive transactions with businesses, what type of online marketing is being used?A) blogsB) podcastingC) social networkingD) business-to-consumerE) consumer-to-business

56) For most companies, the first step in conducting online marketing is to ________. A) send e-mails B) create a Web siteC) create a Web communityD) place promotions online E) develop search-related ads

57) What is the main purpose of a corporate Web site?A) to sell the company's products directlyB) to build customer goodwillC) to show a catalog and give shopping tipsD) to give out coupons and tell about sales events or contestsE) to point out and explain competitors' weaknesses

58) ________ are designed to build customer goodwill and to supplement other sales channels, rather than to sell the company's products directly. A) Marketing Web sitesB) Corporate Web sites C) Small business Web sitesD) Nonprofit corporation web sites E) Rich media display ads

59) ________ are designed to engage consumers in interactions that will move them closer to a direct purchase or other marketing outcome. A) Corporate Web sitesB) Marketing Web sitesC) Web communitiesD) Brand Web sitesE) Affiliate programs

60) Online ads that incorporate animation, video, sound, and interactivity are called ________.A) search-related adsB) pop-upsC) contextual adsD) viral adsE) rich media ads

61) A large percentage of online advertising expenditures goes towards ________, which are text-based ads and links that appear alongside search engine results.A) content sponsorshipsB) reminder advertisementsC) informative advertisementsD) contextual advertisementsE) rich media advertisements

62) What does the term viral marketing mean?A) It is another term for online privacy.B) It is another term for online security.C) It refers to problems associated with computer viruses. D) It refers to word-of-mouth marketing that occurs online.E) It refers to negative publicity associated with company blogs.

63) Which of the following is a primary disadvantage of viral marketing?A) The costs of viral marketing are too high for most companies. B) The brand associated with the viral message is usually forgotten.C) Marketers have little control over who receives the viral message.D) Viral messages are offensive to many potential customers.E) Viral messages are blocked by most search engines.

64) All of the following are examples of online social networks EXCEPT ________.A) TwitterB) FacebookC) YouTubeD) Yahoo!E) Flickr

65) Online communities where people socialize or exchange information and opinions are called ________.A) corporate Web sitesB) marketing Web sitesC) online social networksD) interactive Web sitesE) affiliate programs

66) Which of the following is a challenge of marketing through online social networks?A) Users often resent an intrusive marketing message.B) Existing networks are resistant to advertising.C) Most existing networks are already controlled by major corporations.D) Virtual worlds will most likely replace social networks in the near future.E) Measuring the frequency and volume of network usage is difficult.

67) What characteristic of niche sites makes the medium MOST appealing to marketers? A) audience sizes larger than those of social networking sites B) wide variety of demographics and purchasing patternsC) audiences of people with similar interests D) commercial transaction capabilities E) podcasting and vodcasting capabilities

68) Unsolicited and unwanted commercial e-mails are known as ________.A) phishingB) e-tailingC) display adsD) viral e-mailsE) spam

69) According to your textbook, what is the most likely future for online marketing?A) Online marketing will replace magazines, newspapers, and eventually stores as sources for information and products.B) The growth of online marketing will continue but at a much slower pace.C) The use of online marketing will decline until its effectiveness can be better measured.D) Online marketing will remain an important approach in an integrated marketing mix.E) Online social networking will become the primary type of online marketing.

70) In an attempt to take advantage of impulsive or less sophisticated buyers, heat merchants use ________ to deceive customers.A) direct-mail marketingB) telephone marketingC) direct-response television marketingD) mobile phone marketingE) kiosk marketing

Chapter 19 The Global Marketplace

1) ________ industries are safe from foreign competition.A) MostB) MajorC) FewD) NAFTAE) European Union

2) As global trade is growing, global competition is ________.A) leveling offB) decliningC) erraticD) intensifyingE) stabilizing

3) Firms that play it safe and do not enter the global market are likely to lose their chances to enter other markets ________.A) but protect themselves from competition at homeB) but gain a competitive edge against imports in their home marketsC) but successfully shield themselves from foreign competitionD) and risk losing their home marketsE) A and B

4) A ________ is one that, by operating in more than one country, gains marketing, production, research and development, and financial advantages that are not available to purely domestic competitors.A) global firmB) domestic firmC) whole-channel viewD) direct investmentE) free trade zone

5) All of the following are major decisions a company faces in international marketing EXCEPT which one?A) deciding which markets to enterB) deciding how to enter the marketC) deciding how to set standardized prices

D) deciding on the global marketing programE) deciding on the global marketing organization

6) Of the following, a company should make which major decision about international marketing first?A) deciding which markets to enterB) deciding how to enter the marketC) deciding on the global marketing organizationD) deciding on the global marketing programE) deciding on the global communication program

7) A(n) ________ is a tax levied by a foreign government against certain imported products.A) embargoB) tariffC) exportD) exchange controlE) quota

8) A(n) ________ is a limit on the amount of goods that an importing country will accept in certain product categories.A) embargoB) tariffC) benchmarkD) quotaE) exchange control

9) A(n) ________ serves to limit the amount of foreign exchange and the exchange rate against other currencies.A) trade systemB) tariffC) quotaD) exchange controlE) tariff trade barrier

10) Bias against bids made by American companies is an example of a(n) ________.A) quotaB) tariffC) boycottD) nontariff trade barrierE) exchange control

11) Which of the following is designed to help foster trade between nations?A) tariffsB) GATTC) exchange controlsD) quotasE) nontariff trade barriers

12) The ________ is a 62-year-old treaty designed to promote world trade by reducing tariffs and other international trade barriers.A) WTOB) GATTC) EUD) CANE) NAFTA

13) Concluding in 1994, the Uruguay Round reduced trade barriers, set international standards for trade, and established the ________ to enforce GATT rules.A) WTOB) EUC) NAFTAD) CAFTAE) CAN

14) Which of the following reduced the world's merchandise tariffs by 30 percent, toughened international protection of copyrights and trademarks, and has been extended to cover trade in agriculture and a wide range of services?A) GATTB) EUC) NAFTAD) CAFTAE) FTAA

15) Economic communities are also known as ________.A) global firmsB) free trade zonesC) management communitiesD) production communitiesE) open channels

16) ________ is a group of nations organized to work toward common goals in the regulation of international trade.A) A joint ventureB) A strategic marketing groupC) An economic communityD) A global firmE) A multinational enterprise

17) Formed in 1957, the ________ set out to create a single European market by reducing barriers to the free flow of products, services, finances, and labor among member countries and developing policies on trade with nonmember nations.A) Uruguay RoundB) European UnionC) European OrganizationD) NAFTAE) CAFTA

18) The European Union and NAFTA (North American Free Trade Agreement) are examples of ________.A) non-barrier zonesB) open economic areas C) economic communitiesD) barter organizationsE) world trade organizations

19) There is concern that through the ________ lower barriers inside Europe will create only thicker outside walls.A) European UnionB) Euro-Scandinavian PactC) Euro-American UnionD) Atlantic Free-Trade AreaE) General Agreement on Tariffs and Trade

20) Which of the following economic communities is responsible for the adoption of the euro?A) NAFTAB) European UnionC) Euro-American UnionD) CAFTAE) WTO

21) Which of the following is an advantage created by the adoption of the euro?A) Countries outside of Europe no longer face trade obstacles within Europe.B) European countries with previously weak currencies are more attractive markets.C) It has decreased the annual combined GDP.D) A homogeneous European market has been created.

E) It is the last step necessary for the countries of Europe to act like a single entity.

22) In 1994, ________ established a free trade zone among the United States, Canada, and Mexico.A) GATTB) WTOC) NAFTAD) EUE) CAFTA

23) In 2005, the ________ established a free trade zone between the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.A) CAFTA-DRB) FTAAC) CAND) NAFTAE) EU

24) What is the name of the single agreement that created a market of 452 million people and has eliminated trade barriers and investment restrictions among the United States, Mexico, and Canada?A) GATTB) WTOC) NAFTAD) CAFTA-DRE) EU

25) Formed in 2004 and formalized in 2008, ________ makes up the largest trading block after NAFTA and the European Union.A) CAFTA-DRB) FTAAC) UNASURD) MCANE) GATT

26) All of the following are types of industrial structures EXCEPT?A) subsistence economiesB) raw material exporting economiesC) marketing economiesD) industrializing economiesE) industrial economies

27) The two key economic factors reflecting a country's attractiveness as a market are its industrial structure and its ________.A) communication adaptationB) nontariff trade barriers

C) exchange controlsD) income distributionE) transportation systems

28) In a(n) ________, the vast majority of people engage in simple agriculture and consume most of their output.A) raw material economyB) subsistence economyC) industrializing economyD) emerging economyE) industrial economy

29) Of the following industrial structures, which presents the fewest market opportunities?A) subsistenceB) raw material exportingC) industrializingD) emergingE) industrial

30) A(n) ________ economy is poor in some ways but rich in one or more natural resources responsible for creating most of its exporting revenue. A) industrial B) industrializing C) raw-material exporting D) subsistence E) agrarian

31) ________ are major exporters of manufactured goods, services, and investment funds. They trade goods among themselves and export them to other types of economies for raw materials and semifinished goods.A) Material economiesB) Subsistent economiesC) Industrializing economiesD) Industrial economiesE) Developing economy

32) In a(n) ________ economy, fast growth in manufacturing results in rapid overall economic growth. This type of economy typically has a new rich class and a small but growing middle class, both demanding new types of imported goods.A) industrial B) industrializing C) materials exporting D) subsistence E) agrarian

33) Industrializing economies do NOT include ________.A) ChinaB) IndiaC) BrazilD) SwedenE) any of the above

34) All of the following are political-legal factors that should be considered when deciding whether to do business in a given country EXCEPT which one?A) attitudes toward international buyingB) government bureaucracyC) business normsD) monetary regulationsE) political stability

35) Countries with ________ economies consist mostly of households with very low family incomes.A) industrialB) industrializingC) serviceD) technologicalE) subsistence

36) In international trade, it is ideal if the buyer can pay in ________.A) countertradeB) the seller's currencyC) barterD) buybackE) counterpurchases

37) Sellers might accept a ________, one whose removal from the country is restricted by the buyer's government, if they can buy other goods in that country that they need themselves or can sell elsewhere for a need currency.A) blocked currencyB) counterpurchaseC) barterD) buybackE) tariff

38) Which of the following involves the direct exchange of goods and services?A) cash transactionB) compensationC) buybackD) blocked currencyE) barter

39) It is important to understand how business norms vary from county to country. For example, ________ like to sit or stand very close to each other when they talk business in fact, almost nose-to-nose.A) AmericansB) JapaneseC) South AmericansD) AfricansE) Europeans

40) Why might Asian businesspeople be offended by the typical bargaining tactics of American executives?A) Asian businesspeople typically reject offers in face-to-face conversations.B) Asian executives prefer to start business meetings with polite conversations.C) American executives prefer to start business meetings with polite, personal conversations.D) American executives tend to move closer to each other as they negotiate.E) American executives tend to conduct tough bargaining through nonpersonal forms of communication.

41) Which of the following is an example of how American culture is being exported to the world's countries?A) the popularity of the Harry Potter series B) the expansion of Walmart Supercenters C) the success of "American Idol"D) the increasing popularity of American soccerE) the popularity of the Power Rangers

42) Which type of business is LEAST likely to find it necessary to enter international markets in order to survive?A) clothing manufacturersB) food distributorsC) chain retailersD) small, local businessesE) automobile producers

43) Which of the following is a factor that is likely to push a company to decide NOT to enter international markets?A) The company's home market is stagnant.B) The company would have to redesign its products.C) The company needs to counterattack international competitors in their home markets.D) Foreign markets present higher profit opportunities.E) Global competitors have offered similar products at lower prices.

44) Of the following, which is the LEAST critical decision a company should make before going abroad?A) what its international marketing objectives and policies are

B) what volume of foreign sales it wantsC) how many countries it wants to market inD) how many people it wants to employE) what types of countries it wants to market in

45) Demographic characteristics, geographic characteristics, economic factors, sociocultural factors, and political and legal factors all help a company ________.A) determine a market's potentialB) determine a country's degree of globalizationC) evaluate its marketing objectivesD) evaluate its value delivery networkE) identify potential joint ventures

46) Which of the following is a sociocultural factor that a company should consider before deciding to enter an international market?A) political stabilityB) population densityC) educationD) income distributionE) consumer lifestyles, beliefs, and values

47) Which of the following is a political and legal factor that a company should consider before deciding to enter an international market?A) monetary and trade regulationsB) transportation structureC) population size and growthD) industrial infrastructureE) business norms and approaches

48) Which of the following is an economic factor that a company should consider before deciding to enter an international market?A) population size and growthB) natural resourcesC) cultural and social normsD) political stabilityE) climate

49) All of the following are modes of entry that companies can use when they have decided to sell in a foreign country EXCEPT ________.A) exportingB) embargoC) joint venturingD) direct investmentE) licensing

50) The simplest way to enter a foreign market is through ________.

A) joint venturingB) direct investmentC) exportingD) joint ownershipE) contract manufacturing