Question 1One of the advantages of television advertising is:short life of messagelong lead timecommercial clutterhigh costsability to reach wide and diverse audience4 points Question 2Which of the following products is most likely to have a seasonal media schedule?aromatherapy candlesmasking tapeairplane ticketscharcoalsoft drinks4 points Question 3The ad for White House applesauce cups describes how the product provides 100 percent of your daily Vitamin C in every cup. What kind of an advertising appeal is this ad using?environmental consciousnessvanity and egotismhealthprofitadmiration4 points Question 4General Motors runs magazine advertisements that encourage the purchase of Cadillac automobiles. This is an example of _____ advertising.pioneeringcircumstantialproductadvocacycomparative4 points Question 5Ads for General Foods International Coffees all feature the slogan, “It stirs the soul.” Given this information and the fact that the ads feature flowers, soft lights, and romantic settings, you know that these ads use a _____ executional style.demonstrationlifestylespokespersonscientificmood4 points Question 6Kraft FoodsKraft Foods recently reorganized its sales force, cut prices on key products, divested itself of lower-margin brands, and closed plants. The activity that has proven most effective has been the reorganization of the sales force. Kraft Foods now has one sales force, compared to four originally. Its 3,500 sales staffers are responsible for its entire product portfolio. The sales force works in integrated sales teams organized around product lines; each team is assigned a sales quota. Any new problems encountered by the sales teams are shared with other teams. The sales teams are encouraged to use the AIDA concept (attention, interest, desire and action). The sales teams are well trained in networking, generating sales leads, sales forecasting, and negotiations. As a result of these changes, two-thirds of the Kraft portfolio showed a significant increase in market shares.Refer to Kraft Foods. _____ is the identification of those firms and people most likely to buy Kraft products.ProspectingLead qualificationThe sales presentationThe close procedureThe sales approach4 points Question 7If management not only desires to provide its sales force with an incentive to sell but also wants control over other nonselling activities, the best compensation plan would be a:straight salary systembonus systemstraight commission systemcombination systemprogressive commission4 points Question 8Guilden Corporation has instructed its new salesperson that she is responsible for selling 5 display cases with infrared heating capability per week, plus calling on 5 current and 10 potential customers. These objectives comprise her:promotion goalfulfillmentquotacontributionpotentiality4 points Question 9What should the consultative salesperson do when the prospect says, “Are you telling me that your packaging will protect my fragile products better than your competitor’s can?”Conduct an unplanned needs assessment.Handle the question as an objection.Immediately leave the prospect’s office.Ask for referrals.Modify his or her sales proposal.4 points Question 10In 2006, theInternational Dairy Food Association introduced “Body by Milk,” which is a continuity program that lets consumers use UPCs and expiration dates from milk containers to bid on goods ranging from T-shirts and hats to musical instruments and cell phones. “Body by Milk” is an example of:relationship sellinga trade promotiona push strategypersonal sellinga sales promotion4 points Question 11Methodist ChurchIn 2001, the United Methodist Church, the second largest Protestant denomination in the United States, launched a four-year, $20 million national ad campaign. The theologically gentle but culturally edgy ads are aimed at Americans who are unchurched–people who know the name Methodist but don’t know anything else about it. The “Igniting Ministries” ads have appeared on CBS and cable TV. The purpose of the ads is to draw more people through Methodist church doors in a time when mainline Protestant denominations are struggling.Refer to Methodist Church. How might the United Methodist Church benefit from use of integrated marketing communications (IMC)?Ads built using the IMC concept are not as closely regulated by the Federal Trade Commission.Noise can be eliminated from the communication channel with the use of IMC concepts.Correct decoding is guaranteed with the application of IMC concepts.The application of IMC concepts allows marketers to reach a more fragmented market.None of these statements explains how the United Methodist Church could benefit from the use of IMC.4 points Question 12According to its Web site, Old Navy, the retail chain, shows the spirit and optimism of its clothes through the use of its new “spokesdog” Paco, a shaggy, free-spirited canine. In terms of its one-way communication strategy, Old Navy will use Paco in _____ to reach a large number of people at one marketingpublic relationsadvertisingimplicit communicationspersonal selling presentations4 points Question 13Ernest has three engineering degrees. He has hired an interior decorator to update his home. He is tremendously frustrated when he asks what he thinks are simple questions about weight-bearing walls and insulation requirements, and the designer is unable to understand. Yet Ernest has the same problems when the designer starts talking about mauve, cerise, and magenta. Why is the communication process not working in this instance?The designer is not intelligent enough to understand engineering.Noise is interfering with both encoding and decoding.The wrong medium has been used.The sender and receiver do not share overlapping frames of reference.Personal selling should not be used to market this type of product.4 points Question 14The variousSurvivorshows have been promoted through personal appearances by show participants, Web sites, and merchandise with theSurvivorlogo as well as print and broadcast advertising. To make sure that all of the promotional messages are coordinated, CBS (the network on which the show is broadcast) should use the:integrated marketing communications approachintegrated communications management approachAIDA conceptinterpersonal and mass communications approachcoordinated market management approach4 points Question 15What is the most effective promotional mix to use with products that are convenience goods and purchased routinely?personal selling and advertisingpublic relations and personal sellingpersonal selling and sales promotionadvertising and public relationssales promotion and advertising4 points Question 16R. H. Kurt & SonR. H. Kurt & Son, Inc., distributes rifles for both hunting and target shooting, rifle barrels, triggers, cleaning equipment, and reloading equipment to sporting equipment retailers and many large discount stores. It carries products from 41 different manufacturers. The manufacturers whose products it carries are known for producing superior products and are leaders in their industries. In addition, Kurt is able to repair damaged rifles through its gunsmith service, which is available to all of its retailers.Refer to R.H. Kurt. Customers at retail stores only want one rifle or one scope. They do not want to buy in the quantities the manufacturers need to sell. This _____ is overcome by the marketing channels.discrepancy of quantityspatial discrepancydiscrepancy of assortmentdiscrepancy of facilitationdiscrepancy of possession4 points Question 17Horis Twild is the marketing manager for a small manufacturer of products to beautify, enhance, and maintain fish aquariums and terrariums. He decided NOT to enter the global market. His decision was probably primarily based on:lack of common languages and cultures among global customersinability to support a multinational promotion strategyuncertainties regarding global logisticscultural attitudes toward fishlack of a unified international pricing structure4 points Question 18Channel conflict:always has an adverse effect on the members
of the channelis not caused by ideological differences because such differences would prevent the members from ever operating as a channelis often caused by an inability of some channel members to keep up with the changing timescan appear as either internal or externaldoes not occur when multiple distribution channels are used4 points Question 19Caterpillar, the manufacturer of tractors and other earthmoving equipment, has an extremely high market share, which means customers seek the dealers out regardless of where they are. There are approximately 50 Caterpillar dealers in the United States–one in each state. From this information, you can surmise that Caterpillar uses _____ distribution.selectivepremiumintensiveexclusiveinclusive4 points Question 20Johns Manville is the only manufacturer to offer a complete line of Formaldehyde-free fiber glass building insulation, which offers superior energy efficiency in hard-to-reach cathedral ceilings and flat roof cavities; plus it is an excellent sound control for interior floors. As the only manufacturer and patent-holder of this revolutionary insulation, Johns Manville has great power over its dealers. It is an example of a:channel authoritychannel regulatorchannel captainchannel gatekeeperpower broker4 points Question 21Which of the following is NOT a reason why individuals may be tempted to buy a franchise business rather than develop their own independent business?the individual can try his or her own personal innovative product and service ideas in the businessto obtain a well-known product or service namemanagement training requirementsthe business’s established imageexistence of product uniformity standards4 points Question 22Geoff Hudson wants to open a specialty store to sell sports memorabilia and is considering locating it in a regional shopping mall. Before opening his new store, he needs to understand:parking in malls is usually inadequatethe leases required by mall owners are usually inexpensivethe mall atmosphere and that of neighboring stores will help attract shoppershis store could be the mall anchorthere is usually a problem with store image because malls have no unified image, as a shopping center does4 points Question 23DiazJohn Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop called Diaz in a small upper-middle-class neighborhood. It rapidly became popular because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees from around the world, plus coffee-making necessities such as grinders and brewers. Within ten years, Diaz was operating a lucrative mail-order business in addition to his coffee shop.Upon entering the shop, the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee. Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one wall hold books about coffee for patrons to read while they sip. The smell is intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they leave. The store carries all types of coffee from $300 per pound Kopi Luwak from Sumatra to Brazilian Cerrado for $8 a pound.Refer to Diaz. What pricing strategy would you expect Diaz to use?single pricingEDLPdiscount pricingprestige pricingcannot tell from the information provided4 points Question 24When JCPenney announced it would open a 97,000-plus square foot anchor store in the new West Grand Promenade, it meant that JCPenney would be:the only large store in the shopping centera destination storeexpected to create heavy foot traffic for the centerin an isolated location outside the shopping center structureunable to control the local store’s pricing policies4 points Question 25Which of the following types of stores has a high gross margin, a narrow product assortment, and a high level of service?supermarketwarehouse clubconvenience storefull-line discount storespecialty store