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Marketing
Q:
Custom-built items are created to meet the needs of one or a small group of customers.
Q:
The industrial chemical industry in England shows a fairly regular rise and fall in demand over four- or five-year periods. This provides an illustration of the _____ component of a time series.
a. trend
b. cycle
c. random
d. seasonal
e. irregular
Q:
When Armco Steel realizes a drop in the demand for steel as a result of a decline in ultimate consumer demand for automobiles, this illustrates the concept of:
a. derived demand.
b. connector demand.
c. linked demand.
d. reflection demand.
e. evoked demand.
Q:
A key account represents a customer who:
a. purchases an insignificant volume as a percentage of a seller's total sales.
b. buys for an organization with geographically concentrated units.
c. involves several organizational members in the purchasing process.
d. (a) and (b) only.
e. (b) and (c) only.
Q:
Describe the major factors that limit the choice of industrial channels for business marketers.
Q:
Proprietary items are industrial products that are offered only in certain configurations and produced in anticipation of orders.
Q:
The sales forecasting approach that utilizes a panel of experts and converts their opinions into an informed consensus by means of highly structured, multi-stage pooling is:
a. the Delphi method.
b. executive panel method.
c. the sales force composite.
d. organizational learning.
e. the multiple series method.
Q:
When purchasing manufacturing equipment from General Electric, Chrysler would be classified as:
a. a user.
b. an original equipment manufacturer (OEM).
c. an institutional buyer.
d. a dealer.
e. a distributor.
Q:
A _____ sales organization is especially appropriate when the product line is large or diverse.
a. geographical
b. product oriented
c. market centered
d. none of the above
Q:
Consider a small manufacturing firm that does not have the resources or ability to hire their own sales force. As this firm considers hiring distributors and manufacturers' representatives, what factors should they use to determine whether to hire distributors, reps, or both?
Q:
A brand mantra is
a. a very short summary of the essence of the brand
b. is used to communicate the core values of the brand
c. helps employees understand the key meaning of the company's product
d. is crucial in the overall process of building a strong brand
e. all of the above.
Q:
The qualitative approach that most closely resembles the executive panel method of sales forecasting is:
a. input/output analysis.
b. the sales force composite.
c. market surveys.
d. time series methods.
e. regression analysis.
Q:
When purchasing microprocessors from Intel Corporation to be incorporated into Dell's line of personal computers, IBM would be classified as:
a. a user.
b. an original equipment manufacturer (OEM).
c. an institutional buyer.
d. a dealer.
e. a distributor.
Q:
The primary objective of the organizational selling center include:
a. acquisition and processing of pertinent marketing-related information.
b. execution of selling strategies.
c. designing the channel structure.
d. all of the above.
e. (a) and (b) only.
Q:
Explain the important product/market factors that lend themselves to the use of manufacturers' representatives by business marketers.
Q:
The main factor stimulating the megatrend of sustainability is
a. Intensified global competition for natural resources
b. Escalating public concern
c. Escalating government concern
d. Natural resource depletion
e. All of the above
Q:
Which sales forecasting approach is effective when intimate knowledge of customer plans is important?
a. executive judgment
b. Delphi method
c. time series
d. sales force composite
e. causal analysis
Q:
As an industrial customer, Ford Motor Company would be classified as:
a. a user.
b. an original equipment manufacturer (OEM).
c. a user in purchasing some products, an OEM in purchasing other products.
d. a producer of facilitating goods.
Q:
The sales resource grid indicates that a particular territory (planning and control unit) possesses low PCU opportunity but high sales organization strength. This suggests which of the following sales resource assignments?
a. Invest a high level of sales resources to take advantage of opportunity.
b. Invest a minimal level of sales resources; selectively eliminate resource coverage; possible elimination of PCU.
c. Either direct a high level of sales resources to improve position and take advantage of opportunity or shift resources to other planning and control units.
d. Invest a moderate level of sales resources to maintain current position.
Q:
Since all of the organizations or member firms that comprise the business marketing channel are interested in achieving important profit goals, why does conflict often emerge in the channel and what steps can the business marketing manager take to control it?
Q:
The basic premise of his CBBE model is that the power of a brand lies in
a. What consumers have learned, felt, seen, and heard about the brand over time
b. The market share it commands
c. How the decision maker perceives the ultimate value of the item
d. None of the above
e. All of the above
Q:
Advanced Technologies, Inc. faces a forecasting dilemma. They wish to evaluate the level of sales that a new technology might enjoy in 2014. Historical data is limited and of little value since the new product is not well defined and the product concept is unique. Which forecasting approach would appear to be most appropriate?
a. time series analysis
b. input/output analysis
c. the sales force composite
d. regression analysis
e. the Delphi method
Q:
Concerning the classification of customers in the business market, General Motors is a(n) ____ when purchasing a mainframe computer system from IBM, but is a(n) ____ when purchasing tires from Goodyear.
a. user; original equipment manufacturer (OEM)
b. user; distributor
c. original equipment manufacturer (OEM); user
d. user; upstream supplier
e. original equipment manufacturer (OEM); downstream supplier
Q:
The sales resource grid indicates that a particular territory (planning and control unit) possesses high PCU opportunity but low sales organization strength. This suggests which of the following sales resource assignments?
a. Invest a high level of sales resources to take advantage of opportunity.
b. Invest a minimal level of sales resources; selectively eliminate resource coverage; possible elimination of PCU.
c. Either direct a high level of sales resources to improve position and take advantage of opportunity or shift resources to other planning and control units.
d. Invest a moderate level of sales resources to maintain current position.
Q:
A large consumer goods company recently entered the business market with a new product with broad industrial application. They must develop a channel of distribution through which the product will be sold. Discuss, generally, the key factors the company must evaluate in designing the channel.
Q:
In the technology adoption life cycle, the main goal of the ____ stage is to develop value-based strategies targeted to particular end user segments.
a. chasm
b. tornado
c. bowling alley
d. main street
e. end of life
Q:
Qualitative techniques that can be used for forecasting sales include:
a. market surveys.
b. time series.
c. the Delphi method.
d. single series statistical methods.
e. none of these.
Q:
When purchasing machine tools for their plants, American Honda is:
a. an original equipment manufacturer.
b. a user.
c. a distributor.
d. an institutional buyer.
e. an upstream supplier.
Q:
The characteristic of a sales territory that refers to the degree to which potential is available in the larger accounts in a particular territory is called:
a. potential.
b. critical mass.
c. concentration.
d. workload.
Q:
Describe specific product, market, and competitive conditions that lend themselves to: (a) a direct channel of distribution and (b) an indirect channel of distribution.
Q:
In the technology adoption life cycle, the stage that represents a period of aftermarket development where supply exceeds demand is called:
a. the chasm.
b. the tornado.
c. the bowling alley.
d. the main street.
e. the end of life.
Q:
Successful implementation of a business segmentation strategy requires attention to which of the following issues?
a. Adaptations to serve selected international markets.
b. A comprehensive on-line strategy to provide continuous support to customers in the segments.
c. Organization of the sales force.
d. All of the above.
e. Only (b) and (c).
Q:
Which of the following transactions fall into the business marketing domain?
a. Ford purchasing machine tools for their plants from Cincinnati Milacron.
b. Ford selling their automobiles to the fleet manager at Cincinnati Milacron for use by the sales force.
c. Ford purchasing power-steering systems from Motorola for use in a particular model.
d. all of the above.
e. (a) and (c) only.
Q:
Concerning the level of sales that a salesperson might achieve in a particular territory, which specific territory traits appear to be most important?
a. potential, workload, dispersion
b. potential, concentration, dispersion
c. potential, competition, concentration
d. potential, workload, competition
e. potential, dispersion, competition
Q:
A medium-sized industrial firm plans to significantly expand their operations next year, and they are considering a change in channel structure. Discuss five (5) questions you would ask them to help you determine whether they should use their own sales force, reps, or industrial distributors.
Q:
In the technology adoption life cycle, the gap between visionaries and pragmatists where sales often drop significantly is called:
a. the bowling alley.
b. main street.
c. the chasm.
d. the end of life.
e. the early market.
Q:
Which of the following is NOT a personal characteristic used in microlevel segmentation?
a. Demographics.
b. Risk.
c. Confidence.
d. Job responsibility.
e. Importance of purchase.
Q:
Concerning the chain of suppliers involved in the creation of a Honda automobile, which of the following fall within the business marketing domain?
a. Honda purchasing power steering components from direct suppliers.
b. Direct suppliers of power steering systems purchasing sheet metal from upstream suppliers.
c. Organizations purchasing Honda automobiles for their fleets.
d. all of the above.
e. (a) and (b) only.
Q:
Using the behavior-based measurement approach to salesperson performance, sales managers:
a. monitor and direct the activities of salespeople.
b. use subjective measures of salesperson behavior.
c. emphasize a compensation system with a large fixed component.
d. consider the knowledge and presentation skills of the salesperson.
e. all of the above
Q:
An Arizona-based high-technology firm, Three Five Systems, produces component parts that are sold to cellular phone manufacturers as well as a diverse set of customers across several different industry sectors. The firm uses a corporate sales force for large customers, like Motorola, and relies on a mix of manufacturers' reps and/or industrial distributors to serve small and medium-sized customers.
The top management team at Three Five Systems would like you to conduct an audit of the firm's channel strategy. These executives are concerned that rapidly-changing customer needs have created important gaps in the firm's market coverage and market offerings. Describe the specific steps that you would follow in conducting this audit and highlight the particular questions that you would emphasize in the assessment.
Q:
Which of the following is NOT a step in the product-positioning process?
a. Identify the relative set of competitive products.
b. Determine the product's current position versus competing offerings.
c. Develop an evoked or consideration set of possible positions.
d. Examine the fit between preferences of segments and the current product position.
Q:
When a business marketer decides to target only those firms with centralized buying centers, what macrolevel segmentation variable is being used?
a. Geographical location.
b. Usage rate.
c. Structure of procurement.
d. End market served.
Q:
When purchasing a high speed packaging machine, General Foods would be classified as:
a. an original equipment manufacturer.
b. a user.
c. a distributor.
d. a dealer.
e. an institutional buyer.
Q:
The _____ measurement approach of salesperson performance is best suited for the emerging emphasis on relationship selling.
a. esteem-based
b. behavior-based
c. satisfaction-based
d. outcome-based
e. none of the above
Q:
The surest way to lose intermediary support is____________________ policies that do not meet industry and competitive standards.
Q:
Which dimension of the product market definition considers the distinct customer needs that must be served?
a. Customer function.
b. Technological.
c. Customer segment.
d. Value-added system.
Q:
When a business marketer determines whether a buyer is employing a new task, modified rebuy or straight rebuy decision-making process, what macrolevel segmentation variable is being used?
a. Type of buying situation.
b. Structure of procurement.
c. Geographical location.
d. End market being served.
Q:
A diverse array of organizations make up the business market. These organizations can be broadly classified as:
a. commercial enterprises, governmental organizations, and institutions.
b. commercial enterprises, users, and governmental units.
c. commercial enterprises, users, and original equipment manufacturers.
d. producers and resellers of industrial products or services.
e. upstream suppliers, users, and governmental units.
Q:
In the sales performance literature, recent evidence suggests that a strict reliance on the ____ measurement approach may not produce the desired sales or marketing results because it "has lulled some sales executives into thinking that important sales outcomes could be reasonably accomplished without intense management reinforcement."
a. esteem-based
b. behavior-based
c. satisfaction-based
d. outcome-based
e. none of the above
Q:
The last step of the channel design process is to evaluate and select ____________________.
Q:
Which dimension of the product market definition involves the benefits that are provided to satisfy the needs of the organizational buyers?
a. Customer function.
b. Technological.
c. Customer segment.
d. Value-added system.
Q:
Concerning segmentation criteria, _____ refers to the degree to which the segments are large or profitable enough to be worth considering for separate marketing cultivation.
a. measurability
b. accessibility
c. substantiality
d. compatibility
e. responsiveness
Q:
Dayco increased the price of the drive belts that it sells to General Motors by 5 percent and sales of the item grew by 9 percent. Price elasticity of demand for drive belts appears to be:
a. elastic.
b. inelastic.
c. neither elastic nor inelastic.
d. sensitive to price changes.
e. none of the above.
Q:
Both behavior-based and outcome-based measures are used by sales managers to evaluate salesperson performance. When the system is outcome-based, the sales manager:
a. employs objective measures (sales results, market share gains) to evaluate performance.
b. directly monitors the activities of salespeople.
c. uses subjective measures of salesperson performance.
d. emphasizes a compensation system with a large fixed component.
e. measures the self-esteem and verbal intelligence of each salesperson.
Q:
Channel____________________refers to the number of channel levels, the number and types of intermediaries and the linkages among channel members.
Q:
Benefits and sacrifices are both considered when assessing customer value. Sacrifices include:
a. the purchase price.
b. acquisition costs.
c. operations costs.
d. All of the above.
e. Only a and b.
Q:
A _____ is a group of present or potential customers with some common characteristic which is relevant in explaining and predicting their response to a supplier's marketing stimuli.
a. market segment
b. prospect group
c. business population
d. market opportunity
Q:
Motorola reduced the price of the electronic engine control that it sells to Ford by 10 percent and experienced a 15 percent increase in quantity demanded. This suggests that Ford's price elasticity of demand is:
a. elastic.
b. inelastic.
c. neither elastic nor inelastic.
d. insensitive to price changes.
e. none of the above.
Q:
Sales managers use a variety of measures to evaluate salesperson performance. When the measurement system is behavior-based, the sales manager:
a. employs objective measures to evaluate performance.
b. emphasizes a compensation system with a large incentive component.
c. monitors and directs the activities of salespeople.
d. indirectly supervises salesperson activities.
e. measures the self-esteem of each salesperson.
Q:
Full-service intermediaries that take title to the products they sell and perform the full range of marketing functions are known as____________________.
Q:
Customer benefits from a relationship with a supplier include which of the following?
a. Core benefits.
b. Add-on benefits.
c. Gross margin benefits.
d. All of the above.
e. Only a and b.
Q:
Which of the following is not one of the criteria for assessing the desirability of a potential market segment?
a. Measurability
b. Accessibility
c. Responsiveness
d. Substantiality
e. Accountability
Q:
The ability of an organization to quickly recognize changes in its market and to anticipate customer responses to marketing programs is referred to as:
a. market research capability.
b. customer-linking capability.
c. competitive intelligence.
d. market-sensing capability.
e. derived demand.
Q:
Salespersons tend to have a high level of job satisfaction when:
a. management provides them with the assistance and support needed to meet unusual and nonroutine problems.
b. they perceive themselves to have an active part in determining company policies and standards that affect them.
c. they perceive that their first-line supervisor closely directs and monitors their activities.
d. all of the above
e. (a) and (b) only
Q:
The primary responsible of____________________salespersons is to take telephone orders, processing orders, and schedule delivery.
Q:
_____ represents a business customer's overall assessment of a relationship with a supplier based on perceptions of benefits received and sacrifices made.
a. Market analysis
b. A value network
c. Customer value
d. Relationship management
e. Relationship quality
Q:
The classification of customers on a continuum range from nonuser to heavy user is an example of:
a. macro level segmentation.
b. micro level segmentation.
c. product application segmentation.
d. "value in use" segmentation
e. none of the above.
Q:
The particular skills, abilities, and processes that an organization has developed to manage close customer relationships are referred to as:
a. the customer-linking capability.
b. channel management.
c. derived demand.
d. the market-sensing capability.
e. the extended enterprise.
Q:
Effective sales training:
a. builds the confidence and motivation of the salesperson.
b. keeps the personal selling function aligned with marketing program objectives.
c. reduces the costs associated with recruiting.
d. all of the above
e. (a) and (b) only
Q:
____________________systems provide a valuable tool for coordinating sales channel activities and managing crucial connections and handoffs between them.
Q:
Among technology adopters, these customers are ever-present critics of the hype surrounding high-technology products.
a. technology enthusiasts.
b. visionaries.
c. pragmatists.
d. conservatives.
e. skeptics.
Q:
Which of the following is a benefit of effective segmentation?
a. The mere attempt to segment business market forces the marketer to become more attuned to the unique needs of customer segments.
b. Knowledge of the needs of particular market segments helps the business appropriately train and deploy the salesforce.
c. It allows the business marketer to focus on product development efforts.
d. all of the above.
e. (b) and (c) only.
Q:
Market-driven firms spot market changes and react well in advance of their competitors. This illustrates:
a. the customer-linking capability of market-driven firms.
b. the value proposition of market-driven firms.
c. the market-sensing capability of market-driven firms.
d. the value of using direct channels of distribution in the business market.
e. both (b) and (c).
Q:
By organizing its sales force around retailing, financial services, and the petroleum industry, Hewlett-Packard is employing the _____ approach in structuring the sales force.
a. geographical
b. product
c. market-centered
d. territory
e. national accounts
Q:
Manufacturers' representatives and industrial distributors are both examples of____________________channels.
Q:
Among technology adopters, these customers are pessimistic about their ability to derive any value from technology investments and are extremely price sensitive.
a. technology enthusiasts.
b. visionaries.
c. pragmatists.
d. conservatives.
e. skeptics.
Q:
A successful implementation of a segmentation strategy requires attention to:
a. how should the sales force be organized.
b. what adaptations will be needed to serve selected international market segments.
c. which media outlets can be used to target advertising at a new segment.
d. all of the above.
e. (b) and (c) only.
Q:
Market-driven firms demonstrate:
a. the coordinated use of interfunctional resources (for example, research and development, manufacturing).
b. a set of values and beliefs among employees that places the customer's interests first.
c. the ability to generate, disseminate, and productively use superior information about customers and competitors.
d. all of the above.
e. (b) and (c) only.
Q:
The geographical sales organization structure presents which of the following disadvantages?
a. Each salesperson requires substantial product and customer knowledge.
b. This is the most costly form of sales organization.
c. Sales personnel may have a tendency to emphasize those products and end-use applications with which they are most familiar.
d. all of the above
e. (a) and (c) only
Q:
The backbone of channel design is the analysis of objectives, constraints, and channel activities.