Carter MKTG Final II

1.

1 point

Jarvis & Sons is a family business that manufactures a wide range of fishing equipment for casual and serious fishing enthusiasts. The company is facing stiff competition from larger manufacturers. Rex Jarvis, the founder and head of the company, is planning to use price-offs and advertising allowances in order to persuade retailers to carry and promote the company’s products. He is also considering creating a loyalty program that will provide customers with coupons for a huge discount on their next purchase. Some managers believe that implementing both strategies at the same time will cut too far into profit margins.
Which of the following, if true, would most strengthen the argument for using Jarvis’ ideas for trade promotions instead of consumer promotions?

Competitors are garnering significant sales through consumer promotion program

Jarvis & Sons’ largest competitors have economies of scale that allow them to make deep discounts available to retailers who purchase in bulk.

Jarvis & Sons, as a smaller manufacturer, cannot achieve the economies of scale available to its larger competitors.

The frequency of repurchase of fishing equipment is currently low.

Customers lack sufficient product knowledge and rely on retailers’ recommendations.

2.

1 point

Which of the following, if true, would weaken the argument for using the trade promotion methods planned by Jarvis?

Retailers who carry fishing equipment prefer push money over other types of promotions.

Some competitors have had success offering retailers promotions.

A promotion must run for at least two months to have a measurable impact on sales.

Retailers are known to pass on their discounts to customers.

Fishing is a seasonal activity.

3.

1 point

Which of the following, if true, would strengthen the argument for using Jarvis’ customer loyalty program?

Fishing enthusiasts take the sport seriously and purchase equipment mainly on the basis of quality and peer feedback.

Market feedback suggests that customers are happy with Jarvis & Sons’ products, but are unsatisfied with its after-sales support and repair activities.

Coupons are most effective for inexpensive convenience products.

Most major consumer goods manufacturers are issuing fewer coupons.

Studies show that 85 percent of coupons are never redeemed, though they do help stimulate product interest and purchase.

4.

1 point

Which of the following, if true, would weaken the argument for using the proposed customer loyalty program rather than the trade promotions?

Fishing gear is typically used for several years before it is replaced.

Current customers’ demand for fishing gear is expected to increase in the future.

Jarvis & Sons’ production costs have increased by as much as 5 percent in the last few months.

No other fishing gear manufacturer has offered coupons.

Customers are cutting their spending on new hobbies.

5.

1 point

Anderson Inc., is a conglomerate with four distinct businesses, each offering multiple products and services. The company is in the process of restructuring its sales force. While the head of sales prefers to continue with the existing territorial sales force structure, the CEO feels that other approaches should be examined.
Which of the following, if true, would strengthen the argument for a product sales force structure?

Anderson has a large and diverse portfolio of offerings.

Most of Anderson’s products are easy to use and require little follow up from the sales force.

Anderson’s sales compensation and expenses budget has undergone drastic cuts.

Anderson has reported strong revenues in each of the previous six quarters.

Anderson’s existing customer base is spread across a large geographic area.

6.

1 point

Which of the following, if true, would most weaken the argument for a product sales force structure?

Anderson has historically followed a territorial sales force structure.

There are few competitors for many of Anderson’s product lines.

Though there is some resistance, the company’s sales force is open to change that would reward more sales.

Organizing the sales force around customers leaves the company open to risk if one or big customers go under.

Most big customers buy from more than one of Anderson’s different business units.

7.

1 point

Which of the following most strongly supports a move to team selling for Anderson?

Anderson’s sales calls require each salesperson to be an expert with respect to each product.

Anderson’s management seeks to evaluate and reward individual contributions.

Senior sales executives have built long-term relationships with customers.

Anderson’s current reward system favors individual performance.

Most of Anderson’s customers use a team-based approach to make purchasing decisions.

8.

1 point

Lite Foods is a producer of breakfast cereals. The company is preparing to launch a new brand of honey-coated cornflakes called Honey Chunks, with children as the target market. The management team at Lite Foods is considering an introductory promotion to increase consumer awareness and promote product trials. Some sales managers are particularly keen on offering free premiums in each box of Honey Chunks in the form of action figures bearing the company logo.
Which of the following, if true, is the strongest reason to adopt the premium promotion idea?

Other brands of honey-coated cornflakes are available in the market.

In test markets, target consumers enjoyed playing with the figures and had increased brand recall after playing with the figures.

Lite Foods has successfully used discount coupons in the past.

Lite Foods has not been able to significantly increase its sales by offering price packs.

The manufacturer of the action figures strongly believes that the premiums will increase awareness of Honey Chunks.

9.

1 point

Which of the following, if true, is the strongest reason NOT to adopt the promotion idea?

Children are more likely to play with action figures associated with movie or television franchises than with action figures associated with a brand of cereal.

It is difficult to convince customers to switch brands and change their food preferences.

The market is flooded with flavored cornflakes.

Adults are unlikely to be influenced by children when making purchasing decisions about products such as cereal.

The cost associated with the premium is negligible.

10.

1 point

A Lite Foods’ sales manager argues that the company should not go forward with the premium because parents would dismiss the action figure as a marketing gimmick and not be persuaded to buy because of it, even though kids would love it and ask for it. Which of the following would be the most reasonable response to this concern?

Build parents’ awareness of the nutritional value of Honey Chunks.

Select a different kind of action figure to be included in the cereal.

Demonstrate to the children that the cost of Honey Chunks makes it an exceptional value.

Discontinue consumer promotions aimed at parents because parents tend to be too skeptical.

Switch the focus of the campaign to the parents instead of the children.

11.

1 point

John Deeley is a sales representative\e at MBI Tool Corporation, a manufacturer of professional power tools such as band saws, polishers, and lathes. As his job title suggests, John’s job involves seeking out and meeting with potential customers to secure orders from them. John tends to take a transaction-oriented approach to selling, focusing on negotiating the best terms for his company in each order. Unfortunately, John has been unable to obtain any orders in the last month due to his ineffective selling process.
Which of the following, if true, is most likely the reason for John’s failure to make any sales?

John focuses on identify potential customers in the prospecting and qualifying stage of the selling process

John regularly follows up with customers, checking to see that their orders are fulfilled to specification and that they are satisfied with the products.

John does not address objections raised by the customer during or after the sales presentation.

John uses product samples to rouse customer curiosity.

In his presentation, John emphasizes the product’s ability to deliver value to the customer’s business but downplayed its cost.

12.

1 point

Which of the following recommendations should John follow to improve his performance?

Move away from a transaction orientation to a focus on developing a mutually profitable relationship.

Frequently drop in unannounced on potential customers.

Spend more time prospecting and qualifying potential customers and delegate the task of following-up on existing customers to members of the inside sales force.

Remember that it is better to walk away from a customer than to offer a discount.

Make the long-term focus getting orders, as sales is essentially a numbers game.

13.

1 point

When confronted by management with his disappointing sales results, John argues that all of his efforts are hitting dead ends because of the poor economy. Which of the following is the best rebuttal to John’s argument?

A company’s sales volume has very little to do with the general economic environment.

Salespeople who routinely use Web-based technologies throughout the selling process have higher success rates.

Customers dislike pushy salespeople; they need problem solvers.

Salespeople who focus more on creating value than negotiating price are successful even in economic downturns.

Other sales reps are also finding it tough to generate enough sales.

14.

1 point

Fizz Corporation develops and markets soft drinks and related products in the United States. Its product line consists of three beverage brands: Fizz Soda, a carbonated drink; Health Aqua, an enhanced water beverage; and Mango Fizz, a fruit-based drink. Fizz has been approached by an event management company to sponsor a marathon featuring some of the biggest names in the sport. The proceeds from this event will be used to build a facility for homeless children. If it takes up the offer, Fizz will be featured as the event’s beverage sponsor.
Which of the following, if true, would most strengthen the argument for sponsoring this event?

The promotions budget for the current year is higher than it was last year.

Well known athletes in the marathon are brand ambassadors for other beverage companies.

Fizz Corporation’s leading competitor recently sponsored a sporting event that received national publicity.

The company can fulfill its annual corporate social responsibility obligations in this manner.

The media coverage generated by the event is something Fizz cannot afford on its own.

15.

1 point

Which of the following, if true, would most weaken the argument for sponsoring this event?

Charity marathons take place on a regular basis.

Research shows that customers are usually indifferent to such marketing events.

Social responsibility initiatives are a part of the organization’s value system.

Fizz has found that the benefits associated with such sponsorship have historically outweighed the costs.

Historically, the event has been sponsored by Fortius, a maker of energy drinks.

16.

1 point

Curtis Precision Manufacturing has named you as its new National Sales Manager. Your task is develop special sales teams to sell specialized metal finishing products to highly targeted customers.

The first product features anodizing equipment that manufacturers of such things as electronic devices and automotive parts use to coat titanium with a layer of metal oxide. The second product is a line of waxes, sealants, and polishes for protecting metal boat hulls. The third product is a jewelry and silver polishing kit.

Which of the three products is likely to require the least amount of training for its team members?

Curtis anodizing equipment, because the customers will be highly knowledgeable themselves and need little guidance

Curtis boat products, because boat owners usually know exactly what they want

Curtis polishing kits, because they need to be easy enough for ordinary consumers to use

Curtis polishing kits, because they are non-toxic

Curtis anodizing equipment, because there is an enormous amount of information on anodizing on the Internet

17.

1 point

You are considering options for choosing a sales force for the anodizing equipment.

Which of the following would best support choosing a product sales force for selling anodizing equipment?

The companies that buy anodizing equipment usually take a long time to decide on a purchase.

The companies that buy anodizing equipment are geographically far apart.

Most companies that buy anodizing equipment use it for a large variety of different products and purposes.

Most companies that buy anodizing equipment use it to manufacture only a single product.

The companies that buy anodizing equipment are usually high tech manufacturers.

18.

1 point

You are lining up individuals for different sales teams.

Why does it make sense to have your most personable sales personnel be chosen for a customer sales force structure?

Sales reps in a customer sales force need to develop strong long-term relationships with customers built on trust and reliability.

Sales reps in a customer sales force need to develop an extremely strong knowledge of the products and services they sell.

Sales reps in a customer sales force need to convince customers to purchase things that they don’t need.

Sales reps in a customer sales force need to develop close personal friendships with customers.

The actions of sales reps in a customer sales force represent Curtis.

19.

1 point

You are thinking of using a territorial sales force for one of your products.

Which of the following is the best reason to use a territorial sales force?

A territorial sales force allows the salesperson to be effective with little or no training.

A territorial sales force allows the salesperson to build close relationships to customers.

A territorial sales force allows the salesperson to develop great expertise in the products he or she is selling.

A territorial sales force allows customers to develop a deep understanding of the products they buy.

A territorial sales force allows resources to be saved in travel, organization, manpower, and planning.

20.

1 point

Some of your sales personnel are versatile and can quickly become comfortable in selling almost any product. Other salespeople like to specialize in a single product or discrete product line.

In which kind of sales force(s) should your most versatile salespeople be placed?

product or territorial sales forces.

customer or territorial sales forces

territorial sales forces only

customer or product sales forces

customer sales forces only

21.

1 point

It turns out that in some areas of the country, the marinas and boat stores that buy Curtis boat products need an extraordinary amount of expert advice. The products behave differently in different weather conditions and a great deal of knowledge is required to use them correctly.

Which sales force structure would you recommend for these areas?

a territorial sales force because that structure works best over a large, spread-out customer base

a product sales force because that structure works best when the customers require a lot of expertise

a customer sales force because that structure works best when there is a high number of customers in different locations

a customer sales force because that structure works best when customers face problems

a product sales force because that structure works best over a large, spread-out customer base

22.

1 point

For Curtis anodizing equipment, a single salesperson can typically be expected to book $8 million in annual sales. Due to the recent economic slump, your boss has downgraded expectations from $42 million to $36 million for the entire team.

How many salespeople should the team have?

four

seven

six

five

less than five

23.

1 point

For Curtis anodizing equipment, you would like to assign some of your product sales force to answer telephones and emails regarding the technical use of the product. However, you don’t have enough manpower to keep people in the office for these tasks.

Which of the following identifies the best solution to your problem?

create a customer-to-customer network in which customers get their questions answered by asking other customers to share their knowledge of the product

require the sales staff to respond calls and emails from their own customers for one hour each day using smart phones as part of their job without extra pay

pay the sales staff for one extra hour each day to respond to calls and emails from their own customers using smart phones

create an interactive website for responding to technical questions from customers

require executives and managers to respond to calls and emails from customers

24.

1 point

You are allocating resources for developing a high quality comprehensive customer website to help clients solve problems and find out more about Curtis products.

In which of the following would you allocate the greatest amount of funds and resources?

a website for the anodizing products because they are sold to the most independent customers

a website for the boat products because they are the most technically complicated products

a website for the silver and jewelry cleaning kits because they only are sold to a handful of clients

a website for the boat products because they only are sold to a the greatest number of customers

a website for the silver and jewelry cleaning kits because they are so simple to use

25.

1 point

You have decided to have your entire sales force for anodizing equipment use team selling for all of your customers. You are worried, however, that your salespeople are so competitive that they won’t work well together.

Which of the following would best ensure success of a highly competitive sales team?

Install a revolving leadership for the team in which team members take turns being the team leader.

Reward individuals in a single team separately for their efforts.

Reward the entire team for all sales rather than individuals.

Have each team member sign a pledge to be cooperative and unselfish.

Hire an outside firm to educate team members on the negative effects of competition.

26.

1 point

Riverdale Inc., is a multi-platform retailer based in the United States. It primarily does business through direct-mail marketing. The company sells approximately 400 products including statues, die-cast vehicles, T-shirts, posters and lithographs, plush toys, and household decorative items. Riverdale management is exploring ways of improving its direct marketing mechanism.
Which of the following, if true, would most strengthen the argument for continuing direct-mail marketing?

The growth of direct-mail marketing has been explosive with customers being flooded with such material.

Direct-mail marketing has proven to be successful for promoting certain product types, such as cosmetics and designer apparel.

The consumers direct-mail marketing reaches are much better prospects compared to those reached by advertising.

Telephone marketing, another form of direct marketing, is becoming harder to implement because of strict regulations.

Direct-mail marketing accounts for 34 percent of all U.S. direct marketing spending.

27.

1 point

Which of the following, if true, would most weaken the argument for continuing direct-mail marketing?

Riverdale will have to use highly selective mailing lists to ensure that its messages reach the target audience

Competitors are using more aggressive and often more intrusive direct marketing techniques.

Direct-mail marketing costs much more per thousand people reached than mass media outlets such as television or magazines.

Results of the program will have to be evaluated and monitored continuously in order to reduce costs.

Some analysts predict a decline in the use of traditional forms of direct mail in coming years.

28.

1 point

Which of the following, if true, would most weaken an argument for using e-mail for direct-mail marketing?

Riverdale has traditionally used catalogs for its direct marketing efforts.

Studies show that a large percentage of such e-mails go directly to the customers’ spam folders.

Not everyone who has who used this medium for direct marketing has been successful.

Only interested customers will go through such messages in great detail.

The growth of the use of e-mail for direct marketing is uncertain

29.

1 point

One manager argues that Riverdale’s image will suffer if customers receive too many e-mails about its different services and offerings. Which of the following, if true, is the most effective counterargument?

Research shows that customers who opted for receiving marketing e-mails rarely complain, even if they are not happy about them.

The low cost of e-mail marketing outweighs any such brand value erosion.

Customers can use a menu of email selections to opt into receiving only communications marketing products they are interested in.

This is a problem that affects all e-mail marketers, not Riverdale alone.

Customers can report the e-mails as spam and ensure that they do not receive these service mails in their inboxes in the future.

30.

1 point

Which of the following is the LEAST intrusive opt-in message for a direct marketing e-mail?

“You have received this e-mail because you expressed interest in purchasing our products. You will receive further promotional notifications from Riverdale only if you click on the link below.”

“To unsubscribe from this free promotional newsletter, log on to www.RiverdaleOffers.com. Click on the Promotions link, and enter your e-mail address in the relevant field listed on the page.”

“You are subscribed as: name@email.com. Note: If you do not want to receive emails about new offerings, you must adjust settings in your account. To change settings, call our customer support executive at now.”

“You have been referred by your friend . You will receive our exciting weekly offers via e-mail. insists that you view our product literature. To visit our site, click here.”

“Riverdale reserves the right to contact you with our special offers unless you unsubscribe from the list using the e-mail address given below.”

31.

1 point

ValueNet Corporation sells electronic learning devices, consumer electronics products, and collectibles directly to American consumers using a team of telemarketers. The aggressive cold calling tactics recently boomeranged when the company became the target of irritated consumers and consumer activist groups who flooded the ValueNet’s phone system with return calls and messages. Management is planning to reduce the reliance on outbound calling and use other approaches like direct-response television marketing (DRTV).
Which of the following, if true, would strengthen the argument for shifting to direct-response television marketing?

ValueNet could slightly modify its telemarketing techniques and receive a much better customer response.

Many mainstream companies such as P&G, Dell, Disney, and Bose have begun using infomercials to sell their wares.

Despite objections and angry responses to cold calls, total sales from telephone marketing have been steady over the years.

The majority of Americans have registered their telephone numbers with the National Do Not Call Registry, and the number of registered numbers continues to grow.

TV media production costs are expected to increase substantially as the economy moves toward recovery.

32.

1 point

Which of the following, if true, would weaken the argument for shifting to direct-response television marketing?

Consumer behavior is highly dependent on the state of the economy.

Most customers perceive DRTV sales tactics to be loud, aggressive, and questionable.

New forms of direct marketing channels such as podcasting and iTV are experiencing exciting growth.

ValueNet’s products could successfully be sold using multiple direct marketing methods.

Some companies have found it difficult to adopt a DRTV strategy.

33.

1 point

A sales manager at the company comments, “The age of telemarketing is over.” Is the sales manager correct? Why or why not?

Yes, customers do not like to be inundated with a company’s calls.

No, the focus of telemarketing has simply shifted.

Yes, only outbound business-to-business telemarketing will survive and thrive.

Yes, the National Do Not Call Registry marked the beginning of the end of this marketing approach

No, it will thrive as long as it generates some sales, however irritated customers may be.

34.

1 point

Allied Technology manufactures and sells household appliances such as refrigerators, microwave ovens, washing machines, and coffee makers. The company's product and service quality has come under attack during the past few months from frustrated consumers who share their scathing criticism on blogs and social networking media. The company has its own Web site, but it is considering whether to create a sponsored blog to manage the situation.
Which of the following, if true, would strengthen the argument for a company-sponsored blog?

Some company managers believe that Allied ought to have some sort of online presence in addition to the regular Web site.

Online reviews about redundant product features have affected the company’s sales.

The blog would help explain the company’s position and serve as a forum to provide tips and announce improvement plans.

The company has received a lot of criticism of late from thoroughly dissatisfied customers.

The blog would provide a public forum for disgruntled consumers to voice their opinions.

35.

1 point

Which of the following, if true, would most weaken the argument for a company-sponsored blog?

Currently, blogs journals remain largely a B2C medium.

A good blog can effectively support an average product.

Questionable claims made on such blogs may invite regulatory attention.

The audience for independent blogs written by consumers is much larger than the audience for company-sponsored blogs.

Consumers often discount claims made in such blogs.

36.

1 point

A manager objects to responding to the criticisms online, maintaining that the company cannot quiet disgruntled consumers and that people do not take online criticisms seriously. Which of the following would be the most effective rebuttal to this position?

When making purchasing decisions, consumers heavily influenced by the opinions of friends and acquaintances.

Service quality depends partly on perception, varying from one individual to another.

Allied should focus its resources on improving product and service issues, counting on positive word of mouth replacing criticism as consumers see that their problems are being addressed.

The company cannot ignore issues and so should address each and every online criticism of its products.

Manufacturers of convenience products that maintain and update blogs have had marketing successes.

37.

1 point

StarMart is a large, respected retail chain with more than 120 stores spread across the country. The company is keen to enter into a co-branding agreement with Axiom Financial Services. Under this agreement, Star’s customers will be provided with an Axiom-Star Credit Card entitling them to reward points every time they swipe their credit cards at StarMart. Cardholders will be able to redeem points for special discounts, free merchandise, and exclusive services. StarMart is planning on a targeted direct marketing campaign using StarMart’s knowledge of consumer buying patterns and Axiom’s access to financial information.

Some managers are concerned that the Axiom-Star Credit Card will violate consumer privacy. However, a legal review revealed that the practices do not violate the law. Is this finding sufficient to address privacy concerns?

Yes, because the company’s primary objective is to make money.

No, because collecting information about consumer buying patterns is always a violation of privacy.

Yes, because the law represents the opinion of the people regarding privacy.

Yes, because the company’s primary duty is to uphold the law.

No, because it neglects the possibility that privacy laws can change.

38.

1 point

StarMart believes that its direct marketing campaign will not violate consumer privacy. Which of the following questions is LEAST relevant to evaluating the ethics of the campaign?

Do all customers receive the exact same offer?

Are credit card offers send only to adults?

Do consumers have the right to challenge incorrect information?

Can consumers avoid receiving advertisements for credit cards?

Can consumers choose not to supply information about their spending patterns?

39.

1 point

A senior manager argues that the negative perception associated with mounting credit card debt will affect StarMart. Which of the following would be the most effective measure StarMart could take to address this potential problem?

extending the expiration date of StarMart reward points

making it clear that StarMart is a different entity than Axiom-Star

extending credit only to those who are very likely to be able to pay their bills

pointing out the records and practices of the worst-behaved credit companies

offering to forgive all debt more than 90 days old

40.

1 point

A senior manager argues that the negative perception associated with mounting credit card debt will affect StarMart. Which of the following would be the LEAST effective measure StarMart could take to address this potential problem?

ensuring that fees for exceeding credit limits are no higher than necessary.

charging no more than the typical interest rate for month-to-month debt.

increasing the value of the promotional items that attract new credit card customers.

Publicizing the company’s policies in clear and easy-to-understand language.

offering free debt counseling to Axiom-Star customers.