Question 1Question text

Repeat purchases begin in the maturity stage of the product life cycle and account for the increase in sales.

Select one:

True

False

Question 2Question text

Competition between brands is most noticeable in the introductory stage of the product life cycle.

Select one:

True

False

Question 3Question text

An emphasis on product differentiation marks the  ______ stage of the product life cycle.

Select one:

a. maturity

b. termination

c. decline

d. growth

e. introductory

Question 4Question text

Designers of new goods must consider how expensive their designs will be to produce. Which of the following is a cost factor that needs to be considered?

Select one:

a. How many people will be needed to make the product.

b. The cost of machinery needed to make the product.

c. The raw materials that go into the product.

d. The skills needed to make the product.

e. All of the above ought to be considered.

Question 5Question text

Generally, when the purchase quantity by the consumer is smaller, the demand for a wider assortment is greater, and the market is more spread out, the distribution channel is longer.

Select one:

True

False

Question 6Question text

Which of the following statements about industrial product channels is true?

Select one:

a. Marketing channels for industrial products are typically the same length as marketing channels for consumer products.

b. All marketing channels for consumer products are longer than the channels for industrial products.

c. Marketing channels for consumer products are typically longer than the channels for industrial products.

d. Agents and distributors act as retailers in industrial marketing channels.

e. Direct marketing channels are never used in consumer markets.

Question 7Question text

Logistics in distribution . . .

Select one:

a. is company strategy in forming channels of distribution.

b. involves getting the right amount of the right products to the right place at the right time.

c. determines the availabillity of raw materials for a manufacturer.

d. is the integration of activities across firms in the supply chain.

Question 8Question text

A supply chain differs from a marketing channel in that . . .

Select one:

a. a supply chain is the coordination of suppliers to a manufacturer.

b. a supply chain is simpler to manage because it contains fewer members.

c. a supply chain includes suppliers of raw materials to a manufacturer as well as the wholesalers and retailers that deliver products.

d. a supply chain is a marketing channel from a supplier’s perspective rather than from the manufacturer’s perspective.

Question 9Question text

Channels of distribution . . .

Select one:

a. Adjust for discrepancies between supply and demand.

b. Are carryovers from the past and now drive up costs unnecessarily

c. Provide target customers with what they need, how they need it and when they need it.

d. Involved intermediaries that are always obvious to the end user.

e. Both answers “a” and “c” are correct.

Question 10Question text

Because cable television splinters audiences into many special interest groups, such as sports, music, old movies, and so on, it is a poor medium for direct-response advertisers.

Select one:

True

False

Question 11Question text

An example of nonstore retailing is . . .

Select one:

a. Automatic vending

b. Online retailing

c. Catalogs

d. All three are examples of nonstore retailing.

e. Only the first two are examples of nonstore retailing.

Question 12Question text

While personal selling has the advantage of a face-to-face interaction with customers, thus giving the sales force good feedback, it has the disadvantage that presentations can be inconsistent because different salespersons may shift the message and alter the communication.

Select one:

True

False

Question 13Question text

The primary purpose of promotion in the introductory phase of the product life cycle is:

Select one:

a. Inform the target market to create or increase awareness of the product.

b. Persuade the target market to purchase the product rather than substitutes.

c. Inform the market to encourage repeat purchases.

d. Discourage sales of an existing product so new product can replace it.

Question 14Question text

Many pharmaceutical companies promote prescription drugs in advertisements to consumers. The ads encourage consumers to ask their doctors about the drugs. This type of promotion is typical of:

Select one:

a. Public Relations

b. Push strategy

c. Direct Marketing

d. Pull strategy

Question 15Question text

Integrated Marketing Communitions (IMC) has become more the rule within companies than the exception, largely because:

Select one:

a. It reduces the “turf wars” common within large organizations.

b. It prevents failure in launching new products.

c. Allows a company to create a consistent message from its different promotional efforts, as they are often handled by different departments.

d. The practice was initiated by Proctor and Gamble so it could manage all its brands more efficiently and other companies had to follow this example to remain competitive.

Resolve this problem: USING TWO EXTERNAL SOURCES

The newly hired CEO of a small, nonprofit organization was appalled by the behavior of the organization’s CFO toward the female staff. He believed the manner in which the CFO related to these women was disrespectful and bordered on abusive. Some of these women were offended by the CFO’s attitude, while others chalked it up to his abrupt, abrasive personality and simply ignored it.

The CEO met with the CFO and made it clear that his behavior was unacceptable and would have to change. The two did not meet subsequently. The CEO was heard to say to others in the organization that the CFO “had to go.”

Three months later, at a monthly meeting of the board of directors, the CEO added an item to the agenda that substantially modified and reduced the CFO’s job responsibilities and authority. The CFO usually attended the board meetings but had notified the CEO and the board two weeks earlier that he would not be able to attend this particular meeting. The rationale that the CEO presented was framed as strengthening the integrity of financial reporting in the organization. This explanation appeared to be reasonable, and the board approved the proposal.

At 11:30 p.m. in the evening following the meeting, the CEO e-mailed the CFO, notifying him of the board’s action modifying his position.

Use this as a guideline:

a. What are the ethics issues in this case?

b. What management mistakes were made in this case?

c. Who are the key stakeholders in this case?

d. What steps can be taken within this organization to remedy these mistakes?