Test Bank Answers Marketing Ch.3

CHAPTER 3: MARKETING

TEST BANK

A) MULTIPLE CHOICE

Select the "most correct" option:

1. The psychological discomfort that people feel when they encounter something too different from their expectations is called:

a. image shock.

b. cognitive dissonance.

c. buyer’s remorse.

d. paranoia

2. “Marketing mix” is:

a. marketing strategy.

b. how a company makes itself appear different from the competition.

c. how a company projects its image.

d. all of the above.

3. “Marketing mix” is typically broken down into:

a. production, pricing, promotion.

b. process, patrons, packaging, profit.

c. product, price, distribution, promotion.

d. perception, prestige, public relations, publicity.

4. The “contractual elements” of getting a product/service to the final user, refers to:

a. distribution channel.

b. physical distribution.

c. consumerism.

d. elemental contracting

5. “Sales Promotions” refers to promotional activity that is not:

a. advertising.

b. publicity.

c. personal selling.

d. any of the above.

6. The most effective negotiating style tends to be:

a. aggressive.

b. competitive.

c. compromising.

d. co-operative.

7. In direct mail advertising, "compiled" lists tend to be:

a. more expensive than subscription lists.

b. cheaper than subscription lists.

c. more valuable than customer lists.

d. not available in Canada.

8. Coupons, premiums and trade shows are all examples of:

a. advertising.

b. sales promotions.

c. personal selling.

d. publicity.

9. Which of the following is not part of personal selling?

a. attracting.

b. prospecting.

c. qualifying.

d. closing.

10. Which of the following is a pricing strategy?

a. discount pricing.

b. sale pricing.

c. penetration pricing.

d. half-pricing.

11. Which of the following correctly defines the applicable pricing strategy:

a. Pricing low is an example of Competitive Pricing

b. Price skimming is strategy used my companies to price product similar to its competition

c. Penetration pricing is used when companies seek to price product less than its competition

d. Pricing low is an example of price skimming

12. All of the following are required to determine a company’s physical distribution strategy except:

a. Expected Inventory levels

b. The promotion strategy used to inform customers of the products or services

c. Means of transportation

d. The amount of storage or warehousing space required

B) TRUE OR FALSE

1. T. F. “Competitive” pricing means pricing lower than your competition.

2. T. F. “Advertising” and Marketing basically mean the same thing.

3. T. F. Your Pricing Strategy is described in comparison to the prices of your competitors.

4. T. F. A company's image is the perception of that firm held in the minds of potential customers.

5. T. F. “Giveaway” items tend to end up in the hands of people who are not prospective customers.

6. T. F. Selecting a name should be the first step in planning a business venture.

7. T. F. Agents do not own the services or products that they are selling.

8. T. F. "Cold calling" refers to approaching customers with whom there has been no previous contact.

9. T. F. Sales "objections" are often raised by a prospect to avoid having to make a decision.

10. T. F. Getting the customer to agree to the purchase is called "qualifying".

C) FILL IN THE BLANKS

1. The perception people have about “what your business is like,” is known as your company’s .

2. Advertising or exposure that a business gets “for free” is called .

3. Free samples and Trade Shows are examples of .

4. Meeting prospective customers and asking them to buy from you is called

.

5. Giving a free seminar where you hand out your business cards at the local library is an example of .

6. ________________ is a pricing strategy used by a company that has a monopoly or that occupies a niche position in its market

7. __________________ refers to the legal or contractual elements of how goods and services get from the producer to the final consumer.

D) SHORT ANSWER

1. Briefly name and define the elements of the Marketing Mix.

2. Compare the three basic pricing strategies explaining when each might be used.

E) ESSAY

1. Identify and explain the various steps in the selling process. Describe how you might

develop your own selling skills. (1 page max)

2. Pick a well-known local business and analyze its name in terms of how it projects an

appropriate image for its products/services and target customers. (1 page max)

3. Compare at least four advertising media for advantages and disadvantages.

4. Discuss how a firm can integrate various forms of social media to help drive potential
customers to its on-line marketing website.