Question 1

A well-established Internet service provider is facing stiff competition from several new companies.Which of the following techniques would it use in order to demonstrate to consumers that its product is superior to that of its competitors?
A) order processing
B) sales promotions
C) direct marketing
D) creative selling
E) missionary selling

Accepted Answer

D)With creative selling, salespeople persuade buyers to purchase their product by providing information about its benefits.

Question 2

Which of the following is MOST directly related to differences in transportation cost from mode to mode?
A) packing necessary for the product
B) fuel efficiency of the carrier
C) regularity of use of a given carrier
D) discount agreements with the carriers
E) delivery speed

Accepted Answer

E)Differences in transportation cost from mode to mode are most directly related to delivery speed.

Question 3

Marshall is a route salesperson for a beverage company.Which of the following would MOST likely occupy his work time?
A) trade show demonstrations
B) sales promotions
C) missionary selling
D) direct mail advertising
E) order processing

Accepted Answer

E)Since route salespeople have a set of regular customers, their main task is processing orders for inventory.

Question 4

Which of the following,if true,would MOST strengthen the argument for continuing direct mail marketing?
A) The consumers that direct mail marketing reaches are much better prospects compared to those reached by advertising.
B) Direct mail marketing accounts for 34 percent of all U.S. direct marketing spending.
C) Direct mail marketing has proven to be successful for promoting certain product types, such as cosmetics and designer apparel.
D) The growth of direct mail marketing has been explosive, with customers being flooded with such material.
E) Telephone marketing, another form of direct marketing, is becoming easier to use due to auto-dialers.

Accepted Answer

A)Riverdale will continue with direct mail marketing if it is a successful marketing tool and is likely to continue to succeed. Choice A tells us that direct mail reaches better prospects than advertising does, which at the very least recommends direct mail over traditional advertising for Riverdale. Choice B provides a national statistic but doesn't specifically address the effectiveness of direct mail marketing for Riverdale. Choice C doesn't help because we don't know if direct mail has proven to be successful for the types of products marketed by Riverdale. Choice D weakens the argument, suggesting that customers are so overwhelmed with direct mail that they are less likely to pay attention to it. Choice E does not say much about the issue at hand-whether to continue direct mail marketing-but if anything, it slightly weakens the case for direct mail by suggesting a better alternative.

Question 5

Which of the following,if true,would MOST weaken the argument for continuing direct mail marketing?
A) Riverdale will have to use highly selective mailing lists to ensure that its messages reach the target audience.
B) Some analysts predict a decline in the use of traditional forms of direct mail in coming years.
C) Competitors are using more aggressive, and often more intrusive, direct marketing techniques.
D) Results of the program will have to be evaluated and monitored continuously in order to reduce costs.
E) Direct mail marketing costs much more per thousand people reached than mass media outlets such as television or magazines.

Accepted Answer

E)Only Choice E tells us something negative about direct mail marketing, by suggesting that it is not as cost-effective as other types of marketing. Choice A just describes a good business practice when it comes to direct mail marketing, one that Riverdale could presumably use with success. Choice B is a prediction (which may or may not be accurate)about a general trend, and as such shouldn't have much impact on what Riverdale does in the immediate future. Choice C doesn't say whether those techniques are effective, something Riverdale would certainly want to know before switching to those techniques. Choice D describes an activity that Riverdale would want to do with any marketing strategy.

Question 6

Why would one expect a product sold at a specialty store to cost more than the same product at a department store?

Accepted Answer

The answer of Why would one expect a product sold...

Question 7

Explain direct-response retailing.

Accepted Answer

The answer of Explain direct-response retailing....

Question 8

Which of the following describes BEST what distinguishes publicity among all other forms of promotion?
A) Publicity is less directed than other forms of promotion.
B) Publicity is less effective than other forms of promotion.
C) Publicity is more impersonal than other forms of promotion.
D) Publicity is cheaper than other forms of promotion.
E) Publicity is more direct than other forms of promotion

Accepted Answer

D)Given that publicity is free, it is indeed cheaper than any other form of promotion.

Question 9

A new Internet service provider has entered a very crowded market.Which of the following methods would it MOST likely use in order to make consumers aware of its services?
A) creative selling
B) direct marketing
C) interactive marketing
D) missionary selling
E) personal selling

Accepted Answer

D)This technique is most concerned with promoting the reputation of the company rather than increasing sales.

Question 10

Which of the following,if true,would strengthen the argument for using television as the medium for the next campaign?
A) A study shows that the bulk of television audiences are teenagers and people over 65.
B) More than 43 percent of U.S. advertising dollars are spent on national and local television commercials versus 8 percent on Internet advertising.
C) The number of video-on-demand viewers is expected to quadruple during the next five years.
D) Increasingly, consumers are choosing not to watch ads.
E) Effective television ads are still capable of holding the audience's attention.

Accepted Answer

E)Television sounds like a bad choice, as viewers can now skip ads. But if good ads can still be effective, as Choice E indicates, then maybe television could be a good choice after all. Choices A, C, and D all weaken the argument. Choice B says that television is still used as a medium, but we don't know if it makes sense for AudiO.

Question 11

Which of the following,if true,would strengthen the argument for shifting to direct-response television marketing?
A) Many mainstream companies such as P&G, Dell, Disney, and Bose have begun using infomercials to sell their wares.
B) ValueNet could slightly modify its telemarketing techniques and receive a much better customer response.
C) TV media production costs are expected to increase substantially as the economy moves toward recovery.
D) 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.
E) Despite objections and angry responses to cold calls, total sales from telephone marketing have been steady over the years.

Accepted Answer

D)Why would ValueNet want to move from using outbound telemarketing? If it's no longer an effective way to reach the target market. Choice D indicates that a substantial portion of ValueNet's market has registered with the Do Not Call Registry, meaning that ValueNet cannot legally make unsolicited outbound calls to those individuals. With its market access shrinking, ValueNet needs to come up with a new plan. Choice A describes the actions of other companies, but doesn't indicate whether a similar strategy would be effective for ValueNet and its products. Choice B, if anything, weakens the argument for moving away from an established telemarketing system. Choice C makes the proposition unattractive, indicating that ValueNet would have to make a substantial investment in creating infomercial spots. Choice E calls for using the current strategy despite its drawbacks.

Question 12

Which of the following,if true,would MOST seriously weaken the argument for using the Internet as the medium of advertising?
A) Countries with restrictive regimes are yet to free this medium from controls over political content.
B) Consumers are extremely frustrated with annoying pop-up ads that affect the quality of browsing.
C) Studies show that customers tend not to notice Internet ads that are not intrusive in nature.
D) The interactive capabilities of Internet ads are rarely being used in a creative manner.
E) People who are online are also known to engage in media multi-tasking.

Accepted Answer

C)If Choice C is true, then Internet advertisers are in a real dilemma:Internet ads can be nonintrusive but ignored, or they can be effective but annoying and intrusive. Both sides are bad for Internet advertising, and so Choice C would weaken the case for using the Internet as an advertising medium. Choice A would be a problem for some, but not for AudiO, which doesn't produce political content. Choice B would be a reason not to have pop-up ads, but not a reason to abandon Internet advertising completely. Choice D suggests that Internet advertising has untapped power, which would strengthen the argument. Choice E, if anything, suggests that customers could view Internet ads while doing other things.

Question 13

Explain the difference between an electronic storefront and a cybermall.

Accepted Answer

The answer of Explain the difference between an electronic storefront...

Question 14

Which of the following,if true,would strengthen the vice president's argument?
A) West Coast Unlimited recently signed a long-term lease for the warehouse's current location.
B) The percentage decrease in taxes is higher than the percentage decrease in rent.
C) West Coast Unlimited's competitors are also capable of moving to the low-rent, low-tax area.
D) The political environment in the new area is stable, with no expected changes in tax policy.
E) Changes in the macroeconomic environment may reduce costs associated with the current location.

Accepted Answer

D)Taxes are lower in the new place, but for all we know taxes could go up. However, if Choice D is true, then taxes will remain about the same, which makes it sound as if the move will save money. Choice A weakens the argument by suggesting that getting out of the old location won't be easy. Choice B:It doesn't matter which percentage is higher. The point is that the company could save money for both reasons. Choice C suggests that the move would not give West Coast Unlimited a permanent advantage, so it does not strengthen the vice president's argument. Choice E weakens the argument by making the current situation sound better.

Question 15

Which of the following,if true,would MOST weaken an argument for using e-mail for direct mail marketing?
A) Growth in the use of e-mail for direct marketing is uncertain.
B) Studies show that a large percentage of such e-mails go directly to customers' spam folders.
C) Riverdale has traditionally used catalogs for its direct marketing efforts.
D) Not everyone who has used this medium for direct marketing has been successful.
E) Only interested customers will go through such messages in great detail.

Accepted Answer

B)Using e-mail marketing makes sense only if consumers are likely to look at the marketing message. If Choice B is true and most marketing e-mails go directly to spam folders, then the consumers never even see the message. Choice A, pointing to uncertainty about the effectiveness of e-mail marketing, is too vague to be useful in decision making. Choice C only tells us what the company has done in the past, not what the best option is for the future. Choice D is not relevant, as the failure of any one company in a marketing medium does not mean the medium itself is a failure. We don't have enough information on Choice E-it would strengthen the argument for direct mail marketing if the percentage of "interested customers" is high enough.

Question 16

A problem associated with Internet advertising is that the audience controls the exposure,so viewers are able to avoid unwanted ads.Which of the following is the BEST response to this criticism?
A) Internet advertising allows target audiences to learn more about products that interest them.
B) Exposure control is a problem associated with all media types.
C) The ability to avoid unwanted ads is an important aspect of privacy.
D) Audiences can be forced to watch the entire message using technology.
E) Internet advertising is too new to evaluate its effectiveness.

Accepted Answer

A)Giving people the chance to avoid your ad sounds like a bad thing, but audience control can also allow interested people to interact with your message in a deeper way. Choice A, therefore, is a good response to the concern about audience control. Choice B is not a defense of Internet advertising, and it fails to respond to the issue of audience control. Choice C is a good argument for not forcing people to watch ads, but it isn't a defense of the power of Internet advertising. Choice D would introduce a greater problem, as consumers would avoid a website or technology that tries to control them. Choice E makes Internet advertising sound even worse.

Question 17

A critic claimed that a business that neither manufactures nor sells directly is doomed because it is forced to compete exclusively on price.Which of the following is the BEST criticism of this argument?
A) It ignores the fact that improvements in wholesaler efficiency are relatively easy to duplicate.
B) It fails to demonstrate that traditional retailing businesses are also in jeopardy.
C) It fails to recognize the possibility that wholesalers can add value to different partners in the supply chain.
D) It does not specify how wholesalers can reduce costs most effectively.
E) It does not account for the fact that wholesalers need to be large in order to take advantage of economies of scale.

Accepted Answer

C)Wholesalers can provide more than efficient transportation. For example, they can provide market insights, they can bear risk, and they can help with financing. But the critic ignores all of these, as Choice C indicates. Choice A would point out a strength of the critic's claim, not a weakness. Choices B and D are things that the critic does not do, but neither is important to the critic's point. Choice E also suggests a weakness of wholesalers, which would not be a criticism here.

Question 18

Which of the following,if true,would weaken the argument for shifting to direct-response television marketing?
A) Most customers perceive infomercial sales tactics to be loud, aggressive, and questionable.
B) Some companies have found it difficult to adopt a direct-response television strategy.
C) Consumer behavior is highly dependent on the state of the economy.
D) New forms of direct marketing channels such as podcasting and iTV are experiencing exciting growth.
E) ValueNet's products could successfully be sold using multiple direct marketing methods.

Accepted Answer

A)ValueNet is unlikely to shift to direct-response television marketing if the tactic is ineffective. Choice A suggests that consumers have a negative opinion of infomercials, which certainly decreases the attractiveness of shifting to direct-response television for ValueNet. Choice B tells us about some companies but doesn't say anything about how ValueNet specifically would adapt. Choice C points to an issue that doesn't depend on the marketing tool ValueNet uses. Consumer behavior will be affected by the economy whether ValueNet uses telemarketing or infomercials. Choice D tells us that new technologies are coming up, but this does not necessarily mean that direct-response television is an unattractive option. Choice E points to implementing a multipronged strategy rather than relying exclusively on outbound telemarketing or infomercials.

Question 19

Which of the following,if true,would weaken the vice president's argument?
A) The low-rent, low-tax area is located farther from delivery sites.
B) West Coast Unlimited's competitors often place their warehouses in relatively expensive locations.
C) Better use of technology could reduce distribution costs more than a relocation could.
D) Final customers are almost always unaware of the location of the wholesaler.
E) Delayed shipments from suppliers are already creating problems for West Coast Unlimited's distribution network.

Accepted Answer

A)Low rent and low taxes sound good, but if the warehouse is located farther away, Choice A, then shipping costs would probably be higher and might offset any other benefits. Choice B:What the competitors do doesn't tell us what West Coast Unlimited should do. All things being equal, the cheaper approach sounds better. Choice C sounds good, but why not try to save money both ways? Choice D tells us that customers don't know about these things, but that's no reason to pay more if you don't need to. Choice E suggests a problem with the current approach, which could only strengthen the argument.

Question 20

One manager argues that Riverdale's corporate 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?
A) Customers can report the e-mails as spam and ensure that they do not receive these service mails in their inboxes in the future.
B) Research shows that customers who opt to receive marketing e-mails rarely complain, even if they are not happy about them.
C) This is a problem that affects all e-mail marketers, not Riverdale alone.
D) Customers can use a ready menu of e-mail selections to opt in and receive only the marketing product information they are interested in.
E) The cost of e-mail marketing is lower than public service advertising.

Accepted Answer

D)The manager's point is that customers will receive so many e-mails about Riverdale's diverse product lines that the company's image will suffer. Choice D offers a solution to the problem-let customers choose which e-mails they want to receive. This gives consumers control, and gives Riverdale better information about its customers. Choice A sounds like an argument against using e-mail at all. Choice B supports the original argument that Riverdale's image will suffer if customers receive too many marketing e-mails. Choice C tends to strengthen the argument, if anything, by saying that the concern is industry-wide. Choice E focuses on factors-cost and an alternative promotional method-that are not relevant.

Quiz 13: Distributing and Promoting Products

A well-established Internet service provider is facing stiff competition from several new companies.Which of the following techniques would it use in order to demonstrate to consumers that its product is superior to that of its competitors?

Which of the following is MOST directly related to differences in transportation cost from mode to mode?

Marshall is a route salesperson for a beverage company.Which of the following would MOST likely occupy his work time?

Which of the following,if true,would MOST strengthen the argument for continuing direct mail marketing?

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

Why would one expect a product sold at a specialty store to cost more than the same product at a department store?

Explain direct-response retailing.

Which of the following describes BEST what distinguishes publicity among all other forms of promotion?

A new Internet service provider has entered a very crowded market.Which of the following methods would it MOST likely use in order to make consumers aware of its services?

Which of the following,if true,would strengthen the argument for using television as the medium for the next campaign?

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

Which of the following,if true,would MOST seriously weaken the argument for using the Internet as the medium of advertising?

Explain the difference between an electronic storefront and a cybermall.

Which of the following,if true,would strengthen the vice president's argument?

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

A problem associated with Internet advertising is that the audience controls the exposure,so viewers are able to avoid unwanted ads.Which of the following is the BEST response to this criticism?

A critic claimed that a business that neither manufactures nor sells directly is doomed because it is forced to compete exclusively on price.Which of the following is the BEST criticism of this argument?

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

Which of the following,if true,would weaken the vice president's argument?

One manager argues that Riverdale's corporate 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?