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Basic Marketing: A Global Managerial Approach, 10/e

Stanley J. Shapiro
Kenneth B. Wong, Queens School of Business
William D. Perreault, University of North Carolina
E. Jerome McCarthy, Michigan State University

Developing Innovative Marketing Plans

Quiz Questions


1	Any characteristic of a firm can be a strength or a weakness depending on the market being served.
		A)	True
		B)	False


2	A weakness of the trend extension method of sales forecasting is that it assumes past conditions will continue unchanged in the future.
		A)	True
		B)	False


3	The basic formula used in the factor method of sales forecasting is: some variable, such as past sales, times some related factor equals the sales forecast.
		A)	True
		B)	False


4	The likely reaction of customers to possible changes in a marketing mix can sometimes be estimated using market tests and surveys of final buyers.
		A)	True
		B)	False


5	In a licensing agreement, the licensee takes most of the risk because it must invest some capital to use the right granted by the licensor.
		A)	True
		B)	False


6	A marketing plan:
		A)	consists of a target market and an appropriate marketing mix.
		B)	includes the time-related details for implementing a marketing strategy.
		C)	is a combination of several marketing strategies.
		D)	must cover a one-year period.
		E)	All of the above are true.


7	It is impossible to gather perfect information about customers because:
		A)	it is unaffordable for most companies.
		B)	customers cannot articulate everything.
		C)	both a and b.
		D)	managers need more and more information to make decisions.
		E)	managers are unwilling to make judgments based on incomplete information.


8	Marketing strategy planning is difficult for marketing managers because:
		A)	proposed plans for each of the 4Ps have to be blended together.
		B)	competitors are usually trying to satisfy the same or similar needs.
		C)	they rarely know enough about the needs and attitudes of their target markets.
		D)	other dimensions of the marketing environment may force changes in possible marketing mixes.
		E)	All of the above are true.


9	A marketing manager for a fancy cologne costing $100 a bottle wants to distribute samples to potential customers. To save money the company chose to use a specialized sampling distributor, who, unknown to the company, handed out the cologne samples together with cards promoting a local fast food establishment. This is an example of:
		A)	a good decision made in isolation working to the detriment of the marketing mix.
		B)	a useful joint promotion that will dramatically boost sales.
		C)	a gross error showing a lack of judgment by the marketing manager, over which he should be fired.
		D)	appropriate blending of the 4 Ps
		E)	SWOT analysis.


10	As a product moves through its product life cycle stages:
		A)	distribution moves from intensive to selective.
		B)	promotion tends to become less informative and more persuasive.
		C)	price cutting tends to decrease.
		D)	competition tends to move toward monopoly.
		E)	All of the above are true.


11	Market potential is:
		A)	how much an industry hopes to sell to a market segment.
		B)	an estimate of the national income for the coming year.
		C)	what a whole market segment might buy.
		D)	how much a firm hopes to sell to a market segment.
		E)	all of the above.


12	To forecast the sales of one of your major products, your first step should probably be to:
		A)	develop a company forecast.
		B)	develop a product forecast.
		C)	develop an industry sales forecast.
		D)	develop or obtain a national income forecast.
		E)	estimate your cost at various sales levels.


13	A listing of the percent change in a firm's product market sales for the last 10 years is a:
		A)	factor file.
		B)	trend extension.
		C)	sales forecast.
		D)	time series.
		E)	Pareto chart.


14	The "jury of executive opinion" sales forecasting approach has an advantage in that:
		A)	no other quantitative estimates are necessary.
		B)	past trends are usually ignored.
		C)	trend extension is minimized.
		D)	a forecast can be obtained quickly and easily.
		E)	executives usually know about outside market forces.


15	Which of the following sales forecasting methods would be most appropriate when intermediaries' reactions and competitors' activities are very important to sales?
		A)	use of a carefully selected "leading series"
		B)	trend extension of past sales
		C)	factor method
		D)	sales force estimates
		E)	jury of executive opinion


16	A PERT chart is most likely to be useful for:
		A)	forecasting sales in a highly competitive overseas market.
		B)	scheduling the implementation of the marketing plan.
		C)	quality control in service operations.
		D)	setting the marketing budget.
		E)	mapping the firm's competitive position.


17	Which of the following is the easiest way for a firm to enter foreign markets?
		A)	multinational bargaining
		B)	contract manufacturing
		C)	wholly owned subsidiaries
		D)	licensing
		E)	joint ventures


18	When a firm enters a foreign market by turning over production to a foreign firm—while doing marketing itself—it is using:
		A)	management contracting.
		B)	contract manufacturing.
		C)	licensing.
		D)	exporting.
		E)	joint venturing.


19	Tow Inc. of Moose Jaw, Saskatchewan, owns a plant in Ireland for manufacturing and selling machine tools in Europe. This type of international involvement is called:
		A)	a joint venture.
		B)	licensing.
		C)	a wholly owned subsidiary.
		D)	management contracting.
		E)	contract manufacturing.


20	What do firms like Eastman Kodak, Shell, Honda, Gillette, IBM and Nortel have in common?
		A)	They are all multinational corporations.
		B)	They are all American companies.
		C)	They all earn more than 90 percent of their sales and profits in foreign markets.
		D)	They use trend analysis to estimate sales in new markets they wish to enter
		E)	All of the above.

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