Sales and Marketing
Textbook Exam Questions
Course Introduction
Sales and Marketing explores the foundational principles, strategies, and tactics essential to promoting and selling products or services in both traditional and digital marketplaces. This course covers market analysis, segmentation, consumer behavior, branding, pricing strategies, sales techniques, and the integration of marketing communications. Students will develop practical skills in identifying target audiences, designing compelling sales presentations, managing customer relationships, and implementing effective marketing campaigns, all while examining current trends and ethical considerations within the field.
Recommended Textbook
Contemporary Marketing 16th Edition by Louis E. Boone
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Chapter 1: Marketing: The Art and Science of Satisfying Customers
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Q1) Product-oriented rather than customer-oriented management endangers the future growth of an organization.
A)True
B)False
Answer: True
Q2) Within a business environment,the marketing function is responsible for the creation of time,place,and ownership utility,whereas the production function creates form utility.
A)True
B)False
Answer: True
Q3) ACB Ltd.provides credit to dealers,as well as buyers of Alfresco Automobiles.The marketing function performed in this case is:
A) financing.
B) exchange.
C) distribution.
D) risk taking.
Answer: A
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Page 3
Chapter 2: Strategic Planning in Contemporary Marketing
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Q1) Jose is part of a team that is analyzing current demographic trends.The team will make a recommendation concerning the groups of consumers toward whom the firm should direct its new marketing effort.Jose's team is involved in which of the following elements of the firm's marketing strategy?
A) Target market
B) Distribution
C) Product
D) Promotion
Answer: A
Q2) A certain social networking corporation has the highest number of users in the social networking industry.This is an example of the firm's:
A) opportunity.
B) constraint.
C) strength.
D) threat.
Answer: C
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Chapter 3: The Marketing Environment, Ethics, and Social Responsibility
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Sample Questions
Q1) Which of the following bans the purchase of domain names that are identical or confusingly similar to existing registered trademarks?
A) The Anticybersquatting Consumer Protection Act
B) The Identity Theft and Assumption Deterrence Act
C) The Antitrust Act
D) The Privacy Protection Act
Answer: A
Q2) Environmental scanning is the process of collecting external data,analyzing it,and determining whether the trends identified are opportunities or threats to the company.
A)True
B)False Answer: True
Q3) One way the Federal Trade Commission can enforce laws is by issuing a consent order in which a firm accused of violations can agree to voluntary compliance without admitting guilt.
A)True
B)False Answer: True
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Chapter 4: Social Media: Living in the Connected World
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Q1) Stinson's,a chain of luxury department stores,uses a unique two-dimensional code on pamphlets and brochures that can be read by mobile phones with cameras.These codes provide detailed information regarding the products available in the store along with their prices.Which of the following are being used by Stinson's in the above scenario?
A) Apps
B) Fact Tags
C) QR codes
D) Social networks
Q2) Topix.net is a website that allows people to comment on news articles and report on events occurring in their local communities.It also allows users to edit and rate the topics of their choice.Topix.net can be grouped under which of the following social media platforms?
A) Social blogging sites
B) Social networking sites
C) Online forums
D) Social news sites
Q3) Outline some tips for landing a job in social media marketing.
Q4) How do companies measure the success and efficiency of their social media marketing plan?
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Chapter 5: E-Business: Managing the Customer Experience
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Sample Questions
Q1) Blogs have created interest among marketers as they can be effective at quickly forming public opinion.
A)True
B)False
Q2) How does the measure of effectiveness of a website differ with type of the website?
Q3) E-marketing can significantly reduce the costs of reaching a wide audience for small businesses.
A)True
B)False
Q4) Conflicts between producers,wholesalers,and retailers are called channel conflicts.
A)True
B)False
Q5) What are the various safety measures employed by e-marketers to develop safe online payment systems?
Q6) Increased capability of smart phones has boosted online retail sales.
A)True
B)False
Q7) Discuss the five benefits e-marketing offers to contemporary marketers.
Page 7
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Chapter 6: Consumer Behavior
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Sample Questions
Q1) Individuals who aspire to become members of a certain group most often adopt its standards of behavior and values.
A)True
B)False
Q2) Define consumer behavior.Describe Kurt Lewin's proposition and how it has been adapted for consumer behavior.
Q3) The number of alternatives a consumer actually considers in making a purchase decision is referred to as the _____.
A) evoked set
B) postpurchase evaluation
C) evaluative criteria
D) problem space
Q4) It was not until the introduction of the Chevrolet Nova in Mexico that marketers realized "no va" in Spanish means "won't go." This linguistic error demonstrates how Chevrolet overlooked cultural differences in its product introduction.
A)True
B)False
Q5) Who are opinion leaders? Why are they important to marketers?
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Chapter 7: Business-to-Business (B2B)Marketing
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Q1) Businesses choose outsourcing as an alternative to making goods in-house or providing in-house services when:
A) they want to reduce the amount of depreciation indicated on their books of account.
B) proprietary technology has the potential to raise security concerns.
C) conflicts arise between nonunion outside workers and in-house union employees.
D) the company needs to reduce costs to remain competitive.
Q2) A _____ is a trade industry vendor who develops a comprehensive procurement plan for a retail buyer.
A) category captain
B) merchandiser
C) boundary spanner
D) gatekeeper
Q3) Poor service or poor delivery performance by a current supplier can provoke a modified rebuy decision from the customer.
A)True
B)False
Q4) What are the stages involved in a business buying process?
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Chapter 8: Global Marketing
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Sample Questions
Q1) The activities of the World Trade Organization thus far have focused on dispute resolution rather than reducing trade barriers as:
A) the main aim of this organization is to increase the level of production in the developing nations.
B) the differences between the developed and developing nations have created a major roadblock to its progress.
C) the organization does not have the authority to make binding decisions on trade policies and trade barriers.
D) the organization is attempting to increase profit levels for developed nations.
Q2) The Foreign Corrupt Practices Act makes it illegal to bribe a foreign official in an attempt to solicit new or repeat sales abroad.
A)True
B)False
Q3) The United States is an attractive market to foreign marketers as it does not require foreign companies to pay corporate taxes.
A)True
B)False
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Chapter 9: Market Segmentation, Targeting, and Positioning
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Q1) Which of the following segmentation approaches is most likely to help marketers quantify aspects of consumers' personalities and lifestyles to create goods and services for a target market?
A) Psychographic segmentation
B) Demographic segmentation
C) Geographic segmentation
D) Product-based segmentation
Q2) What is cohort effect? What is the current cohort called?
Q3) Consolidated metropolitan statistical areas (CMSA)are limited to the same state,making it difficult for marketers to tap into similar product-use patterns among populations in neighboring states.
A)True
B)False
Q4) The 80/20 principle,also called Praedo's law,states that 80 percent of a product's revenues come from 20 percent of its customers.
A)True
B)False
Q5) What is psychographic segmentation? What is the most common method for developing psychographic profiles of a population?
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Chapter 10: Marketing Research and Sales Forecasting
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Q1) Interpretative research is an observational method that observes consumers in their natural setting.
A)True
B)False
Q2) A(n)_____ sets the stage for more in-depth research in a marketing research process by further clarifying what researchers need to test.It is a tentative explanation for a specific event.
A) sales analysis
B) informal investigation
C) ethnographic study
D) hypothesis
Q3) When H&C Research Corporation wanted to test the popularity of a new flavor of ice-cream,they selected a number of U.S.cities as test sites,and then randomly selected supermarkets within those cities as trial vendors.This is an example of quota sampling.
A)True
B)False
Q4) Define MIS and discuss its importance to marketing managers.
Q5) What is data mining? How does it help marketers in decision making?
Q6) List the benefits and limitations of qualitative sales forecasting methods.
Page 12
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Chapter 11: Relationship Marketing and Customer Relationship Management (CRM)
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Q1) What is a strategic alliance? Explain the two ways in which strategic alliances are structured.
Q2) Which of the following is true of relationship marketing?
A) It focuses on short-term, one-time exchanges with limited communications.
B) Its only goal is "sell something-now."
C) It views customers as equal partners in buyer-seller transactions.
D) It involves little or no ongoing relationship between the buyers and sellers.
Q3) At the third-level of relationship marketing continuum,buyer-seller relationships are transformed structurally into business partnerships.
A)True
B)False
Q4) Some of the motives for firms to enter into partnership are warding off threats of future competition,raising or creating barriers to entry,and learning new skills.
A)True
B)False
Q5) Briefly explain the various types of relationship marketing efforts that focus on turning customers from passive partners into active proponents of a product.
Page 13
Q6) Discuss national account selling.List some of its advantages.
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Chapter 12: Product and Service Strategies
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Q1) Which of the following is a single product line?
A) Four-door sedans offered by various automobile manufacturers
B) Passenger jets manufactured by Airbus and Boeing
C) Almond, caramel and dark chocolate flavors of Hershey Kisses
D) Different brands of toothpaste for people with sensitive teeth
Q2) Define product lifecycle.Describe the various stages of a product lifecycle.
Q3) Procter & Gamble manufactures laundry detergents under the brand names of Tide,Cheer,and Gain.These brands represent the width of the product mix that Procter & Gamble offers.
A)True
B)False
Q4) The motivations for marketing complete product lines include the desire to grow,enhancing the company's position in the market,optimal use of company resources,and exploiting the product lifecycle.
A)True
B)False
Q5) Marketers classify goods and services by considering the purchase patterns of the majority of buyers.
A)True
B)False
Page 14
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Chapter 13: Developing and Managing Brand and Product Categories
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Q1) Manufacturers' brands are also called national brands.
A)True
B)False
Q2) A product's package color,size and label shapes are all part of its trade dress.
A)True
B)False
Q3) An excellent brand name or symbol in one country may prove disastrous in another.
A)True
B)False
Q4) A _____ strategy concentrates on finding new markets for existing products.
A) market penetration
B) market development
C) product development
D) product diversification
Q5) Brand names should contain words or phrases in general use,so that it is easier for the consumers to pronounce,recognize and remember the brand names.
A)True
B)False
Q6) Briefly describe the four new-product development strategies.
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Chapter 14: Marketing Channels and Supply Chain Management
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Q1) Define distribution intensity and explain its three levels.
Q2) Which of the following types of services involves an intermodal coordination system between motor carriers and water carriers?
A) Birdyback service
B) Piggyback service
C) Fishyback service
D) Horseback service
Q3) The process through which a manufacturer attempts to gain greater control over inputs in its production process,such as raw materials,is called _____ integration.
A) balanced
B) horizontal
C) synergic
D) backward
Q4) Simple Foods,a breakfast cereal brand,has two wholesalers supplying to almost 100 retailers in California.Conflicts arising between the retailers and wholesalers within California will be referred to as horizontal conflicts.
A)True
B)False
Page 16
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Chapter 15: Retailers, Wholesalers, and Direct Marketers
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Q1) Retail convergence results in blurring of distinctions between types of retailers and the merchandise mix they offer.
A)True
B)False
Q2) _____ make regular deliveries to retailers,perform sales and collection functions,and promote product lines.
A) Clearing agents
B) Boundary spanners
C) Truck jobbers
D) Drop shippers
Q3) Full-function merchant wholesalers include:
A) sales branches and mail-order wholesalers.
B) industrial distributors and rack jobbers.
C) truck jobbers and drop shippers.
D) cash-and-carry wholesalers and auction houses.
Q4) Retailers must consider the overall profitability of each product line and product category to develop a successful merchandise mix.
A)True
B)False
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Chapter 16: Integrated Marketing Communications,
Advertising, and Public Relations
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Q1) The Tostitos BCS National Championship game will feature the top two college football teams competing for the national title.The Tostitos brand name is included in the event's name because Frito-Lay,the manufacturer,paid for:
A) sponsorship.
B) co-branding rights.
C) direct marketing privileges.
D) cooperative advertising.
Q2) An assumption behind the task-objective approach is that marketers can measure the productivity of each promotional dollar.
A)True
B)False
Q3) _____ are an outcropping of banner ads that appear on the results page of a search and are specific to the searched term.
A) Pop-ups
B) Interstitials
C) Advergames
D) Keyword ads
Q4) Compare and contrast marketing public relations with nonmarketing public relations.
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Chapter 17: Personal Selling and Sales Promotion
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Q1) Which of the following is a principal method used in sales training?
A) In-house classes
B) Application screening
C) Aptitude tests
D) Assessment center
Q2) Cross-selling services and products to existing customers is less expensive than trying to find new customers for the same services.
A)True
B)False
Q3) A salary is a payment tied directly to the sales or profits that a salesperson generates.
A)True
B)False
Q4) An important advantage of personal selling is that it gives the customer the opportunity to try a product before making a purchase.
A)True
B)False
Q5) What are the various methods used by salespeople to close a sales process?
Q6) Distinguish between inbound and outbound telemarketing.
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Chapter 18: Pricing Concepts
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Q1) The term "tariff" refers to the tax exemption granted to domestic producers in order to increase their competitiveness in the international markets.
A)True
B)False
Q2) Lower off-season prices and higher peak-season prices for lodging at resorts illustrate the use of yield management as a strategy to generate revenues for a largely fixed-cost industry.
A)True
B)False
Q3) Many firms attempt to promote stable prices by meeting competitors' prices and competing for market share by focusing on the nonprice elements of the marketing mix.
A)True
B)False
Q4) Explain customary prices.
Q5) List the four types of market structures based on the economic theory,and provide an example of an industry or business for each of the four types.
Q6) Describe the significance of yield management.
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Chapter 19: Pricing Strategies
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Q1) Skimming is an effective strategy to use when products are distinctive or have little competition.
A)True
B)False
Q2) Trade-ins are seldom used in sales of durable goods.
A)True
B)False
Q3) Differentiate between the list price and market price of a product.
Q4) An example of odd pricing would be:
A) a buy-two-get-one-free promotion.
B) selling a radar detector for $129.99 instead of $130.
C) subtracting trade-ins from the list price.
D) rebates that lower total price.
Q5) What are the disadvantages of promotional pricing?
Q6) Negotiated pricing policies seek to eliminate the economic waste that would result from obtaining and processing bids for relatively minor purchases.
A)True
B)False
Q7) Explain everyday low pricing.
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Chapter 20: Your Career in Marketing
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Q1) Internships bridge the gap between theory and practice by providing an opportunity for learning how classroom theory is applied in real-world business environments.
A)True
B)False
Q2) For which of the following roles courses in computer science and information systems are considered a prerequisite?
A) Public relations specialist
B) Advertising specialist
C) Marketing research analyst
D) Merchandiser
Q3) Marketing expenses figure into the total cost of the product.
A)True
B)False
Q4) A successful interview represents a mutual exchange of information.
A)True
B)False
Q5) Explain the three basic formats used in preparing a résumé.
Q6) List the elements of an effective letter of recommendation.
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Chapter 21: Developing an Effective Marketing Plan
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Q1) Strategic planning is the process of anticipating events and market conditions and deciding how a firm can best achieve its organizational objectives.
A)True
B)False
Q2) The need for a business plan is more acutely felt in a small company than in a large multinational company.
A)True
B)False
Q3) What are the reasons a company should develop a marketing plan?
Q4) Which of the following components of the marketing mix focuses on deciding the goods and services a firm should offer in order to meet the needs of its customers?
A) Product strategy
B) Distribution strategy
C) Promotional strategy
D) Pricing strategy
Q5) A marketing plan is not reevaluated once it is completely implemented.
A)True
B)False
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Chapter 22: Financial Analysis in Marketing
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Q1) Which of the following profitability ratios measures the firm's efficiency in generating sales and profits from the total amount invested in the company?
A) Inventory turnover
B) Gross profit margin
C) Return on assets
D) Net interest expense
Q2) The difference between assets and liabilities of a company is referred to as owner's equity.
A)True
B)False
Q3) Depreciation is an unusual expense because it does not involve an actual cash expense.
A)True
B)False
Q4) The gross profit margin is the percentage of each sales dollar that a firm earns in profit after all expenses have been paid.
A)True
B)False
Q5) Explain the difference between an income statement and a balance sheet.
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