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Chapter 19 1. The catalog you receive from a large apparel store, displaying their new summer collection, is an example of ________ marketing. A) buzz B) direct C) virtual D) word of mouth E) interactive Answer: B Rationale: Direct marketing involves communicating directly with consumers to promote products or services. Sending catalogs directly to consumers is a classic example of direct marketing because it targets potential customers individually and encourages them to make purchases. 2. A salesperson sends e-mails to persuade prospects to buy the products of his company. This is a type of ________ marketing. A) buzz B) virtual C) word of mouth D) direct E) viral Answer: D Rationale: Direct marketing involves directly reaching out to potential customers to promote products or services. Sending emails to prospects with the intention of persuading them to make a purchase falls under direct marketing. 3. Market demassification has resulted in ________. A) niche market creation B) product standardization C) mass production practices D) intrinsic marketing channels E) just-in-time production Answer: A Rationale: Market demassification refers to the shift away from mass marketing towards targeting smaller, more specialized market segments. This has led to the creation and emphasis on niche markets, where products and services cater to specific needs and preferences of a particular segment of consumers. 4. Which of the following is an example of a company that serves a niche market? A) a large apparel manufacturing company that produces a wide range of products for different segments B) a software company that creates standardized supply chain applications for manufacturers C) a manufacturer who creates tools such as bolts, latches, door handles etc. for left-handed individuals D) a large multi-national manufacturer of consumer products, FMCG products, and consumer electronics E) a company that manufactures denim pants for men and women of all ages Answer: C Rationale: A company serving a niche market focuses on catering to a specific, specialized segment of consumers. In this case, the manufacturer creating tools for left-handed individuals targets a niche market rather than a broad audience. 5. OrdOnline, a pure click company offering online auctioning, decides to launch a promotional program to increase its sales. The company identifies customers who have made at least three purchases and spent at least $150 in the past six months and offers discount coupons to these customers. Which of the following strategies is used here for targeting the customers? A) viral marketing B) objective screening C) internal targeting D) catalog marketing E) RFM formula targeting Answer: E Rationale: RFM formula targeting involves analyzing a customer's past behavior based on three factors: recency (how recently a customer made a purchase), frequency (how often they make purchases), and monetary value (how much money they spend). In this scenario, OrdOnline is targeting customers based on their past purchasing behavior, which aligns with RFM formula targeting. 6. Which of the following is a major advantage of using direct mails? A) Direct mails permit target market selectivity. B) It is the best suited tool for selling complex products. C) Campaign testing is not needed for direct mails. D) Direct mails have very high conversion rates. E) It is the best method to sell industrial products. Answer: A Rationale: Direct mails allow for target market selectivity because marketers can tailor their mailing lists to specific demographics, interests, or purchasing behaviors. This ensures that the marketing message reaches the most relevant audience, increasing the likelihood of conversion. 7. Which of the following is a factor considered when a customer is evaluated based on RFM formula? A) the amount of time passed after the customer's last visit B) the product categories purchased by the customer C) the mode of payment used by the customer D) the location from which the customer has bought goods E) the type of feedback provided by the customer Answer: A Rationale: The RFM formula evaluates customers based on three factors: recency (the amount of time passed after the customer's last visit), frequency (how often they make purchases), and monetary value (how much money they spend). Among these factors, recency specifically considers the time elapsed since the customer's last visit or purchase. 8. Which of the following is an element of an offer strategy? A) the medium used for delivery B) the number of customers in the locality C) the vision of the company D) the skills required for production E) the details of customer order received Answer: A Rationale: An offer strategy includes determining how the offer will be delivered to the target audience. This can involve choosing the appropriate medium, such as email, direct mail, social media, or in-person interactions, to effectively communicate the offer to potential customers. 9. The practice of using call centers, where employees receive calls from customers and provide service by taking orders and answering queries, is called ________. A) customer response marketing B) guerrilla marketing C) reactive marketing D) internal marketing E) inbound telemarketing Answer: E Rationale: Inbound telemarketing involves receiving incoming calls from customers and providing them with assistance, such as taking orders or answering inquiries. This practice is commonly used in call centers to provide customer service and support. 10. In outbound telemarketing, the call center employees ________. A) sell high-involvement products B) initiate calls from a location closer to prospects C) offer huge discounts to customers D) initiate calls to prospects and customers E) answer the queries of consumers who call for information Answer: D Rationale: Outbound telemarketing involves call center employees initiating calls to prospects and customers with the aim of selling products or services, generating leads, or conducting market research. This proactive approach distinguishes outbound telemarketing from inbound telemarketing, where calls are received rather than initiated. 11. The management of Raleigh Bicycles observes that the company's selling costs are affected by the increased number of visits that the salespeople make to meet dealers. The company decides to reduce its personal selling costs by making sales calls to dealers via the telephone. This marketing strategy used by Raleigh is an example of ________. A) inbound telemarketing B) search marketing C) internal marketing D) outbound telemarketing E) paid-search marketing Answer: D Rationale: Outbound telemarketing involves initiating calls to prospects or clients, which aligns with Raleigh Bicycles' strategy of reducing personal selling costs by making sales calls to dealers via the telephone. 12. Which of the following is a disadvantage of direct marketing? A) invasion of privacy B) inability to build brand awareness C) low chances of customers avoiding messages D) inability to control marketing communication E) inability to maintain information security Answer: A Rationale: Direct marketing often involves collecting personal information about individuals, which can lead to concerns about privacy invasion if not handled properly. 13. The Internet provides marketers and consumers with opportunities for much greater interaction and ________ than other marketing channels. A) control B) data security C) high involvement selling D) order conversion E) individualization Answer: E Rationale: The Internet allows for greater interaction and individualization compared to other marketing channels, enabling marketers to tailor content and offerings to specific consumers based on their preferences and behaviors. 14. Which of the following is an example of contextual ad placement? A) advertisements that appear when a consumer types in the term "baby" in Google B) dynamic advertisements of an automobile company appear in a newspaper's Web site C) descriptive listings of products and services in an online shopping Web site D) "buy now" tags that appear near the product description in a company's Web site E) advertisement of a new movie that appears at the background of a news Web page Answer: A Rationale: Contextual ad placement involves displaying advertisements based on the context of the content being viewed by the consumer. In this case, when a consumer searches for the term "baby" in Google, relevant advertisements related to baby products or services are displayed. 15. Which of the following channels is best suited for interactive marketing? A) television B) newspapers C) Internet D) hoardings E) magazines Answer: C Rationale: The Internet is best suited for interactive marketing because it allows for direct engagement and interaction between marketers and consumers through various online platforms and tools. 16. Which of the following is a disadvantage of using the Web for interactive marketing? A) Consumers can effectively screen out most messages. B) An average customer spends very little time on the Internet. C) Internet selling and advertising is costlier than other advertising media. D) It is unable to create long-term marketing assets. E) Online marketing limits the possibilities of personalization. Answer: A Rationale: One disadvantage of using the Web for interactive marketing is that consumers can effectively screen out most messages, potentially reducing the effectiveness of marketing efforts. 17. Companies design ________ to embody or express their purpose, history, products, and vision and that are attractive on first viewing and interesting enough to encourage repeat visits. A) Web sites B) microblogs C) banner ads D) operating programs E) social network pages Answer: A Rationale: Websites are designed to represent a company's purpose, history, products, and vision in an attractive and engaging manner, encouraging visitors to explore the site further and return for repeat visits. 18. Individual Web pages or clusters of pages that function as supplements to a primary Web site are called ________. A) banners B) pop-ups C) interstitials D) microsite E) interstitial Answer: D Rationale: A microsite refers to individual web pages or clusters of pages that serve as supplements to a primary website, often focusing on specific topics, products, or campaigns. 19. Of the seven key design elements of an effective Web site, ________ refers to layout and design. A) character B) capability C) context D) customization E) connection Answer: C Rationale: Context in the context of web design refers to the layout, design, and overall presentation of the website, which plays a crucial role in engaging visitors and conveying the intended message effectively. 20. Small Web pages of DTH Bank appear on the website of an online property brokerage firm. The pages provide tips to home buyers and publish its new home loan offerings. These Web pages are examples of ________. A) microsites B) online banners C) interstitials D) paid advices E) display advertisements Answer: A Rationale: The small web pages of DTH Bank appearing on the website of an online property brokerage firm, providing specific information such as tips for home buyers and new home loan offerings, represent a microsite, as they serve as supplements to the primary DTH Bank website. 21. You are searching for the details of a refrigerator in Google. When you perform the search, advertisements by home appliance manufacturers appear above the organic search results displayed by Google. These advertisements link you to the online appliance store of the companies. Which of the following terms refer to these advertisements? A) pay-per-click ads B) floating ads C) interstitials D) superstitials E) banner ads Answer: A Rationale: Pay-per-click (PPC) ads are displayed above or alongside organic search results and are linked to the advertiser's website. The advertiser pays a fee each time a user clicks on the ad. 22. You are visiting FIFA's Web site to know the schedule of the football World cup. On the top of the Web page showing the schedule, a small picture displays the official mascot and the text "Buy tickets for the World Cup now". This static exhibit provides the link to the official ticket booking Web site. Identify the type of advertisement used here. A) pay-per-click ad B) floating ad C) wallpaper ad D) superstitial E) banner ad Answer: E Rationale: Banner ads are typically displayed at the top, bottom, or sides of a webpage and contain text, images, or multimedia elements. They serve as clickable links to the advertiser's website. 23. In ________, marketers bid in a continuous auction on search terms that serve as a proxy for the consumer's product or consumption interests. A) paid searches B) pop-up advertising C) display advertising D) banner marketing E) micro-advertising Answer: A Rationale: Paid searches involve marketers bidding on search terms relevant to their products or services, with the aim of having their ads displayed prominently in search engine results pages. 24. A banner ad is a(n) ________. A) large ad shown on the screen for complementary products B) advertisement that appears before displaying a Web page C) advertisement that comes up when viewing a Web site D) small, rectangular box containing text and perhaps a picture E) advertisement that is put up on hoardings Answer: D Rationale: A banner ad is a small, rectangular box containing text and possibly images that is typically displayed on a webpage, often serving as a clickable link to the advertiser's website. 25. ________ are advertisements, often with video or animation, which pop up between changes on a Web site. A) Interstitials B) Pay-per-click ads C) Podcasts D) Wallpaper ads E) Floating ads Answer: A Rationale: Interstitials are advertisements that appear between changes on a webpage, often with video or animation, designed to capture the user's attention during transitions. 26. Podcasts are ________. A) digital representations of animated pictures B) dynamic advertisements that change color and fonts while being displayed C) advertisements that pop up between Web pages D) digital media files created for playback E) advertisements that alter the contents of the Web page Answer: D Rationale: Podcasts are digital media files, such as audio or video recordings, that are created for playback on computers or mobile devices. They are not advertisements but rather content meant for entertainment or informational purposes. 27. You are browsing through an entertainment Web site. When you click on one of the links, the screen turns grey and displays the advertisement of an automobile manufacturer. Clicking on the advertisement leads to the automobile manufacturer's Web site. This advertisement is an example of a(n) ________. A) interstitial B) superstitial C) floating ad D) pay-per-click ad E) wallpaper ad Answer: A Rationale: The described advertisement is an interstitial, which appears between changes on a webpage and typically covers the entire screen momentarily before allowing the user to proceed to the intended content. 28. Which of the following is a disadvantage of using e-mails in marketing? A) Non-technical products cannot be promoted using e-mails. B) E-mails are not a cost-effective alternative. C) Customers can filter the e-mails and many won't reach them. D) E-mails cannot be used for prospecting. E) Customer feedback cannot be sought when using e-mails. Answer: C Rationale: One disadvantage of using emails in marketing is that customers can filter out or ignore emails, leading to lower open rates and reduced effectiveness of email marketing campaigns. 29. Which of the following statements is true about mobile apps? A) They are advertisements that avoid the use of animations. B) They are text messages sent in response to promotions. C) They are software used to control basic functions such as texting. D) They are programs designed to enhance the performance of a cell phone's processor. E) They are software programs that can be loaded onto smartphones. Answer: E Rationale: Mobile apps are software programs that can be downloaded and installed on smartphones or tablets, providing users with various functionalities, services, or entertainment options. 30. Which of the following is a valid observation about word of mouth advertisements? A) It is the one form of advertisement that cannot be controlled by companies because it occurs naturally. B) Social media can be used as a tool to generate positive word of mouth. C) Word-of-mouth strategy will be less effective for smaller organizations. D) Attempts to manage word-of-mouth would lead to negative consequences. E) Organic word of mouth is always positive whereas facilitated word of mouth is negative. Answer: B Rationale: Social media platforms provide opportunities for companies to facilitate and encourage positive word of mouth through engagement with customers and sharing of positive experiences, making option B a valid observation. 31. All the PR benefits a firm receives without having directly paid for anything is called ________ media. A) earned B) open C) passive D) inherent E) internal Answer: A Rationale: Earned media refers to publicity gained through promotional efforts other than paid advertising. It includes mentions in the press, social media shares, reviews, and other forms of unpaid promotion. 32. Inception, a recent Hollywood blockbuster, had created a lot of interest among the viewers even before its release due to the credentials of its makers. The movie was discussed in social network pages and discussion forums. The discussions increased after its release and it helped the movie do good business. Which of the following most closely describes the type of marketing discussed in this example? A) personalized marketing B) direct marketing C) interactive marketing D) word of mouth marketing E) technology marketing Answer: D Rationale: Word of mouth marketing involves consumers sharing information and recommendations about products or services with others. In the case of Inception, the discussions and buzz generated on social networks and forums contributed to its success through word of mouth. 33. ________ are regularly updated online journals or diaries. A) Cliques B) Podcasts C) Interstitials D) Blogs E) Forums Answer: D Rationale: Blogs are online platforms where individuals or groups regularly publish content, including personal reflections, commentary, news, or information on specific topics. They are often updated with new entries called posts. 34. Albert Hawkins is a famous writer. He has authored more than fifteen books in Spanish. He publishes his thoughts online and updates the pages periodically. This online account has generated much public interest in Spain and has many readers. Hawkins's online journal is an example of a(n) ________. A) blog B) interstitial C) online magazine D) buzz spot E) microsite Answer: A Rationale: Hawkins's online journal, where he publishes his thoughts and updates periodically, fits the description of a blog, which is an online platform for publishing personal or informational content. 35. Identify a social network that majorly targets career-minded professionals. A) LinkedIn B) Facebook C) MySpace D) Twitter E) Orkut Answer: A Rationale: LinkedIn is a social network primarily designed for professional networking, making it a suitable platform for career-minded individuals to connect, share information, and seek job opportunities. 36. Which of the following is an example of marketing through social media? A) a leading brand of sports shoes sponsors the soccer world cup B) a software company organizes a cancer awareness camp free for all C) a new department store in your neighborhood that relies on people to spread the word D) a newspaper article talks about the pollution control processes put in place by a steel manufacturing giant E) a leading car manufacturer advertises the new model on Facebook Answer: E Rationale: Advertising the new car model on Facebook constitutes marketing through social media, as it involves using a social networking platform to promote a product or service to a targeted audience. 37. Which of the following is Word's biggest social network? A) MySpace B) Twitter C) Facebook D) Orkut E) Youtube Answer: C Rationale: Facebook is the world's largest social networking platform in terms of active users and overall reach, making it the biggest social network globally. 38. Twitter is a Web site that allows users to publish micro comments. It allows users to create accounts and publish short messages not exceeding 140 characters. Interested people can follow a person's Twitter account and the messages published by him. Many celebrities in the United States are active tweeters and have a number of followers. Twitter is an example of a ________. A) social network B) blog C) wiki D) microsite E) microblog Answer: A Rationale: Twitter is a social networking platform that allows users to publish short messages, called tweets, and interact with others by following their accounts and sharing content. It is classified as a social network rather than a blog or microsite. 39. ________ is a social network that concentrates majorly on music and entertainment. A) LinkedIn B) Twitter C) MySpace D) Orkut E) Facebook Answer: C Rationale: MySpace is a social networking platform that initially gained popularity as a platform for music and entertainment, allowing users to create profiles with music playlists, share content, and connect with others based on common interests. 40. ________ marketing generates excitement, creates publicity, and conveys new relevant brand-related information through unexpected or even outrageous means. A) Live-in B) Buzz C) Viral D) Guerrilla E) Experimental Answer: B Rationale: Buzz marketing aims to generate excitement and interest in a product or service by creating a buzz or word of mouth among consumers through unexpected or unconventional means. 41. ________ is another form of word of mouth that encourages consumers to pass along company-developed products and services or audio, video, or written information to others online. A) Buzz marketing B) Viral marketing C) Guerrilla marketing D) Motivational marketing E) Internal marketing Answer: B Rationale: Viral marketing is a form of word-of-mouth marketing that encourages consumers to share company-developed content or information with others online, often leading to rapid dissemination of the message across various social networks and online platforms. 42. Apple created a lot of publicity before the release of its tablet computer, iPad. The product was discussed in online communities and social networks. Many booked the product in advance, ensuring good initial revenues for Apple. The company published periodic updates of the product creating huge expectation in the minds of customers. This pre-launch publicity can be viewed as ________ marketing. A) buzz B) stealth C) ambush D) undercover E) direct Answer: A Rationale: The pre-launch publicity generated for the iPad, including discussions in online communities and social networks, creating anticipation and excitement among consumers, aligns with the concept of buzz marketing. 43. Altruron Technologies creates a Facebook page for its new brand of LED television, Sparta. The Facebook page provides the latest updates on Sparta and key service issues of the product. It also encourages user comments on the page and users share the information and pictures with their contacts in Facebook. The company has been marketing the page aggressively and has been encouraging users to "like" the product on Facebook. This social networking page and related efforts help the company attract prospective customers. The situation discussed here is an example of ________ marketing. A) viral B) deceptive C) stealth D) direct E) guerrilla Answer: A Rationale: The creation of a Facebook page for the LED television brand Sparta, encouraging user engagement, sharing, and likes, aligns with the concept of viral marketing, as it aims to spread brand-related content rapidly through social networks. 44. Aldoor, a smartphone manufacturer, understands that word-of-mouth marketing is an important aspect of the success of a product. It promotes discussions about the product both online and offline. Certain loyalists, who have good knowledge about smartphones, act as key participants in such discussions. They help others sort out the problems and provide suggestions to those who want to buy smartphones. These individuals can be called ________. A) intuiters B) buzzers C) bridges D) connectors E) mavens Answer: E Rationale: Individuals who possess a wealth of knowledge about products or services and actively share this information with others, as described in the scenario, are known as mavens in the context of word-of-mouth marketing. 45. Andrew is a postgraduate student at Oxford University. He is also a member of a group of engineering professionals. The membership was issued to him when he worked as an engineer before joining the school. Andrew is called a(n) ________, connecting the Oxford student community and the group of engineering professionals. A) bridge B) maven C) buzzer D) intuiter E) external Answer: A Rationale: In this context, Andrew acts as a bridge between two distinct groups, facilitating communication and interaction between the Oxford student community and the group of engineering professionals. 46. Buzz and viral marketing both try to ______. A) use unethical methods to popularize a brand B) market products by providing free samples to customers C) create a splash in the marketplace to showcase a brand D) induce impulse sales by displaying products close to the pay counters E) market products to customers without their knowledge Answer: C Rationale: Buzz and viral marketing aim to create a buzz or excitement around a product or brand, often through unconventional or unexpected means, with the goal of generating widespread attention and interest in the marketplace. 47. According to communication researchers, society consists of ________, small groups whose members interact frequently. A) intuiters B) buzzers C) cliques D) informants E) campaigners Answer: C Rationale: In communication research, cliques refer to small groups within society whose members interact frequently and share common interests or characteristics. 48. People who know and communicate with a great number of other people are called ________. A) buzzers B) connectors C) informants D) stickers E) bridges Answer: B Rationale: Connectors are individuals who have large networks of contacts and communicate with a wide range of people, making them influential in spreading information and messages. 49. Which of the following software allows Internet firms to monitor when customers blog, comment, post, share, link, upload, friend, stream, write on a wall, or update a profile? A) cookies B) caches C) bridges D) cliques E) buzzers Answer: A Rationale: Cookies are software programs used by Internet firms to track and monitor user activity online, including actions such as blogging, commenting, posting, sharing, linking, uploading, friending, streaming, writing on a wall, or updating a profile. 50. The original and oldest form of direct marketing is ________. A) billboards B) banner advertising C) mail campaigns D) outbound telemarketing calls E) field sales calls Answer: E Rationale: Field sales calls, where sales representatives directly approach potential customers to promote products or services, are considered the original and oldest form of direct marketing. 51. A salesperson performing over the counter sales in a medical store can be referred to as a(n) ________. A) order taker B) demand creator C) solution vendor D) phisher E) missionary Answer: A Rationale: An order taker is a salesperson who primarily processes routine orders from customers without actively engaging in sales activities to generate new demand. 52. Alduro Chemicals, a manufacturer of detergents, delivers chemicals used for commercial washing to various hoteliers in the United States. Most of the company's revenue comes from routine orders from its existing customers and the company uses unskilled salespeople to collect requirements from its customers. These unskilled customers are known as ________. A) demand creators B) deliverers C) missionaries D) order takers E) solution vendors Answer: D Rationale: Order takers are salespeople who primarily process routine orders from existing customers, as described in the scenario. 53. Gordron Inc. manufactures and markets medical equipment. To ensure that its salespeople are knowledgeable enough to answer all product queries, the company hires only those individuals who have a good understanding of both the medicine profession and the mechanics of the equipment used. Which of the following is the most accurate classification of Gordron's salesforce? A) technicians B) demand creators C) deliverers D) order takers E) missionaries Answer: A Rationale: Technicians are salespeople with specialized technical knowledge required to address complex product inquiries and provide detailed solutions to customers, as described in the scenario. 54. Robert is hired as a sales representative for a company that manufactures fire extinguishers. His job description reads as follows: "The key duty of the sales representative is to unravel the customer's problems using the company's products." Which of the following positions would best describe Robert's profile? A) deliverer B) technical salesperson C) missionary salesperson D) order taker E) solution vendor Answer: E Rationale: A solution vendor is a salesperson who focuses on identifying and solving customer problems by offering appropriate products or services, matching Robert's job description. 55. A sales representative whose expertise is in unraveling customers' problem is called a(n) ________. A) order taker B) missionary C) technician D) solution vendor E) demand creator Answer: D Rationale: A solution vendor is a salesperson who excels in understanding and addressing customers' problems by providing suitable solutions, as described in the scenario. 56. A salesperson who relies on creative methods for selling a company's tangible or intangible offerings is called a(n) ________. A) demand creator B) deliverer C) order taker D) missionary E) solution vendor Answer: A Rationale: A demand creator is a salesperson who utilizes innovative or creative approaches to stimulate customer interest and generate demand for a company's products or services. 57. Which of the following tasks of the salesforce refers to conducting market research and doing intelligence work? A) servicing B) communicating C) targeting D) prospecting E) information gathering Answer: E Rationale: Information gathering involves conducting market research and intelligence work to gather relevant data about customers, competitors, and market trends. 58. The process of deciding how to allocate a company's time among prospects and customers is called ________. A) targeting B) prospecting C) allocating D) dispersing E) delegating Answer: A Rationale: Targeting involves determining which prospects and customers to allocate the company's resources, including time, based on their potential value and fit with the company's offerings. 59. Which of the following refers to the process of deciding which customers will get scarce products during product shortages? A) delegating B) prospecting C) allocating D) dispersing E) targeting Answer: C Rationale: Allocating refers to the process of deciding how to distribute scarce resources, such as products during shortages, among customers or prospects. 60. A company uses sales representatives for selling the company's more complex and customized products to large accounts, while using inside salespeople and web ordering for low-end selling. Which of the following describes the company's sales force best? A) demand creators B) direct marketing force C) missionary sellers D) technical salesforce E) leveraged salesforce Answer: E Rationale: A leveraged sales force utilizes different sales channels and resources to optimize sales efforts, as described in the scenario. 61. Your company has customer-service representatives who provide you with leads, write up proposals, fulfill orders, and provide post-sales support. Your responsibilities are to concentrate on the larger accounts with more complex and customized needs. Your company most likely has a ________ salesforce. A) distributive B) territory based C) leveraged D) decentralized E) parallel Answer: C Rationale: A leveraged salesforce involves utilizing different sales channels and resources within the organization to optimize sales efforts. In this scenario, customer-service representatives handle routine tasks, allowing sales representatives to focus on larger accounts with more complex needs. 62. ________ consists of manufacturers' reps, sales agents, and brokers who earn a commission based on sales. A) Virtual salesforce B) Domestic salesforce C) Contingent sales force D) Contractual sales force E) Decentralized salesforce Answer: D Rationale: A contractual sales force includes manufacturers' reps, sales agents, and brokers who work on a commission basis, earning compensation based on sales performance rather than fixed salaries. 63. Part-time paid employees who work exclusively for the company are a part of the ________ salesforce. A) direct B) virtual C) contractual D) implicit E) brokered Answer: A Rationale: A direct salesforce consists of employees who work directly for the company, whether fulltime or part-time, and exclusively focus on selling the company's products or services. 64. Fixed compensation receives more emphasis in sales rep jobs with ________. A) a high ratio of selling to nonselling duties B) a high requirement for individual initiatives C) an intensive focus on selling activities D) very little need for teamwork E) technical complexities Answer: E Rationale: Fixed compensation is more common in sales positions with technical complexities, as sales reps are expected to possess specialized knowledge and skills, making their compensation structure more straightforward. 65. Identify the first step in the workload approach to establish sales force size. A) grouping customers into size classes according to annual sales volume B) establishing desirable call frequencies for each customer class C) determining the total workload for the country in terms of sales calls per year D) determining the average number of calls a sales representative can make per year E) calculating the total number of sales reps needed Answer: A Rationale: The first step in the workload approach is to group customers into size classes according to annual sales volume, which helps in estimating the workload required to serve different customer segments. 66. Which of the following sales positions is most likely to have fixed compensation? A) an FMCG salesperson selling to supermarkets B) a salesperson who handles the industrial customers C) an insurance agent who works part time D) a service representative in charge of handling incoming customer queries E) a telecaller calling up existing customers to bring in additional sales Answer: B Rationale: A salesperson handling industrial customers, who may require specialized technical knowledge and expertise, is more likely to have fixed compensation due to the nature of the job and the technical complexities involved. 67. Today's customers expect a salesperson to have extensive product knowledge, to be efficient and reliable, and to provide ideas to improve the customer's operations. These demands are forcing companies to make higher investments in ________. A) sales training B) internal selling C) management controls D) advertising E) sales promotions Answer: A Rationale: The increasing expectations of customers necessitate higher investments in sales training to ensure that salespeople possess the necessary product knowledge, skills, and capabilities to meet customer demands effectively. 68. Company call center executives provide procedural information to the clients who call up to know the specifications and operation of the product. These call center employees can be called ________. A) technical support people B) sales assistants C) telemarketers D) deliverers E) consultants Answer: A Rationale: Call center executives who provide procedural information about products or services and address technical queries are commonly referred to as technical support people. 69. ________ questions ask about the consequences of the buyer's problems. A) Situation B) Problem C) Implication D) Need-payoff E) Solution Answer: C Rationale: Implication questions focus on exploring the consequences or effects of the buyer's problems, helping the salesperson understand the potential impact and importance of addressing those problems. 70. Jackson, the sales representative of a European manufacturer of commercial heavy-duty washing machines, calls on the hotels in California. During a sales call, he asks the housekeeping manager of a hotel "How many bed sheets do you wash in a day, on an average?" This question can be classified as a(n) ________ question. A) situation B) problem C) implication D) need-payoff E) consequence Answer: A Rationale: Jackson's question aims to gather information about the current situation or circumstances of the hotel's laundry operations, making it a situation question. 71. Which of the following is an example of a problem question? A) What system are you using to invoice your customers? B) How does this problem affect your people's productivity? C) What parts of the system create errors? D) How much would you save if our company could help reduce errors by 80 percent? E) Which operating system have you installed in your personal computer? Answer: C Rationale: Problem questions are designed to uncover issues or challenges that the customer may be facing. Option C, "What parts of the system create errors?" directly addresses potential problems within the system, making it an example of a problem question. 72. Which of the following types of questions directly enquires about the value or usefulness of a proposed solution? A) situation questions B) problem questions C) implication questions D) consequence questions E) need-payoff questions Answer: E Rationale: Need-payoff questions directly inquire about the value or usefulness of a proposed solution by focusing on the benefits or advantages it offers to the customer. 73. Which of the following is the first step in the process of personal selling? A) prospecting and qualifying B) sales preapproach C) sales presentation D) unearthing objections E) demonstrating advantages Answer: A Rationale: Prospecting and qualifying is the first step in the personal selling process, involving identifying potential customers (prospects) and evaluating their suitability as customers (qualifying). 74. A salesperson who is contacting possible buyers by mail or phone to assess their level of interest and financial capacity is in the ________ step of the selling process. A) preapproach B) prospecting C) qualifying D) following up E) objection handling Answer: B Rationale: Prospecting involves identifying and contacting potential buyers to assess their level of interest and suitability as customers. 75. In which of the following stages of personal selling does a salesperson tell the product story to the buyer? A) preapproach B) prospecting C) presentation D) closing E) objection handling Answer: C Rationale: The presentation stage of personal selling involves the salesperson telling the product story to the buyer, highlighting its features, benefits, and advantages. 76. Catalog marketing and telemarketing are examples of indirect marketing. Answer: False Rationale: Catalog marketing and telemarketing are both examples of direct marketing, not indirect marketing. In catalog marketing, companies directly send catalogs to potential customers, and in telemarketing, they directly engage potential customers over the phone. 77. One of the shortcomings of direct marketing is that the firms cannot easily measure its response. Answer: False Rationale: One of the strengths of direct marketing is its measurability. Direct marketing campaigns often include mechanisms for tracking responses, such as unique URLs, coupon codes, or dedicated phone numbers, making it easier for firms to measure their effectiveness. 78. Direct mail permits target market selectivity and allows early testing and response measurement. Answer: True Rationale: Direct mail allows companies to target specific market segments by mailing materials directly to them. It also facilitates early testing of campaigns and offers, as well as the measurement of responses through various tracking methods. 79. A company's best prospects are customers who have never bought its products. Answer: False Rationale: Typically, existing customers who have already purchased products from a company are considered some of the best prospects for future purchases. These customers already have experience with the brand and are more likely to make repeat purchases or engage in upselling or cross-selling opportunities. 80. Direct marketing has the ability to test different elements of an offer strategy under real marketplace conditions. Answer: True Rationale: Direct marketing allows companies to test various elements of their offer strategy, such as pricing, messaging, and promotions, in real marketplace conditions. This ability to test and measure responses helps companies refine their strategies for better effectiveness. 81. If a company exaggerates the features of its products in its product catalogue, it can be classified as deception. Answer: True Rationale: Exaggerating product features in a product catalog can indeed be considered deceptive marketing. It misleads consumers about the actual attributes of the product, potentially leading to dissatisfaction or distrust in the brand. 82. Internet is not a suitable channel for engaging in interactive marketing. Answer: False Rationale: The internet is a highly suitable channel for interactive marketing due to its interactive nature. Through websites, social media platforms, email marketing, and various online tools, companies can engage with their audience in real-time, gather feedback, and tailor their marketing efforts accordingly. 83. Display advertisements can be used as a medium for interactive advertising. Answer: True Rationale: While display advertisements are typically static images or banners, they can incorporate interactive elements such as clickable buttons, videos, or animations. Users can interact with these ads by clicking, hovering, or engaging with the content, making them a medium for interactive advertising. 84. Microsites are versions of Web sites designed for access from mobile devices. Answer: False Rationale: Microsites are standalone web pages or small websites created for specific campaigns, products, or events. While they can be optimized for mobile access, they are not exclusively designed for mobile devices. They can be accessed from various devices, including desktop computers. 85. Paid search refers to the practice of charging Internet users a small premium for obtaining individualized search results. Answer: False Rationale: Paid search, commonly known as pay-per-click (PPC) advertising, refers to advertisers paying a fee each time their ad is clicked in search engine results. It does not involve charging internet users for search results but rather involves advertisers paying for placement in search engine results pages. 86. Interstitials are advertisements that pop up between changes on a Web site. Answer: True Rationale: Interstitials are indeed advertisements that appear between changes on a website, such as between page loads or during navigation. They often cover the entire screen or a significant portion of it and require user interaction, such as clicking a close button, to proceed to the desired content. 87. Podcasts are digital media files created for playback on portable MP3 players and computers. Answer: True Rationale: Podcasts are indeed digital audio files that are typically created for playback on portable MP3 players, computers, smartphones, and other digital devices. They are often episodic and cover a wide range of topics, from entertainment to education and news. 88. Word of mouth marketing is not an effective marketing strategy for small firms. Answer: False Rationale: Word of mouth marketing can be highly effective for small firms, sometimes even more so than traditional advertising. Positive word of mouth from satisfied customers can lead to increased brand awareness, trust, and customer acquisition without significant marketing expenses. 89. Earned media refers to the various paid advertising channels used by companies to obtain visibility on the Internet. Answer: False Rationale: Earned media refers to publicity gained through promotional efforts other than paid advertising. It includes mentions, shares, reviews, and other forms of organic exposure that a company earns through its actions, such as media coverage, social media mentions, and customer testimonials. 90. An important characteristic of online communities and forums is the two-way information flow. Answer: True Rationale: Online communities and forums facilitate interaction between members, allowing for a twoway flow of information. Users can ask questions, share opinions, provide feedback, and engage in discussions with each other and with representatives of the company or organization hosting the community. 91. Blogs cannot be used for word of mouth advertising as they are not updated on a regular basis. Answer: False Rationale: Blogs can be effective platforms for word of mouth advertising, even if they are not updated on a daily basis. What matters more is the quality and relevance of the content and its ability to engage readers and encourage sharing and discussion among them. 92. Advertising is the only way companies can tap social networks to their benefit. Answer: False Rationale: While advertising is one way for companies to benefit from social networks, it is not the only way. Companies can also engage with their audience through organic content, interaction, and participation in conversations, which can help build brand loyalty, trust, and advocacy. 93. Niche social networks provide a more targeted market to the advertisers. Answer: True Rationale: Niche social networks cater to specific interests, hobbies, professions, or demographics, making them valuable platforms for advertisers looking to reach highly targeted audiences. Advertising on niche social networks allows companies to focus their efforts on audiences most likely to be interested in their products or services. 94. Viral marketing is a form of direct marketing where a company advertises its products through multiple channels simultaneously to spread the word as fast as possible to the maximum number of people. Answer: False Rationale: Viral marketing involves creating content that spreads rapidly and organically through social sharing and word of mouth. It is not necessarily initiated by the company itself, and its success depends on the audience's willingness to share the content with others. 95. Buzz marketing is most useful for products that are unconventional and unique. Answer: False Rationale: Buzz marketing can be effective for a wide range of products and services, not just unconventional or unique ones. It relies on generating excitement and anticipation among consumers through various marketing tactics, regardless of the product's characteristics. 96. Viral and buzz campaigns are performed with minimal involvement of consumers and prospects. Answer: False Rationale: Both viral and buzz campaigns rely heavily on consumer involvement and engagement. The success of these campaigns depends on consumers sharing content, participating in discussions, and spreading the word to others within their networks. 97. A clique is a small group whose members interact frequently. Answer: True Rationale: A clique refers to a small, tightly-knit group of individuals who interact with each other frequently and often share similar interests, backgrounds, or social circles. Cliques can form in various contexts, including schools, workplaces, and online communities. 98. A firm is said to engage in shill marketing if it pays people to anonymously promote a product or service to consumers in public places without disclosing their financial relationship to the sponsoring firm. Answer: True Rationale: Shill marketing involves the deceptive practice of paying individuals to promote products or services without disclosing their affiliation with the sponsoring firm. This practice is often considered unethical and misleading to consumers. 99. Proxies and cookies can be used by firms to monitor customers when they are blogging, commenting, or posting in social networks. Answer: True Rationale: Proxies and cookies are commonly used by firms to track and monitor customers' online activities, including when they are blogging, commenting, or posting on social networks. These technologies help firms gather data for targeted advertising, personalization, and analytics purposes. 100. Most industrial companies rely heavily on Internet selling and buzz marketing to promote their products. Answer: False Rationale: While some industrial companies may utilize Internet selling and buzz marketing to promote their products, they often rely more heavily on traditional B2B marketing strategies such as trade shows, industry publications, direct sales, and relationship-based selling approaches. 101. A salesperson calling on supermarkets to take repeat orders is called an order taker. Answer: True Rationale: An order taker is a salesperson whose primary role involves processing repeat orders from existing customers rather than engaging in extensive prospecting or relationship-building activities. They focus on maintaining and fulfilling existing customer orders. 102. Demand creators are not permitted to take an order but expected rather to build goodwill or educate the actual or potential user. Answer: False Rationale: Demand creators are salespeople tasked with generating demand for a product or service by educating potential customers, demonstrating value, and building relationships. While they may focus on creating demand, they are still expected to take orders and facilitate sales transactions when opportunities arise. 103. Targeting refers to the process of deciding which customers will get scarce products during product shortages. Answer: False Rationale: Targeting, in the context of marketing, refers to the process of identifying and selecting specific segments of the market to focus on with tailored marketing efforts. It involves analyzing customer demographics, behaviors, and needs to determine the most profitable segments to target. 104. Information gathering refers to the act of conducting market research and doing intelligence work. Answer: True Rationale: Information gathering involves the systematic process of collecting, analyzing, and interpreting data relevant to a company's marketing efforts. This includes conducting market research, competitor analysis, customer surveys, and gathering intelligence on industry trends and consumer preferences. 105. A contractual sales force consists of part-time employees who work exclusively for the company. Answer: False Rationale: A contractual sales force typically consists of individuals or agencies who are hired on a contractual basis to represent and sell a company's products or services. They may work for multiple clients simultaneously and are not exclusive to any single company. 106. A company that sells one product line to one end-using industry with customers in many locations would use product or market structure for its salesforce. Answer: False Rationale: A company that sells one product line to one end-using industry with customers in many locations would likely use a geographic sales force structure. This structure organizes sales teams based on geographic regions, allowing them to efficiently serve customers across various locations. 107. The first step in the workload approach for designing salesforce size is to establish desirable call frequencies for each customer class. Answer: True Rationale: In the workload approach for designing salesforce size, the first step is indeed to establish desirable call frequencies for each customer class. This involves determining how often sales representatives should contact customers based on factors such as their importance, purchasing behavior, and sales potential. 108. The fixed amount in a salesperson's salary is majorly designed to stimulate and reward efforts from salespeople. Answer: False Rationale: The fixed amount in a salesperson's salary, also known as the base salary, is designed to provide a stable income regardless of sales performance. It serves to provide financial stability to salespeople and is not directly tied to stimulating or rewarding sales efforts. Commission or bonus structures are typically used for that purpose. 109. Variable compensation is common in jobs where the selling task is technically complex and requires teamwork. Answer: False Rationale: Variable compensation, such as commissions or bonuses based on sales performance, is often more common in roles where individual sales performance can be directly measured and incentivized. It may not necessarily be tied to the complexity of the selling task or the requirement for teamwork. 110. Sales representatives who are paid mostly in commissions require more supervision than other salespeople. Answer: False Rationale: Sales representatives who are paid mostly in commissions are often self-motivated to achieve sales targets, as their earnings are directly tied to their performance. They may require less direct supervision compared to salespeople compensated through fixed salaries, as they are incentivized to drive their own success. 111. An employee who provides clerical backup for outside salespersons, runs credit checks, follows up on deliveries, and answers customers' business-related questions is called a sales assistant. Answer: True Rationale: A sales assistant is a support role within a sales team responsible for providing administrative and clerical support to salespersons. Their duties may include tasks such as managing paperwork, coordinating deliveries, handling customer inquiries, and assisting with various administrative tasks. 112. A manager is using feed-forward sales supervision when he communicates what the sales reps should be doing and motivates them to do it. Answer: True Rationale: Feed-forward supervision involves providing guidance, direction, and motivation to sales representatives before they engage in sales activities. It focuses on setting expectations, clarifying goals, and providing support to ensure that sales reps are prepared and motivated to perform effectively. 113. Implication questions ask about the consequences of a buyer's problems, difficulties, or dissatisfactions. Answer: True Rationale: Implication questions are used in sales situations to uncover the potential consequences or effects of a buyer's problems, difficulties, or dissatisfactions. By exploring these implications, sales professionals can better understand the buyer's needs and motivations, positioning their products or services as solutions. 114. Situation questions focus on the problems, difficulties, and dissatisfaction a buyer might be experiencing with the existing situation. Answer: False Rationale: Situation questions are used to gather information about the buyer's current circumstances, needs, and challenges. They focus on understanding the buyer's existing situation, including problems, difficulties, and dissatisfactions, in order to identify opportunities for offering relevant solutions. 115. Closing signs from the buyer include physical actions, statements, or comments, and questions. Answer: True Rationale: Closing signs are signals or indicators from the buyer that they are ready to move forward with a purchase decision. These signs can include various physical actions, verbal statements or comments indicating interest or commitment, as well as questions seeking clarification or details about the purchase process. Recognizing these signs is crucial for sales professionals to effectively close the sale. 116. What is direct marketing? What are the various channels that direct marketers use? Answer: Direct marketing is the use of consumer-direct (CD) channels to reach and deliver goods and services to customers without using marketing middlemen. Direct marketers can use a number of channels to reach individual prospects and customers: direct mail, catalog marketing, telemarketing, interactive TV, kiosks, Web sites, and mobile devices. They often seek a measurable response, typically a customer order, through direct-order marketing. 117. Most direct marketers apply the RFM formula to select customers. Explain this formula and how it is used to select customers. Answer: Most direct marketers apply the RFM (recency, frequency, monetary amount) formula to select customers according to how much time has passed since their last purchase, how many times they have purchased, and how much they have spent since becoming a customer. Suppose a company is offering leather jackets. It might make this offer to the most attractive customers, those who made their last purchase between 30 and 60 days ago, who make three to six purchases a year, and who have spent at least $100 since becoming customers. Points are established for varying RFM levels; the more points, the more attractive the customer. 118. What are the advantages and disadvantages of engaging in interactive marketing using the Web? Answer: It allows the companies to send tailored messages that engage consumers by reflecting their special interests and behavior. Marketers can build or tap into online communities, inviting participation from consumers and creating a long-term marketing asset in the process. The Web offers the advantage of contextual placement, buying ads on sites related to the marketer's offerings. Marketers can also place advertising based on keywords from search engines, to reach people when they've actually started the buying process. Using the Web also has disadvantages. Consumers can effectively screen out most messages. Marketers may think their ads are more effective than they are if bogus clicks are generated by software-powered Web sites. Advertisers also lose some control over their online messages, which can be hacked or vandalized. 119. Briefly describe the various forms of online interactive marketing. Answer: Web sites: Companies must design Web sites that embody or express their purpose, history, products, and vision and that are attractive on first viewing and interesting enough to encourage repeat visits. Search ads: A hot growth area in interactive marketing is paid search or pay-per-click ads, which now account for roughly half of all online ad spending. In paid search, marketers bid in a continuous auction on search terms that serve as a proxy for the consumer's product or consumption interests. Display ads: Display ads or banner ads are small, rectangular boxes containing text and perhaps a picture that companies pay to place on relevant Web sites. E-mail: E-mail allows marketers to inform and communicate with customers at a fraction of the cost of a "d-mail," or direct mail, campaign. 120. Explain the importance of word of mouth marketing. Briefly describe some of the channels that customers use to spread word of mouth. Answer: Consumers use word of mouth to talk about dozens of brands each day. Positive word of mouth sometimes happens organically with little advertising, but it can also be managed and facilitated. It is particularly effective for smaller businesses, with whom customers may feel a more personal relationship. Some of the channels that the customers use are the following. Social media: Social media are a means for consumers to share text, images, audio, and video information with each other and with companies and vice versa. Online communities and forums: Online communities and forums can be a valuable resource for companies and provide multiple functions by both collecting and conveying key information. Information flow in online communities and forums is two-way and can provide companies with useful, hard-to-get customer information and insights. Social networks: Social networks have become an important force in both business-toconsumer and business-to-business marketing. Advertising in social networks and establishing pages are ways of using social network. Blogs: Blogs are regularly updated online journals or diaries. Blogs have become an important outlet for word of mouth. 121. Explain viral marketing and buzz marketing. Answer: Buzz marketing generates excitement, creates publicity, and conveys new relevant brand-related information through unexpected or even outrageous means. Viral marketing is another form of word of mouth, or "word of mouse," that encourages consumers to pass along company-developed products and services or audio, video, or written information to others online. Buzz and viral marketing both try to create a splash in the marketplace to showcase a brand and its noteworthy features. 122. The term sales representative covers a broad range of positions, tasks, and responsibilities. List and briefly describe each of the positions. Answer: The "positions" include: (1) deliverer: the major task is the delivery of a product; (2) order taker: who acts predominantly as an inside order taker or outside order taker; (3) missionary: a salesperson who is not expected or permitted to take an order but whose major task is to build goodwill or to educate the actual or potential user; (4) technician: a salesperson with a high level of technical knowledge; (5) demand creator: one who relies on creative method for selling tangible products; and (6) solution vendor: one whose expertise is in the solving of a customer's problems. 123. Briefly explain the various tasks that the salespeople of an organization perform. Answer: The following are the basic tasks that salespeople perform. (1) Prospecting: searching for new leads or prospects; (2) targeting: deciding how to allocate time among prospects and customers; (3) communicating: communicating information about the company's products and services; (4) selling: approaching, presenting, answering questions, overcoming objections, and closing sales; (5) servicing: providing various services to the customers—consulting on problems, rendering technical assistance, arranging financing, expediting delivery; (6) information gathering: conducting market research and doing intelligence work; and (7. allocating: deciding which customers will get scarce products during product shortages. 124. Most companies set annual quotas. Quotas can be on dollar sales, unit volume, margin, selling effort, or activity and product type. Compensation is often tied to the degree of quota attainment. What problems does the setting of quotas present to both the company and to the sales representative? Answer: If the company underestimates and the sales reps easily achieve their quotas, the company has overpaid its reps. If the company overestimates sales potential, the salespeople will find it very hard to reach their quotas and be frustrated or quit. Another downside is that quotas can drive reps to get as much business as possible—often resulting in their ignoring the service side of the business. 125. What are the six steps in personal selling? Answer: The six steps are: (1) prospecting and qualifying; (2) preapproach; (3) presentation and demonstration; (4) overcoming objections; (5) closing; and (6) follow-up and maintenance. 126. DB bank is launching a new investment product targeting senior citizens in the U.S. The company decides to use direct marketing for selling the product. What direct marketing strategy would allow the company early testing and response measurement of the product? Answer: The company can use direct mails to communicate with prospects. It permits target market selectivity, can be personalized, is flexible, and allows early testing and response measurement. 127. What are the five elements of an offer strategy? Answer: The five elements of the offer strategy are the product, the offer, the medium, the distribution method, and the creative strategy. 128. Integron Inc., a company that manufactures office furniture, has recently observed a dip in its profitability. Salespeople visit an average prospect at least six times before closing a deal. What suggestion can you give the company to reduce this expense of direct marketing and increase its profitability? Answer: Student answers can vary. The company can replace some of the sales calls with telemarketing. This would help them reduce the costs and increase profitability. 129. Roler Telecom, a leading mobile telephone operator in Asia, engages in aggressive marketing promotions. The company sends promotional messages to customers and makes promotional calls on a regular basis. However, these aggressive promotion efforts often irritate its customers. What could be the likely outcome of this? Answer: Many people don't like hard-sell, direct marketing solicitations from marketers. The given scenario is one example of this. This issue, if left unattended, will lead to increasingly negative consumer attitudes, lower response rates, and calls for greater state and government regulation. 130. Ardrino Inc., which produces computer gadgets such as Webcams, earphones, and mouse devices, makes effective use of the Web to sell its products. The company uses email as the major medium for prospecting because it is cost effective. What are the possible challenges that the company can face due to its heavy dependence on the Internet? Would you suggest any changes in their strategy? Answer: Using the Web has disadvantages. The consumers of Ardrino can effectively screen out most messages that the company sends. The company will also lose some control over their online messages, which can be hacked or vandalized. The company should also use direct selling to build a rapport with existing and prospective customers, which would enable them to explain their value proposition better, and convince prospects to choose them over competitors. Student answers can vary. 131. What aspects need to be considered when designing a company Web site? Answer: Companies must design Web sites that embody or express their purpose, history, products, and vision and that are attractive on first viewing and interesting enough to encourage repeat visits. The Web site should be physically attractive and easy to use. 132. When you search Google for keywords such as "insurance," you observe highlighted results in a different color and format, above the search results. What are these results? Do they bring revenue to Google? Answer: These results above the organic search are called paid search or pay-per-click advertisements. In paid search, marketers bid in a continuous auction on search terms that serve as a proxy for the consumer's product or consumption interests. Google allows the highest bidders' ads to appear during the search of a key term and gets paid accordingly. 133. When you click on some of the links in a Web site, before displaying the intended page, you see advertisements from third parties. What are these advertisements called? Answer: These advertisements are called interstitials. Interstitials are advertisements, often with video or animation, which pop up between changes on a Web site. 134. What is the major difference between earned media and paid media? Answer: Paid media results from press coverage of company-generated advertising, publicity, or other promotional efforts. Earned media is all the PR benefits a firm receives without having directly paid for anything, all the news stories, blogs, social network conversations that deal with a brand. 135. Many individuals, including famous personalities, maintain online diaries to express their views on a regular basis. What are these online journals called? What marketing implications do these journals have? Answer: These journals are called blogs. Blogs can be an important source of word-of-mouth marketing. 136. Provide two examples of social networking Web sites that can be used for marketing purposes. Answer: Twitter and Facebook are two social networks used extensively by marketers. Most modern companies have a twitter and facebook page. 137. Ranbor Mobiles is planning to launch a new smart phone. The company wants to create awareness and hype about the product in the target market. It releases an ad featuring a popular youth icon and highlights the phone's special features on a popular video sharing Web site. Within an hour of its release, the ad was viewed a million times. Is Ranbor using a viral marketing strategy or a shill marketing strategy? Explain your answer. Answer: The company is using viral marketing here. Viral marketing is a form of word of mouth that encourages consumers to pass along company-developed products and services or audio, video, or written information to others online. A million hits within the first hour of its release suggests that people have liked it and will talk about it. Shill marketing, on the other hand, is a controversial tactic where a firm pays people to anonymously promote a product or service in public places without disclosing their financial relationship to the sponsoring firm. There is no indication of Ranbor having paid anyone to anonymously promote the phone. 138. What is buzz marketing? Answer: Buzz marketing generates excitement, creates publicity, and conveys new relevant brand-related information through unexpected or even outrageous means. 139. Stromm Inc. is a leading manufacturer of electronic appliances. The company has recently invented an air conditioner that consumes much less power than competing offerings and wants to create a hype for the new product. What marketing strategies can the company use to make the product a talking point? Answer: The company can use buzz and viral marketing to initiate word of mouth. Buzz marketing generates excitement, creates publicity, and conveys new relevant brand-related information through unexpected or even outrageous means. Viral marketing is another form of word of mouth that encourages consumers to pass along company-developed products and services or audio, video, or written information to others online. 140. What are cliques? How can two cliques be related? Answer: Small groups whose members interact frequently are called cliques. Clique members are similar, and their closeness facilitates effective communication but also insulates the clique from new ideas. Cliques should exhibit openness in exchanging information with others and this openness is helped along by people who function as liaisons and connect two or more cliques without belonging to either, and by bridges, people who belong to one clique and are linked to a person in another. 141. Jack is the sales representative of a company that designs and installs modular kitchens. The company's salesforce is trained to customize their offerings as per customer requirements. After analyzing factors such as the space available and the budget, Jack provides personalized designs to individual customers. What kind of a salesperson is Jack? Briefly explain your answer. Answer: A salesperson whose expertise is solving a customer's problem, often with a system of the company's products and services is called a solution vendor. Here, Jack is providing different solutions to different customers after analyzing their problems. Jack can be called a solution vendor. 142. You are appointed as the B2B sales representative of a manufacturing company. What are the various tasks that you will have to perform as a B2B salesperson? Answer: The following activities have to be performed by a salesperson: (1) prospecting, (2) targeting, (3) communicating, (4) selling, (5) servicing, (6) information gathering, and (7) allocating. 143. You are the sales manager of a company that manufactures and markets server computers. The company's products require high-involvement from the sellers and require salespeople to provide complex and technical information. What kind of a compensation structure do you select for your sales representatives? Answer: The salespeople in the given scenario should have a pay structure that gives prominence to fixed pay. Fixed compensation is common in jobs with a high ratio of nonselling to selling duties, and jobs where the selling task is technically complex and requires teamwork. 144. Which type of questions allow salespeople to understand facts or explore the buyer's present state of affairs? Answer: Situation questions ask about facts or explore the buyer's present situation. 145. You work as a sales representative in a company that manufactures surgical equipment. Before calling on an important prospect, you decide to search the Internet and find out details about him. What step in the selling process is being carried out here? What is the importance of this step? Answer: This step is called preapproach. This helps to understand aspects such as how the purchasing process is conducted at the company, how is purchasing structured, number of purchasing departments in larger companies, and so forth. This information is useful to qualify the prospect, gather information, or make an immediate sale. Test Bank for Marketing Management Philip T Kotler, Kevin Lane Keller 9780132102926, 9780273753360, 9781292092621, 9780133856460, 9789332587403, 9780136009986
