University of the Southern Caribbean School of Business Principles of Marketing Take Home Assignment on Chapter 13-16
Refer to the scenario below to answer the following questions.
In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a shoe store, a small restaurant, and a grocery store. Over the next two decades, the small town transformed into an international tourist attraction, attracting thousands of tourists who are intrigued with the lifestyle of Shipshewana’s largest population the Amish. Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their town’s popularity and their woodworking skills. Their shop, Indiana Wood, began with a small display of handmade hickory rocking chairs, Ben Miller’s specialty.
But within a few months, the display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty items. No other shop offers the same. Mary Miller decorated the shop’s display room with authentic Amish decor and eventually hired three Amish friends to sew and embroider napkins and other textiles per customer request. In addition, two women from the Amish community sought permission from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays, the town’s busiest tourist days, when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. “Shipshewana is full of specialty shops,” Mary Miller stated. “People don’t come here to buy things made in China or Taiwan. They want real, Amish-made goods. ”
1. Indiana Wood is best classified as a(n) ________ retailer.
2. Which of the following is most critical to Indiana Wood’s success?
D) store atmosphere
E) services mix
3. The Amish decor and shop workers give customers an authentic impression of the pride and skill built into the shop’s products. These aspects also contribute to the store’s ________.
A) product assortment
B) services mix
4. Which of the following would be the most logical way for Indiana Wood to expand?
A) establishing an online presence
B) pursuing retail convergence
C) implementing RFID inventory tracking
D) establishing a community-gathering environment in the store
E) joining a producers’ cooperative
Refer to the scenario below to answer the following questions. John Mayes opened Sparkle Janitorial in 1999. John began by acquiring two contracts for office cleaning services from two local manufacturing facilities. For two years, John and his wife, Barb, performed the cleaning services alone. After acquiring three additional cleaning contracts in 2001, John hired two employees. “Up to that point, we had room to grow but we really had no advertising plan,” John stated. We were relying mostly on word-of-mouth. ” By 2003, Barb hired another two full-time employees to begin Sparkle’s new endeavor: carpet cleaning in homes and offices. “Competition was getting tough for both of our services at that point,” Barb added. “We ran a local radio spot three times each week. Then we had an advertiser print coupons on placemats. That gave us a little more exposure. ” John and Barb Mayes admit that they never realized the value of a sound promotional plan before now. “We wish we would have put together something catchy with a jingle way before now,” they said.
5. Which of the following would be the LEAST effective way for John and Barb to reach new potential customers?
A) word-of-mouth influence
B) buzz marketing
C) public relations
D) network television advertising
E) direct marketing
6. In a recent radio spot, John and Barb gave a quick explanation of Sparkle’s cleaning process and a description of the value consumers receive for their money. This is an example of a(n) ________.
A) emotional appeal
B) standard appeal
C) rational appeal
D) moral appeal
E) social appeal
Most of the clientele at Second Avenue have learned about the store through word-of-mouth communication. This small retailer of quality second-hand children’s clothing thrives on the sale of a vast inventory of children’s clothing placed there on consignment. “Because small children grow so quickly,” Second Avenue’s owner commented, “they often outgrow many of their clothes before they’ve hardly been worn! ” Second Avenue provides a way for people to sell their children’s clothing, earn a few dollars, and buy the next larger size. “We’re extremely picky about the condition of the clothing we stock,” the owner stated, “but we sell most items at a 60 percent discount.
7. Which of the following media options would MOST benefit Second Avenue’s promotional efforts given the store’s limited budget?
A) periodic advertising in a local newspaper
B) daily advertisements on a local radio station
C) weekly commercials during the local evening news
D) a billboard placed on the interstate
E) a link on the city’s Chamber of Commerce Web site
8. Second Avenue wants to create a postcard to be sent to local families with young children. The postcard will include information about the store’s typical inventory, store hours, and directions. Which of the following format elements can make the biggest difference in the success or failure of the direct mailing?
9. The owner of Second Avenue wants to establish a community clothing drive to collect clothes for a local children’s shelter. The owner will set up collection barrels outside Second Avenue. Which of the following public relations tools is the owner using?
A) press relations
B) product publicity
E) public affairs
10. At Finley’s Fine Goods, members of the sales force and marketing epartment tend to have disagreements when things go wrong with a customer. The marketers blame the salespeople for poorly executing their strategies, while the salespeople blame the marketers for being out of touch with the customer. Which of the following steps should upper-level management at Finley’s Fine Goods take to help bring the sales and marketing functions closer together?
A) establish a customer sales force structure
B) establish a complex sales force structure
C) appoint a new sales force manager
D) adopt a sales force automation system
E) appoint a chief revenue officer
11. Ultra-Tech, Inc. as decided to switch to a customer sales force structure. Which of the following advantages is the company now LEAST likely to enjoy?
A) The company can become more customer-focused.
B) The company can better serve different industries.
C) The company can build closer relationships with important customers.
D) The company can better serve current customers and find new customers.
E) The company can expect salespeople to develop in-depth knowledge of numerous and complex product lines.
12. Johnson Business Solutions, Inc. , maintains one sales force for its copy machines and a separate sales force for its computer systems. Johnson Business Solutions utilizes a ________ structure.
A) product sales force
B) customer sales force
C) territorial sales force
D) a combination of B and C
E) complex sales force
13. Morrill Motors splits the United States into 10 sales regions. Within each of those regions, the company maintains two sales teams? one for existing customers and one for prospects. What type of sales force structure does Morrill Motors use?
14. An IBM sales representative is giving a product demonstration to a Best Buy representative. Assisting with the demonstration are an engineer, a financial analyst, and an information systems specialist. If IBM wins the Best Buy account, then all four IBM representatives will service the Best Buy account. This is an example of ________.
A) team selling
B) territorial selling
C) inside selling
E) sales promoting
15. Sales have been slow recently at B & B Materials, so management has organized a training program to improve the performance of its sales force. Which of the following would most likely lead to improved sales for B & B Materials?
A) tests to measure the analytic and organizational skills of the sales force
B) information about the marketing strategies used by competitors
C) tests to identify the personality traits of sales force members
D) a time-and-duty analysis for each salesperson
E) instructions on completing expense reports
16. The CEO of Comfy Carpet, Rick Hadley, was skeptical about Web-based training until his sales manager explained that online training is ________.
A) time consuming and difficult to use
B) used by all small companies
C) dynamic and interactive
D) cost competitive and efficient
E) useful to customers
17. At Deck Decor, a manufacturer of outdoor furniture and accessories, the marketing and sales force objectives are to grow relationships with existing customers and to acquire new business. Which of the following compensation plans should management establish to encourage the sales force to pursue both of these objectives?
A) straight salary
B) straight commission
C) salary plus bonus for new accounts
D) commission plus bonus for new accounts
E) salary plus commission plus bonus for new accounts
18. Mary Conti is sales manager for National Computer Training. She wants to evaluate the performance of her sales force that is responsible for the New England territory. Mary will most likely review all of the following in her evaluation EXCEPT ________.
A) call plans
B) sales reports
C) call reports
D) expense reports
E) territorial sales and profit reports
19. The sales force of Conway Pools has qualified a number of leads. Which of the following will most likely occur next?
A) The outside sales force will call on all prospects.
B) The outside sales force will close the deal with one of the prospects.
C) The outside sales force will learn as much as possible about the prospects.
D) The inside sales force will attend meetings with qualified prospects.
E) The inside sales force will put together a presentation for the prospects.
- 1. The wheel-of-retailing concept deals mainly with wholesalers rolling out reduced service levels.
- 2. The life cycle of new retail forms is getting longer.
- 3. Unlike mass marketers, niche marketers expect to see continued growth in their online sales.
- 4. Retail convergence means greater competition for retailers and greater difficulty in differentiating offerings.
- 5. The number of retailers creating communities for their customers is declining.
- 6. Like retailers, a wholesaler must decide on segmentation and targeting, differentiation and positioning, and the marketing mix.
- 7. In an automated warehouse, orders are fed directly from the retailer’s information system to the wholesaler’s, and the items are picked up by mechanical devices and taken to a shipping platform
- 8. The distinction between large retailers and large wholesalers is becoming blurred.
- 9. Mass marketers can expect consumers to distinguish between commercial message sources to maintain a clear image of a company and its brands.
- 10. The integrated marketing concept ties together all of the company’s messages and images.
- 11. Integrated marketing communications allows brand messages to be developed by different departments within an organization.
- 12. A marketing communications director has overall responsibility for the company’s communications efforts.
- 13. The communications process should start with mass media advertising to reach many consumers.
- 14. The four major communication functions are encoding, decoding, response, and noise.
- 15. Encoding is the process by which the receiver assigns meaning to symbols.
- 16. Decoding is the process of putting thought into symbolic form.
- 17. Awareness, knowledge, and preparation are buyer-readiness stages.
- 18. Teaser” advertising is most closely associated with the buyer-readiness stage of liking a product.
- 19. There are three types of appeal from which marketers may choose as they design their message content. These types are rational, emotional, and moral appeals. 20. The “Stop. Think. Tylenol. ” ad is an example of a moral appeal.
- 21. Although television advertising is expensive for corporations, the cost per exposure is relatively low.
- 22. Direct mail is one of the least expensive media on a per exposure basis.
- 23. The communication effects of advertisements and ad campaigns are more difficult to measure than the sales and profit effects.
- 24. In small and large companies, advertising is typically handled by an individual or team in the sales department.
- 25. Today’s advertising agencies are staffed with specialists who can often perform advertising tasks better than a producer or retailer’s own employees can.
- 26. Recently, the increased use of online social networks and video sharing has reduced the need for advertising standardization for global brands.
- 27. Since China has lifted many of its international trade restrictions, corporations such as McDonalds and Coca- Cola now have only limited censorship rules governing their TV and radio advertising.
- 28. In an attempt to change the perception that milk was unhealthy, the National Fluid Milk Processors Education Program established an advertising campaign featuring celebrities with milk mustaches and the tag line “Got Milk? “
- 29. A company typically spends comparable budgets on public relations and advertising.
- 30. A company’s Web site can be an important public relations vehicle.
- 31. What types of products may be sold through category killers?
- 32. What types of products do specialty stores carry? Give an example of a specialty store.
- 34. Describe the differences between chain stores and franchises.
- 35. Describe public relations and three of its main functions.
- 36. Identify four of the major media types and identify some of the strengths and weaknesses of each type.
- 37. Why do many companies invest in ongoing training for their salespeople?
- 38. Compare the four types of compensation plans available to salespeople.
- 39. Name and define the four major communication functions.
- 40. Explain how advertising may change as a product moves from the introductory stage to the growth stage of the product life cycle.