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BAM511 Text: Marketing Management 13th Edition, 2r:)f: ISBN-10: 0136000980 Authors: Publisher: Philip Kotler ano KeVT Keller Prentice Ha.i nt Multiple Choice Questions (Enter your answers on the enclosed answer sheet) 1)A(n) need is one that motivates the consumer but that the consumer is reluctant or unwilling to explicitly verbalize. A) B) C) D) E) 2)The real delight unstated secret stated is practiced most aggressively with unsought goods, goods that buyers normally do not think of buying, such as insurance, encyclopedias, and cemetery plots. A) B) C) D) E) 3)The strength of the production concept product concept sell i ng concept marketing concept holistic marketing concept depends on the mutually profitable business relationships built by the company and its supporting stakeholders. A) B) C) D) E) sales network supply chain network integrated network marketing network holistic union 4) activities include those the company undertakes to make the product accessible and available to target customers. A) B) C) D) E) Consumer behavior New-product development Market segmentation Marketing research Channel 5) Julia hates smoking and is willing to pay an extra tax just to help eliminate smoking in her city. She is exhibiting with respect to smoking. A) B) C) D) E) latent demand declining demand negative demand nonexistent demand unwholesome demand 1 Marketing Management 6) When Volvo runs advertisements suggesting that it is the safest car money can buy, it is engaging in which of the following forms of marketing programming? A) Positioning B) Public relations C)Market segmentation 0) Technological E) Service 7)The firm should estimate its competitors' costs and performances as _____________ _ against which to compare its own costs and performance. A) challenges B) standards C) competition 0) moveable standards E) benchmarks 8)We can say that a has three characteristics: (1) It is a source of competitive advantage in that it makes a significant contribution to perceived customer benefits; (2) it has applications in a wide variety of markets; and (3) it is difficult for competitors to imitate. A) core technology B) winning strategy C)core competency 0) business strategy E) strategic business unit 9)Most large companies consist of four organizational levels: the division level, the business unit level, and the product level. A) strategic level B) board of director level C) corporate level 0) major stakeholder level E) management team level 10) Which of the following terms matches to the phrase "it is a single business or collection of related businesses that can be planned separately from the rest of the company"? A) growth busi ness unit B) diverse business unit C)specialized business unit 0) niche market unit E) strategic business unit 2 , the 11) When a customer places an order at BookBox.com, the company processes the customer's payment information, sends the order to the nearest ware house, and ships the order via Fed Ex. This is best described as the A) new-offering realization process B) customer acquisition process C)customer relationship management process 0) fulfillment management process E) market-sensing process 12) Through its cutting-edge point-of-sale inventory management technology and highly efficient shipping practices, Wal-Mart is able to keep its inventory and logistics costs extremely low and to pass these cost savings on to consumers in the form of low prices. Wal-Mart's strategy is best described as _____________ _ overall cost leadership integrative growth differentiation market development E) focus A) B) C) 0) 13) According to the 2000 census, the U.S. population of 276.2 million was 72 white and African American. The remainder consisted of Hispanic Americans and other minorities. A) 11 B) 13 C)15 0) 18 E) 20 14)Consumer expenditures are affected by _________ _ A) savings B) credit availability C) debt 0) all of the above E) none of the above 15) Today, corporations need to make sure that they are good corporate citizens and that their consumer messages are honest in order to positively align themselves with consumers' --- 3 Marketing Management A) views of the universe B) views of organizations C)views of themselves 0) views of society E) views of others 16) Elance.com is a service provider that allows contractors to describe their level of satisfaction with subcontractors. This is an example of a(n) ___________ _ A) customer complaint site B) combo site offering customer reviews and expert opinions C) public blog 0) independent customer goods and service review forum E) distributor or sales agent feedback site 17) In response to the U.S. income distribution trend toward , LeviStrauss introduced premium Levi's Capital E line to upscale retailers and the less-expensive Levi Strauss Signature line to mass-market retailers. A) low and high incomes, with a shrinking middle income segment B) very low and very high incomes C) very low incomes 0) mostly low incomes E) mostly medium incomes 18) William rose rapidly in his organization and was the youngest CEO in the company's history. William would be characterized as a ___________ _ A) reaper B) taker C)seeker 0) maker E) preserver 19) If a marketi ng researcher wished to reach people who wou Id not give personal interviews or whose responses might be biased or distorted by the interviewers, he or she should choose the as the best way to reach people. A) focus group interview B) online interview C)mail questionnaire 0) cell phone interview E) telephone interview 4 Market i nt 20lThe phase of marketing research is generally the most expensive and the most prone to error. A) B) C) D) E) data collection research objectives questionnaire design research planning interview design 21) According to marketing consultant Pat LaPointe, the measurement pathway of the marketing dashboard reflects what marketers know about sales volumes, the marketing cost per unit sold, and where and how margin is opti mized. A) B) C) D) E) customer metrics unit metrics productivity metrics cash-flow metrics brand metrics 22) There are several methods for assessing market potential. Which of these methods do business marketers prefer? A) B) C) D) E) Brand-development index method Purchase-profitability index Market-test index Multiple-factor index method Market-bui Idup method 23) As one marketing executive noted, are " ... the most cost-effective, quickest, dirtiest way to get information in rapid time on an idea." A) B) C) D) E) scanners in-store interviews surveys tele-us machines focus grou ps 24) If a questionnaire says "Small college classes are better places to learn ef fectively: (choose) 1_ Strongly disagree, 2 _ Disagree, 3_ Neither agree nor disagree, 4_ Agree, 5_ Strongly agree," the researcher would be using which of the following to discover data? A) B) C) D) E) Thematic Appreciation Test (TAT) Dichotomous question Semantic differential Likert scale Multiple choice 5 Marketing Management 25) is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives. A) Failure avoidance rate B) Perceived usefulness C)Customer-perceived value 0) Report rating E) Competitors' market share rat 26) Typically, _________ gains the most benefit from introducing a frequency program. A) the fast follower, who is second to introduce a frequency program in an industry, B) the first company to introduce a frequency program in an industry C) the industry sales leader 0) the low-cost leader in the industry E) the niche player in the industry 27) A would contain such items as past volumes, prices, profits, buyer, status of current contacts, and an assessment of competitive strengths and weaknesses. A) contact list B) customer mailing list C)general corporate database 0) business database E) customer database 28)Using his company's allows a telemarketer to respond to customer inquiries more effectively because he or she can see a total picture of the customer relationship. A) data warehouse B) corporate database C) call back list 0) call rejection list E) Better Business Bureau contacts 29)AII of the following are examples of the perils of CRM EXCEPT __________ _ implementing CRM before creating a customer strategy assuming more CRM technology is better stalking, not wooing, customers the enormous cost that might eventually drain significant profits from the organization E) rolling out CRM before changing the organization to match A) B) C) 0) 6 nt 30) People choose proaucts that reflect and communicate their role and actual or desired in society. A) attitudes B) group C) bel iefs D) feelings E) status 31) portrays the "whole person" interacting with his or her environment. A) B) C) D) E) Subculture Attitude Reference group Lifestyle Culture 32) Anne prefers Yoplait strawberry yogurt over other brands. When she decides to try a different flavor, she picks another Yoplait yogurt because she bel ieves that, if the strawberry flavor is good, other Yoplait flavors must be good as well. This behavior is best described as _________ _ A) B) C) D) E) general ization heuristic thinking discrimination associative networking self-actualization 33)Marketers who target consumers on the basis of their believe that, with appeals to people's inner selves, they can influence purchase behavior. A) B) C) D) E) sophistication time famine core values social class opinions 34) can work to the advantage of marketers with strong brands when consumers make neutral or ambiguous brand information more positive. A) B) C) D) E) Selective distortion Selective choice Selective attention Selective embellishment Selective retention 7 Marketi ng Management 35) Ultimately, the amount of steel sold to General Motors depends on the consumer's demand for GM cars and trucks. From the standpoint of the steel manufacturer, which of the following demand forms is most pertinent? A) B) C) D) E) I nelastic demand Static demand Relational demand Derived demand Geographic demand 36) In order to successfully develop customer reference stories, firms should A) B) C) D) E) use very few direct customer quotes state the customer's needs in compelling terms describe the company's solution in terms of products and services avoid referencing the barriers to satisfying customer needs focus on qualitative results 37) Xerox offers a approach to prospective clients when it offers a complete turnkey solution, including the operation and management of the client's information and communication need. A) B) C) D) E) direct buying supply buying pri mary buyi ng systems buying co-op buyi ng system 38) Using the form of solution selling, w.w. Grainger employees work at large customer facilities to reduce materials-management costs. A) B) C) D) E) 8 solutions to reduce customer costs solutions to decrease customer risks solutions to alter corporate culture solutions to enhance customer revenues sol utions to partnersh i ps 39) The closest re'a:,onships between customers and suppliers arise when A) there are many undifferentiated vendors in the marketplace B) supply is important to the customer C) procurement is simple 0) the customer is highly price sensitive E) all of the above 40) The argument for marketing is that it creates the largest potential market, which leads to the lowest costs, which in turn can lead to lower prices or higher margi ns. A) differentiated B) macro C) mass 0) niche E) micro 41)A consists of two parts: a naked solution and discretionary options. A) flexible market offering B) differentiated market offering C)vertical market offering 0) rigid market offering E) horizontal market offering 42) Rock band Foo Fighters created a digital street team that sends targeted e-mail messages to members who receive exclusive news, previews, and opportunities to win prizes. The Foo Fighters are using eration Y. to reach Gen- A) online buzz B) computer games C)unconventional sports 0) cool events E) student ambassadors 43) A company can be said to have used if the company distinguished among customers ouying on the basis of price, service, and quality. A) global segmentation B) microsegmentation C)strategic segmentation 0) macrosegmemation E) short-term segmentation 9 44) During which step of the segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem? A) B) C) D) E) Step 6 segment "acid test" Step 2 segment identification Step 7 marketing-mix strategy Step 1 needs-based segmentation Step 3 segment attractiveness 45) Three pillars that point to the brand's future value, rather than just reflecting its past, are differemiation, energy, and relevance. Differentiation, energy, and relevance combine to determine what is called brand ________ _ A) B) C) D) E) strength image depth knowledge position 46) According to the BRANDZ model of brand strength, brand building involves a sequential series of steps. Which of these steps would address or answer the question "Do I know about it?" A) B) C) D) E) relevance advantage bonding presence performance 47) All of the following are considered to be among the "six brand building blocks" EXCEPT ______ _ A) B) C) D) E) brand performance brand pride brand feelings brand imagery brand salience 48) Brand names are not the only important brand element. Often, more important it is that brand elements capture the brand's intangible characteristics. A) B) C) D) E) 10 the less concrete brand benefits are the more concrete brand benefits are the more varied brand perceptions are the more sophisticated brand benefits are the less varied brand perceptions are , the Marketi ment 49) Marketers C" ':'umain Dew created the multi-city Dew Action Sports Tour where athletes compete in skateboarding, MBX, and freestyle motocross events to establish a meaningful with its 12-24-year-old target market. A) B) C) D) E) brand asset internal brand brand salience brand element brand contact 50) To achieve a ooint-of-parity (POP) on a particular attribute or benefit, a sufficient number of consumers must believe that the brand is " that dimension. A) B) C) D) E) " on good enough neutral marginal most excellent service based 51) Which of the following common product life-cycle patterns would be characterized as being one where sales grow rapidly when the product is first introduced and then fall to a "petrified" level that is sustained by late adopters buying the product for the first time and early adopters replacing the product? A) Cycle-recycle pattern B) Inverse-cycle pattern C) Scalloped pattern D) Reverse-cycle pattern E) Growth-slump-maturity pattern 52) In the decline e-rase of the product life cycle, if a firm "milks" the firm's investment to recover cash quickly, it is using a strategy called __________ _ A) B) C) D) E) abandonment harvesting position i ng psychological divestment reverse engineer ng 53) While looking a series of special-case product life cycles, you observe that one of the life cycles has had a rapid growth in sales resulting in a severe peak of the sales curve to.rowed by a rapid decline. Which of the following product life-cycle curves IS most likely represented by the above illustration? 11 Marketing Management A) B) C) D) E) Style I ife cycle Niche life cycle Techno life cycle Fad life cycle F ash ion life cyc Ie 54) As an entrepreneur you have decided to launch two products simultaneously to capture two different parts of the market. You are employing a(n) ____________ _ A) B) C) D) E) single-niche strategy multiple-niche strategy standardization strategy adaptive strategy mass-market strategy 55) A segment is unattractive if the company's suppliers are able to raise prices or reduce quantity supplied. Which of the following is the best illustration of the threat of suppliers' growing bargaining power? McDonald's is the .argest fast-food franchise and is still growing. Sears unsuccessfully attempted to compete with Wal-Mart and Kmart. Wal-Mart has almost no competitors in its marketspace. Oil companies rrust purchase a significant amount of their product from OPEC. E) The U.S. Post Office has merged package operations with Fed Ex. A) B) C) D) 56) A firm that IS willir-g to maintain its market share and not rock the boat is known as a _____ _ 12 A) B) C) D) E) market entrant market nicher market leader market challenger market follower 57) defense Involves occupying the most desirable market space in the minds of the const.rners, making the brand almost impregnable. A) B) C) D) E) Mobile Preemptive Position Flank Contraction nt 58) All of the :c : "'Ig are considered market follower strategies EXCEPT A) imitator B) adapter C) innovator 0) counterfeiter E) cloner 59) When a buyer thinks of performance running shoes, the first name that comes to mind is Nike. Ir this example, Nike has a high ____________ _ A) share of mind B) share of innovation C) share of heart 0) share of pocketbook E) share of marker 60) Most products can be offered with varying ______________ that supplement its basic function. A) reliability B) features C) forms 0) conformance qualities E) none of the above 61) Companies normally develop product lines rather than single products and require sellers to establish quality differences between price steps within the line. A) monetary B) imaginary C)perceived 0) actual E) none of the aoove 62)Many sellers offer either general or specific guarantees. Guarantees reduce the buyer's risk. A) perceived B) real C)implied 0) stated E) actual 13 Marketing Management 63) If the Porsche 911 IS designed to accelerate to 60 miles per hour within 10 seconds, and every Porsche 911 coming off the assembly line does this, the model is said to have high ________ _ A) B) C) D) E) durability reliability conformance quality style repairability 64) Services cannot be seen, tasted, felt, or heard before they are bought. To reduce uncertainty, buyers will look for evidence of quality. They will draw inference about quality from place, people, and price they see. Therefore, the service provider's task is to " " A) B) C) D) E) provide high tOUC'l, high price manage the evidence communicate value go full speea aneaa none of the above 65) There is a(n) where consumer perceptions on a service dimension would be deemec satisfactory, anchored by the minimum level consumers would be willing to accept and the level that customers believe can and should be delivered. A) value definition B) zone of tolerance C) empathy D) zone of forgiveness E) perceived forgiveness 66) A service company can differentiate itself on three levels. The first is reliability, the second s res.lienee, and the third is __________ _ A) B) C) D) E) assuredness employees teamwork innovativeness none of the aoove 67) Charles Schwab's best customers get their calls answered in 15 seconds; other customers can wait longer. This is best described as ___________ _ 14 Market i A) B) C) D) E) ment standardiz _ ,_ service-performance process raising service levels to retain the patronage of profitable customers customer empowerment through the Internet fair play in service delivery increasing cor-s.i+ sr oarticipation 68) Purchase decisions are based on how consumers perceive prices and what they consider to be the , not the marketer's stated price. A) referent price B) last purchase: ~ Ice C) current sale price D) current actual pr ce E) none of the above 69) Pricing cues Such as sale signs and prices that end in 9 become more influential when _____ _ A) B) C) D) E) consumer price k-iowledge is poor items are purchased frequently items have beer 0" the market a long time they are employea freauently prices are cons.ster t year-round 70) Pricing methods narrow tne range from which the company selects its final price. In selecting t~at price, the company must consider additional factors, including the rrnoact of other marketing activities, company pricing policies, gain-and-risk-snarmg pricing, and the impact of price on __________ _ A) B) C) D) E) marketing act v t.es channels of c str J _ Lon channel partners other parties none of the above 71) A major crrcurnsta=ce orovoking price increases is __________ _ A) cost inflation B) profitability versus target C) stock price versus target price D) price versus COlT le- : Or] E) market demanc 15 Marketing Management 72) Channel objectives should be stated in terms of _________________________________________ service output levels. A) B) C) D) E) efficient affordable budgeted targeted none of the above 73) By granting , the producer hopes to obtain more dedicated and knowledgeable se I' ng. A) B) C) D) E) exclusive distribution extensive distribution selective distribution random distribut or intensive d istn bution 74) Manufacturers are constantly tempted to move from exclusive or selective distribution to more Intensive distribution in order to ____________ _ A) B) C) D) E) enter the market leave the market decrease coverage and sales increase coverage ard sales none of the aoove 75) The sales of your product are low compared to your competition. The decision facing you S wnetner to use a sales agency (brokers, manufacturers' representatives) or ,- 'E a fielo sales force. The fixed costs of engaging a sales agency are lower tnan those of establishing a company sales force, but costs rise faster through an agency. When figuring out sales and costs, the intersection of the costs between sales agencies and sales force (SB) means that A) B) C) D) E) 76) 16 the sales age"'c) s me Detter cnoice for any sales volume below this point the sales age :c; s t-ie Detter choice for any sales volume above this point above SB means mat the comoany's costs escalate the sales force s the better choice for any sales volume below this point both choices are eq.,a ,y gooa choose the one that you are most comfortable with meas res 2: orocuct's nandling costs from the time the product reaches the warerc.rse .mtil a customer buys it in the retail store. A)Direct proc.. . .,.::e analysis B) Profitab.. _ )",IS C) Brand management D) Direct product proftability analysis E) Shelf management 77) rerers to ouyrng large carload lots and dividing them into smaller units before snipoing them out to consumers. A) Containerizatior B) Warehousing C) Market logrs: ,> D) Wholesaling E) Bulk breaking 78) At some stoc« eve pomt, management must reorder product to refill the inventory to a"l acceptable level. This point is called the ___________ _ A) B) C) D) E) inventory carryi ng costs minimum inventory level order (reorder' po -inventory none of the above 79) As a marker ng -itern your job is to "hang out at the mall" and note the percentage of pe..o c ~\ ~o enter a particular store versus those who pass by it. This is an eXa'TD e c~ for retailers. A) B) C) D) E) measuring censu-r-er shopping patterns measuring reta sales effectiveness measuring (lril!cr- SS"11ert effectiveness measuring reta .ocanons measuring too: .raft:c at the mall 80) The hierarcr y-ct-e+ects model contains awareness, knowledge, liking, ___ , co',\' ::'I un ana purchase. A) B) C) D) E) attitude cognitive response preference interest none of the acove 1 7 nt 81) The two-step flow of information cna .. E: ges the notion that consumption styles a "trickle-down" or "trickle-up" effect from mass media. A) B) C) D) E) originate with are affected by start with are primarily innuenced by are secondarily Influenced by 82) An effectively trained company sales force can make four important contri buttons. enthus asrr b., ding, missionary selling, key account management, and _____ _ A) increased stock position B) customer co-r ac-s C) relationshio sel i'lg D) account manage r.er E) direct sales co uacts t 83) Cornrnunicat or s-rr x allocations vary between consumer and business markets. Consu-ner r~arKeters tend to spend comparatively more on sales promo tion and adverris 19 oi.siness marketers tend to spend comparatively more on A) B) C) D) E) t,., word-of-mol rrarkering personal se I -g events and en2rl2 ces direct market 19 interactive marketing 84) In decidirg C' 2r ad c.icget, marketers must recognize that consumer response can Sf. -snaped An ad threshold effect exists where some positive amount of advertising is necessary before any sales impact can be detected, ou: sales .creases eventua Ily flatten out. A) C B) M C) S D) Y E) T 85) The higher ~'1e associated with a brand, product category, or message, the h grer :he warranted level of repetition. A) B) C) D) E) 18 total number of exoosures target audience rr-ecia 'iabits impact forgetting rate reach ment 86) A cor(;Ja~ f - _c on how to allocate its advertising budget over space as we.l s . c. A company makes "spot buys" when it buys TV time in just a few markets or in regional editions of magazines. These markets are called _____ _ A) SMSA B) trading are=, C) areas OT do, -I'larr nfuence D) short-term rnarxet.ng opportu n rties E) none of the above 87) Althoi .. gn A) B) C) D) E) v_ d::d aovert sing has limited audience selectivity, it ____________ _ is subject to lOW con.oention is very expensive offers low repeat excosure is highly ir~ "'x be all of tne aoove 88) Direct rnarketog os=r ts the of alternative media and messages in search of the rr ost cost-effective approach. A) B) C) D) E) accent testing use outsourcing implernenta.icr 89) Once the target market IS defined, the marketer needs to obtain specific names, whic ' (:2 ~ J2 obtained by purchasing a list of names. The better lists i nc I ude OVE::r aye:. ,; and information. A) B) C) D) E) demographic r.r.anc.al dernographc att 'Lees financial; buy ng groups demograpr .c- os 'c~ograpnlc opinions; rr te cS:S 90) The term sa 2::0 reo .esentative covers a broad range of positions. We call a sales represe ~i:: Jf'- w'Jse expertise is in the solving of a customer's problem a(n) ____ _ A) demand creator B) order taker C) missionary D) solution ve-icoE) technician 19 91) Salespeople need to know how IO 'c' .:g~' ze closing signs from the buyer, including physical actions, statements or comments, and ___________ _ A) B) C) D) E) objections concerns products actions questions 92) The techniq.re for stimulating creativity starts with a problem, such as "getting sorr etn ng from one place to another via a powered vehicle," then lists every POSSlt e cor-ioination of attributes, such as the type of platform, the medium, and the power source. A) B) C) D) E) reverse assurnpt.or aoalysis forced relations- os rnorphologica aoal.s s lateral market ng attribute listing 93) A 0:::25 "'~crey, but .ts sales cover all its variable costs and some of the fixea costs A) B) C) D) E) market produc. failure relative product +2 ",re partial proo.ict +2 re transfer oroe Jcr a ,-,re strategic proct.cr failure 94) The job of traos at 'lg target customer requirements into a working prototype is helped by c. Se c +ethods Known as _________ _ A) marketi ng centre B) R&D quality com-e ') r;CEsses (Qi="P) D) quality fur-ct r.r ie : .yrnent (QFD) E) none of the acove C) 95) A(n) _________ r c a-iv zcoo. service, or idea that is perceived as new, no matter how iong :s ~, sc A) B) C) D) E) 20 creative prOCJCi new idea product innovation none of tne aJ(.J~ Marketi ment 96) A cor ~c. ' . urrect exporting in several ways, These include domestic- a .t-"vrI deoartment or division, overseas sales branch or subsidiary, traveung export sales representatives, and ____________ A) export management companies B)rnarketng l."':_' S"S2G .n the foreign country C)toreign-oa:.. .... tors or agents 0) export mer., lams III rorergn countnes E) none of the above 97) In _____ _ .res .ocal manufacturers to produce the product, givtroi over the manufacturing process. i ng the corn; A) managemem contracts B) franchising C) licensing 0) contract r-", _'2:', g E) none of the c.'J'J/e I' 98) Forces prornotng g ooal integration Include _____________ _ A) heteroger ec S cerr-a=c B) strong consi.=er -es.stance w foreign goods C) strong loca, ore.e-e "ces 0) local stanaaras and barriers E) capital-inters ve croc. .. c: on 99) Strategy accres=es tne ___________ and the _________of marketing activities. A) what; Why B) what; who C)what; how 0) what; wher E) who; how 100) A cornoar j ca. 'lave an excellent marketing department and yet fail at marketing V'uc' depends on how other company departments view custom ers. Only wre- - er oloyees realize that their jobs are to , ____ , ana customers does the company become an effective marketer. A) create· serve savst B) create; uste- ce iver C)listen; create; sarsy 0) serve; lister' oe.lver E) deflect, moru.or .srer 2 1