Deck 3: Collecting Information and Forecasting Demand

Question 1

A ________ is "unpredictable,short-lived,and without social,economic,and political significance."

A) fad
B) fashion
C) trend
D) megatrend
E) style

Answer 1

A

Question 2

When gathering marketing intelligence,companies often use the 2000 U.S.census,which provides an in-depth look at the population swings,demographic groups,regional migrations,and changing family structure of 281+ million people.Which of the following steps to improve the quality of a company marketing intelligence system would be most closely associated with this illustration?

A) A company can purchase information from outside suppliers.
B) A company can take advantage of government data sources.
C) A company can use online customer feedback systems to collect data.
D) A company can network externally.
E) A company can use its sales force to collect and report data.

Answer 2

B

Question 3

A company can take several steps to improve the quality of its marketing intelligence.Which of the following best describes the practice used by McDonald's when it sent pseudo customers to assess stores' internal speed standards?

A) training and motivating the sales force to spot and report new developments
B) motivating intermediaries to pass along important intelligence
C) networking externally
D) purchasing information from outside research firms and vendors
E) using the sales information system to get accurate sales reports

Answer 3

B

Question 4

The three largest subgroups of the Hispanics in the U.S.are ________,________,and ________.

A) Puerto Rican; Mexican; Chilean
B) Salvadoran; Cuban; Dominican
C) Mexican; Puerto Rican; Cuban
D) Brazilian; Mexican; Cuban
E) Salvadoran; Dominican; Columbian

Question 5

The heart of the internal records system is the ________.

A) pay-roll system
B) purchase order cycle
C) order-to-payment cycle
D) expense cycle
E) human resources system

Question 6

The internal records system supplies results data,but the marketing intelligence system supplies ________ data.

A) internal
B) revenue
C) thematic
D) happenings
E) process

Question 7

Which of the following economies provide limited opportunities to international marketers to develop product sales?

A) capitalist economies
B) subsistence economies
C) raw-materials-exporting economies
D) industrializing economies
E) industrialized economies

Question 8

The ________ begins with sales representatives and dealers sending orders to the firms and is followed by the sales department preparing invoices,and finally generating shipping and billing documents which are then sent to various departments.

A) payroll system
B) market research process
C) human resources system
D) expense cycle
E) order-to-payment cycle

Question 9

By equipping its sales force with handheld devices with bar-code readers and Internet connections to speed inventory assessment,TaylorMade allows sales executives to have significantly more time to interact with their consumers.This is an example of the use of technology in improving ________.

A) sales information systems
B) payroll systems
C) cookies
D) cohort segmentation
E) competitive intelligence gathering

Question 10

As the manager of an organization that is attempting to build a Marketing Information System (MIS),you have been informed that a MIS is built upon three fundamental information sources.The sources are ________,marketing intelligence activities,and marketing research.

A) external records and documents
B) databases found on the Internet
C) consultant reports
D) internal company records
E) secondary data from government sources such as the Better Business Bureau

Question 11

The traditional household consists of ________.

A) a husband, wife, and children (and sometimes grandparents)
B) a group of related persons living together
C) two or more families living together
D) a man and a woman living together (whether married or not)
E) related or unrelated persons who share living arrangements

Question 12

Firms find "reverse innovation" advantage by ________.

A) introducing a commodity in a developed country and then distributing it globally
B) introducing a commodity in a developing country and then distributing it in other developing countries
C) introducing a commodity in a developing country and then distributing it globally
D) introducing a commodity in a developed country and then distributing it in developing countries
E) introducing a commodity in a developed country and then distributing it in other developed countries

Question 13

The sites which offer positive or negative product or service reviews and are built by the retailers of a particular product or service are called ________.

A) combo sites
B) distributor or sales agent feedback sites
C) public blogs
D) independent service review forums
E) customer complaint sites

Question 14

A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.

A) data warehousing system
B) viral marketing campaign
C) product management system
D) marketing intelligence system
E) sales information system

Question 15

A growing population does not mean growing markets unless ________.

A) the people are under a democratic system of government
B) there is common ownership of all resources
C) people have sufficient purchasing power
D) there is adequate governmental intervention in the market
E) the government has a budget surplus

Question 16

Companies can practice targeted marketing by using ________-records of Web site usage stored on personal browsers.

A) plug-ins
B) black swans
C) cookies
D) trolls
E) honey-pots

Question 17

________ refer to groups of individuals who are born during the same time period and travel through life together.

A) Cohorts
B) Populations
C) Clans
D) Societies
E) Ethnic groups

Question 18

A ________ is a direction or sequence of events that has some momentum and durability;it reveals the shape of the future and can provide strategic direction.

A) fad
B) fashion
C) trend
D) megatrend
E) style

Question 19

Which of the following is likely to occur during economic downturns?

A) People tend to spend more on luxury goods
B) Consumption of necessary goods decline
C) Long term credit is available at concessional rates of interest
D) The purchasing power of the people declines
E) The level of investment in the economy rises

Question 20

Which of the following is true about trends in worldwide population growth?

A) Birthrates are on the rise in developed countries.
B) Overall, the world population growth is declining.
C) Birthrates are on the rise in developing countries.
D) Death rates are rising in developing countries.
E) Population growth is highest in developing countries.

Question 21

Mandatory recycling laws have boosted the recycling industry and launched dozens of new companies making new products from recycled materials.Which of the following most closely resembles the situation discussed above?

A) Government makes reforestation mandatory for lumbering firms leading to a rise in timber production.
B) Government restricts industries from purchasing farmland thereby increasing agricultural produce.
C) Government subsidizes export of beef to promote production of beef cattle.
D) Government pollution control norms increase the production of pollution control equipments.
E) Government restricts unfair trade practices to promote international trade.

Question 22

With an increase in marketing expenditure,market demand ________.

A) continues to increase at an increasing rate
B) initially increases and then declines
C) increases first at an increasing rate, then at a decreasing rate
D) decreases first and then spikes
E) continues to increase at a decreasing rate.

Question 23

The ________ market is the part of the qualified available market the company decides to pursue.

A) potential
B) available
C) target
D) penetrated
E) reserve

Question 24

The base sales of an organization that takes place even without any demand-stimulating expenditures is called ________.

A) primary demand
B) market potential
C) market minimum
D) optimum demand
E) market demand

Question 25

The ________ market is the set of consumers with an adequate interest,income,and access to a particular offer.

A) potential
B) available
C) target
D) penetrated
E) reserve

Question 26

An important force affecting business is the ________ movement,a movement of citizens and government organized to strengthen the rights and powers of buyers in relation to sellers.

A) human rights
B) consumerist
C) environmental
D) self-determination
E) materialistic

Question 27

________ for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program.

A) Company demand
B) Area market potential
C) Market demand
D) Company sales potential
E) Total market potential

Question 28

Firms whose products require ________ resources-oil,coal,platinum,zinc,silver-face substantial cost increases as depletion approaches.

A) infinite
B) near finite
C) finite renewable
D) finite nonrenewable
E) perishable

Question 29

________ beliefs and values are passed from parents to children and reinforced by social institutions-schools,churches,businesses,and governments;they are very difficult to change.

A) Transient
B) Secondary
C) Protected
D) Core
E) Variable

Question 30

Each society contains ________,groups with shared values emerging from their special life experiences or circumstances.

A) stakeholders
B) cliques
C) consumer bundles
D) subcultures
E) behavioral niches

Question 31

An unintended effect of business legislation is ________.

A) restricting fair competition in the market
B) encouraging unbridled business behavior
C) reducing the social cost of producing a particular commodity
D) exposing consumers to unfair trade practices
E) slowing economic growth

Question 32

In the U.S.,consumer expenditures on homes and big ticket items tend to slacken during recessions because ________.

A) the consumers generally have a low debt-to-income ratio
B) of steady supply of loanable funds in the economy during recession
C) the consumers have a high debt-to-income ratio
D) consumer borrowing increases during recession
E) of stringent credit policies adopted by the Fed before the onset of recession

Question 33

When the government of any country restricts the sale of a particular commodity to certain groups-for example,restricting sales of alcohol to individuals above the age of 21-the eligible consumers who have income,interest,access and qualification constitute the ________.

A) accessible market
B) target market
C) potential market
D) qualified potential market
E) qualified available market

Question 34

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' ________.

A) views of others
B) views of organizations
C) views of themselves
D) views of the universe
E) views of society

Question 35

Prestige LLC,a small company that manufactures specialty cereals and energy bars,wants to launch a "green marketing" program in response to heightened consumer awareness about environmental issues.What should the company do to maximize the program's chances of being successful?

A) demonstrate that the products will benefit both customers and the society in the long-term
B) emphasize benefits to the consumer rather than environmental benefits
C) focus on the efforts and costs incurred by the company to bring these "green" products to consumers
D) engage in "greenwashing" to highlight the environmental benefits of the product
E) explain the rules and regulations laid out by governmental agencies to protect the environment

Question 36

Which of the following is true about the technology trends that marketers should monitor?

A) A growing portion of U.S. R&D expenditures are going toward the research side as opposed to the development side.
B) Today, the time between idea and implementation is expanding.
C) More single companies rather than consortiums are directing research efforts toward major breakthroughs.
D) The pace of change is accelerating today.
E) The government has decreased regulation of technological change.

Question 37

Which of the following elements of sociocultural environment can be associated with the growing demand for "social surrogates" like social networking sites,television,etc.?

A) views of ourselves
B) views of organizations
C) views of others
D) views of nature
E) views of the universe

Question 38

The ________ market is the set of consumers who are buying the company's product.

A) potential
B) available
C) target
D) penetrated
E) reserve

Question 39

Which of the following would be the best illustration of a secondary belief or value?

A) belief in work
B) belief in giving to charity
C) belief in getting married
D) belief in getting married early
E) belief in being honest

Question 40

Jeanine would like to own a Mercedes but is unable to afford one at this time.Jeanine is part of the ________ for this product.

A) potential market
B) available market
C) target market
D) projected market
E) penetrated market

Question 41

Demographic developments are often unpredictable.

Question 42

For which of the following categories of products will demand forecasting be easiest?

A) commodities which are in the initial stage of their product life cycles
B) products which have many close substitutes in the market
C) goods which are produced in an oligopoly market
D) products whose sales fluctuate widely
E) products whose consumers are highly sensitive to change in price

Question 43

If a company were pursuing a policy of networking externally to gather marketing intelligence,it might collect competitors' ads or look up news stories about competitors.

Question 44

The ________ method of determining area market potential calls for identifying all the potential buyers in each market and estimating their potential purchases.

A) group-discussion
B) market-test
C) market-buildup
D) brand development index
E) multiple-factor index

Question 45

A fad is more predictable and durable than a trend.

Question 46

The sales goal set for a product line,company division,or sales representative of an organization is called ________.

A) sales budget
B) company sales forecast
C) sales quota
D) company sales potential
E) market potential

Question 47

During recession,the market demand curve which is a function of marketing expenditure ________.

A) shifts upward
B) becomes vertical
C) remains unaffected
D) shifts downward
E) slopes downward

Question 48

A ________ is a conservative estimate of the expected volume of sales,primarily for making current purchasing,production,and cash flow decisions.

A) sales budget
B) company sales forecast
C) sales quota
D) company sales potential
E) market potential

Question 49

One of the ways to find relevant online information on competitors' strengths and weaknesses might be to frequent distributor or sales agent feedback sites.

Question 50

________ is the limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment.

A) Sales budget
B) Company sales forecast
C) Sales quota
D) Company sales potential
E) Market potential

Question 51

Only one level of industry marketing expenditure will actually occur.The market demand corresponding to this level is called the ________.

A) market minimum
B) market share
C) market forecast
D) market potential
E) company demand

Question 52

Which of the following organizations is likely to use the multiple-factor index method to estimate the market potential?

A) a firm that manufactures auto parts
B) a firm that provides facility management services to large offices
C) a company that provides Web site development services for small businesses
D) a company that manufactures diagnostic machines for hospitals
E) a firm that manufactures fashionable clothes for teenagers

Question 53

Suppose Concrete Express,a cement manufacturing firm,finds that its sales have increased by 3 percent this year,while industry sales have increased by 5 percent.This implies that ________.

A) Concrete Express has acquired additional market share in relation to the cement industry
B) Concrete Express is losing its relative standing in the cement industry
C) other players in the industry are losing market share
D) the absolute market share of Concrete Express has declined
E) Concrete Express's position in relation to the industry has remain unchanged

Question 54

________ is the company's estimated share of market demand at alternative levels of company marketing effort in a given time period.

A) Sales budget
B) Market demand
C) Company demand
D) Company sales potential
E) Market potential

Question 55

An efficient method of estimating area market potentials makes use of the ________,developed by the U.S.Bureau of the Census in conjunction with the Canadian and Mexican governments.It classifies all manufacturing into 20 major industry sectors and further breaks each sector into a six-digit,hierarchical structure.

A) Thomson Reuters Business Classification
B) Global Industrial Classification Standard
C) North American Product Classification System
D) Industry Classification Benchmark
E) North American Industry Classification System

Question 56

________ is the sales limit approached by company demand as company marketing effort increases relative to that of competitors.

A) Sales budget
B) Market demand
C) Company demand
D) Company sales potential
E) Market potential

Question 57

________ is the maximum sales available to all firms in an industry during a given period,under a given level of industry marketing effort and environmental conditions.

A) Company demand
B) Market demand
C) Company sales potential
D) Sales quota
E) Total market potential

Question 58

A company's sales potential would be equal to market potential if ________.

A) the marketing expenditure of the company is reduced to zero
B) industry marketing expenditures approach infinity for a given marketing environment
C) the market is non expansible
D) market minimum is equal to market potential
E) the company gets 100 percent share of the market

Question 59

Which of the following is true of the various elements of the multi-factor index method of estimating area market potentials?

A) Zip+4 code centers generally have stable boundaries and a population of about 4000.
B) The weights in the buying-power index are somewhat arbitrary.
C) Normally, the lower the BDI, the less room there is to grow the brand.
D) Census tracts are a little larger than neighborhoods.
E) This method is primarily used by business marketers.

Question 60

Few consumers actually delete cookies frequently.When customers do not delete cookies,they expect customized marketing appeals and deals.

Question 61

Why do the companies need to search for practical means to harness renewable sources of energy like wind and water?

Question 62

The available purchasing power in an economy depends on current income,prices,savings,debt,and credit availability.

Question 63

Secondary beliefs and values are passed on from parents to children and reinforced by major social institutions,making them very difficult to change by marketers.

Question 64

Sales reps might have better insight into developing trends than any other group,and forecasting might give them greater confidence in their sales quotas and more incentive to achieve them.

Question 65

Consumers belonging to the same ethnic group have identical tastes and preferences.

Question 66

Discuss the impact of tougher environmental regulations on businesses,citing examples whenever possible.Also,point out opportunities,if any,presented by these regulations.

Question 67

Industrial economies provide limited marketing opportunities for luxurious goods.

Question 68

How does the marketing environment determine the position of the market demand function?

Question 69

In order to estimate future demand,companies commonly prepare a company sales forecast first,followed by an industry forecast,and finally a macroeconomic forecast.

Question 70

What are the various steps a company can take to improve the quality of its marketing intelligence function?

Question 71

There is a global trend toward an aging population.

Question 72

Corporate environmentalism recognizes the need to integrate environmental issues into the firm's strategic plans.

Question 73

What are the different income-distribution patterns? How does income distribution in the economies affect the marketing decision of the firms?

Question 74

Forecasting is the art of anticipating what buyers are likely to do under a given set of conditions.

Question 75

The basis of cohort segmentation is that the experiences of key defining moments during the time when an individual becomes an adult can influence his or her values,preferences,and buying behaviors for the rest of his or her life.

Question 76

Firms that can develop substitute materials for finite nonrenewable resources have an excellent opportunity.

Question 77

Environmental laws imposed by the government may at times create new business opportunities.

Question 78

Business has responded to increased awareness of nature's fragility and finiteness by producing wider varieties of camping,hiking,boating,and fishing gear such as boots,tents,backpacks,and accessories.

Question 79

Marketing strategies of firms should not consider the ethnic and racial diversity existing in their markets.

Question 80

A growing portion of U.S.R&D expenditures goes to the development as opposed to the research side.