POM Exam Review #6

Sue is a 12^th-grade student who loves the new Ferrari convertible which retails for approximately $300,000. She works part-time at the local movie theater and has approximately $150 in her savings and checking accounts. Is Sue a part of the market for the Ferrari?

• Yes, she has an unfulfilled desire and is financially able and willing to satisfy that desire.

• Yes, she has an unfulfilled desire for the Ferrari.

• No, she is not financially willing to purchase the Ferrari.

• No, she is not financially able to purchase the Ferrari.

Answer explanation

No, she is not financially able to purchase the Ferrari. To be part of a market, the customer must have an unfulfilled desire and be financially able and willing to satisfy that desire. Sue lacks the financial ability to purchase a Ferrari.

Which market segment do customers in cold climates who need snow shovels and snow blowers represent?

• Occupational

• Behavioral

• Geographic

• Psychographic

Answer explanation

Geographic. Geographic segmentation groups people by the areas in which they are located. This includes customers in cold climates. Occupations are a basis for demographic segmentation. Psychographic segmentation groups people by lifestyles and personalities. Behavioral segmentation groups people by their response to a product.

A business determines that it can increase its market share by 12 percent by promoting its goods and services to Hispanic females who are 18- to 34-years old. How is the business segmenting the market?

• By geographics

• By behavior

• By psychographics

•  

  By demographics

Answer explanation

By demographics. Demographics are the physical and social characteristics of the population. A business that segments the market on the basis of demographics considers factors such as the age, gender, and ethnicity of the population. Psychographic segmentation is the division of a market on the basis of consumers' lifestyles and personalities, which are influenced by their behavior. Geographic segmentation involves dividing a market on the basis of location (e.g., zip code).

What marketing career involves determining why customers do what they do?

• Marketing research

• Advertising

• Sales

• Distribution/Warehousing

Answer explanation

Marketing research. A marketing researcher could be classified as the "Sherlock Holmes" of marketing. These investigators look for clues as to what customers want and need, as well as why customers do what they do. Careers in advertising involve catching customer attention and informing customers about products, companies, and/or ideas. Sales careers involve satisfying customer needs with products. Distribution/Warehousing is not typically considered to be a marketing career.

What marketing career involves catching customers' attention, informing them of products, and persuading them to buy?

• Public relations

• Advertising

• Product management

• Marketing research

Answer explanation

Advertising. Advertisers use a variety of media to catch customers' attention, inform them of products, and persuade them to buy. Some of these media are the Internet, radio, television, newspapers, magazines, billboards, and catalogs. Marketing researchers are responsible for determining what customers need and want and why customers do what they do. Product managers create, test, and decide how a product will be packaged. They direct and coordinate all aspects of the product. Public relations professionals strive to build and maintain positive relationships with the public by anticipating problems, handling complaints, communicating with the media, and building a positive public image for the company.

Kwacky Kwackers needs a new package design for its crackers. What marketing professional would be responsible for creating the new package?

• Marketing research

• Product management

• Advertising

• Channel management

Answer explanation

Product management. Product managers create, test, and decide how a product will be packaged. They direct and coordinate all aspects of the product. Advertisers develop messages and images to catch customers' attention, inform them of products, and persuade them to buy. They use a variety of media to communicate with customers. Some of these media are the Internet, radio, television, newspapers, magazines, billboards, and catalogs. Marketing researchers are responsible for determining what customers need and want and why customers do what they do. Channel management is the processes by which marketers ensure that products are distributed to customers efficiently and effectively.

What is at the center of all marketing activities?

• Communication

• Purchasing

• Math

• Technological know-how

Answer explanation

Communication. Communication, the exchange of information in which the words and gestures are understood in the same way by both the speaker and the listener, is at the center of all marketing activities. Whether employees are working with customers or working with a team member, they need to effectively exchange ideas and information. Communicating with people is crucial in marketing because marketing involves continuous interaction with customers and coworkers. Purchasing is not considered to be a marketing function. Although math skills and technological know-how are often needed to carry out marketing activities, their successful completion and use are based on communication.

What does a salesperson need to do to be successful in selling?

• Learn the features unique to the brands they sell

• Always attempt to sell related merchandise

• Describe the disadvantages of competing brands

• Ask management to limit the number of brands

Answer explanation

Learn the features unique to the brands they sell. Typically, all products have unique features with which the salesperson should be familiar. Not all products have related items. Asking management to limit the number of brands the business carries would indicate the salesperson is not willing to learn about other brands. It is a better selling technique to point out the advantages of the brands you sell than to describe the disadvantages of competing brands.

Joe is a salesperson who will sometimes forgo a sale in order to satisfy a customer's needs. Carol always attempts to close a sale at all costs. Who is likely to be the more successful salesperson?

• Joe, because he will get more repeat business

• Joe, because he is a nice person

• Carol, because Joe is too timid to close a sale

• Carol, because she will make more sales

Answer explanation

Joe, because he will get more repeat business. In the long run, Joe will be more successful because he makes a sincere effort to satisfy the customer's needs, which will establish repeat clients. He will not establish repeat clients just because he is nice. Joe is not too timid to close a sale; he just has the customer's best interests in mind.  Because sales situations differ, attempts to close a sale do not always result in a sale. Carol may get more sales initially but will probably have very little repeat business. 

What can salespeople do to maintain good relationships with existing customers?

• Send customers expensive gifts

• Ask for new referrals

• Live up to their promises

• Use customers in advertisements

Answer explanation

Live up to their promises. An important part of providing quality customer service involves salespeople doing what they say they will do. By living up to their promises, salespeople will be able to maintain good relationships with existing customers. Customers will know that they can rely on salespeople and that they will receive the service and support that they need. Breaking promises is a sure way to lose valuable customers. Businesses sometimes use customers in advertisements but that is not a way of maintaining good relationships. Salespeople often ask for referrals from customers with whom they have good relationships, but asking for referrals does not maintain the relationships. It is usually considered inappropriate to send customers expensive gifts that may be misinterpreted as bribes.