Chapter 1: Defining Marketing for the 21st Century

Exercises for Marketing ManagementSection A

Indicate your answer by writing the letter corresponding to the correct answer in the questions.

1 Behavioural theory Maslows hierarchy of needs:

a. Physiological need, safety needs

b. Physiological need, safety needs, social needs

c. Physiological need, safety needs, social needs, Esteem needs, Self-actualization

d. Safety needs, social needs, Esteem needs, Self-actualization

2 Setting low price and aiming to enlarge market share is:

a. Market-penetration pricing

b. Market-skimming pricing

c. Markup pricing

d. Perceived-value pricing

3 Attitude and learning are examples of _____________ affecting the buying decision:

Personal factors

Social factors

Physiological factors

Psychological factors

4 Ford company produced only one kind of product, which is T-Model in Black, to entire market in the early of 20 century is:

a. Multi-segment marketing

b. Mass marketing

c. Niche marketing

d. Custom marketing

5 Advertising is: a. A paid form of non-personal communication

b. A paid form of personal selling

c. An unpaid form of personal communication

d. An unpaid form of non-personal communication.

6 P&G provide several brands in the same product category is

a. Multibrands

b. New brans

c. cobrands

d. Brand extensions

7 A strong need that cannot be satisfied by existing products a. Negative demand

b. Latent demand

c. Overfull demand

d. Declining demand

8 Which of the following statements is TRUE when applied to Secondary data in marketing research:

a. It is collected for other purposes and already exists somewhere

b. It is more accurate than primary data

c. It is more complete than primary data

d. It is collected costly

9 A niche is

a. A small market

b. Entire market

c. Local market

d. Individual market

10 The people who have a strong potential interest and ability to pay for the product are a. Suspects

b. Prospects

c. Repeat customers

d. Members

11 Macroenvironmental factors include a. Demographic, natural environment, political-legal, technology, economic forces, social-cultural

b. Competitor, supplier, customer, stakeholder

c. Demographic, natural, competitor, political, economic, social-cultural

d. Behavioral, Demographic, cultural, geographical

12 The 4Cs consist of:

a. Customer solution, customer cost, convenience, communication

b. Customers, competitors, culture, collaborators

c. Customers, collaborators, culture, the company itself

d. Competitors, customers, culture, collaborators

13 Product life cycle includes

a. Growth stage, introduction stage, decline stage, increase stageb. Decrease stage, introduction stage, increase stage, decline stagec. Introduction stage, Growth stage, Maturity stage, Decline stage

d. Maturity stage, Downward stage, Introduction stage, Decline stage

14 The bases for segmenting consumer markets a. Demographic, geographic, psychographics, behavioral

b. Demographic, geographic, psychographics

c. Demographic, geographic, occasion, value

d. Age, occupation, region, lifestyle

15 costs vary directly with the level of production.a. Variable cost

b. Fixed cost

c. Total cost

d. Average cost

16 _________ Concept holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets:

a. Marketing

b. Sales

c. Product

d. Production

17 Brand is :

a. Trademark

b. Product value

c. Labeling

d. A name, term, sign, symbol, or design, or a combination of them

18 AIDA means :

a. Awareness, interest, desire, adoption

b. Awareness, interest, desire, action

c. Attitude, intention, desire, awareness

d. Attention, interest, desire, action

19) Speciality products are: a. Rapidly consumed items that are relatively inexpensive and require minimal purchasing effort

b. Normally only purchased when required to resolve a problem

c.More expensive and more durable items bought less frequently, requiring more effort in the planning and purchasing stages

d. Normally purchased infrequently and with more unique features.

20 What does SWOT mean?

a. Strength, weakness, offer, threat

b. Strength, weakness, opportunity, threat

c. Stretch, weakness, opportunity, threat

d. Stretch, weakness, offer, threat

21 Maslows hierarchy of needs:

e. Physiological need, safety needs

f. Physiological need, safety needs, social needs

g. Physiological need, safety needs, social needs, Esteem needs, Self-actualization

h. Safety needs, social needs, Esteem needs, Self-actualization

22 Setting low price and aiming to enlarge market share is :

e. Market-penetration pricing

f. Market-skimming pricing

g. Markup pricing

h. Perceived-value pricing

23 The most significant factor that may affect pricing decisions is:

a. Government price controls

b. Promotional costs

c. Production costs

d. The demand for a product

24 Two or more elements in the marketing channel combining under one management is referred to as:

a. Vertical integration

b. Horizontal integration

c. Multi-segment strategy

d. Lateral integration

25 The more product lines , the greater the __________

a. Product-line width

b. Product-line depth

c. Product-mix width

d. Product-mix depth

26 Advertising is:

a) A paid form of non-personal communication

b) A paid form of personal selling

c) An unpaid form of personal communication

d) An unpaid form of non-personal communication.

27 P&G provide several brands in the same product category is

a) Multibrands

b) New brans

c) cobrands

d) Brand extensions

28 Pioneer advertising is used in the _________ of the PLC:

a. Growth stage

b. Maturity stage

c. Introduction stage

d. Decline stage

29 Which of the following statements is TRUE when applied to Secondary data in marketing research:

a. It is collected for other purposes and already exists somewhere

b. It is more accurate than primary data

c. It is more complete than primary data

d. It is collected costly

30 A niche is

a. A small market

b. Entire market

c. Local market

d. Individual market

31 Sales records, advertising, customer records and financial statements are examples of sources of:

a. Internal primary data

b. External primary data

c. Internal secondary data

d. External secondary data

32 Which of the following statements is TRUE of qualitative data:

a. It can be statistically analysed

b. It draws responses that can be grouped to give a total

c. It is concerned with value judgements

d. It is concerned with measuring opinion

33 Motivation belong to ______:

a. Culture factors

b. Social factors

c. Psychological factors

d. Behavioral factors

34 Product life cycle includes

a. Growth stage, introduction stage, decline stage, increase stageb. Decrease stage, introduction stage, increase stage, decline stagec. Introduction stage, Growth stage, Maturity stage, Decline stage

d. Maturity stage, Downward stage, Introduction stage, Decline stage

35 Which of the following statements regarding marketing and selling is TRUE:

a. marketing is externally focused, whereas selling is internally focused

b. selling is externally focused, whereas marketing is internally focused

c. both marketing and selling are internally focused

d. both marketing and selling are externally focused

36 Products in the _________ stage of the PLC are typically recognised by their aggressive promotional pricing tactics:

a. Introduction

b. Growth

c. Maturity

d. Decline

37 _________ Concept holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets:

a. Marketing

b. Sales

c. Product

d. Production

38 Brand is:

a. Trademark

b. Product value

c. Labeling

d. A name, term, sign, symbol, or design, or a combination of them

39 Channel synergy occurs when:

a. Producers refuse to deal with certain channel members

b. An intermediary is denied access to competing products

c. More benefits are forthcoming than could be expected from cumulative efforts of individual members

d. Fewer benefits are forthcoming than could be expected from cumulative efforts of individual members

40 Width of product mix means______?

a. How closely related the various product lines

b. How many variants are offered of each product in the line

c. The total number of items in the mix

d. How many different product lines the company carries

41. The life cycle below is most likely a _____________

a. High learning product

b. Low learning product

c. Fashion product

d. Fad Product

e. Rotating Pattern product

42. Dallas-based Dean Foods is one of the leading food and beverage companies in the United States. Its __________ includes soy products, coffee creamers, dips and dressing, pickles, sauce, ice cream, yogurt, sour cream and cottage cheese. Its fresh milk and cream __________ includes regular and flavored milks, lactose-free milk, buttermilk, and half and half.

A)product tangibility; product unit

B)product mix; product unit

C)product line; product mix

D)product unit; product tangibility

E)product mix; product line

43. Among consumer goods, advertising and wide distribution are especially important for:

A)durable goods.

B)unsought goods.

C)nondurable goods.

D)production goods.

E)semidurable goods.

44.The Upjohn Company first targeted men for its Rogaine topical solution, a prescription drug to restore hair growth, but later marketed this product to women. This is an example of which strategy?

A)Finding new users

B)Creating new use situations

C)Increasing use by existing customers

D)Modifying the product

E)None of the above

You are facing the following demand schedule:

Quantity Price

10

6

20

5

30

4

40

3

50

2

You are also facing the Average Cost table below

Quantity Average cost

10

1

20

2

30

3

40

4

50

5

45. Use the information given above. Your goal is profit maximization. You should produce:

a. 10 units

b. 20 units

c. 30 units

d. 40 units

e. 50 units

46. Elasticity between 10 and 20 units is approximately (choose the number closest to your answer):

a. 1.8

b. 2.4

c. 3.7

d. 4.6

e. 5.3

47. In this commercial, three men (approx. in their thirties) are in a parking lot. One of them is getting ready to leave in his car (Honda Civic). The other two men (led by elder of the two) interrogate the car owner (in a superior manner) about the cars additional features, to which the car owner responds by giving a technical description of the cars engine, to the surprise of the two men. Which of the following is likely to be true for the advertisement below?

a. It could be considered to be a reminder advertisement

b. It attempts to gain audience attention with sex appeal

c. It is likely to be a pioneering advertisement

d. It likely attempt to reinforce previous experience with Honda Civic

e. It is likely to be a comparative advertisement

48. Which is not used in pretests

a. jury tests

b. attitude tests

c. portfolio tests

d. theater tests

e. tests in which consumers are invited to view new television shows or movies in which test commercials are also shown.

49. Which of the following statements about marginal analysis is incorrect

a. As long as revenue received from an additional unit exceeds the marginal cost associated with that unit, the firm will wish to expand production.

b. Marginal cost, after an initial decline, will tend to rise due to inefficiencies in production and marketing associated with increased production

c. The message of marginal analysis is to operate up to the quantity and price level where marginal revenue equals marginal cost

d. Marginal analysis calls for identifying the level of output at which total revenue and total cost are equal and beyond which profit occurs.

50. If your goal is to encourage new product trial among risk-averse consumers, your best bet from sales promotion alternatives is:

a. samples

b. contests or sweepstakes

c. Continuity programs

d. point of purchase displays

e. product placement

51.West Coast Video and East Coast Video must simultaneously choose a pricing strategy. The matrix below describes their payoffs from each strategy combination:

East Coast

Price HighPrice Low

West CoastPrice High120

18070

190

Price Low110

4060

60

The equilibrium is at:

a. Both firms pricing low

b. Both firms pricing high

c. West Coast pricing low and East Coast pricing high

d. West Coast pricing high and East Coast pricing low

e. Both c and d are equilibria

52.For non-durable goods, ___________ is essential, whereas for durable good, ______ is more critical (you can find the answer on p. 270).

a. TV advertising; radio advertising

b. Newspaper advertising; TV advertising

c. Consumer advertising and wide-distribution; personal selling

d. Sales promotion; reminder advertising

53. The Ann and Bob corporations compete in the market for widgets. They can each price high or price low. Ann is the row player and Bob is the column player. That means that Anns payoff is the top left number in each cell. Bobs payoff is the bottom right number in each cell. The payoffs to each possible scenario are given in the game matrix below. In equilibrium, ________________________________.

a. Ann would price low and Bob would price high.

b. Ann would price low and Bob would price low.

c. Ann would price high and Bob would price high.

d. Ann would price high and Bob would price low.

Bob

Price HighPrice Low

AnnPrice

High35

405

60

Price

Low45

7010

40

54. The demand curve below would call for what pricing strategy?

a. skimming

b. penetration

c. prestige

d. price lining

55. You are facing the MARGINAL Cost and MARGINAL revenue table below

Quantity Marginal cost

Marginal Revenue

5

25

60

10

35

50

15

40

40

20

50

30

25

65

20

To maximize profit, you should produce:

a. 5

b. 10

c. 15

d. 20

e. 25

You are facing the following demand schedule:

Quantity Price

10

90

20

80

30

75

40

70

50

65

Marginal cost is the same as the average cost and is constant at 50.

56. Given the above demand schedule and cost information, the quantity that would maximize your profits is ________________.

a. 10

b. 20

c. 30

d. 40

e. 50

57.When deciding on the purchase of a new wireless pocket PC, Bob was among the very first. He is very highly educated, and makes purchase decisions based on information from Internet newsgroups, newspapers, and technical journals he subscribes to. Stan made his decision based on numerous informal social contacts, though he is not a leader in any social setting. He was among the first 50% of the population to buy the wireless pocket PC. Out of profiles of product adopters, Bob could best be described as __________ whereas Stan would best be described as ___________.

a. early adopter; majority

b. early innovator; late innovator

c. innovator; early majority

d. early majority; early adopter

e. late majority; laggard

58. Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women. This is an example of:

A) Finding new users

B)Creating new use situations

C)Increasing use by existing customers

D)Modifying the product

59.Del Montes Barbecue Ketchup that contained finely chopped onions and was aimed at the heavy ketchup-eating segment (kids). That segment kids-- did not care for onions. Which of the reasons below is most likely the reason for this product failure?

a.Insignificant point of difference

b.Incomplete market and product definition

c.Too little market attractiveness (size and growth of mkt)

d.Poor execution of the marketing mix

e.Poor product quality on critical factors

60.Minute Maid squeeze-fresh OJ concentrate: advertising and packaging did not educate on how to use the product and as a result consumers did not know how to use it. Which of the reasons below is most likely the reason for this product failure?a.Insignificant point of difference

b.Incomplete market and product definition

c.Too little market attractiveness (size and growth of mkt)

d.Poor execution of the marketing mix

e.Poor product quality on critical factors

61. The best way for a business to find new vendors is by

A. contacting the Better Business Bureau.

B. developing a portal on the World Wide Web.

C. contacting an industry-related trade association.

D. accessing its marketing-information management system.

62. A severe storm blows down trees that fall on a business and collapse the roof and break windows.

This type of damage results from ___________ risks.

A. human C. natural

B. economic D. financial

63. Stella's Bookstore recently began accepting credit cards as a method of payment from its

customers. The management of Stella's made this decision in an effort to increase which type of

utility?

A. Time C. Form

B. Place D. Possession

64. Businesses that obtain information about competitors with the use of questionable techniques,

even though these techniques are legal, are often behaving

A. recklessly. C. carelessly.

B. aggressively. D. unethically.

65. What are businesses examining when they conduct a situational analysis during the marketing-

planning process?

A. Environmental factors C. Personal aptitudes

B. Physical characteristics D. Geographical changes

66. An employee who criticizes a supervisor in public or who tries to have the supervisor

removed might be terminated for

A. mutiny. C. misconduct.

B. performance. D. discrimination.

67. A pricing tactic used by some businesses that might be unethical is one that

A. is competitive. C. offers rebates.

B. advertises discounts. D. confuses customers.

68. Marketing a lower priced version of an item in a product line under a different brand name

than the higher priced version enables the business to

A. contract the product mix.

B. avoid damage to brand reputation and image.

C. confuse buyers resulting in negative net gain.

D. offset expenses of adding a new product line.

69. By evaluating the effectiveness of a promotional message, businesses often can determine if

consumers __________ the promotion.

A. monitored C. questioned

B. implemented D. remembered

70. What factor should a salesperson consider when developing a customized sales presentation

for a new customer?

A. Circulation C. Convenience

B. Referral rates D. Revenue projection

71. Much of early marketing research consisted of :

a. written testimonials received from purchasers of a firms products.

b. use of mail questionnaires to gather information.

c. telephone surveys conducted to assess household preferences.

d. sampling studies using techniques derived from voting records.

e. statistical evaluations of sales and product performance records.

72. As compared with undifferentiated marketing, firms that practice differentiated

marketing should generally expect:

a. fewer sales by segment.

b. lower total production costs.

c. lower inventory costs.

d. higher awareness of competitors products.

e. greater total promotion costs.

73. Marketing intermediaries are generally of greatest use to:

a. smaller, weaker producers with narrow product lines.

b. well-financed and managed manufacturers.

c. suppliers with considerable marketing resources.

d. firms large enough to grant credit to their customers.

e. producers who have their own warehouses and sales forces

74. Competition between brands is highest during what stage of the product life cycle?

a. introduction.

b. maturity.

c. growth.

d. decline.

e. stabilization.

75. Which of the following is not included as part of a firms promotional strategy?

a. personal selling.

b. advertising.

c. publicity.

d. sales promotion.

e. All the above are included as a part of the firms promotional strategy.

76. Of the following, an example of an agent or broker is the:

a. drop shipper receiving orders from customers and forwarding them directly to the producers.

b. public storage warehouse sorting packaged goods into smaller quantities to fill orders.

c. cash-and-carry wholesalers providing credit and delivery to small retailers.

d. merchandise mart providing permanent space for exhibition of goods.

e. commission merchant taking possession when the producer ships to a central market.77. Southwest Airlines started service in Texas with customers exchanging peanuts for airline tickets. The firm was emphasizing what element of the marketing mix? a. Product

b. Distribution

c. Target market

d. Price

78. Marketing facilitates exchange relationships between a buyer and a

seller. What is the intended outcome of this relationship?

a. Profits for the seller

b. A good bargain on the product for the buyer

c. Satisfaction for both the buyer and seller

d. One party having to compromise in the exchange

79. The marketing concept is a way of thinking or a management philosophy that affects

a. only marketing activities.

b. all efforts of the organization.

c. mainly the efforts of sales personnel.

d. mainly customer relations.

80. Individuals and business organizations that buy finished goods and

resell them to make a profit without changing the physical

characteristics of the product are classified as

a. consumer markets.

b. institutional markets.

c. producer markets.

d. reseller markets.

81.Institutional markets comprise

a. intermediaries who resell goods to make a profit.

b. organisations that seek not for profit business goals.

c. department stores.

d. consumers who buy products for their own use.

82. Which of the following is true with respect to individual buyers in

organizational markets?

a. Organizational buyers always act rationally when making purchases

for their company.

b. Organizational buyers tend to be less informed about the products

they purchase than consumer buyers.

c. Organizational buyers often demand detailed information about a

product's quality, features, or technical specifications.

d. Organizational buyers are no different than buyers in consumer

markets.

83. Problem recognition is the first step toward finding a solution to a

marketing problem or launching a research study. The first sign of a

problem

a. involves an informed guess or assumption about a certain set of

circumstances.

b. is usually accompanied by a cost/benefit analysis.

c. most often comes in the form of customer complaints.

d. is often mentioned in secondary data reports, such as trade

journals.

e. is usually a departure from some normal function, such as a failure

to attain objectives.

84. A research technique is said to be __________ if it produces almost

identical results in successive repeated trials.

a. believable

b. valid

c. reliable

d. dependable

85. Which of the following buying situations is most consistent with

habitual buying?

a. Igor buying his first pair of basketball shoes

b. Mary buying a new set of tyres for her car

c. Aaron buying a new fishing rod and reel

d. Stella buying a quarter pounder at McDonald's

e. Bill buying a new software program

86. Suppose that Kellogg is introducing a new bran waffle for toasters.

The television commercial will be a key element in communicating the

benefits associated with this product modification. Kellogg expects

consumers to engage in what form of decision making?

a. Routinised response behaviour

b. Limited decision making

c. Extended decision making

d. Impulse buying

87. Which of the following is not a service product?

a. An Elton John concert

b. A flight on Southwest Airlines

c. A 100 percent service satisfaction guarantee

d. An overnight stay at Holiday Inn88. If Morton Salt marketers saw all table salt customers as pretty much alike and thus offered only one marketing mix, they would be using the __________ strategy.

a. directed

b. undifferentiated

c. segmented

d. differentiated

89. If Mattel saw the toy market as composed of four age category

groupings, each with different needs and desires, each grouping would

be called

a. an undifferentiated market.

b. heterogeneous.

c. a market segment.

d. a marketing mix.

90. Which of the following is true with respect to segmenting markets?

a. Segmentation variables should be selected on a random basis.

b. A company's resources and capabilities should have no effect on how markets are segmented.

c. The best way to segment markets is through the use of demographic variables.

d. There is no best way to segment markets.

91. A brand is best defined as a

a. registered design or symbol that may be displayed on the product or used to promote it.

b. related group of words that describe the product.

c. name, term, sign, symbol, design, or combination of these that

identifies a seller's products.

d. copyrighted word or group of words that gives the manufacturer

exclusive ownership and the right to sell a product under that name.

92. A light bulb can be considered all of the following except

a. a consumer product.

b. an organizational product.

c. either a consumer product or an organizational product.

d.. a consumer product if it is used to light the office of the board

of directors.

93. A group of closely related product items that are considered to be a

unit because of marketing, technical, or end-use considerations is a

product

a. category.

b. dimension.

c. extension.

d. line.

94. Combining products into collections that buyers want available at one

place is

a. sorting out.

b. a sorting activity.

c. allotting.

d. assorting.

95. An organization that employs part time sales persons calling on consumers homes is engaging in

a. discount retailing.

b. non store retailing.

c. franchising.

d. general merchandise retailing.

96. Matt's girlfriend tells him she wants a cashmere sweater for

Christmas. Matt decides to go to a store that provides the best

possible selection of sweaters. His best choice would be to shop at a

__________ store.

a. department

b. catalogue

c. discount

d. specialty/niche marketing

97. Advertising is a major promotion mix ingredient that is a

a. paid form of personal communication.

b. paid form of non-personal communication.

c. non-paid form of personal communication.

d. non-paid form of non-personal communication.

98. A major reason why a substantial amount of publicity material is

rejected by media personnel is that the material is

a. not newsworthy.

b. written at too high a reading level.

c. submitted by organizations that the media do not like.

d. not persuasive enough.

99. Sales promotion is best defined as a(n)

a. activity and/or material used as a direct inducement to resellers,

salespersons, or consumers.

b. advertising and publicity campaign.

c. cyclical activity aimed at producing short-run effects on sales.

d. non-cyclical activity aimed at producing long-run effects.

100. Which factor is least likely to affect pricing decisions?

a. Shifting stock values

b. Legal and regulatory issues

c. Organizational and marketing objectives

d. Buyers' perceptions

Section B Multiple Choices 1. Which of the following is one of the Ten Rules of Radical Marketing that is used to guide marketers?

a. The CEO must let the marketing be done by marketers.

b. Get face to face with the people who matter the most - customers.

c. Rely on marketing research as the most important tool.

d. Don't use common sense as a guide.2. Marketing should pass through three stages when being implemented. Which one of the following is not one of the stages?

a. Contractual Marketing

b. Entrepreneurial Marketing

c. Formulated Marketing

d. Entrepreneurial Marketing

3. _______ demand is when a major part of the market dislikes the product and may even pay a price to avoid it.a. Latentb. Decliningc. Irregulard. Negative4. Which of the following is not an example of a Consumer Market?

a. Grocery Stores

b. Industrial Trade Shows

c. Retail Stores

d. Clothing Stores

5. Which of the following is not one of the entities that marketing people are involved in marketing?

a. Goods

b. Services

c. News

d. All of the above can be marketed6. Marketing is the process of planning and executing the conception, pricing, _____________, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals

a. Promotion

b. Commercials

c. Selling

d. advertising

7.When consumers go shopping on the Internet, they are said to be shopping in a ____________.

a. marketplace

b. market-trace

c. market

d. marketspace8.__________ are wants for specific products backed by an ability to pay.a. Costs - benefitsb. Benefits - costsc. Benefits - investmentsd, Outcomes - interests9, There are various types of communication channels that can be utilized by marketers. Which of the following is not one of those channels?a. Articulateb. Dialoguec. Distributiond. Service10.___________ hold that consumers will prefer products that are widely available and inexpensive. a. Product Conceptsb. Selling Conceptsc. Production Concepts

d. Marketing Concepts11. There are five types of needs that consumers evaluate and marketers need to probe. Which of the following is not one of those needs?a. Stated Needsb. Delight Needsc.Unrelated Needs

d. Secret Needs12. A(n) ________ marketer discovers and produces solutions customers did not ask for but to which they enthusiastically responda. responsiveb. creativec. anticipatived. outstanding13.__________ marketing is the task of hiring, training, and motivating able employees who want to serve customers well.a. Internal

b. External

c. Integrated

d. interrelated

14. In __________________, the seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers.

a. macro-marketing

b. mass marketing

c. micro-marketing

d. market segmenting

15. An attractive niche is characterized by each of the following characteristics except for which one?

a. The customers in the niche have a varying set of needsb. The customers in the niche will pay a premium for their needs to be satisfied.

c. The niche is not likely to attract other competitors.

d. The niche has size, profit, and growth potential.

16. One way to identify market segments is to identify preference segments. Which of the following is the segment that describes consumer preferences scattered throughout the space?

a. Homogeneous preferencesb. Clustered preferencesc. Heterogeneous preferencesd. Diffused preferences

17. In order for market segments to be successful they need to be measurable, substantial, accessible, differentiable, and what

a. Understood

b. Actionable

c. Reliable

d. Audible

18. _________________ calls for dividing the market into geographical units such as nations, states, regions, counties, cities, or neighborhoods.a. Geographic segmentation

b. Geographic organization

c. Location segmentation

d. Location organization

19. ____________ is a "deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior."a. Advertising

b. Personal selling

c. Brand reliance

d. Loyalty

20. Which of the following is not one of the examples of segmenting variables for business markets?a. Purchasing criteriac. Buyer-seller similarityc. Attitudes toward featuresd. User or nonuser statusSection C True or False

1 .Performing is the act of designing the company's offering and image to occupy a distinctive place in the target market's mind.

TrueFalse2 .A unique selling position is the location of an advertisement in an area where there is currently no competition.

TrueFalse3 .The product's quality image is also affected by packaging, distribution, advertising, and promotion.

TrueFalse4 .One differential criteria recommended is that the difference should be preemptive. This means the difference was new to the market before the competition. TrueFalse5 .According to the BCG Competitive Advantage Matrix, a volume industry is one in which companies can only gain a few, but rather large, competitive advantages. TrueFalse6 .A product's performance quality is measured at four levels, low, average, high, and superior.TrueFalse7 . Ordering ease refers to how easy it is for the consumer to place an order with the company. TrueFalse

8 .Better-trained personnel exhibit six characteristics, including the characteristic of personal hygiene.

TrueFalse9 .A company's heritage or history can be used to differentiate itself from the competition in a market and in the consumers' mind.

TrueFalse10 .In order to say that a product does have a product life cycle, one of the things that must be asserted is those products will rise and fall at different stages of the product life cycle. TrueFalse11 .A fad is a currently accepted or popular style in a given field. [

TrueFalse12 .The product life cycle goes through four distinct stages. They are introduction, growth, leveling, and decline. TrueFalse13 .A market pioneer differs from a product pioneer by the fact the company that is the market pioneer would be the first to sell in a new product category. TrueFalse

14 .Commodity competition occurs when buyers pay a premium price for a product and the suppliers now earn only an average rate of return.

TrueFalse15.A new to the world product is one that allows a company to enter an established market for the first time. TrueFalse16.One reason a product fails is due to the fact that the product development costs are lower than expected. TrueFalse17.One reason a product fails is due to the fact that the product development costs are lower than expected. TrueFalseI8.deas for new products can only come from customers, scientists, competitors, employees, channel members, and top management. TrueFalse19.A DROP-error occurs when the company dismisses an otherwise good idea. TrueFalse20.Concept testing involves presenting the product concept to appropriate target consumers and getting their reactions. TrueFalse21.Following a successful concept test, the new-product manager will develop a preliminary marketing-strategy plan for introducing the new product into the market. TrueFalse22.Lab scientists are not responsible for developing ways to communicate a product's psychological aspects through physical cues. They are just responsible for designing the product's functional characteristics. TrueFalse23.In sales-wave research, consumers who initially try the product at no cost are reoffered the product, or a competitor's product, at slightly reduced prices. TrueFalse24.When it comes to test markets, one of the decisions that a manager needs to address is which city or cities to do the test marketing. TrueFalse25.Expensive industrial goods and new technologies will normally undergo alpha testing, but eliminate beta testing. TrueFalseWhen considering the timing of commercialization, late entry is when it tries to time its entry to coincide with the competitor's entry. TrueFalse26.Critical path scheduling calls for developing a master chart showing the simultaneous and sequential activities that must take place to launch the product. TrueFalse27.One of the stages that adopters go through during a product's adoption process is the purchase stage. TrueFalse28.Personal influence is the effect advertising has on an individual's attitude or purchase probability. TrueFalse

29.A global industry is a firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors. TrueFalse30.One of the risks involved with going international is that the company might underestimate foreign regulations and incur unexpected costs. TrueFalse

Section D Give short, concise answers in your answer book.

1. The procedures of marketing research.

2. Name one advantage and one disadvantage of using an intermediary.

3. Please describe market mix

4. What is marketing?

5. How is marketing and marketing management defined today?

6. How has the marketing concept evolved?

7. What is the marketing mix and how is it affected by change?

8. How will marketing management continue to change as we enter the new millennium?

9. What strategies are being used to focus on customer satisfaction?

10. How will organizations build markets for the long term?

11. What is the importance of timely and relevant information inputs for marketing management decisions?

12. What is the typical problem-solving process followed by marketing managers?

13. What are the steps in the marketing research process, and what is the relationship between the marketing research process and creative problem solving?

14. How can managers obtain information about the market, competitors, and other external stakeholders, and how can this information provide "power" for marketing decisions?

15. How can information about internal organizational resources (financial, human, technological, marketing, etc) be obtained and how can this information provide "power" for marketing decisions?

16. What are the types and uses of databases used by marketing managers?

17. What are the components of a Marketing Decision Support System (MDSS) and a Marketing Information System (MIS), and what are their purposes and applications?

18. What are the advantages, constraints, and issues involved in the acquisition and use of information gained through marketing

19. What is the typical buying process engaged in by consumers, and what are the characteristics of each stage?

20. What are the primary social and cultural influences that affect consumer buying decisions, and what are the implications for marketing management decisions?

21. How are consumers influenced by others (reference groups, family), life roles, and status in groups?

22. How do each of an individual's personal and psychological characteristics influence the consumer buying process, and how do these influences affect marketing management decisions?

23. In what ways do product classifications affect the consumer buying process and the design of marketing programs?

24. In what ways does the purchase situation affect the consumer buying process and the design of marketing programs?

25. How do the concepts of relationship marketing, the new marketing concept, and market-driven management contribute to successful marketing programs?

26. What is the scope of business markets in terms of the types of customers, market size and trends.

27. How do the organizational and consumer buying behavior processes differ?

28. What are the stages in the business-to-business buying process, and what is the relevance of these stages to marketing decisions?

29. How is the business-to-business buying process influenced by the structure of an organization and the characteristics of its buyers or buying center/purchasing staff?

30. What are the primary types of purchasing decisions made by an organization, and what is the effect of each type on the buying and selling process?

31. How are purchase decisions influenced by factors related to the external environment, internal organization, and personal and product influences?

32. What is meant by the term "relationship marketing," and how is it achieved?

33. What is the nature and purpose of market segmentation, target marketing, and positioning as an integral part of marketing planning?

34. What is the difference between multi- and single-segment target marketing strategies, and when is each appropriate?

35. What activities are involved in the market segmentation process?

36. What criteria are used to evaluate potential market segments?

37. How are bases for segmenting consumer and business-to-business markets applied in the development of a segmentation strategy?

38. What is the relationship between product positioning and target marketing strategies?

39. How and why do environmental factors such as international marketing, technology, a rapidly changing marketplace, ethical concerns, and other contemporary issues impact market segmentation strategy decisions? What is the distinction between positioning and differentiation and what are the key variables generally used to position an organization's goods and services?

40. What is a product and what are the dimensions of the "augmented product concept"?

41. How can consumer goods be classified, and of what use are these classifications for consumer marketing strategy decisions?

42. How can organizational goods be classified, and of what use are these classifications for business-to-business marketing strategy decisions?

43. What are the key product-related issues that confront marketers, and what are some ways that each issue can be resolved?

44. What are the advantages, disadvantages, and significance of the product lifecycle concept, and how can it be applied to marketing decisions?

45. Why is test marketing used, and what are the advantages and disadvantages of using this approach when entering a new product and/or market situation?

46. What are the basic strategies for launching new products?

47. What are the elements of a branding strategy, and what role does brand equity play in an overall product and marketing strategy?

48. What is integrated marketing communications, and how does it relate to other elements of the marketing mix?

49. How does the communications process "work"?

50. What elements are present in each communication, and how do these relate to the various types of communication used by marketers?

51. Which promotional tools are available to marketers to use in an integrated marketing communications mix?

52. What are the major objectives of integrated marketing communication?

53. How is a pull IMC strategy different from a push IMC strategy?

54. What measures of performance are appropriate for evaluating the financial aspects of IMC?

55. What specific tasks are involved in salesforce management?

56. What are the different types of selling tasks, and when is each type appropriate to use?

57. How is the structure of a salesforce determined?

58. How are salespeople compensated and motivated?

59. What are the determinants of favorable advertising opportunities?

60. What media alternatives are available to advertisers, when should each be used, and how do marketers evaluate the effectiveness of media?

61. When is it appropriate to use publicity and public relations tools in the IMC mix? 62. How is sales promotion related to the rest of the IMC mix, and what types of sales promotion activities can be used to support IMC objectives?

63. How do components of the management process work together to achieve strategic objectives and facilitate the measurement of performance?

64. How and when should evaluation (and control) of marketing performance be conducted?

65. What factors should be analyzed to evaluate marketing performance at each organizational level?

66. Identify and name the five conditions required for a legitimate exchange process to take place.

67. Name the three fundamental considerations for marketers adopting a societal marketing philosophy.

68. Name one advantage and one disadvantage of using an intermediary.

69. Provide four examples of publics that are part of the microenvironment.

70. Name the four basic ways of collecting primary data.

71. Identify three potential problems associated with the use of secondary data.

72. Identify the four basic requirements that must be satisfied for a group of people to be classed as a market.

73. Identify four drawbacks of using Customer Forecasting surveys.

74. Name the four recognised methods of organisational buying.

75. Identify the four purchasing roles to be accomplished by any household.

Section E Essay Question

1) Illustrate the marketing research procedures.

2) Explain what is STP, the bases of segmentation.

3) What are marketing philosophies?

4) What did you learn from marketing management?

5) Illustrate the marketing research procedures.

6) The classification of consumer goods7) What are marketing philosophies?

8) What did you learn from marketing management?

9). Name the marketing communications mix.

10). Li st the number of intermediaries.

11). Please describe brand strategies.

12). Identify three potential problems associated with the use of secondary data.

13)What are the key performance criteria, and why are they of importance to marketers?

14)How is the strategic profit model used to analyze marketing performance?

15)Where is information for performance evaluation found, and how is its quality determined?

16) What is the typical structure of a marketing organization, including the role of management at each level, the flow of authority, and the flow of information?

17)How have marketing organizations evolved over the past five decades?

18) What is the purpose of an integrated management system (IMS), and what are the elements that comprise it?

19)How is total quality management being implemented by marketing managers?

20)What trends are occurring in marketing as managers deal with change?

21)What is a virtual organization, and what factors have contributed to its increased popularity?

22)Each generation is profoundly influenced by the times in which it grows up. These groups are called Cohorts. Using the seven cohort groups discussed in the text, determine the events, music, and other things that distinguish each group.

23)People as individuals and in groups can exert social factors to influence buying behaviour. What are these four social factor groupings24)You are a salesperson selling office equipment to a business. Give an example of how you would sell to each of the three types of buyers based on their stage in the purchase decision process.

25) Describe each of the steps of the Market Segmentation Process used to identify a market.

26)In what ways do you think a sales representative could make the sales presentation more relevant and interesting for the prospective customer?

27)In what ways and to what extent do you think that non-store retailing poses a threat to conventional retailers?

28). To what extent and why do you think that a marketing managers pricing decision should be influenced by the competitions pricing?

29). How might the product development stage differ for (a) an FMCG (Fast moving Consumer Good) product and (b) an organisational product?

30). Name five of the possible departments that may comprise the internal environment of an organisation.

31) Describe each of the four different types of business examined in the Growth Share Matrix.32) You own a skateboard production company. Give an example of how your company might use the components of the Order-to-Payment Cycle to process orders for your customers.

33) State six ways, or steps, that were discussed, that a company might take to improve the quality of its marketing intelligence.

34) Describe each of the steps involved in the Marketing Research Process.

35) There are four SBU strategies pursued by a business. They are build, hold, harvest, and divest. Explain how each of these strategies works in relation to the four types of businesses examined in the Growth Share Matrix.

36) Discuss the three types of marketing control mechanisms used to control how marketing plans are being implemented.

37) From your own personal standpoint, state three ways in which you create your expectations about your purchases as a consumer.38) Core competencies are important for a business to recognize in themselves in order to be competitive. Core competencies have three characteristics. State them

39) What is the difference between a visionary company and a comparison company?

40) Discuss several of the downsides of customizing products and services for consumers

41) David Packard of Hewlett-Packard observed, "Marketing is far too important to leave to the marketing department." In your own words, what do you think he meant?42) You own one of the many dotcom companies that have failed. State five reasons why dotcom companies have failed

43) In the economic arena, companies and consumers are increasingly affected by global forces. Describe five of the examples suggested in the text.44) Describe the five forces that determine the intrinsic long-run profit attractiveness of a market or market segment developed by Michael Porter.

45) Discuss what makes a "good" competitor and a "bad" competitor46) There are five attack strategies that can be taken by a company when going after the competition. Discuss each tactic and how it applies to marketing.

47) Describe each of the values that a child growing up the United States would be exposed to from the American culture.

48) Marketers of technology products can segment consumers based on technology types. Describe the type of consumers that would be classified in each of the segments.

49) John has decided to go to college. Use the steps of the Consumer Buying Process to describe how John might go through the steps as he makes his decision.50) Marketers often distinguish countries with five different income-distribution patterns. Discuss those five distinctions.51) The Body Shop is commonly cited as an example of an organisation adopting a societal marketing approach. Using other contemporary examples to illustrate your answer, discuss the growing significance of this approach to marketing.

52) 2) Using a well-known national organisation of your choice, discuss the

53) principal factors from the macro-environment which are currently

54) shaping their marketing strategy.

55) 3) Explain the differences between primary and secondary research.

56) Provide examples of situations in which each approach may be

57) considered most useful.

58) Using a well-known national organisation of your choice, discuss the

59) organisations approach to market segmentation. How does it

60) segment its market? What segments does it serve?

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