Marketing Exam #1
Which of the following strategies illustrates a market orientation? a. Targeting the average consumer b. Implementing centralization c. Increasing overhead production costs d. Creating customer value
?
. Companies can make strategic planning more effective by: a. ensuring the participation of top management. b. ensuring that decision making is centralized. c. making strategic planning an annual exercise. d. avoiding cross-functional teams.
a.
A company can gain a cost competitive advantage by: a. reorganizing functional departments into cross-disciplinary teams. b. manufacturing highly customized products. c. providing extra options on products or services. d. manufacturing products in small quantities.
a.
A market-oriented firm: a. defines its mission in terms of the benefits its customers seek. b. targets the average customer. c. is highly centralized. d. defines its business in terms of the goods and services it produces.
a.
A marketing mix typically encompasses _____ strategies. a. pricing b. divestment c. anti-competitive d. trade restraint
a.
A marketing mix typically involves: a. distribution strategies. b. divestiture strategies. c. restrictive covenants. d. federal regulations.
a.
A marketing plan can be made more effective by: a. incorporating managerial intuition. b. incorporating marketing myopia. c. making it a series of sequential steps. d. keeping it brief and broad.
a.
An effective business mission statement is: a. based on an analysis of anticipated environmental conditions. b. defined in terms of the products and services the company produces. c. based on short-term thinking and marketing myopia. d. developed independently of the external business environment.
a.
Hallie has a tendency to be egocentric. She follows the rules of her company only to avoid punishment and not to gain respect. When making decisions, she always focuses on what immediate benefits she will gain from an alternative. Which of the following stages of ethical development is illustrated in the scenario? a. Preconventional morality b. Postconventional morality c. Conventional morality d. Ethnocentric morality
a.
In the context of SWOT analysis, marketers can identify strengths and weaknesses by focusing on: a. employee capabilities. b. government policies. c. quality of products produced by competitors. d. foreign competitors.
a.
In the context of a marketing mix, the product strategy involves: a. warranty. b. point of purchase. c. price of the product. d. personal selling..
a.
In the context of determinants of civil society, _____ involves the voluntary acceptance of standards established by nongovernmental entities. a. self-regulation b. opportunism c. self-dealing d. socialization
a.
Jordon, a sales manager, always advises his subordinates to build long-term relationships of trust with his customers. He also instructs them to refrain from making deals that might not be very suitable for the customers, even if it means not meeting sales targets. Which of the following levels of ethical development is illustrated in the scenario? a. Postconventional morality b. Conventional morality c. Ethnocentric morality d. Xenocentric morality
a.
The distribution strategy in the marketing mix is concerned with: a. transporting raw materials or finished products. b. educating customers about product benefits. c. providing after-purchase services to customers. d. public relations activities.
a.
The heart of the marketing mix is the: a. product offering and product strategy. b. place and distribution strategy. c. sales promotion and personal selling strategy. d. product packaging and pricing strategy.
a.
The notion of competitive advantage means that: a. a successful firm will stake out a position unique in some manner from its rivals. b. the advantage can be enjoyed only for a short period. c. a company manufactures products which are similar to those of its competitors. d. an established firm focuses solely on developing a low-price competitive advantage.
a.
The price component of a marketing mix is: a. a competitive weapon for companies. b. decided after the promotion strategies are finalized. c. the starting point of the marketing mix. d. the least flexible element of the marketing mix.
a.
The stakeholder theory of corporate social responsibility: a. considers the management of an organization as one of the stakeholders. b. excludes customers and government agencies among stakeholders. c. does not consider the owners of an organization as the stakeholders. d. does not consider first-line employees of an organization as stakeholders.
a.
Thompson Crayons Ltd. is a manufacturer of crayons and colored pencils in Rhodia. The company has started packaging their products in vibrant colored boxes, as opposed to brown boxes used in the past, in order to increase their sales. In this scenario, Thompson Crayons Ltd. is using a _____ strategy. a. product differentiation b. market development c. diversification d. market penetration
a.
When properly created, a strategic business unit (SBU): a. has a specific target market. b. plans collaboratively with other SBUs of the company. c. has a maximum of hundred employees. d. shares the mission of its parent company.
a.
Which of the following can help companies make strategic planning effective? a. Refraining from involving top management in the strategic planning process b. Making strategic an ongoing process rather than an annual exercise c. Eliminating managerial intuitions d. Avoiding cross-functional teams
a.
Which of the following is an example of a market segment? a. A group of individuals who are diabetic b. A group of retailers selling the same products c. A group of companies manufacturing different products d. A group of individuals with different product requirements
a.
Which of the following is closely associated with the diversification strategy? a. Entering new markets with little competition b. Increasing overhead production costs c. Decreasing the prices of existing products d. Selling modified products to the same customers
a.
Which of the following is true of a product/service differentiation competitive advantage? a. It tends to be more attractive to top managers because of its durability. b. It provides a shorter-lasting competitive advantage compared to cost competitive advantages. c. It focuses primarily on offering a low priced product or service than that of the competitor. d. It is subject to continual erosion, as opposed to cost competitive advantages.
a.
Which of the following is true of postconventional morality? a. At this level, people are concerned about how they see and judge themselves over the long run. b. At this level, the focus is on societal norms and people worry about how society might see them. c. At this level, people are more self-centered, calculating, and even selfish. d. At this level, people typically focus only on adhering to legal standards.
a.
Which of the following practices can help businesses gain a cost competitive advantage? a. Innovating simplified production techniques b. Using expensive raw materials c. Customizing products with extra frills d. Manufacturing products in smaller quantities
a.
Which of the following questions considered by markets is closely associated with promotion? a. How can we use social media to increase our products sales? b. Should we increase the prices of our products? c. What should the packaging of our products look like? d. How can we improve our product quality?
a.
Which of the following statements is true about Asian Americans? a. They are the fastest growing population among minority groups. b. They are the least educated amongst all ethnic minority groups. c. They have the least spending power among all ethnic groups. d. They seldom retain their core Asian values.
a.
Which of the following statements is true about incomes in the United States? a. The average family incomes rose by one percent in 2012. b. The median household income in almost the same across different states. c. Most individuals in the United States prefer to wait for high-paying jobs to taking up lesser paying jobs. d. The median household incomes have peaked in the United States in the recent years
a.
Which of the following statements is true in the context of social media? a. Social networking is part of regular life for people of all ages. b. Social media seldom influence the buying behavior of consumers. c. The majority of forty-five and older place a high value on social network information. d. Social media have limited opinion sharing about companies.
a.
Which of the following statements is true of baby boomers? a. They are postponing retirement to pay debts. b. They spend less than any other population group. c. They have minimal health care expenses. d. They are affected by the Great Recession than any other cohort.
a.
Which of the following statements is true of strategic business units (SBUs) of an organization? a. They typically have strategies of their own. b. Their functions are limited to manufacturing. c. They typically serve the same target markets as the other SBUs of the organization. d. They do not have missions of their own.
a.
Which of the following statements is true of strategic business units (SBUs)? a. Each SBU of a company typically has its own return on investment. b. All SBUs of a company share the same goals and use the same strategies. c. All SBUs of a company target the same market segment. d. SBUs do not perform manufacturing functions.
a.
Which of these statements is true about customer relationship management? a. It involves linking all processes of the company from its customers through its suppliers. b. It tries to convince potential customers to buy, even if the seller knows that the customer and product are mismatched. c. It is used more by sales-oriented firms than market-oriented firms. d. It is most extensively used by production-oriented firms.
a.
. A marketing plan is most likely to discuss: a. first-line operational strategies. b. distribution channels. c. supplier details. d. downsizing strategies.
b.
. Individuals born between 1965 and 1978 form a group called: a. tweens. b. Generation X. c. baby boomers. d. Millennials.
b.
. Which of the following statements is true about the tweens in America? a. They have grown up with and value traditional forms of media more than any other cohort. b. They are making an effort to look more mature at a younger age. c. They are a larger cohort than Millennials. d. They are still not familiar with the use of social media and mobile technologies.
b.
. _____ multiplied by the number of units sold equals total revenue for the firm. a. Discount b. Price c. Overhead cost d. Profit margin
b.
A distinguishing feature of the product/service differentiation competitive advantage is _____. a. using inexpensive raw materials b. having a strong brand image c. having low overhead costs d. creating generic products
b.
A sales-oriented firm places minimal emphasis on: a. promotional strategies. b. building long-term customer relationships. c. pricing strategies. d. personal selling and direct selling activities.
b.
Applied research: a. is primarily conducted to broaden knowledge base. b. is primarily aimed at developing new or improved products. c. is also known as pure research. d. primarily involves compiling and analyzing sales strategies of competitors.
b.
Business firms can stimulate innovation by: a. hiring employees with low risk tolerance. b. telling employees that they have the freedom to fail. c. using micromanagement techniques. d. curbing research activities.
b.
Gemini Inc. has prepared a market plan for its air conditioners. The managers at Gemini have outlined several activities for their subordinates based on a marketing plan. The employees are required to finish these activities within specific time frames. The managers have also allocated a budget for each activity. In the context of marketing planning, which of the following concepts is illustrated in the scenario? a. Divestment b. Implementation c. Diversification d. Vertical integration
b.
In order to combat U.S. corporations' use of illegal payments and bribes in international business dealings, Congress enacted: a. the Future Corporation Protection Act. b. the Foreign Corrupt Practices Act. c. the Foreign Trade Act. d. the International Treaty Clause.
b.
Marketers at Omega Pharmaceuticals are identifying stores and outlets that will be most convenient for customers to buy its products. The company is also planning the logistics of how and when the products will be delivered to the outlets. Omega Pharmaceuticals is working on its _____ strategy. a. advertising b. distribution c. price d. divesting
b.
Nile Inc. is one of the leading shoe manufacturing companies in Baltoni. It manufactures canvas shoes that are quite similar to those produced by other brands. The management of the company has decided to adopt a product/service differentiation competitive strategy. What is Nile Inc. likely to do in this scenario? a. Offer their products at discounted rates and make the cost of their products lower than those of their competitors. b. Produce aerobic, tennis, and baseball shoes that have specialized features. c. Advertise their products through more media outlets than it previously did. d. Start selling products to markets outside Baltonia.
b.
Relationship-management strategies depend on: a. centralization. b. employee empowerment. c. deregulation. d. greenwashing techniques.
b.
Researchers at PPG Industries Inc. spent considerable time, effort, and money developing a bluish windshield that would let in filtered sunlight but block out heat. PPG had not conducted market research before deciding to design the windshield. Moreover, the windshield is priced higher compared to the other brands. The company has now introduced the windshield in the market and is hoping that the customers will like it. PPG most likely has a(n)_____orientation. a. exchange b. production c. sales d. promotion
b.
The Bureau of Competition _____. a. encourages anti-competitive practices b. promotes competition in industries where consumer impact is high c. promotes mergers and acquisitions to decrease competition d. encourages monopolization
b.
The _____ is a government body that has the power to prescribe mandatory safety standards for almost all products used by customers. a. Health and Welfare Agency b. Consumer Product Safety Commission c. Environmental Safety Administration d. Product Quality Commission
b.
The product in the marketing mix: a. includes point of purchase. b. includes company image. c. includes personal selling. d. includes pricing..
b.
Which of the following basic values strongly influenced attitudes in the United States' first 200 years? a. Structural mobility b. Self-sufficiency c. Nonconformity d. Self-dealing
b.
Which of the following is a drawback of the production-orientation philosophy? a. It ignores the importance of assessing a firm's internal capabilities. b. It overlooks the importance of market research. c. It places little emphasis on the assessment of manufacturing plants and facilities. d. It gives importance to the sales function over other functions.
b.
Which of the following statements is true about code of ethics? a. It is most effective when it is too detailed. b. It can be an effective internal control of behavior. c. It is typically drafted by government agencies. d. It is created only for top managers of an organization.
b.
Which of the following statements is true about strategic business units (SBUs)? a. They do not have competitors of their own. b. They do not plan collaboratively with other SBUs. c. They do not have specific target markets. d. They do not perform manufacturing and marketing functions.
b.
Which of the following statements is true about the niche strategy? a. Only large companies can implement a niche strategy. b. Companies that adopt a niche strategy have only a small number of customers. c. Only the companies that do not have competitors can adopt a niche strategy. d. Companies that adopt a niche strategy can only gain a price advantage over competitors.
b.
Which of the following statements is true about tweens? a. They are the first generation of latchkey children. b. They are an attractive market segment for mobile games. c. They are a larger cohort than baby boomers. d. They are aged between fourteen to eighteen years.
b.
. In the context of marketing planning, _____ entails gauging the extent to which marketing objectives have been achieved during the specified time period. a. implementation b. control c. evaluation d. environmental scanning
c.
A publisher of children's books defines its business as "printing books" instead of "meeting educational needs of students." This illustrates: a. marketing synergy. b. marketing myopia. c. opportunism d. self-dealing
c.
Companies that rely on the marketing concept and have implemented a market orientation strategy recognize that: a. price is the most important variable for customers. b. products should be targeted at everybody or the average customer. c. customer wants can be satisfied by integrating activities of the firm. d. good promotion and advertising strategies can save a bad product.
c.
Hispanic Americans: a. prefer to buy American products rather than brands found in their homelands. b. are much older than the general U.S. population. c. believe that the traditional family is the main building block of a healthy community. d. make the most homogenous ethnic group.
c.
In the context of SWOT analysis, a strength of an organization can be: a. favorable government policies. b. lack of competitors. c. superior production technology. d. component lifestyles.
c.
Issues such as product lines, promotional communications, and pricing are all delineated in the _____. a. statement of qualification b. article of incorporation c. marketing plan d. financial statement
c.
Mitchell's is a popular brand of women's clothing. During market research, the company observed that a large number of its existing customers believes and promotes the use of sustainable goods. Based on findings of the research, the top management of the company decides to use eco-friendly raw materials in manufacturing their clothes. Which of the following strategies is Mitchell's using in this scenario? a. Market development b. Cost leadership c. Product differentiation d. Market penetration
c.
NutriPro has many business divisions. One of its business divisions has a large customer base for its breakfast cereal in Oriel. NutriPro's other business division sells cookies in Lanslot. NutriPro has now introduced its cookies in Oriel. To ensure good sales, the company is also offering discounts. Which of the following strategies is illustrated in this scenario? a. Restraint of trade b. Self-dealing c. Market penetration d. Divestment
c.
The basic goal of _____ is to increase the short-term cash return without too much concern for the long-run impact. a. building b. holding c. harvesting d. divesting
c.
Which of the following is a distinct feature of a product/service differentiation competitive advantage? a. Using government subsidies b. Controlling overhead costs c. Establishing a brand name d. Obtaining inexpensive raw materials
c.
Which of the following is associated with the market development strategy? a. Limiting the production of products b. Increasing the prices of products c. Adding new features to products d. Limiting resources used for promotion
c.
Which of the following questions which companies consider is best aligned with the production orientation philosophy? a. What are the product preferences of our customers? b. How can we sell our products more aggressively? c. What can our engineers design? d. How can we gather more information about customer needs?
c.
Which of the following statements about American teenagers is correct? a. They spend about six hours per week tuned in electronically. b. They make the largest cohort group. c. They like interactive promotional activities. d. They prefer Tumblr and Instagram to Facebook.
c.
Which of the following statements is true about on-demand marketing? a. It requires firms to focus on the internal rather than the external business environment. b. It gives maximum emphasis to aggressive personal selling strategies. c. It is aimed at enhancing customer relationships. d. It is used by sales-oriented firms.
c.
Which of the following statements is true about the sustainability theory of social responsibility? a. It states that corporations should only focus on increasing shareholder wealth. b. It exclusively focuses on the corporations' duty to protect the environment. c. It states that focusing on the world's social and responsible problems will help corporations outperform their peers. d. It states that corporations should think about social responsibility only after they establish themselves and achieve profitability.
c.
Which of the following statements is true about the trends prevalent among various ethnicities in the ethnic markets? a. African Americans are on average older than all other ethnic groups. b. Women are the primary decision makers in the majority of Hispanic households. c. Asian Americans retain strong core values as they acclimate to American culture. d. Asian Americans have the least spending power than any other minority group.
c.
Which of the following strategies is most closely associated with a societal marketing orientation? a. Using greenwashing techniques b. Fostering opportunism c. Using clean energy sources d. Increasing overhead production costs
c.
. Which of the following is true of individuals belonging to the baby boom generation? a. They have the least spending power than any other cohort. b. They spend more on food than any other generational demographic. c. They are the first generation of latchkey children. d. They are willing to change brands and try new things.
d.
A company that sets its goals and strategies based on what its current equipment can manufacture, what its engineering can design, and what the company itself can do best has a(n)_____orientation. a. marketplace b. sales c. exchange d. production
d.
A firm that extensively uses relationship-marketing strategies is most likely to: a. focus on the internal rather than the external business environment. b. rely on aggressive sales strategies. c. be highly centralized. d. encourage teamwork among employees.
d.
Delta Corp. is a large corporation that offers several product lines. On the company's Web site, the following content is highlighted: "The aim of our business is to achieve profitability by offering our customers high quality products that are manufactured in a cost effective manner. Our goals are to provide value to our customers, serve the community, and preserve the environment." This content is most likely to be Delta's: a. article of incorporation b. financial statement c. bona fide occupational qualification d. mission statement
d.
Gen Xers: a. spend the least on housing than any other cohort. b. control seventy percent of America's net worth. c. are aged between twelve and eighteen years. d. spend more on food than any other cohort.
d.
In the context of marketing planning, implementation requires: a. micromanagement strategies. b. anti-competitive strategies. c. centralization of the firm. d. delegating authority to employees.
d.
In the context of the portfolio matrix, a _____ has low growth potential and a small market share. a. question mark b. problem child c. star d. dog
d.
In the portfolio matrix, a _____ is in a low-growth market, but the product has a dominant market share; it is an SBU that generates more money than it needs to maintain its market share. a. problem child b. dog c. star d. cash cow
d.
Marketers at Libra Electronics are developing strategies to increase product sales. The marketers want to use a good blend of digital advertising and print advertising. This implies that the marketers at Libra Electronics are working on _____ strategies. a. divesting b. product c. place d. promotion
d.
MaxNutri sells cookies and nutrition bars. The marketers at MaxNutri are trying to come up with a new and attractive packaging design for its cookies. In this scenario, MaxNutri is working on its _____ strategy. a. point of purchase b. distribution c. advertising d. product.
d.
Nutri Star Corp. is a large food manufacturing corporation which is more profitable that its competitors. The company uses only organically grown grains and fruits. Nutri Star also promotes organic farming and helps nonprofit agencies who focus food and nutrition causes. The company has now decided launch a campaign that aimed at promoting healthy eating habits among youth. Nutri Star is most likely to have adopted the concept of _____. a. divestment b. consumerism c. opportunism d. sustainability
d.
Paulina is an eleven-year-old girl. She spends a lot of time on social media and likes mobile games. Paulina is most likely to be a: a. baby boomer. b. Millenial. c. Gen Xer. d. tween.
d.
Revel Inc., a cell phone manufacturer, launched its new range of smartphones that could only be purchased on the company's official Web site and not at retail outlets. This limitation may be attributed to the _____ element of Revel's marketing mix. a. evaluation b. promotion c. price d. distribution
d.
The Federal Trade Commission's Bureau of Competition _____. a. promotes restraint of trade among business firms b. encourages monopolization and agreements between competitors c. promotes anti-competitive strategies d. seeks out and challenges anti-competitive conduct in the marketplace
d.
The focus of a mission statement of an organization should be on: a. supply chain management. b. internal operational procedures. c. anti-competitive strategies. d. the market the business serves.
d.
The product component of a marketing mix involves: a. point of purchase. b. distribution. c. advertising. d. brand name.
d.
Turner Electronics is a ten-year-old company. In the past decade, the company hasn't created any innovative products that have helped set it apart from the rest of its competitors. However, when any of its products need to be repaired or fine-tuned, it offers its customers top-notch product checks. As a result, the company has managed to retain its wide customer base. Which of the following strategies is Turner Electronics using in this scenario? a. Product development b. Diversification c. Market penetration d. Service differentiation
d.
Which of the following activities is carried out during implementation of a marketing plan? a. Defining the business mission b. Gathering information about customers c. Setting up strategic business units d. Creating and managing a task force
d.
Which of the following is a difference between a market-oriented firm and a sales-oriented firm? a. Unlike a market-oriented firm, a sales-oriented firm puts customers at the center of its business. b. Unlike a market-oriented firm, a sales-oriented firm uses relationship-marketing strategies. c. Unlike a market-oriented firm, a sales-oriented firm gives little emphasis to promotion activities. d. Unlike a market-oriented firm, a sales-oriented firm targets its products at the average customer.
d.
Which of the following is true of conventional morality? a. It is the most basic level of ethical development. b. It is the most advanced level of ethical development. c. It is predominantly characterized by egocentrism. d. It involves an emphasis on the expectations of society
d.
Which of the following questions considered by marketers is best aligned with distribution strategies? a. Which market segment should we target? b. How do we convince customers to buy our products? c. What products should we manufacture? d. Where do customers like to shop?
d.
Which of the following statements is true about stars in the portfolio matrix? a. They have low growth potential and small market shares. b. They require minimal funding. c. They have low market shares in high-growth industries. d. They are fast growing market leaders.
d.
Which of the following statements is true of a niche strategy? a. A niche strategy is most suitable for firms that have achieved economies of scale. b. A niche strategy requires business firms to reduce after-purchase service options. c. A niche strategy involves removing extra frills from products. d. A niche strategy is ideal for small companies with limited resources.
d.
Who among the following is most likely to recognize actions as unethical? a. Rebecca has noticed that most of her colleagues often use office supply for personal use. b. Jason has noticed that all his managers agree that it is okay to plagiarize to a small extent. c. Sarah's organization does not provide any guidelines on ethical behavior. d. David has noticed for the first time a colleague misrepresenting data in a report.
d.
_____ is a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization. a. Marketing mix b. Article of incorporation c. Statement of qualification d. Marketing audit
d.