MKT 701 LSUS Exam 1 Practice Questions

1. __________ is the curse of mature markets whereby products lack any real means of differentiation and customers see competing products as offering roughly the same benefits. a. Commoditization b. Price devaluation c. Specialization d. Market homogeneity

a. Commoditization

12. Which of the following is an example of collecting secondary information? a. Examining an annual report. b. Surveying the organization's customers. c. Conducting focus groups. d. Directly observing consumers in the store.

a. Examining an annual report.

9. Which of the following is needed to develop goals and objectives? a. Mission statement b. A SWOT analysis c. Marketing plan d. Competitive intelligence

a. Mission statement

14. A consumer wanted to purchase a new computer. However, she used the money to pay her rent instead. In this case, housing is what type of competitor? a. Total budget competitor b. Market competitor c. Product competitor d. Brand competitor

a. Total budget competitor

5. Among the fundamental changes to marketing and business practice in today's economy is the dramatic increase in the availability of information. This increase in information has created a shift in the balance of power in the supply chain. Who now holds most of the power in today's economy? a. customers b. market research firms c. retailers d. wholesalers

a. customers

16. Firms specializing in operational excellence excel at basic research/rapid research interpretation as a core competency. a. True b. False

b. False

10. The SWOT analysis is derived from the marketing goals and objectives section. a. True b. False

b. False - SWOT is not derived from the marketing goals and objectives section

8. Motorola continuously establishes performance standards and assesses actual performance by comparing it with these standards. Afterwards, Motorola often takes corrective action to reduce any discrepancies. This process is most likely outlined in the __________ section of Motorola's marketing plan. a. goals and objectives b. evaluation and control c. marketing strategy d. marketing implementation

b. evaluation and control

4. What type of planning deals with specific markets or market segments and the development of marketing programs that will fulfill the needs of customers in those markets? a. lower-level planning b. tactical planning c. market planning d. strategic planning

b. tactical planning

7. In the context of marketing planning, why is it vital that the marketing plan be capable of selling itself to top management? a. Because top managers must be able to clearly communicate the strategy to external stakeholders. b. Because top managers are responsible for executing the marketing plan. c. Because top managers must decide whether the marketing plan is the best use for the organization's scarce resources. d. Because top managers must ensure that the marketing program is successful.

c. Because top managers must decide whether the marketing plan is the best use for the organization's scarce resources.

3. Which of the following statements about pricing decisions in the marketing program is TRUE? a. Customers will always equate higher prices with higher quality products. b. Pricing is the most difficult element of the marketing mix to change. c. Price has a direct connection with customer demand. d. Price is one of two elements of the marketing mix that leads to revenue.

c. Price has a direct connection with customer demand.

13. The growth of the Internet has changed the way that situation analysis is conducted in today's business environment. In terms of situation analysis, which of the following is the most drastic change caused by the Internet? a. All competitors now have access to the same data and information. b. There is now no such thing as secrecy in strategic planning. c. The analyst is more likely to suffer from severe information overload. d. Specific data and information take longer to find.

c. The analyst is more likely to suffer from severe information overload.

11. Which of the following is NOT a part of evaluating the internal environment? a. A review of current objectives, strategy, and performance. b. A review of the current availability of organizational resources. c. A review of the organizational structure. d. A review of the competition.

d. A review of the competition.

2. __________ involves the analysis of economic, political, legal, technological, and cultural events and trends that may affect the future of the organization and its marketing efforts. a. Marketing research b. Tactical planning c. External analysis d. Environmental scanning

d. Environmental scanning

15. In 2009 General Motors had numerous internal weaknesses. However, there were still many external opportunities available for the company to pursue. Which of the following strategy direction is appropriate for this scenario? a. Defensive b. Diversification c. Passive d. Turnaround

d. Turnaround

6. A vision statement answers which of the following statements? a. What business are we in? b. Which is our market position? c. How can we serve our target markets? d. What do we want to become?

d. What do we want to become?