Practice test

Which of the following companies would probably be most interested in tracking discretionary income levels? (Safeway food stores BMW automobiles Gulf States Utilities General Mills Florida Orange Growers) (3)

BMW

Which of the following scenarios involves the distribution element of the marketing mix? (1)

Deciding whether or not to have retail outlets in addition to a website

Identifying and analyzing a target market and developing a marketing mix to satisfy individuals in that market are essential elements of which of the following parts of strategic planning? (2)

Developing a marketing strategy

Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as (1)

Relationship marketing

The Decca Electric Corporation produces light bulbs that are used in refrigerator manufacturing. Currently, only three other companies produce bulbs used in the production of refrigerators, with Decca as the leader in market share. In this case, Decca Electric Corporation would be considered (3)

an oligopoly.

Jason, a 17-year old high school student, wants to buy a pack of Marlboro Lights. He has the money to purchase them, but he is still not considered to be a market for the product due to his lack of ____ to buy. (ability OR willingness OR authority OR need OR location) (2)

authority

____ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other. (3)

brand

According to the Boston Consulting Group, marketers may classify their products as all of the following except (2)

cash contributors

Rollins Steel Corporation, a leader in industrial supplies, has identified its auto battery unit as having a dominant market share; however, it has low prospects for growth. The unit currently generates more cash for Rollins Steel than is required to maintain its market share. According to the Boston Consulting Group, the auto battery unit would be classified as a _____ (2)

cash cow

The product variable of the marketing mix can include all of the following except (1)

consumer perception of the product price.

AppleTM has made a success from anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for AppleTM, something that an organization does extremely well and may give a company an advantage over its competition. (2)

core competency

A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be a bad idea because MegaGrain's long-term survival, like most companies, depends on (1)

creating and maintaining satisfying exchange relationships.

Marketing is the process of (1)

creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.

When managers at Logistics Pro are developing their strategic plan, they use a market orientation as a guide to ensure that ____ is an integral part of the process. (2)

customer satisfaction

The focal point of all marketing activities is (1)

customers

The best approach for a company to take when monitoring its competitors is (3)

developing a system for gathering ongoing information about competitors.

Consumers buying products online have dramatically affected the ____ variable of the marketing mix. (1)

distribution

To monitor changes in the marketing environment effectively, marketers must engage in (3)

environmental scanning and analysis

The Coca-Cola Company recently introduced the "Freestyler," a new free-standing soda dispensers where consumers can chose from over 120 different types of soda and customize their drink. Freestylers would take the place of typical dispensers where there are only a few different types of soda brands available. In order to develop the new dispenser, Coca-Cola collected information on the soda-drinking habits of individuals in several different age groups, as well as information about new technologies for dispensing liquids from vending machines and the sales of its "fountain" syrup for national restaurant chains to use in their soda machines. Coca-Cola's collection of this information is an example of _____ while the analysis of its impact on the potential for the new "Freestyler" is an example of _________ (3)

environmental scanning; environmental analysis

Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year's Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ____ competitors. (3)

generic

Organizations should define themselves not according to the products they produce but according to (1)

how they satisfy customers.

A person's buying power is a function of (3)

income, wealth, and credit.

A change in the minimum drinking age in any given state illustrates a change in the ____ for Miller Brewing. (1)

marketing environment

CyberCycle Inc., is preparing a written document specifying the activities to be performed to implement and control its marketing activities. This document is called the (2)

marketing plan.

What type of competitive structure exists when a firm produces a product that has no close substitutes? (3)

monopoly

Three primary methods of collecting information for environmental scanning are (3)

observation, secondary sources, and marketing research.

The American automobile industry was historically dominated by "The Big Three," referring to General Motors, Ford, and Chrysler. However, as many more foreign competitors began influencing this market, the American companies had to modify and differentiate their products. The automobile industry moved from a(n) ____ structure to a(n) ____ structure. (3)

oligopolistic; monopolistic competition

The Boston Consulting Group's matrix is based on the (2)

philosophy that a product's market growth rate and its market share are important determinants of its marketing strategy.

A marketing manager decides what combination of variables is needed to satisfy customers' needs for a general type of product. What are the essential variables that the marketing manager combines? (1)

product, price, distribution, and promotion variables

Boca Burger's website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used (1)

promotional

The three basic forms that a product can take are (1)

services, ideas, and goods.

Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are (2)

stars.

Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) ____ unit of Kraft. (2)

strategic business

Managers at the Longshore Corporation are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called (2)

strategic planning

Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____. (2)

strengths; opportunities

Kashi Heart to HeartTM cereal is aimed at people concerned about their heart health. These people represent the Kashi (1)

target market

A market opportunity results from (2)

the right combination of circumstances and timing that permit an organization to take action to reach a particular target market.

Companies that compete for the same limited financial resources of the same customers are known as ____ competitors. (3)

total budget