Marketing Principles Test
When a company engages in strategic planning, it must consider which of the following?
how to take advantage of current business opportunities
Having a good MIS is important because _______.
it enables a company to use customer insights to improve relationships with customers
Denim Blue Jean Corporation is a growing company located in Washington State, but it is beginning to develop a presence in the surrounding states as well. It sells only one product—blue jeans—but it has 12 different lines of jeans that cater to men, women, children, babies, toddlers, and teens. Which marketing organization would best suit Denim Blue Jean Corporation?
market and customer organization - caters to companies that sell one product to several different customer markets
Why is good marketing management critical?
to ensure the company serves as many customers in its target market as it can and as well as it can
Which of the following best describes the purpose of the customer insights team?
to gather and interpret information about customers and the market
Which of the following identifies a change in the technological environment that could affect the success of a business?
A company develops a new battery that lasts twice as long as its predecessor.
A power tool company wants to give its customers information about how best to use its product in creative ways. What should the company create to provide customers with this information?
A company extranet- a closed information system, that can be accessed through the company website.
To be successful, why should company's try to adopt a proactive stance to marketing?
A proactive stance allows a company to influence the market in its favor.
What is CRM?
A system of customer management
Which of the following describes the current trend in businesses regarding relationships with customers?
Hand-pick the most profitable customers and allow them more input.
A company is conducting market research in order to determine the best areas to sell their product. They have already determined their research questions and gathered their data. What is the next step for this company in their research plan?
Analyze the data and apply it to the marketing situation
A company is attempting to gather information about its customers in order to improve its customer service. Which of the following is the best place for this company to start to develop an efficient MIS?
Assess the information needs of the company
Which kind of company needs market research more?
Both large multinationals like Procter & Gamble or small locals truly need market research.
A local drama club wants to increase the membership and attendance at its performances. To do so, it hosts free shows... What is the drama club engaging in?
Building exchange relationships
The role of a company's marketing intermediaries is to do which of the following?
Help the company find, promote, sell, and distribute products.
Cynthia Brin, the CEO of biotech company NeuroSyn, is trying to gather intelligence about the products and plans of its competitor, Nucleic Solutions. Which of the following research methods would be most likely to provide valuable information about the product plans of Nucleic Solutions? `
Collect information from people who supply and distribute products for Nucleic Solutions.
Which of the following is NOT a step in the marketing research process?
Comparing research findings to other studies
Nibbles Pet Food Corporation is in the process of developing its new market strategy. The marketing team has already established the company's niche product—premium, organic dog and cat food—and contracted to sell it in several high-end pet stores. The team has also determined the optimum price to create value for customers and still make a profit. What does the marketing team need to do now?
Create a promotion strategy to increase customer awareness.
A wedding services company changes its marketing strategy to reflect the fact that more LGBT (lesbian/gay/bisexual/transgender) marriages are taking place. The company is offering a broader range of ceremonies that cater to this new market. Which of the following environments must be carefully analyzed by this wedding company?
Cultural
The goal of marketing is to do which of the following?
Determine the best way to create value for customers and develop relationships with customers that profit the company.
Julie's Jump Rope Emporium is a brand new company. From a marketing standpoint, what is the first thing Julie's Jump Rope Emporium needs to do?
Determine who in the community needs a jump rope.
Which of the following scenarios best describes the societal marketing concept?
Edward's Earthware attempts to make its pottery in a way that satisfies customers but is also environmentally friendly and sustainable over the long term.
Which of the following best describes a duty that would fall under the jurisdiction of the EPA?
Ensuring that pollution standards are met by a company
Teach-Me Tutoring Company, located in the city of Education, is known for its awesome teachers and cutting edge curriculum. Its marketing team has done a superb job in ensuring that everyone in Education is familiar with the company. However, the company is not prospering, and current customers are complaining about the company's service. What is the next step for Teach-Me Tutoring, in order to help the company begin to show a profit?
Examine its value delivery network.
Which of the following is NOT likely to be used as an online database that can be accessed by a company to gain information about competitors?
An international company has appointed a CPO in order to ensure the privacy and confidentiality of the consumer data it collects. Which of the following is the CPO most likely to do as a function of his job?
Inform customers of the privacy policy of the company.
How does the new concept of marketing differ from the old concept of marketing?
It focuses on the experience of the customer.
Overall, how has the American population changed over time?
It has become more diverse, better educated, and more mobile.
NOP Company's best-selling product for years was its portable CD player. However, in recent years, due to the development of MP3 players and iPods, sales have plummeted and are unlikely to rebound. Which is the best approach for NOP Company to take?
Liquidate the CD player division and use the funds to support better-selling products.
A marketing dashboard is used to do which of the following?
Measure the return of investment for a marketing strategy.
The ultimate goal of the marketing process is to do which of the following?
Receive value from customers.
Chicago's Best Pizzeria has been operating on the south side of Chicago for over 50 years. Its target market includes young, urban professionals who want new-style, organic pizzas with exotic ingredients. However, in recent years, the population in the pizzeria's neighborhood has been shifting and fewer young, urban professionals live there. The population has grown older and wants traditional pizza, not pizza with exotic ingredients. Which of the following identifies the pizzeria's best response to this situation?
Target a new market with a different product.
How has the digital age MOST affected companies and customers?
The Internet has allowed consumers to take marketing content and share it.
What is most likely to cause a variation in customer- perceived value?
The customer's option of what constitutes value.
How do company objectives and goals relate to the company mission statement?
The goals and objectives outline the steps necessary to accomplish the company's mission statement.
Ice Cold Ice Cream Company currently has several question marks in its business portfolio, but it is currently maintaining its market share. At the most recent board meeting, the CEO of Ice Cold Ice Cream decided to allocate all of the company's profits toward the growth and expansion of these question marks, in order to cause the question marks to become stars or cash cows. What is likely to happen to this company?
The growth of the company will be uneven and sporadic, seeing as question marks are equally likely to succeed or fail.
How does the macroenvironment of a company differ from its microenvironment?
The macroenvironment deals with societal forces, and the microenvironment deals with creating value.
Which of the following is NOT a factor that makes it difficult for companies to adhere to legislation in the business environment?
The shrinking number of laws currently in existence
Which of the following factors is most important to take into account when developing a good MIS?
The usefulness of the information offered
What is the importance of selling and advertising in marketing?
They work in tandem with developing good customer relations.
Why is it important for a company to collect both primary and secondary data when conducting marketing research?
To have a "full picture" of the subject of their study
What is the overarching goal of CRM?
To secure customer loyalty
All of the following can be considered problems with gathering primary data for an international company EXCEPT
Unavailability of resources
How do market demands relate to needs and wants?
Wants are objects that satisfy needs, and buying power converts wants into demands.
A brand-new hardware company is writing its mission statement. Which of the following is the best mission statement possible for the new company?
We will help customers build, invigorate, restore, refurbish, or completely redesign their homes or businesses.
Richard's Cowboy Gear is having difficulty attaining the credit it needs to expand. Which of the following should the company do in order to alleviate its financial situation?
Work out a plan with its financial intermediaries - include banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods
What is a business portfolio?
a collection of businesses and products that make up a company
In marketing, the act of obtaining a desired object from someone by offering something in return is known as which of the following?
an exchange
How do the individual components of a SWOT analysis work together to determine the status of a company?
by ascertaining a company's strengths, relating them to opportunities, minimizing weaknesses, and identifying threats to growth and development
Bertram's Beer structures its company in such a way as to encourage its most profitable older customers to remain loyal while also targeting a new generation of customers. What is Bertram's Beer attempting to build?
customer equity - total combined customer lifetime values of all the company's customers
Vaughn's Video has suffered in the current economy because fewer people have the money for videos and because fewer people use the technology, given the advance of online streaming sites such as NetFlix and Hulu. The videos Vaughn's Video does sell are often out priced by versions coming from China or Taiwan, or they are accused of being damaging to the environment. Which of the following marketing impacts has NOT affected Vaughn's Video?
not-for-profit marketing
The difference between a proactive and a reactive stance to the marketing environment can best be described as which of the following?
passive versus active responses
Which marketing philosophy holds that consumers will favor products that offer the most in quality, performance, and innovative features?
product concept
The purpose of business legislation is primarily based on _____.
protection
Which of the following is NOT a problem involving the natural environment that marketers need to consider?
renewable resources
The key to a company's success lies primarily in which of the following?
the ability of the company to coordinate efforts effectively within the company and with other members of its supply chain in order to deliver products to customers
The group of economic factors that affect consumers' purchasing power and spending patterns is called which of the following?
the economic environment
A value chain consists of which of the following?
the series of internal departments that carry out value-creating activities
What is the purpose of the marketing mix, as a part of the overall marketing strategy?
to elicit a response that influences a demand for the product from the customers that the company is targeting
Rod's Radical Racers is an upscale company that sells cars primarily to race car drivers and movie producers. In the past, Rod's Radical Racers was marketed as selling cars for the fun-loving driver—the driver who wanted to "race with life." However, in the current economy, Rod's has changed its slogan to "superior speed, superior savings." Rod's Radical Racers is engaging in which of the following?
value marketing
