Final Exam
Answer the following questions by choosing the BEST answer. Place the letter corresponding to your choice in the space beside the question numbers on the Answer Sheet. The Answer Sheet is due by Monday at 11:59 MST.
1. The most important environmental trends to follow, in the context of discovering
new business ideas, are economic trends, social trends, technological advances, and political action and regulatory changes. Of these, the trend that is changing the most rapidly is:
a. economic trends
b. technological advances
c. social trends
d. political action and regulatory changes
2. The most common way to identify business ideas quickly is through:
a. Brainstorming
b. Focus groups
c. Library research
d. Internet research
3. A marketing research approach that uses a discussion leader to interview groups of 6 to 10 past, present, or prospective customers is referred to as
a. An in-depth (or individual) interview.
b. Data mining.
c. A Focus group.
d. A Discussion forum.
4. Secondary data is often where marketing research begins. Secondary data consists of information ____.
a. that does not currently exist in an organized form
b. that already exists somewhere, having been collected for another purpose
c. used by competition
d. that the researcher can obtain through surveys and observation
5. By conducting a SWOT, the company should discover:
a. how weaknesses will constrain threats
b. how weaknesses will determine vulnerability to opportunities
c. how strengths can be used to leverage opportunities
d. how strengths will determine vulnerability to threats
6. Organizational feasibility analysis is conducted to determine whether
a proposed business has certain characteristics. Which of the following is NOT part of an organizational feasibility analysis?
a. sufficient management expertise,
b. organizational competence
c. resources to successfully launch its business
d. low competition
7. Wal-Mart has built arguably the most efficient distribution system in the retailing world. Through the employment of various initiatives, such as Vendor Inventory, RFID and distribution center layouts with cross-docking keep costs down. The low cost (relative to other retailers) distribution system would best be called a:
a. Business model
b. Core competency
c. A differentiation strategy
d. A positioning strategy
8. Criteria for forming segments involve both similarities and differences. Which of the following statements is most accurate?
a. Within a segment the needs of potential buyers should be similar; between
segments, the needs of buyers should be different.
b. The needs of buyers should be different, both between segments and within
segments.
c. The needs of buyers should be the same, both between segments and within segments
d. Within a segment the needs of potential buyers should be different; among segments, the needs of buyers should be similar
9. Which of the listed choices is NOT a positioning task?
a. Identifying a set of possible competitive advantages upon which to build a
position
b. Surveying frequent users of the product
c. Selecting an overall positioning strategy
d. Effectively communicating and delivering the chosen position to the market
10. Small businesses can compete with larger rivals with bigger budgets by employing unconventional, low-cost creative techniques known as:
a. market research.
b. astonishing customer service.
c. guerrilla marketing strategies.
d. psychographics.
11. One "natural" advantage small businesses have over large businesses, which can be a significant competitive advantage, is:
a. by building a community with customers and connecting with them on an emotional level.
b. their ability to conduct market research.
c. their lower costs.
d. their ability to serve many highly diverse target markets.
12. The unique selling proposition (USP) focuses on:
a. a feature that is unlike others found in competing products that answers the question: What is different?
b. a unique customer benefit that answers the question: What's it in for me?
c. a premier priced product that answers the question: What product offers the highest quality?
d. emulating the most successful products in the industry.
13. Seiko makes watches. It markets its higher quality watches under the Seiko or Lasalle name, and its lower-priced watches are sold under the Pulsar brand. Seiko uses a __________ strategy.
a. Multibranding
b. Generic branding
c. Multiproduct branding
d. Trademarked branding
14. Rather than trying to compete head to head with the dominant players on the Web with greater access to resources, entrepreneurs should consider focusing on:
a. building a Web site in-house
b. serving a geographic niche.
c. only brick-and-mortar retail channels.
d. serving a market niche.
15. Technology has disrupted distribution channels through:
a. The death of distance
b. Homogenization of time
c. Irrelevance of location
d. All of the above
16. The total amount a customer will spend on a given product category over a strategically meaningful time period is called:
a. Customer Lifetime Value
b. Customer Worthiness
c. Customer Equity
d. Customer Profitability Analysis
17. A common pricing mistake entrepreneurs make is lowering prices because they fail to recognize the:
a. extra value, convenience, service, and quality they offer their customers.
b. advantages they have due to their lower cost structure.
c. complexities that larger competitors have to face.
d. driving need that all customers have to find the lowest price possible.
18. The acceptable price range of a product or service is the area between the ________ defined by customers in the market and the ________ established by the company's cost structure.
a. price floor; price ceiling
b. image; quality
c. price ceiling; price floor
d. price floor; value
19. The promotional mix refers to
a. the three key elements that make advertising and promotion effective: (1) sex appeal, (2) humor, and (3) fear
b. the combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product.
c. the combination of both paid and non-paid marketing tools used to promote product interest and draw sales away from competitors.
d. a series of interrelated advertisements that each concentrates on a unique aspect of a product's benefits: (1) primary purpose, (2) ease of use, and (3) distinction from competitors.
20. Most importantly, a company and marketing manager must work out a philosophy of ________.
a. customer responsibilities
b. supplier responsibilities
c. governmental responsibilities
d. social responsibility and ethical behavior
21. A competitor analysis is:
a. a detailed analysis of a firm's competition
b. a piece of a broader description of a firm's strengths and weaknesses
c. a method used to identify economic market structures
d. something that must be done annually
22. When we practice ________, we arrange for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
a. repositioning
b. target segmenting
c. positioning
d. product distribution
23. Threat of Substitute Products/Services, Threat of New Entrants into the Industry, Rivalry Among Existing Firms, Bargaining Power of Suppliers and Bargaining Power of Buyers are all part of:
a. Herzberg's Theory
b. Maslow's Hierarchy
c. Porter's Five Forces Model
d. Brannon's Competitive Factors Model
24. When searching for products via the Internet, very few shoppers look beyond the first page of the search engine results. Consequently, it is important for businesses to engage in a process called ¬¬¬¬¬¬¬¬¬¬¬¬¬¬___________________:
a. search cost per click analysis
b. search engine optimization
c. search engine minimization
d. search engine maximization
25. As a small business owner, you know that competing with major retail chains is very difficult. A small business owner can best compete with major chains by:
a. matching the prices set by the big stores
b. carrying the same product assortment of the big stores
c. using guilt appeals in their promotions
d. offering superior customer service