Question 1.1. (TCO 4) Three commonly used methods of evaluating marketing programs are
sales analysis, marginal analysis, and cost analysis.
sales analysis, profitability analysis, and marketing audits.
marketing ROI, metrics, and dashboards.
sales audits, cost audits, and marketing audits.
internal audits, external audits, and marketing control boards.
Question 2.2. (TCO 1) Marketing plans must enable results to be compared with planned targets, which allows _____, the flexibility to update original plans.
replanning
contingency planning
downsizing
dynamic planning
proactive change
Question 3.3. (TCO 3) Which marketing strategy involves retaining focus on a single product line but marketing it to new markets?
Full coverage
Market specialization
Product specialization
Selective specialization
Market-product concentration
Question 4.4. (TCO 1) Based on relative competitive scope (broad target to narrow target) and source of competitive advantage (lower cost to differentiation), Porter's four generic business strategies are differentiation, cost focus, cost leadership, and
exclusivity.
electronic-focus.
quality focus.
differentiation focus.
service leadership.
Question 5.5. (TCO 2) Which of the following pieces of information is used in the implementation phase of the strategic marketing process?
Corporate return on investment
Gantt charts
Revenues associated with each point of market share
Trends in past and current revenues for industry and competitors in total and by segment
Possible cannibalization effects on other products in the line
Question 6.6. (TCO 6) Which of the following pieces of information is used in a SWOT analysis, the first step of the planning phase of the strategic marketing process?
Corporate return on investment
Market share for the product
Revenues associated with each point of market share
Projection of future sales, expenses, and profits
Possible cannibalization effects on other products in the line
Question 7.7. (TCO 3) When developing the advertising program, which step helps advertisers with other choices in the process, such as selecting media and evaluating a campaign?
Identify the target audience
Specify the advertising objectives
Design the advertising
Pretest the advertising
Schedule the advertising program
Question 8.8. (TCO 2) The proper blend of elements in the promotional mix depends on the type of product. The three specific characteristics to be considered are complexity, _____, and ancillary services.
risk
size
durability
accessibility
acceptability
Question 9.9. (TCO 4) Reminding buyers of the product's existence is the promotional objective during which stage of the product life cycle?
Introduction
Growth
Maturity
Decline
All of the above
Question 10.10. (TCO 2) The promotional mix includes _____, personal selling, sales promotion, public relations, and direct marketing.
promotion channel
communication chain
marketing matrix
advertising
media mix
Question 11.11. (TCO 8) Which of the following statements about the terms used for marketing intermediaries is true?
The least precise terms used to describe marketing intermediaries are dealer and distributor.
A retailer sells to business markets.
An agent has no legal authority to act on behalf of a manufacturer.
A wholesaler is an intermediary who sells to consumers.
Broker is a synonym for a dealer.
Question 12.12. (TCO 7) Which of the following statements about the legal and regulatory aspect of pricing is true?
The Robinson-Patman Act deals with predatory pricing.
The Consumer Goods Pricing Act is the only federal legislation that deals directly with pricing issues.
The Sherman Act deals only with vertical price fixing.
The Federal Trade Commission Act deals with predatory pricing, deceptive pricing, and geographical pricing issues.
The Consumer Goods Pricing Act and the Robinson-Patman Act deal with price discrimination.
Question 13.13. (TCO 2) Which of the following is NOT one of the six major pricing objectives?
Profit
Unit volume
Breakeven
Survival
Market share
Question 14.14. (TCO 3) The ratio of perceived benefits to price is called
the price-quality relationship.
prestige pricing.
value-added pricing.
value.
value analysis.
Question 15.15. (TCO 6) Market segmentation involves aggregating prospective buyers into groups that will respond similarly to a marketing action and
will pay attention to marketing messages.
have common needs.
be responsive to marketing research.
use the same payment methods.
go shopping on a regular basis.
Question 16.16. (TCO 5) A company engaged in environmental scanning is (Points : 5)
taking into account the effect its marketing activities can have on plants and animals in our environment.
continually acquiring information on events occurring outside the organization to identify and interpret potential trends.
maintaining a time constant horizon in its strategic planning process.
maintaining retail customer databases.
requiring all employees to spend time outside the office to avoid the ivory tower syndrome.
Question 17.17. (TCO 1) A key role of the marketing department is to
allocate financial resources across business units.
set the overall mission of the company.
provide talent management services.
look outward.
assess global political situations.
Question 18.18. (TCO 1) Which of the following statements about relationship marketing is most true?
Relationship marketing has a short-term focus on increasing profits.
Relationship marketing is easy to implement.
Relationship marketing is more effective when there is a personal, ongoing relationship between individuals in the selling and buying organizations.
Very few companies today are engaged in relationship marketing.
The Internet is an ideal forum for relationship marketing.
Question 19.19. (TCO 1) Your neighbor is tired of conventional soft drinks and wants something different. Coincidentally, Cadbury Beverages Inc. has begun distributing Country Time lemonade through the supermarket at a price comparable to that of soft drinks. Which of the conditions needed for marketing to occur is described in this situation?
The creation of unrealized needs
Two parties with unsatisfied needs
One-way communication
A physical location for an exchange to take place
Time and place utility
Question 20.20. (TCO 6) Kraft produces Lunchables, a prepackaged meal usually consisting of several crackers, small slices of meat, and small slices of cheese. Some versions contain Capri Sun drinks. Others are called Cracker Stackers and Fun Fuel. The box is bright yellow and the quantity of food contained within is small. The target market for Kraft Lunchables is most likely
moms of school-aged children.
business people looking for a quick snack.
business travelers.
teenagers.
seniors.
Question 21.21. (TCO 3) The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes for the old-fashioned products it markets. Concern about the _____ element of the marketing mix would make it eager to be featured in an upcoming edition of Taste of Home magazine.
product
price
promotion
place
production
Question 22.22. (TCO 5) The Lemon Tree is a high-fashion boutique selling top-of-the-line women's clothing and accessories. The keys to its success include knowing the customers' changing tastes and providing something different from other retailers. In addition, because of the high value of the merchandise, The Lemon Tree's management is exploring the use of computerized inventory controls and sales order processing. From this description, one can infer that the environmental category of least importance to The Lemon Tree is
economic.
regulatory.
technological.
social.
competitive.
Question 23.23. (TCO 7) In 1998, F. Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies, were ordered to pay $725 million in fines for plotting to raise and fix prices of vitamins used in virtually every home in the United States. This is an example of how _____ forces affect the marketing environment.
economic
ecological
technological
social
regulatory
Question 24.24. (TCO 6) Mile High Frozen Foods is a distributor for McDonald's. It also bakes the buns used by McDonald's in several states. Mile High purchases flour, yeast, and sesame seeds, manufactures the buns, and then distributes them to the retail stores. Mile High Frozen Foods is operating in a(n) _____ market.
reseller
government
institutional
psychographic
industrial
Question 25.25. (TCO 1) Several years ago, SwissAir made some unwise investments to pay for a planned expansion. As a result, the company had to make some cost-cutting moves that alienated its customers. Eventually the company declared bankruptcy, regrouped, and found itself able to resume business. Its board of directors recently announced that the company would resume flying if it could prove that the airlines could regain at least 75% of its lost customers. It decided to allot $50,000 to determine the probability that its former customers would fly on the airline again and what methods requiring little or no money could be used to increase that probability. This description represents which stage in the marketing research approach?
Define the problem.
Develop the research plan.
Collect relevant information.
Develop findings.
Take marketing actions.
Question 26.26. (TCO 3) When Marine Midland Bank sent market researchers with surveys door-to-door in the neighborhoods of its branch banks to ask people with savings accounts why they did not also have checking accounts and credit cards with Marine Midland, the researchers were gathering _____ data. (Points : 5)
questionnaire
secondary
intercept
observational
nonprobability
Question 27.27. (TCO 4) A 3M researcher worked with university students to develop the Post-it Flag Highlighter. His team evaluated the technical feasibility of the proposed design and whether the idea met the new-product objectives. In which stage of the new-product process was this product?
Idea generation
Screening and evaluation
Business analysis
New-product strategy development
Concept testing
Question 28.28. (TCO 4) A few years ago, Who Wants to Be a Millionaire premiered as the first nighttime game show in a couple of decades. Once the show became a hit and televised several nights a week, other networks quickly created their own version of what they hoped to be a successful game show format. Greed and Twenty-One are the names of but two of the new shows that were created to compete with Who Wants to Be a Millionaire. At this point in time, the nighttime televised game show genre entered which stage of its product life cycle?
Growth stage
Decline stage
Commercialization stage
Maturity stage
Introduction stage
Question 29.29. (TCO 8) When an Avon representative sells cosmetics door-to-door, it is an example of which type of marketing channel?
Direct channel
Indirect channel
Strategic channel alliances
Marketing channel
Dual distributive channel
Question 30.30. (TCO 2) Allegra is an antihistamine, and to create brand awareness, its manufacturer is offering people who request information about the product a cushion to use at their favorite sporting event. Its television ad shows a woman half-heartedly watching some sporting event. The voiceover asks if she is bored or congested. Next scene, the person is having a great time and is uncongested after taking Allegra. This use of the same promotional theme throughout a company's promotion is an example of how marketers use
media convergence.
niche marketing.
integrated marketing communications (IMC).
marketing management.
marketing by objectives (MBO).
Question 31.31. (TCO 2) The local radio station broadcast a story about the dry cleaners that requested coat donations. They would clean the coats and deliver them to people in need. The various addresses of the dry cleaner chain were also broadcast so that donations could be dropped off. Because this featured business did not pay for this exposure, it is benefiting from
publicity.
advertising.
direct marketing.
personal selling.
a public service announcement.
Question 32.32. (TCO 8) Recently American Express, Visa, and MasterCard have been pushing hard into the small-ticket end of the credit card market. The purchase of items such as fast food meals, movie popcorn, and candy have been targeted as growth areas for credit card usage. This is an example of a _____ strategy on the part of the credit card companies.
market penetration
market development
product development
diversification
product dissemination
Question 33. 33. (TCO 3) Imagine that you are creating a marketing plan for a company that will sell bikes. As you consider the marketing program, what types of strategy should you consider including in the plan? Propose one specific example of each type of strategy that you are considering, and present your rationale (reasoning) for your strategy selections.
Question 34. 34. (TCO 1) In China, many people are removing their money from the state banks and lending it out themselves. The interest rate earned in a state bank account is about one half the rate of inflation. On the other hand, loaning money to friends, relatives, and even unrelated entrepreneurs can often earn the investor double or more over the inflation rate. The gray market, an underground network of investors and private businesses, moves the cash from lenders to businesses. Judge whether marketing occurred in this situation, and justify your conclusions. Appraise the effectiveness of government regulation in controlling markets.
Question 35. 35. (TCO 4) You are the product manager responsible for a horrible product failure, but in your wisdom, you are evaluating why the product failed. What factors would you consider in your evaluation? What actions could you have taken to prevent the failure? Does product innovation need a willingness to accept failure?