Quiz Principles of Marketing
Question 1
The strategic business unit (SBU) concept is best identified as a:
1. planning tool that separates tactical and operational issues for analysis.
2. marketing planning tool best suited to the needs of large, diversified organizations.
3. way to create units of business activity based solely on sales potential.
4. device used primarily to separate marketing costs from production expenses.
Question 2
Which of the following is now the second-largest market in the world?
1. China
2. United Kingdom
3. Japan
4. India
Question 3
1. One of the busiest areas of interactive marketing involves online auction sites, such as eBay.
1. False
2. True
Question 4
The emergence of the marketing concept can best be explained by:
1. higher production levels.
2. a focus on product quality.
3. a shift from a seller's market to a buyer's market.
4. a shift from a production to a sales orientation.
Question 5
In the relationship era, firms focus on:
1. long term relationships with customers and suppliers.
2. short term relationships with customers and suppliers.
3. long term relationships with customers.
4. short term relationships with suppliers.
Question 6
Production and marketing of goods and services are two basic functions that create utility.
1. True
2. False
Question 7
To be most effective, the planning process should include input from a wide range of sources both internal and external to the organization.
1. False
2. True
Question 8
1. The buying function of marketing involves advertising, personal selling, and sales promotion in the attempt to match products and services to consumer needs.
1. True
2. False
Question 9
The rapid development of telecommunications from Internet to cell phones allows marketers to accomplish all of the following except:
1. standardize product lines and marketing promotions to appeal to the largest possible audience.
2. realize improved marketing efficiencies, including lower sales and marketing costs.
3. find new markets on a global level.
4. target markets to locate, secure, and maintain customers in a one-to-one marketing relationship.
Question 10
Relationship marketing focuses more attention on _____ customers because new customers are _____ to acquire compared to existing customers.
1. new; less expensive
2. existing; more expensive
3. existing; less expensive
4. new; more expensive
Question 11
Sally Myers, head of marketing at Sally's Salon, serviced six new customers over the past two weeks. Through a feedback form, Sally learnt that all of them had acted upon the opinions of their friends and family members. What Sally encountered is an example of:
1. interactive marketing success.
2. a success story in buzz marketing.
3. effective target market strategies.
4. marketing myopia.
Question 12
When determining product costs, marketing expenses will amount to approximately one half of the total cost of the product.
1. True
2. False
Question 13
Whirlpool combines metal, rubber, and other components in the production of appliances. In doing so the company creates _____ utility.
1. ownership
2. place
3. form
4. time
Question 14
Decisions about distribution strategy involve such challenges as:
1. placing an automatic stamping machine in the plant.
2. when to raise prices to cover costs.
3. warehouse design and inventory control.
4. where to advertise.
Question 15
What is the third step in the planning process?
Obtaining necessary financing
Writing a marketing plan
Assessing strengths, weaknesses, and opportunities
Establishing organizational objectives
Question 16
Some Florida drivers have license plates that say "Save the Manatee." This is an example of _____ marketing.
1. organization
2. cause
3. event
4. place
Question 17
Operational planning should be completed:
1. at the same time the total budget is prepared.
2. by top management.
3. to create and implement strategic plans for the entire company.
4. by mid-level managers, typically for their own departments.
Question 18
1. Relationship marketing begins after the sales transaction is completed.
1. True
2. False
Question 19
The advertising director, marketing research manager, and other middle-level managers should be involved in planning fundamental organization-wide strategies and the corporate budget.
1. True
2. False
Question 20
Developing a trust relationship between companies and their customers is the key to survival and success in the sophisticated consumer market.
1. True
2. False
Question 21
Strategic Business Units (SBUs) of a diversified firm have common managers, resources, objectives, and competitors.
True
False
Question 22
When General Electric's NBC division acquired Universal Studios, the highest executive who approved this acquisition was most likely _____, with the decision being the result of _____ planning.
1. the head of NBC; strategic
2. GE's CEO; tactical
3. GE's CEO; strategic
4. the head of NBC; tactical
Question 23
Decisions involving transportation, warehousing, inventory control, and order processing relate to _____ strategy.
1. pricing
2. competitive
3. distribution
4. product
Question 24
In a SWOT analysis, a constraint is present when:
1. organizational strengths grasp opportunities.
2. internal organizational weaknesses prevent taking advantage of an opportunity.
3. environmental threats attack organizational weaknesses.
4. environmental threats are stronger than organizational strengths.
Question 25
Marketers seek to rid themselves of their cash cows because those products hold low market shares in low-growth markets.
1. True
2. False