1. MKT 421 Final ExamSET 2
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1)According to the text, marketing means:
A. Selling. B. Much more than selling and advertising. C. Producing and selling.
D. Advertising.
2) Predicting what types of bicycles different customers will want and deciding
which of these customers the business will try to satisfy are activities a firm
should do as part of A. A command economy. B. Production. C. Marketing. D.
Making goods or performing services.
3) Which of the following statements best describes the modern view of
marketing? A. Marketing should take over production, accounting, and financial
services within a firm. B. The job of marketing is to get rid of whatever the
company is producing. C. Marketing is concerned with generating a single
exchange between a firm and a customer. D. Marketing begins with anticipating
potential customer needs.
4) Which of the following statements regarding marketing strategies is FALSE? A.
These strategies must meet the needs of target customers, and a firm is likely to
get a competitive advantage if it just meets needs in the same way as some other
firm. B. It is useful to think of the marketing strategy planning process as a
narrowing-down process. C. Developing successful marketing strategies does not
need to be a hit-or-miss proposition. D. These strategies require decisions about
the specific customers the firm will target and the marketing mix the firm will
develop to appeal to that target market.
5) To compete more successfully with its many competitors offering packaged
cookies, Famous Amos added its own line of extra chunky premium cookies. This
seems to be an effort at: A. Market penetration. B. Combination. C. Market
development. D. Product development.
6) Professional Dental Supply has been successfully selling dental instruments to
dentists for the past 20 years, and has developed strong customer relations.
When looking for new marketing opportunities, Professional Dental Supply will
most likely look first at A. Diversification. B. Market penetration. C. Market
development. D. Product development.
7) Which of the following is true? A. The product P in the marketing mix stands for
both physical goods and tangible B. The product P in the marketing mix stands
for only tangible merchandise. C. The product P in the marketing mix stands for

2. only physical goods. D. The product P in the marketing mix stands for both
physical goods and services.
8) The marketing mix A. Includes four variables-advertising, personal selling,
customer service, and sales promotion. B. Helps to organize the marketing
strategy decision areas. C. Includes four variables-People, Place, Promotion, and
Price. D. Includes the target market
9) The four Ps of a marketing mix are: A. Product, Place, Promotion, and Price B.
Product, Price, Promotion, and Profit C. Production, Personnel, Price, and
Physical Distribution D. Promotion, Production, Price, and People
10) Hewlett-Packard sells personal computers through specialty computer stores,
electronics superstores, and its own Internet site. The marketing mix variable that
is being considered here is: A. Placement. B. Product. C. Pricing. D.
Promotional.
11) When one considers the strategy decisions organized by the four Ps,
branding is related to packaging as: A. Personal selling is to mass selling. B.
Store location is to sales force selection. C. Branding is to pricing. D. Production
is to marketing.
12) Big Fizz Co., a manufacturer of cola-flavored drinks, wants to add packaged
fruit juices to its existing product line. Big Fizz must make some decisions
regarding packaging and branding of the fruit juices. These decisions would fall
under which variable of the marketing mix? A. Price B. Promotion C. Product D.
Place
13) The main difference between a marketing strategy and a marketing plan is
that: A. A marketing strategy omits pricing plans. B. A marketing strategy provides
more detail. C. Time-related details are included in a marketing plan. D. A
marketing plan includes several marketing strategies.
14) A marketing plan is: A. A target market and a related marketing mix. B. A
marketing strategy-plus the time-related details for carrying it out. C. A marketing
program. D. A marketing strategy.
15) Which of the following is part of a complete marketing plan? A. Competitors'
marketing strategies. B. What company resources (costs) are required and at
what rate. C. How different marketing mixes (for different target markets) relate to
each other. D. All of these.
16) Good marketing strategy planners know that: A. The terms mass marketing
and mass marketer mean basically the same thing. B. Mass marketing is often
very desirable and effective. C. Firms like Nabisco and Wal-Mart are too large to
aim at clearly defined target markets. D. Target marketing does not limit one to
small market segments.

3. 17) Marketing strategy planners should recognize that: A. Target marketing is not
limited to small market segments. B. Large firms like General Electric, Target, and
Procter & Gamble are too large to aim at clearly defined markets. C. Target
markets should not be large and spread out. D. Mass marketing is often very
effective and desirable.
18) Target marketing, in contrast to mass marketing, A. Focuses on fairly
homogeneous market segments. B. Ignores markets that are large and spread
out. C. Is limited to small market segments. D. Assumes that all customers are
basically the same.
19) ______________ is the process of naming broad product-markets and then
segmenting these broad product-markets in order to select target markets and
develop suitable marketing mixes. A. Diversification B. Mass marketing C. Market
positioning D. Market segmentation
20) The process of naming broad product-markets and then segmenting them in
order to select target markets and develop suitable marketing mixes is called: A.
Market segmentation. B. Market penetration. C. Market development. D. Market
research.
21) Clustering techniques applied to segmenting markets A. Usually require
computers to group people based on data from market research. B. Remove the
need for managerial judgment. C. Eliminate the need for marketing managers to
specify in advance what dimensions might be relevant for grouping consumers.
D. All of the above are true.
22) A ______________ is an organized way of continually gathering and
analyzing data to get information to help marketing managers make ongoing
decisions. A. Marketing model B. Marketing information system C. Marketing
research project D. Marketing research department
23) ________________ ________________ utilizes qualitative and quantitative
analysis procedures to help marketing managers make more informed decisions.
A. Marketing processing. B. Marketing planning. C. Marketing structure. D.
Marketing research.
24) Procedures that develop and analyze new information to help marketing
managers make decisions are called: A. Operational planning. B. Strategy
planning. C. Analytical research. D. Marketing research.
25) Focus groups: A. Yield results that are largely dependent on the viewpoint of
the researcher. B. Are usually composed of 10 to 15 people as participants. C.
Always do a good job of representing the broader target market. D. Are expensive
compared to other marketing research methods.

4. 26) When focus group interviews are used in marketing, A. The typical group size
is 15 to 20 typical consumers whether online or off-line. B. Each person in the
group answers the same questionnaire, to focus the discussion. C. It is primarily
as a follow-up to more quantitative research. D. The research conclusions will
vary depending on who watches the interview whether online or off-line.
27) Marketing research which seeks structured responses that can be
summarized is called: A. Quantitative research. B. Focus group research. C.
Qualitative research. D. Situation analysis research.
28) The marketing manager at Massimino& McCarthy, a chain of retail stores that
sells men's clothing, is reviewing marketing research data to try to determine if
changes in marketing strategy are needed. Which of the following sources of data
would be a secondary data source? A. Reviewing videotapes of a recent focus
group. B. Looking through the company's marketing information system to see
past sales trends. C. Making phone calls to some of the best customers to learn
their interest in a new line of clothing. D. Spending time in stores observing
customers' behavior.
29) A small manufacturing firm has just experienced a rapid drop in sales. The
marketing manager thinks that he knows what the problem is and has been
carefully analyzing secondary data to check his thinking. His next step should be
to: XXXXX XXXXX a formal research project to gather primary data. B. Conduct
an experiment. C. Conduct informal discussion with outsiders, including
intermediaries, to see if he has correctly defined the problem. D. Develop a
hypothesis and predict the future behavior of sales.
30) The attitudes and behavior patterns of people are part of the A. Social and
cultural environment. B. Political environment. C. Competitive environment. D.
Firm's resources and objectives.
31) Market segmentation: A. Is the same thing as positioning. B. Assumes that
most submarkets can be satisfied by the same marketing mix. C. Tries to identify
homogeneous submarkets within a product-market. D. Means the same thing as
marketing strategy planning.
32) Which is the first step in market segmentation? A. Naming a broad product-
market of interest to the firm. B. Clustering people with similar needs into a
market segment. C. Evaluating market segments to determine if they are large
enough. D. Finding one or two demographic characteristics to divide up the whole
mass market.
33) The first step in market segmentation should be: A. Finding a demographic
group likely to use your products. B. Evaluating what segment(s) you currently
serve. C. Defining some broad product-markets where you may be able to
operate profitably. D. Deciding what new product you could develop.

5. 34) Which of the following is NOT one of the text's product life cycle stages? A.
Market introduction B. Market penetration C. Market growth D. Market maturity
35) The product life cycle: A. Applies more to individual brands than to categories
or types of products. B. Has five major stages. C. Shows that sales and profits
tend to move together over time. D. Describes the stages a new product idea
goes through from beginning to end.
36) Tom and Sally Jones are preparing to purchase a new car. He currently has a
Toyota Camry and she has a Honda Accord. They now have two children under
age 5, so they plan to trade in Sally's car to purchase a minivan. Sally and Tom
decided on a Honda Odyssey because Sally is familiar with Honda's and thinks
they are very reliable. In this purchase situation, Tom and Sally's family life cycle
stage is a _____________ segmentation dimension, and the benefit Sally seeks
(reliability) is a _____________ segmentation dimension. A. Geographic;
behavioral. B. Demographic; behavioral. C. Demographic; geographic. D.
Geographic; demographic.
37) During the MARKET INTRODUCTION stage of the product life cycle: A. Much
money is spent on Promotion, while spending on Place is left until later. B. Price
and promotion are more important than Place and Product. C. Money is invested-
in the hope of FUTURE profits. D. Large profits are typical-until competition
arrives.
38) During the market introduction stage of the product life cycle: A. Most
potential customers are quite anxious to try out the new-product concept. B.
Products usually show large profits if marketers have successfully carved out new
markets. C. Funds are being invested in marketing with the expectation of future
profits. D. Considerable money is spent on promotion while place development is
left until later stages.
39) Which of the following observations concerning the market maturity stage is
NOT TRUE? A. New firms cannot enter the market at this stage. B. There is a
long-run downward pressure on prices. C. Promotion costs rise and some
competitors cut prices to attract business. D. Many aggressive competitors have
entered the race for profits.
40) Advertising allowances A. Allow for coordination and integration of ad
messages in the channel. B. Involve intermediaries and producers sharing in the
cost of ads. C. Set the allowance amount as a percent of the retailer's actual
purchases. D. Are price reductions to firms further along in the channel to
encourage them to advertise or otherwise promote the firm's products locally.
41) Price reductions given to channel members to encourage them to advertise or
otherwise promote a firm's products locally are: A. Push money allowances. B.
Brokerage allowances. C. Advertising allowances. D. Quantity discounts.

6. 42) Noise (in the traditional communication process) refers to: XXXXX XXXXX
distractions that reduce the effectiveness of the communication process. B.
Efforts by a firm's competitors to block its message channel. C. Messages which
are too loud or bold. D. Radio advertising interference only.
43) American Tourister, Inc.-a producer of luggage-is planning to introduce a new
product line. The marketing manager is having her sales force call on retailers to
explain American Tourister's consumer advertising plans, the unique features of
the new luggage, how the distributors can best promote it, and what sales volume
and profit margins they can reasonably expect. This is an example of: A. A pulling
policy. B. A pushing policy. C. Selective distribution. D. Intensive distribution.
44) A producer using very aggressive promotion to get final consumers to ask
intermediaries for a new product has: A. A pulling policy B. A pushing policy. C. A
selective distribution policy. D. A target marketing policy.
45) A producer using normal promotion efforts-personal selling, sales promotion,
and advertising-to help sell a whole marketing mix to possible channel members
has: A. A selective distribution policy. B. A pushing policy. C. An intensive
distribution policy. D. A target marketing policy.
46) Which of the following statements about positioning is NOT TRUE? A. It often
makes use of techniques such as perceptual mapping. B. It helps marketing
managers know how customers view the firm's offering. C. Positioning issues are
especially important when competitors in a market are very dissimilar. D. It refers
to how customers think about proposed or present brands in a market.
47) Quality Ceramic, Inc. (QCI) defined five submarkets within its broad product-
market. To obtain some economies of scale, QCI decided NOT to offer each of
the submarkets a different marketing mix. Instead, it selected two submarkets
whose needs are fairly similar, and is counting on promotion and minor product
differences to make its one basic marketing mix appeal to both submarkets. QCI
is using the A. Combined target market approach. B. Mass marketing approach.
C. Multiple target market approach. D. Single target market approach
48) Positioning analysis A. Helps managers understand the actual characteristics
of their products. B. Shows that managers and customers usually view present
brands similarly. C. Is a visual aid to understanding a product-market. D. Is not a
product-oriented approach.
49) When a company grows globally, this is an example of: A. Market
development B. Market penetration. C. Diversification. D. Product development.
50) A _____ is a market with very similar needs and sellers offering various close
substitute ways of satisfying those needs. A. Generic market B. Product-market
C. Target market D. Standard market

7. 51) Which of the following is NOT a trend affecting marketing strategy planning in
the area of international marketing? A. Tensions between have and have-not
cultures. B. Decreasing role of airfreight. C. Global communication over the
Internet. D. More attention to exporting by small companies.
52) Which of the following statements DOES NOT indicate that a marketing
manager is about to make a serious mistake? A. "When it comes to my marketing
strategy, if it ain't broke, don't fix it." B. "I try to place myself in the position of the
consumer and do unto others as I would have them do unto me." C. "I leave
marketing applications of technology to the information technology staff. There's
no need for me to learn about them." D. "International competition is just a fad.
We can ignore it."
53) Which of the following is a key trend affecting marketing strategy planning? A.
Senior and ethnic submarkets are getting smaller. B. Growth of marketing
information systems. C. Less use of technology in personal selling. D. Slower
new-product development.
54) It is usually the _________ job, perhaps with help from specialists in
technology, to decide what types of sales technology tools are needed and how
they will be used. A. Marketing executive's B. Sales manager's C. Purchasing
manager's D. Procurement manager's
55) Many Internet sites, such as Autobytel.com and Edmunds.com, have
extensive information about the prices of new and used vehicles that anyone can
use for free. In light of the availability of this information, what is the responsibility
of consumers to use it? A. Consumers can use it, but should not feel a
responsibility to do so. B. Consumers should not use it because it gives them an
unfair advantage over car dealers. C. Consumers should not trust any information
they receive from any source except the government. D. Consumers have a
responsibility to use the information and be smarter customers.
56) Which of the following statements about ethical behavior in business is true?
A. The legal environment sets the minimum standards of ethical behavior B. The
legal environment sets the highest standards of ethical behavior. C. The legal
environment sets the normative standards of ethical behavior. D. The legal
environment sets the maximum standards of ethical behavior.
57) The future poses many challenges for marketing managers because: A. It is
marketing managers who have full responsibility to preserve our macro-marketing
system. B. New technologies are making it easier to abuse consumers' rights to
privacy. C. Social responsibility applies only to firms-not to consumers. D.
Themarketingconcepthasbecomeobsolete