1. MKT 421 Final Exam
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) 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 the
fruit juices. These decisions would fall under which variable of the marketing mix?
A. Product
B. Place
C. Promotion
D. Price
2) Hewlett-Packard sells personal computers through specialty computer stores, electronics
superstores, and its own Internet site. What is the marketing mix variable that is being considered
here?
A. Price
B. Promotion
C. Product
D. Place
3) Marketing strategy planners should recognize that:
A. target markets should not be large and spread out
B. mass marketing is often very effective and desirable
C. large firms like General Electric, Target, and Procter & Gamble are too large to aim at clearly
defined markets
D. target marketing is not limited to small market segments
4) Target marketing, in contrast to mass marketing,
A. is limited to small market segments
B. assumes that all customers are basically the same
C. ignores markets that are large and spread out
D. focuses on fairly homogeneous market segments
5) The process of naming broad product-markets and then dividing them in order to select target
markets and develop suitable
A. market penetration
B. market segmentation
C. market development
D. market research
6) ______________ 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. Market positioning
B. Market segmentation

2. C. Mass marketing
D. Diversification
7) Marketing research which seeks structured responses that can be summarized is called
A. focus group research
B. quantitative research
C. qualitative research
D. situation analysis research
8) One of the major disadvantages of the focus group interview approach is that
A. ideas generated by the group cannot be tested later with other research
B. it is difficult to measure the results objectively
C. it is difficult to get in-depth information about the research topic
D. there is no interviewer, so the research questions may not be answered
9) When focus group interviews are used in marketing,
A. each person in the group answers the same questionnaire, to focus the discussion
B. the typical group size is 15 to 20 typical consumers whether online or off-line
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
10) Focus groups
A. are usually composed of 10 to 15 people as participants
B. yield results that are largely dependent on the viewpoint of the researcher
C. always do a good job of representing the broader target market
D. have a low cost per participant
11) 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
A. conduct an experiment
B. develop a formal research project to gather primary data
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
12) 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. Looking through the company's marketing information system to see past sales trends
B. Reviewing videotapes of a recent focus group

3. 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
13) Which of the following statements about consumer products is true?
A. Convenience products are those that customers want to buy at the lowest possible price.
B. Shopping products are those products for which customers usually want to use routinized
buying behavior.
C. Specialty products are those that customers usually are least willing to search for.
D. Unsought products are not shopped for at all.
14) The attitudes and behavior patterns of consumers making a purchasing decision are part of
the
A. political environment
B. social and cultural environment
C. competitive environment
D. firm's resources and objectives
15) The observing method in marketing research
A. uses personal interviews
B. may require customers to change their normal shopping behavior
C. is used to gather data without consumers being influenced by the process
D. is not suitable for obtaining primary data
16) The first step in market segmentation should be
A. deciding what new product you could develop
B. evaluating what segments you currently serve
C. finding a demographic group likely to use your products
D. defining some broad product-markets where you may be able to operate profitably
17) The product life cycle
A. describes the stages a new product idea goes through from beginning to end
B. has three major stages
C. applies to categories or types of products as opposed to brands
D. shows that sales and profits tend to move together over time
18) Which of the following is one of the product life cycle stages?
A. Market analysis
B. Market growth
C. Market feedback
D. Market research

4. 19) While watching a television program, Liza gets a phone call just as a commercial is starting.
She presses the mute button on the television's remote control and takes the call, so she pays no
attention to the commercial. In terms of the communication process, the telephone call is an
example of what?
A. Encoding
B. Noise
C. Decoding
D. Feedback
20) Which of the following functions are performed by wholesalers in the channel of
distribution?
A. Providing information to retailers
B. Placing radio advertisements for retailers
C. Placing newspaper advertisements for retailers
D. Providing goals for retailers
21) Typically the ______________ and the marketing manager are responsible for building good
distribution channels and implementing place policies.
A. public relations manager
B. sales manager
C. advertising manager
D. human resources manager
22) SGCA is having a sales contest to encourage retailers to quickly reduce the inventory of
SuperGamer computers. Retailers with the highest sales during the next month win an expense
paid trip to a special dealer meeting at a resort in Hawaii. This is
A. probably illegal because it might encourage price competition among retailers
B. an example of cooperative advertising
C. the type of promotion that continues to impact sales even after the promotion is over
D. an example of a manufacturer using trade sales promotion in the channel
23) Advertising allowances
A. are incentive monies given to firms further along in the channel to encourage them to
advertise or otherwise promote the firm's products
B. involve intermediaries and producers sharing in the cost of ads
C. allow for coordination and integration of ad messages in the channel
D. set the allowance amount as a percent of the retailer's actual purchases
24) Price reductions given to channel members to encourage them to promote or otherwise
promote a firm's products locally are

5. A. quantity discounts
B. brokerage allowances
C. push money allowances
D. advertising allowances
25) A producer using very aggressive promotion to get final consumers to ask intermediaries for
a new product has
A. a pulling policy
B. a target marketing policy
C. a selective distribution policy
D. a pushing policy
26) Nantucket Hammocks, Inc., uses dealer incentives, discounts, and sales contests in order to
encourage retailers to give special attention to selling its products. Nantucket Hammocks is using
A. exclusive distribution
B. a corporate channel system
C. dual distribution
D. pushing
27) 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. single target market approach
C. multiple target market approach
D. mass marketing approach
28) When segmenting broad product-markets, cost considerations tend
A. to encourage managers to disregard the criterion that a product-market segment should be
substantial
B. to lead to more aggregating
C. to be unimportant as long as the segmenting dimensions are operational
D. to lead to a large number of small, but very homogeneous, product-market segments
29) ______________ focuses on introducing new products to existing markets.
A. Market development
B. Product development
C. Diversification
D. Market penetration
30) When a company grows globally by introducing existing product lines to new markets, this is
an example of what?
A. Market development

6. B. Product development
C. Diversification
D. Market penetration

7. B. Product development
C. Diversification
D. Market penetration