TEST NO: B

Exam-1

Principles of Marketing: MGMT 120

Important Instructions

1. Write the test no given above on your Scantron sheet.

2. Scantron sheets with no test no written will not be graded.

3. Identify the letter of the choice that best completes the statement or answers the question.

4. Record your answer only with a #2 pencil (only pencils) on your Scantron.

5. Hand over back the Scantron sheet to the instructor.

6. Those finishing this exam early may leave the class room as quietly as possible.

7. The time limit for this exam is one hour ten minutes. No extra time will be allowed.

8. Sign up the attendance register before you leave the class

Total Questions: 55 [50 +5 Bonus]

Total Points= 200

1. Which of the following activities is concerned with the satisfaction of demand for a computer retailer?

a.	Price rebate
b.	Off-season price specials
c.	Customer service department calling recent buyers and offering them free computer training
d.	Marketing special offers to past customers
e.	None of the above

2. A firm doing consumer research to figure out market's potential and consumer desires is doing so:

a.	in anticipation of demand	d.	to satisfy demand
b.	to stimulate demand	e.	to facilitate demand
c.	to regulate demand

3. In the sales era of marketing's evolution,

a.	products are produced based upon consumer research.
b.	supply exceeds demand
c.	marketing departments are created to conduct consumer research.
d.	consumer demand exceeds the supply of a product.
e.	none of the above answers are correct

4. In which stage of marketing's evolution is the role of marketing to make consumer desires fit the features of the products offered?

a.	production era	d.	marketing department era
b.	technology era	e.	sales era
c.	marketing company era

5. Burger King's strategy of having its restaurants in a wide variety of locations (such as malls, schools, airports, etc) represents

a.	facilitating demand.	d.	stimulating demand.
b.	anticipating demand.	e.	inventing demand
c.	satisfying demand.

6. "Every day low pricing policy" followed by Walmart helps to beat its competitors like Kmart in the following way / ways.

a.	lower inventory management costs	d.	fewer goods are damaged during store handling
b.	such pricing policy is difficult to implement	e.	All of the above are correct
c.	higher customer returns for Walmart

7. The "marketing blunder of the century" occurred mainly because:

a.	Coca Cola had a few shipments with worms inside cans	d.	drinking new coke was like drinking chicken soup
b.	Pepsi Cola came out with a product tasting similar to new coke	e.	none of the choices are correct
c.	Consumers in foreign markets liked classic coke better than new coke

8. The process of subdividing a market into clear subsets of customers that act in the same way or have comparable needs is referred to as

a.	demographic marketing.	d.	market segmentation.
b.	target marketing.	e.	myopic marketing
c.	lifestyle segmentation.

9. The specific combination of marketing elements used to achieve objectives and satisfy the target market is the

a.	differential mix	d.	marketing plan.
b.	marketing strategy.	e.	strategic mix
c.	marketing mix.

10. Which of the following is NOT a component in a firm's marketing mix?

a.	differential decisions	d.	distribution decisions
b.	pricing decisions	e.	promotion decisions
c.	product decisions

11. Which competitive structure most closely describes the commercial aircraft manufacturing industry?

a.	Oligopoly	d.	Pure competition
b.	Monopoly	e.	Intense competition
c.	Monopolistic competition

12. When an industry has several firms, each of which is striving to offer a unique marketing mix, which competitive structure exists?

a.	oligopolistic competition	d.	pure competition
b.	differentiated competition	e.	massive competition
c.	monopolistic competition

13. In marketing myopia, a firm

a.	defines its business in terms of broadly defined consumer needs.
b.	acquires intermittent consumer feedback.
c.	has an aggressive approach to marketing.
d.	has a strategic-minded view of marketing and its environment.
e.	none of the choices are correct

14. A firm with patent protection can utilize which competitive structure?

a.	Pure competition	d.	Oligopoly
b.	Monopolistic competition	e.	Disruptive competition
c.	Monopoly

15. Product manager / brand manager based marketing organization is typically practiced in the following organization/s:

a.	Procter and Gamble	d.	All of the above
b.	Boeing Co.	e.	None of the choices are correct
c.	American Red Cross

16. In which approach to strategy planning would a firm derive overall ratings of industry attractiveness and company business strengths?

a.	Boston Consulting Group matrix	d.	All the choices are correct
b.	Product/market opportunity matrix	e.	None of the choices are correct
c.	General Electric business screen

17. A firm's strategic business unit (SBU) and its product has made major impact in the marketplace with top market share, and the industry is expanding at a high rate. The SBU is best classified as a

a.	question mark.	d.	relative failure.
b.	dog.	e.	star
c.	cash cow.

18. A marketer of butter seeks to increase its usage rate among existing customers as well as attract new customers (markets) by adding a Web site featuring recipes that feature its brand. This strategy exemplifies

a.	diversification only.	d.	market penetration only.
b.	market development only.	e.	none of the choices are correct
c.	product development only.

19. Canon is considering making an advanced amateur version of its current popular lens and hopes to target this lens to its existing amateur customer base. This strategy illustrates

a.	market development.	d.	diversification.
b.	market penetration.	e.	market research
c.	product development.

20. A firm seeks to increase the sales of its notebook computers by expanding its market (like bringing in a new segment of business users and also increasing sales to its current target market) by reducing their weight and size, and adding built-in components such as a CD-ROM RW. This strategy illustrates

a.	market development only.	d.	diversification only.
b.	market penetration only.	e.	a combination of market development and product development
c.	product development only.

21. A firm does not know whether to increase its investment in a strategic business unit (SBU) or to divest it. The SBU can be best classified as a

a.	cash cow.	d.	relative failure.
b.	dog.	e.	star
c.	question mark.

22. The scientific method of marketing research is based on the principles of

a.	value, cost, and timeliness.
b.	replication, reliability, and validity.
c.	intuition, executive judgment, and past experience.
d.	objectivity, accuracy, and thoroughness.
e.	objectivity, acceptability and transparency

23. In data warehousing process,

a.	information is collected and stored for future reference.
b.	information is continuously monitored for relevance.
c.	survey data is stored.
d.	commercial data bases are utilized.
e.	a big building is constructed for storing data

24. Which of the following findings is NOT an example of marketing research?

a.	The percent of the general public that can recall a firm's advertising slogan
b.	The percent of employees that are content with their work
c.	The percent of a firm's target market consumers that associate a brand name with the correct parent company
d.	The percent of current consumers that are brand loyal to a firm's brand
e.	All the choices are correct

25. Single-source data collection

a.	tracks the activities of individual consumer households from the programs they watch on TV to the products they purchase at stores.
b.	relies on consumer memory and reported purchases.
c.	infers linkages between advertising exposure and consumer purchases by measuring differences in attitude.
d.	is unable to track data over long periods of time (as in brand loyalty studies).
e.	none of the choices are correct

26. An coffee company wishes to expand the number of outlets that sells its product as a means of increasing its market share. This illustrates

a.	massive marketing	d.	satisfaction of demand.
b.	facilitation of demand.	e.	target marketing
c.	regulation of demand.

27. When a company's major goal is to increase production to meet high demand, it is most likely to be involved in the

a.	marketing company era.	d.	production era.
b.	marketing department era.	e.	barter era
c.	sales era.

28. Prior to revising its new minivan, Kia motors conducted a consumer survey among prospective and current minivan owners to see if there was any interest in a permanently-attached car seat for infants. Because of high consumer interest, Kia decided to bring out the car seat as an option. This company was involved in

a.	regulating demand.	d.	stimulating demand.
b.	satisfying demand.	e.	guessing game
c.	anticipating demand.

29. Marketing activities aimed at building long-term relationships with parties, especially customers, that contribute to the company's success is a definition of

a.	micro-management.
b.	a contract.
c.	wishful thinking.
d.	reality marketing.
e.	relationship marketing.

30. Activities that involve bridging the physical separation between buyers and sellers fall under which element of the marketing mix?

a.	target market
b.	product
c.	price
d.	promotion
e.	place

31. All of the following would be considered uncontrollable variables that might affect a detergent company's marketing mix, except

a.	a rise in the Consumer Price Index
b.	a stronger Federal Trade Commission
c.	a new President of the United States
d.	new media technology adapted from the Mars space program
e.	a change in package design for the company's new powder

32. Your company has never sold anything in Vietnam, but you know it is a growth region of the world and there is plenty of competition. You and your managers are planning export one of your current products to Vietnam in about 6 months. Which strategy are you involved in?

a.	market penetration
b.	quality management
c.	product development
d.	market development
e.	diversification

33. Specific groups toward which an organization aims its marketing plan are known as

a.	marketing groups.
b.	markets of opportunity.
c.	customers
d.	homogeneous groupings.
e.	none of the choices are correct

34. The African Pride Hair Care Company aims its marketing plan for a certain product to female African Americans between the ages of 25 and 39. From African Pride's point of view, these women are BEST called a

a.	marketing group.
b.	market opportunity.
c.	homogeneous grouping.
d.	target market.
e.	segmentation variable.

35. When Nike says its shoes are designed to be high quality and intended for risk-taking and quality conscious consumers, it is describing its:

a.	target market
b.	marketing strategy
c.	image.
d.	thinking.
e.	competitive strategy.

36. To understand why people in foreign countries behave and react to product offerings, a marketer should understand

a.	the political infrastructure of the country.
b.	the various economic institutions that influence economic thinking.
c.	if they support the policies of the U.S.
d.	something of their culture.
e.	what has been successful in other countries.

37. Which is the best example of demographic information?

a.	Soft drink consumption correlates with the average temperature in the area.
b.	Young children and older people watch more television than do young adults and adolescents.
c.	Per person consumption of wine is greater in Italy than anywhere else in the world.
d.	The median age in New York is higher than the median age in California.
e.	Germans prefer a heavy beer; Americans much prefer lighter beers.

38. Which is the best example of an oligopoly?

a.	In Italy, only the government can sell tobacco products.
b.	In Japan, businesses that export are heavily subsidized.
c.	In Japan, businesses that sell rice number in hundreds
d.	In France, markets at which farmers sell their products are common.
e.	none of the choices are correct

39. Which of the following are parts of a marketer's macroenvironment?

a.	A firm's technology environment	d.	A firm's pricing strategy
b.	The capabilities of the firm itself	e.	consultants employed by the firm
c.	A firm's managers

40. Which of these is NOT a marketing objective?

a.	To reduce dependence on a key supplier
b.	To improve a company's overall image
c.	To increase a firm's average purchase from its customers
d.	To increase customer inquiries

41. A firm defines its line of business broadly to take advantage of potential opportunities. For example, instead of classifying itself as a manufacturer of high fidelity equipment, it views itself as an entertainment technology firm. The firm

a.	has a flexible corporate culture.	d.	practices mass marketing.
b.	defines competition in generic terms.	e.	none of the choices are correct
c.	practices marketing myopia.

42. The role of marketing is greatest in which competitive structure?

a.	Monopolistic competition	d.	Monopoly
b.	Pure competition	e.	Generic competition
c.	Oligopoly

43. Which statement about a differential advantage is correct?

a.	A monopoly firm is dependent on its differential advantage compared to its competitors
b.	A firm can develop a differential advantage in pure competition through nonprice marketing factors.
c.	It is most difficult to get and keep a differential advantage in a monopoly.
d.	Only large firms can develop and maintain a differential advantage.
e.	none of the choices are correct

44. A PC manufacturer has distinct market segments (professional, do-it-yourself, resellers) that require different distribution channels. What type of marketing organization should the firm use?

a.	Matrix-oriented	d.	A mixture
b.	Product-oriented	e.	None of the choices are correct
c.	Market-oriented

45. A firm finds that its customers' needs vary significantly by their industry focus as well as their geographic regions. As a result the firm has different kinds of customers. The best marketing organization for such a firm should be

a.	functional.	d.	management oriented
b.	market-oriented.	e.	none of the choices are correct
c.	product-oriented.

46. Which competitive structure is most applicable to commodities?

a.	Pure competition	d.	Oligopoly
b.	Monopolistic competition	e.	Opportunistic competition
c.	Monopoly

47. An important characteristic of monopolistic competition is that

a.	each firm seeks a differential advantage through any marketing factor.
b.	a demand curve faces few firms.
c.	few firms exist.
d.	each firm has total control over price.
e.	competition is characterized by a monopoly

48. When a firm views competition in generic terms, it also

a.	evaluates only direct competitors.	d.	engages in short-term planning.
b.	evaluates indirect competitors.	e.	competes with a differential advantage
c.	practices marketing myopia.

49. A firm produces one model exercise machine, which is very successful. It believes this machine will continue to be popular for at least five years. Therefore, no other products are being planned for introduction. The firm argues that "it is isn't broken, don't fix it." The firm is engaged in

a.	market segmentation.	d.	marketing myopia.
b.	marketing strategy adaptation.	e.	None of the choices are correct
c.	target marketing.

50. Three primary requirements for marketing exchange are that consumers should have_______________________ to effect exchange transactions:

a.	resources, willingness and ability	d.	resources, willingness and aspiration
b.	reserves, will and ability	e.	none of the choices are correct
c.	reason, will, and acumen

BONUS QUESTIONS ( 5 questions. These questions will be graded only if you get fewer than 50 correct answers for the first 50 questions)

51. Digital technology is helping marketers: ( as discussed in the article "Survey-creative businesses- Marketing and Technology by Patrick Barwise):

to use integrated databases to record everything they know about an individual customer

for connecting customers to each other

so firms can then target resources at the most profitable customers and segments

all the choices are correct

to create many new opportunities in customer retention and relationship marketing

52. Corporate culture may be described in terms of the following:

a.	A customer service orientation	d.	centralized/decentralized management structure
b.	level of risk/innovation pursued by the organization	e.	all the choices are correct
c.	level of interpersonal contact

53. All the following companies are direct competitors of Southwest Airlines, except:

a.	America West Airlines	d.	Amtrak
b.	Jet Blue Airlines	e.	All the choices are direct competitors
c.	Alaska Airlines

54. Consumer affluence as measured by real income earned is most probably increasing at the following rate of:

a.	5% when inflation is 3% and income is growing at the rate of 10%	d.	13% when inflation is 3% and income is growing at the rate of 10%
b.	9% when inflation is 3% and income is growing at the rate of 10%	e.	7% when inflation is 3% and income is growing at the rate of 10%
c.	15% when inflation is 3% and income is growing at the rate of 10%

55. In reading the article " Game of Inches", the key elements of Procter and Gamble's strategy for their Tide detergent are:

a.	relentless stream of new and improved products	d.	none of the choices are correct
b.	capture retail shelf space	e.	all the choices are correct
c.	more than $100 million per year advertising and promotion budget

Answer Section

MULTIPLE CHOICE

1. C

2. A

3. E

4. E

5. A

6. A

7. A

8. D

9. C

10. A

11. A

12. C

13. E

14. C

15. A

16. C

17. E

18. E

19. C

20. E

21. C

22. D

23. A

24. B

25. A

26. B

27. D

28. C

29. E

30. E

31. E

32. D

33. E

34. D

35. A

36. D

37. D

38. E

39. A

40. A

41. B

42. A

43. E

44. C

45. B

46. A

47. A

48. B

49. D

50. A

51. E

52. E

53. D

54. E

55. E