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NAME ____________________ CHAPTERS 1-5 1. A) B) C) D) E) mousetrap.

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MKT 3321--EXAM I DR. TOM BADGETT

According to the text, marketing means: making a good product that sells itself. much more than selling and advertising. selling and advertising. producing goods and/or services. doing whatever it takes to be able to offer consumers a "better

2. A credit union handles financial transactions for its customers. This is an example of providing ______________ utility. A) time B) task C) place D) form E) all of the above 3. Marketing and production combine to provide five economic utilit ies. Which of the following is NOT one of these five? A) possession. B) product. C) place. D) time. E) form. 4. A) . B) C) D) E) organization's applies only to profit organizations. consists only of personal selling and advertising. is a social process. tries to anticipate and satisfy customer needs and accomplish an objectives. MICRO-marketing: is concerned with whether the whole system is fair and effective

5. An economic system in which government planners determine produc tion levels is known as A) a subsistence economic system. B) a central market economic system. C) a macro-marketing economic system. D) a market-directed economic system. E) a planned economic system. 6. According to the text, a "market" is: A) a convenient place to shop. B) a meeting place for producers and consumers. C) a convenient place for social gatherings. D) a display area for producers' goods. E) a group of buyers who are willing to exchange something of value with sellers offering various goods and services. 7. A middleman:

A) B) C) D) E) 8. A) B) C) ed. D) E)

is a wholesaler--not a retailer. usually increases the number of transactions required. tends to make the exchange process more difficult and costly. reduces economic utility in more complex economies. is someone who specializes in trade rather than production. Which of the following is necessary for economic development? tariffs that reduce competition from imported products. eliminating at least some of the universal marketing functions. government planners who decide what and how much is to be produc low wages. an effective macro-marketing system.

9. "Economies of scale" means that: A) as a company produces larger numbers of a particular product, th e cost of each of these products goes down. B) the more producers there are in an economy the greater the need for middlemen. C) larger countries enjoy more economic growth than smaller countri es. D) as a company produces larger numbers of a particular product, th e total cost of producing these products goes down. E) All of the above are true. 10. A) B) C) D) E) 11. the following A) B) C) D) E) The "universal functions of marketing" do NOT include: financing and risk taking. standardization and grading. producing. transporting and storing. buying and selling. The text considers four "eras" of marketing evolution. Which of shows the logical order in which these eras occur? Marketing department, production, sales, marketing company Sales, production, marketing department, marketing company Sales, marketing company, production, marketing department Production, sales, marketing company, marketing department Production, sales, marketing department, marketing company

12. Which of the following is the BEST example of management thinkin g during the "production era"? A) "Production provides form utility and marketing provides time, p lace, and possession utility." B) "We need to find out what the customer wants." C) "The more salespeople we have, the more we can sell." D) "We need to work hard to sell the product to our customers." E) "If we produce a good product, customers will find us and buy it ." 13. rue? A) B) The emphasis was on selling. A business problem was to beat the competition. Which of the following statements regarding the "sales era" is t

C) D) E)

More production capability was available than ever before. All of the above. None of the above.

14. The main difference between the "marketing department era" and t he "marketing company era" is: A) more emphasis on selling and advertising in the marketing depart ment era. B) whether the president of the firm has a background in marketing. C) . D) E) 15. A) B) C) t. D) E) 16. A) B) C) D) fit. E) customer satisfaction, total company effort, profit. focuses advertising on product features. all of the above. The three basic ideas in the "marketing concept" are: customer satisfaction, resource utilization, sales maximization. customer satisfaction, total company effort, sales growth. resource utilization, sales growth, profit maximization. customer satisfaction, marketing manager as chief executive, pro whether the whole company is customer-oriented. There is no difference. A firm with a marketing orientation: has little need for salespeople. sells what it can make easily. tries to determine customers' needs before developing its produc more emphasis on short-run planning in the marketing company era

17. Complete acceptance of the "marketing concept" would require: A) making sure that all departments focus their efforts on satisfyi ng customer needs. B) having all production, finance, accounting, and personnel manage rs report directly to the marketing manager. C) placing less emphasis on profit as the objective of the firm. D) trying to satisfy the needs of each and every customer. E) All of the above. 18. A) B) C) D) E) 19. A) B) C) D) E) A marketing strategy specifies: a marketing mix. a target market and a related marketing mix. a target market. the resources needed to implement it. both A and D. The "four Ps" of a marketing mix are: Production, Personnel, Price, and Physical Distribution Promotion, Production, Price, and People Potential customers, Product, Price, and Personal Selling Product, Price, Promotion, and Profit Product, Place, Promotion, and Price

20. A) B) C) D) E)

"Promotion" includes: advertising. personal selling. sales promotion. publicity. All of the above.

21. Advertising is: A) the designing and distribution of novelties, point-of-purchase m aterials, store signs, catalogs, and circulars. B) direct communication between sellers and potential customers. C) any paid form of nonpersonal presentation of ideas, goods, or se rvices by an identified sponsor. D) the main form of publicity. E) All of the above. 22. A) B) C) D) E) A "marketing program": blends all of a firm's marketing plans into one big plan. is a description of a firm's marketing mix. is a detailed plan of how to implement a strategy. is a marketing strategy plus the time-related details. None of the above.

23. A SWOT analysis A) focuses on what a firm plans to do to "Satisfy Wishes Of a Targe t" customer. B) summarizes a firm's "strategy, wishes (of its customers), outloo k and tactics." C) helps defend against potential competitors by developing a set o f competitive "safeguards, weapons, offensives, and tactics." D) identifies a firm's "strengths, weaknesses, opportunities and th reats." E) seeks to reduce the risk of competitive surprises by scanning th e market for "signals, warnings, omens, and tips." 24. ______________ means trying to increase sales of a firm's presen t products in its present markets. A) Product development B) Market penetration C) Market development D) Mass marketing E) Diversification 25. When a firm tries to increase sales by selling its present produ cts in new markets, this is called: A) product development. B) diversification. C) market penetration. D) mass marketing. E) market development. 26. When a firm tries to increase sales by offering new or improved

products to its present markets, this is called: A) mass marketing. B) product development. C) market penetration. D) diversification. E) market development. 27. When a firm tries to increase its total sales by offering new pr oducts to new markets, it's pursuing: A) diversification. B) product development. C) market development. D) market penetration. E) All of the above. 28. A "product-market" is a market in which: A) all sellers offer exactly the same product. B) one firm has achieved a competitive advantage. C) all sellers offer products that are unique and innovative. D) sellers offer very close substitute ways of satisfying potential customers' needs. E) sellers offer substitute products which are quite different phys ically or conceptually. 29. A generic market is one in which A) products from different industries compete for customers by tryi ng to satisfy the same basic need. B) no firm can establish a competitive advantage. C) a number of firms are all offering new or improved products in a n effort to increase sales. D) one seller has a patent for a superior product and other competi tors imitate the leader with inferior products. E) None of the above is true. 30. A) B) ing mix. C) D) . E) Market segmentation: means the same thing as marketing strategy planning. assumes that most submarkets can be satisfied by the same market is the same thing as positioning. tries to identify homogeneous submarkets within a product-market All of the above are true.

31. Which of the following criteria should a marketing manager use w hen segmenting a broad product-market? A) The segments should be substantial--big enough to be profitable-and operational--useful for identifying customers and deciding on marketing mix variables. B) The people within a market segment should be as homogeneous as p ossible with respect to the segmenting dimensions and their likely response to m arketing mix variables. C) The people in different market segments should be as heterogeneo us as possible with respect to the segmenting dimensions and their likely respon se to marketing mix variables. D) All of the above.

E) 32. de: A) B) C) D) E)

Only A and B above. BEHAVIORAL (rather than DEMOGRAPHIC) segmenting dimensions inclu family life cycle. geographic location. education. social class. purchase frequency.

33. "Positioning" is a marketing management aid which refers to: A) a product's ability to provide both immediate satisfaction and s ocial responsibility. B) how customers think about proposed and/or present brands in a ma rket. C) a firm's ability to distribute products through middlemen who ar e in the right position to reach target customers. D) how much a marketing mix will cost. E) all of the above. 34. Rising costs and inflation are part of the uncontrollable ______ ________ environment. A) economic B) competitive C) legal D) cultural and social E) technological 35. is part of the A) B) C) D) E) 36. A) B) C) D) E) The way in which an economy's resources are converted to output _______________ environment. economic. political. technological. social. competitive. Safety standards for products such as bicycles are set by the: U.S. Department of Transportation. Federal Trade Commission. Office of Consumer Affairs. Food and Drug Administration. Consumer Product Safety Commission.

37. More women working outside the home and greater interest in leis ure are examples of changes in the ______________ environment. A) cultural and social. B) economic. C) legal. D) competitive. E) technological. 38. A) In the U.S., the state with the largest population is Nevada.

B) C) D) E)

New York. Florida. California. Texas.

39. A Metropolitan Statistical Area (MSA) is: A) a city with 250,000 or more people. B) generally centered on one city or urbanized area of 50,000 or mo re inhabitants and includes bordering urban areas. C) a Census Bureau term that corresponds to county-by-county politi cal boundaries. D) an area where there has been at least a 15 percent change in the population during the previous 10 years. E) All of the above. 40. A Consolidated Metropolitan Statistical Area A) is smaller than an MSA. B) is a large metropolitan statistical area--with over 1 million po pulation. C) is the central city area of a large city. D) is a group of small towns or cities that, taken together, have a total population of 100,000. E) None of the above is true. 41. A) B) C) D) E) 42. : A) group. B) C) D) E) almost 80 percent of the total income almost 50 percent of the total U.S. income. only about 20 percent of the total U.S. income. about the same total income as the next highest 20 percent. about twice as much income, on average, as the lowest 20 percent The median family income in the U.S.in 1996 was: $22,000. $42,000. $62,000. $82,000. none of the above. The 20 percent of U.S. families with the highest incomes receive

43. Economists' economic-buyer theory assumes that: A) buyers logically compare choices in terms of cost and value in o rder to maximize their satisfaction. B) consumers should purchase only low-priced products. C) demographic data are very useful for predicting consumer behavio r. D) All of the above. E) None of the above. 44. A) B) C) D) Which of the following is NOT an economic need? Hunger Economy of use Convenience Efficiency in use

E)

Dependability in use

45. Amber Mantel is status-oriented. When she buys clothing she onl y considers items with well-known "labels" that her friends will notice. This b ehavior illustrates A) satisfying a want. B) satisfying a belief. C) the "economic buyer" model of buyer behavior. D) satisfying a need. E) All of the above are equally good answers. 46. A) . B) C) D) E) all needs and wants are caused by drives. wants are learned needs. the terms "need" and "wants" mean the same thing. both A and C. Regarding consumer motivation, the text states that: needs are the basic forces which motivate people to do something

47. The text discusses a four-level hierarchy of needs. Which of th e following is NOT included in that model? A) psychological needs. B) safety needs. C) physiological needs. D) personal needs. E) social needs. 48. The fact that our eyes and minds seek out and notice only inform ation that interests us is called: A) selective exposure. B) selective retention. C) preconscious perception. D) selective perception. E) conscious cognition. 49. A) B) C) D) E) 50. A) B) C) D) E) An attitude is: a person's point of view about something. easy to change. the same as a belief. the same as an "intention to buy." All of the above. The AIO items used in life-style analysis include: attitudes, intentions, and opinions. attitudes, income, and opinions. activities, interests, and opinions. attitudes, interests, and opinions. activities, intentions, and opinions.

Answer Key -- S02EI 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. B B B E E E E E A C E E D D C E A B E E C A D B E B A D A D D E B A C E A D B B B C A A A E A A A C