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Exercises for Marketing Management

Section A

Indicate your answer by writing the letter corresponding to the correct answer in the questions.

1 Behavioural theory Maslows hierarchy of needs: a. Physiological need, safety needs b. Physiological need, safety needs, social needs c. Physiological need, safety needs, social needs, Esteem needs, Self actuali!ation d. Safety needs, social needs, Esteem needs, Self actuali!ation 2 Setting low price and aiming to enlarge market share is: a. Market penetration pricing b. Market skimming pricing c. Markup pricing d. Percei"ed "alue pricing 3 Attitude and learning are e amples of !!!!!!!!!!!!! affecting the "uying decision: Personal factors Social factors Physiological factors Psychological factors # $ord company produced only one kind of product% which is &'Model in Black% to entire market in the early of 2( century is: a. Multi segment marketing b. Mass marketing c. #iche marketing d. $ustom marketing ) Advertising is: a. % paid form of non personal communication b. % paid form of personal selling c. %n unpaid form of personal communication d. %n unpaid form of non personal communication. * +,- provide several "rands in the same product category is a. Multibrands b. #ew brans c. cobrands d. &rand extensions . A strong need that cannot "e satisfied "y e isting products a. #egati"e demand b. 'atent demand c. ("erfull demand
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d. *eclining demand / 0hich of the following statements is &123 when applied to Secondary data in marketing research: a. It is collected for other purposes and already exists somewhere b. It is more accurate than primary data c. It is more complete than primary data d. It is collected costly 4 A niche is a. % small market b. Entire market c. 'ocal market d. Indi"idual market 1( &he people who have a strong potential interest and a"ility to pay for the product are a. Suspects b. Prospects c. +epeat customers d. Members 11 Macroenvironmental factors include a. *emographic, natural en"ironment, political legal, technology, economic forces, social cultural b. $ompetitor, supplier, customer, stakeholder c. *emographic, natural, competitor, political, economic, social cultural d. &eha"ioral, *emographic, cultural, geographical 12 &he #5s consist of: a. $ustomer solution, customer cost, con"enience, communication b. $ustomers, competitors, culture, collaborators c. $ustomers, collaborators, culture, the company itself d. $ompetitors, customers, culture, collaborators 13 +roduct life cycle includes a. ,rowth stage, introduction stage, decline stage, increase stage b. *ecrease stage, introduction stage, increase stage, decline stage c. Introduction stage, ,rowth stage, Maturity stage, *ecline stage d. Maturity stage, *ownward stage, Introduction stage, *ecline stage 1# &he "ases for segmenting consumer markets a. *emographic, geographic, psychographics, beha"ioral b. *emographic, geographic, psychographics c. *emographic, geographic, occasion, "alue d. %ge, occupation, region, lifestyle 1) costs vary directly with the level of production6 a. -ariable cost b. .ixed cost c. /otal cost d. %"erage cost

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!!!!!!!!! 5oncept holds that the key to achieving its organi7ational goals consists of the company "eing more effective than competitors in creating% delivering% and communicating customer value to its chosen target markets: a. Marketing b. Sales c. Product d. Production 1. Brand is : a. /rademark b. Product "alue c. 'abeling d. % name, term, sign, symbol, or design, or a combination of them 1/ A89A means : a. %wareness, interest, desire, adoption b. %wareness, interest, desire, action c. %ttitude, intention, desire, awareness d. %ttention, interest, desire, action )12 Speciality products are3 a. +apidly consumed items that are relati"ely inexpensi"e and require minimal purchasing effort b. #ormally only purchased when required to resol"e a problem c.More expensi"e and more durable items bought less frequently, requiring more effort in the planning and purchasing stages d. #ormally purchased infrequently and with more unique features. 2( 0hat does S0:& mean; a. Strength, weakness, offer, threat b. Strength, weakness, opportunity, threat c. Stretch, weakness, opportunity, threat d. Stretch, weakness, offer, threat 21 Maslows hierarchy of needs: e. Physiological need, safety needs f. Physiological need, safety needs, social needs g. Physiological need, safety needs, social needs, Esteem needs, Self actuali!ation h. Safety needs, social needs, Esteem needs, Self actuali!ation 22 Setting low price and aiming to enlarge market share is : e. Market penetration pricing f. Market skimming pricing g. Markup pricing h. Percei"ed "alue pricing 23 &he most significant factor that may affect pricing decisions is: a. ,o"ernment price controls b. Promotional costs c. Production costs d. /he demand for a product

2# &wo or more elements in the marketing channel com"ining under one management is referred to as: a. -ertical integration b. 5ori!ontal integration c. Multi segment strategy d. 'ateral integration 2) &he more product lines % the greater the !!!!!!!!!! a. Product line width b. Product line depth c. Product mix width d. Product mix depth 2* Advertising is: a2 % paid form of non personal communication b2 % paid form of personal selling c2 %n unpaid form of personal communication d2 %n unpaid form of non personal communication. 2. +,- provide several "rands in the same product category is a2 Multibrands b2 #ew brans c2 cobrands d2 &rand extensions 2/ +ioneer advertising is used in the !!!!!!!!! of the +<5: a. ,rowth stage b. Maturity stage c. Introduction stage d. *ecline stage 24 0hich of the following statements is &123 when applied to Secondary data in marketing research: a. It is collected for other purposes and already exists somewhere b. It is more accurate than primary data c. It is more complete than primary data d. It is collected costly 3( A niche is a. % small market b. Entire market c. 'ocal market d. Indi"idual market 31 Sales records% advertising% customer records and financial statements are e amples of sources of: a. Internal primary data b. External primary data c. Internal secondary data d. External secondary data 32 0hich of the following statements is &123 of =ualitative data:
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a. b. c. d. 33 a. b. c. d. 3# a. b. c. d. 3) a. b. c. d. 3* a. b. c. d. 3.

a. b. c. d. 3/ a. b. c. d. 34 a. b. c. d.

It can be statistically analysed It draws responses that can be grouped to gi"e a total It is concerned with "alue 7udgements It is concerned with measuring opinion Motivation "elong to !!!!!!: $ulture factors Social factors Psychological factors &eha"ioral factors +roduct life cycle includes ,rowth stage, introduction stage, decline stage, increase stage *ecrease stage, introduction stage, increase stage, decline stage Introduction stage, ,rowth stage, Maturity stage, *ecline stage Maturity stage, *ownward stage, Introduction stage, *ecline stage 0hich of the following statements regarding marketing and selling is &123: marketing is externally focused, whereas selling is internally focused selling is externally focused, whereas marketing is internally focused both marketing and selling are internally focused both marketing and selling are externally focused +roducts in the !!!!!!!!! stage of the +<5 are typically recognised "y their aggressive promotional pricing tactics: Introduction ,rowth Maturity *ecline !!!!!!!!! 5oncept holds that the key to achieving its organi7ational goals consists of the company "eing more effective than competitors in creating% delivering% and communicating customer value to its chosen target markets: Marketing Sales Product Production Brand is: /rademark Product "alue 'abeling % name, term, sign, symbol, or design, or a combination of them 5hannel synergy occurs when: Producers refuse to deal with certain channel members %n intermediary is denied access to competing products More benefits are forthcoming than could be expected from cumulati"e efforts of indi"idual members .ewer benefits are forthcoming than could be expected from cumulati"e efforts of indi"idual members
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#( 0idth of product mi means!!!!!!; a. 5ow closely related the "arious product lines b. 5ow many "ariants are offered of each product in the line c. /he total number of items in the mix d. 5ow many different product lines the company carries 6). /he life cycle below is most likely a 9999999999999 a. b. c. d. e. 5igh learning product 'ow learning product .ashion product .ad Product +otating Pattern product

60. *allas based *ean .oods is one of the leading food and be"erage companies in the :nited States. Its 9999999999 includes soy products, coffee creamers, dips and dressing, pickles, sauce, ice cream, yogurt, sour cream and cottage cheese. Its fresh milk and cream 9999999999 includes regular and fla"ored milks, lactose free milk, buttermilk, and half and half. %2 product tangibility; product unit &2 product mix; product unit $2 product line; product mix *2 product unit; product tangibility 3> product mi ? product line 64. %mong consumer goods, ad"ertising and wide distribution are especially important for3 %2 durable goods. &2 unsought goods. 5> nondura"le goods6 *2 production goods. E2 semidurable goods. 66. /he :p7ohn $ompany first targeted men for its +ogaine topical solution, a prescription drug to restore hair growth, but later marketed this product to women. /his is an example of which strategy< A> $inding new users
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&2 $reating new use situations $2 Increasing use by existing customers *2 Modifying the product E2 #one of the abo"e >ou are facing the following demand schedule3 ?uantity )@ 0@ 4@ 6@ 8@ Price = 8 6 4 0

>ou are also facing the %"erage $ost table below ?uantity )@ 0@ 4@ 6@ 8@ %"erage cost ) 0 4 6 8

686 :se the information gi"en abo"e. >our goal is profit maximi!ation. >ou should produce3 a. )@ units b. 0@ units c. 4@ units d. 6@ units e. 8@ units 6=. Elasticity between )@ and 0@ units is approximately Achoose the number closest to your answer23 a. ).B b. 0.6 c. 4.C d. 6.= e. 8.4

6C. In this commercial, three men Aapprox. in their thirties2 are in a parking lot. (ne of them is getting ready to lea"e in his car A5onda $i"ic2. /he other two men Aled by elder of the two2 interrogate the car owner Ain a superior manner2 about the carDs additional features, to which the car owner responds by gi"ing a technical description of the cars engine, to the surprise of the two men. Ehich of the following is likely to be true for the ad"ertisement below< a. It could be considered to be a reminder ad"ertisement b. It attempts to gain audience attention with sex appeal c. It is likely to be a pioneering ad"ertisement d. It likely attempt to reinforce pre"ious experience with 5onda $i"ic e. It is likely to be a comparati"e ad"ertisement 6B. Ehich is not used in pretests a. 7ury tests b. attitude tests c. portfolio tests d. theater tests e. tests in which consumers are in"ited to "iew new tele"ision shows or mo"ies in which test commercials are also shown. 61. Ehich of the following statements about marginal analysis is incorrect a. %s long as re"enue recei"ed from an additional unit exceeds the marginal cost associated with that unit, the firm will wish to expand production. b. Marginal cost, after an initial decline, will tend to rise due to inefficiencies in production and marketing associated with increased production c. /he message of marginal analysis is to operate up to the quantity and price le"el where marginal re"enue equals marginal cost d. Marginal analysis calls for identifying the le"el of output at which total re"enue and total cost are equal and beyond which profit occurs. 8@. If your goal is to encourage new product trial among risk a"erse consumers, your best bet from sales promotion alternati"es is3 a. samples b. contests or sweepstakes c. $ontinuity programs d. point of purchase displays e. product placement 8).Eest $oast -ideo and East $oast -ideo must simultaneously choose a pricing strategy. /he matrix below describes their payoffs from each strategy combination3 East $oast Price 5igh Eest $oast Price 5igh Price 'ow 12( 1/( 11( #( *( *( Price 'ow .( 14(

/he equilibrium is at3

a. &oth firms pricing low b. &oth firms pricing high c. Eest $oast pricing low and East $oast pricing high d. Eest $oast pricing high and East $oast pricing low e. &oth c and d are equilibria 80..or non durable goods, 99999999999 is essential, whereas for durable good, 999999 is more critical Ayou can find the answer on p. 0C@2. a. /- ad"ertising; radio ad"ertising b. #ewspaper ad"ertising; /- ad"ertising c. $onsumer ad"ertising and wide distribution; personal selling d. Sales promotion; reminder ad"ertising 84. /he %nn and &ob corporations compete in the market for widgets. /hey can each price high or price low. %nn is the row player and &ob is the column player. /hat means that %nnDs payoff is the top left number in each cell. &obDs payoff is the bottom right number in each cell. /he payoffs to each possible scenario are gi"en in the game matrix below. In equilibrium, 99999999999999999999999999999999. a. b. c. d. %nn would price low and &ob would price high. %nn would price low and &ob would price low. %nn would price high and &ob would price high. %nn would price high and &ob would price low.

&ob Price 5igh %nn Price 5igh Price 'ow 48 6@ 68 C@ )@ 6@ Price 'ow 8 =@

86. /he demand cur"e below would call for what pricing strategy< a. skimming b. penetration c6 prestige d. price lining

88. >ou are facing the M%+,I#%' $ost and M%+,I#%' re"enue table below ?uantity 8 )@ )8 0@ 08 Marginal cost Marginal +e"enue 08 =@ 48 8@ 6@ 6@ 8@ 4@ =8 0@

/o maximi!e profit, you should produce3 a. b. c. d. e. 8 )@ )8 0@ 08

>ou are facing the following demand schedule3 ?uantity )@ 0@ 4@ 6@ 8@ Price 1@ B@ C8 C@ =8

Marginal cost is the same as the a"erage cost and is constant at 8@. 8=. ,i"en the abo"e demand schedule and cost information, the quantity that would maximi!e your profits is 9999999999999999. a. )@

)@

b. 0@ c. 4@ d. 6@ e. 8@ 8C.Ehen deciding on the purchase of a new wireless pocket P$, &ob was among the "ery first. 5e is "ery highly educated, and makes purchase decisions based on information from Internet newsgroups, newspapers, and technical 7ournals he subscribes to. Stan made his decision based on numerous informal social contacts, though he is not a leader in any social setting. 5e was among the first 8@F of the population to buy the wireless pocket P$. (ut of profiles of product adopters, &ob could best be described as 9999999999 whereas Stan would best be described as 99999999999. a. b. c. d. e. early adopter; ma7ority early inno"ator; late inno"ator inno"ator; early ma7ority early ma7ority; early adopter late ma7ority; laggard

8B. GohnsonHs &aby (il is ad"ertised as a skin softener for babies and as a makeup remo"er for women. /his is an example of3 %2 &2 $2 *2 .inding new users $reating new use situations Increasing use by existing customers Modifying the product

81.*el MonteDs &arbecue Ietchup that contained finely chopped onions and was aimed at the hea"y ketchup eating segment Akids2. /hat segment Jkids did not care for onions. Ehich of the reasons below is most likely the reason for this product failure< a. b. c. d. e. Insignificant Kpoint of differenceL Incomplete market and product definition /oo little market attracti"eness Asi!e and growth of mkt2 Poor execution of the marketing mix Poor product quality on critical factors

=@.Minute Maid squee!e fresh (G concentrate3 ad"ertising and packaging did not educate on how to use the product and as a result consumers did not know how to use it. Ehich of the reasons below is most likely the reason for this product failure< a. b. c. Insignificant Kpoint of differenceL Incomplete market and product definition /oo little market attracti"eness Asi!e and growth of mkt2

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d. Poor execution of the marketing mix e. Poor product quality on critical factors =). /he best way for a business to find new "endors is by %. contacting the &etter &usiness &ureau. &. de"eloping a portal on the Eorld Eide Eeb. $. contacting an industry related trade association. *. accessing its marketing information management system. =0. % se"ere storm blows down trees that fall on a business and collapse the roof and break windows. /his type of damage results from 99999999999 risks. %. human $. natural &. economic *. financial =4. StellaHs &ookstore recently began accepting credit cards as a method of payment from its customers. /he management of StellaHs made this decision in an effort to increase which type of utility< %. /ime $. .orm &. Place *. Possession =6. &usinesses that obtain information about competitors with the use of questionable techniques, e"en though these techniques are legal, are often beha"ing %. recklessly. $. carelessly. &. aggressi"ely. *. unethically. =8. Ehat are businesses examining when they conduct a situational analysis during the marketing planning process< %. En"ironmental factors $. Personal aptitudes &. Physical characteristics *. ,eographical changes ==. %n employee who critici!es a super"isor in public or who tries to ha"e the super"isor remo"ed might be terminated for %. mutiny. $. misconduct. &. performance. *. discrimination. =C. % pricing tactic used by some businesses that might be unethical is one that %. is competiti"e. $. offers rebates. &. ad"ertises discounts. *. confuses customers. =B. Marketing a lower priced "ersion of an item in a product line under a different brand name than the higher priced "ersion enables the business to %. contract the product mix. &. a"oid damage to brand reputation and image. $. confuse buyers resulting in negati"e net gain. *. offset expenses of adding a new product line. =1. &y e"aluating the effecti"eness of a promotional message, businesses often can determine if consumers 9999999999 the promotion. %. monitored $. questioned &. implemented *. remembered C@. Ehat factor should a salesperson consider when de"eloping a customi!ed sales presentation for a new customer<
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%. $irculation $. $on"enience &. +eferral rates *. +e"enue pro7ection C). Much of early marketing research consisted of 3 a. written testimonials recei"ed from purchasers of a firmDs products. b. use of mail questionnaires to gather information. c. telephone sur"eys conducted to assess household preferences. d. sampling studies using techniques deri"ed from "oting records. e. statistical e"aluations of sales and product performance records. C0. %s compared with undifferentiated marketing, firms that practice differentiated marketing should generally expect3 a. fewer sales by segment. b. lower total production costs. c. lower in"entory costs. d. higher awareness of competitorsD products. e. greater total promotion costs. C4. Marketing intermediaries are generally of greatest use to3 a. smaller, weaker producers with narrow product lines. b. well financed and managed manufacturers. c. suppliers with considerable marketing resources. d. firms large enough to grant credit to their customers. e. producers who ha"e their own warehouses and sales forces C6. $ompetition between brands is highest during what stage of the product life cycle< a. introduction. b. maturity. c. growth. d. decline. e. stabili!ation. C8. Ehich of the following is not included as part of a firmDs promotional strategy< a. personal selling. b. ad"ertising. c. publicity. d. sales promotion. e. %ll the abo"e are included as a part of the firmDs promotional strategy. C=. (f the following, an example of an agent or broker is the3 a. drop shipper J recei"ing orders from customers and forwarding them directly to the producers. b. public storage warehouse J sorting packaged goods into smaller quantities to fill orders. c. cash and carry wholesalers J pro"iding credit and deli"ery to small retailers. d. merchandise mart J pro"iding permanent space for exhibition of goods. e. commission merchant J taking possession when the producer ships to a central market. CC. Southwest %irlines started ser"ice in /exas with customers exchanging peanuts for airline tickets. /he firm was emphasi!ing what element of the marketing mix< a. Product b. *istribution c. /arget market
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d. Price CB. Marketing facilitates exchange relationships between a buyer and a seller. Ehat is the intended outcome of this relationship< a. Profits for the seller b. % good bargain on the product for the buyer c. Satisfaction for both the buyer and seller d. (ne party ha"ing to compromise in the exchange C1. /he marketing concept is a way of thinking or a management philosophy that affects a. only marketing acti"ities. b. all efforts of the organi!ation. c. mainly the efforts of sales personnel. d. mainly customer relations. B@. Indi"iduals and business organi!ations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as a. consumer markets. b. institutional markets. c. producer markets. d. reseller markets. B). Institutional markets comprise a. intermediaries who resell goods to make a profit. b. organisations that seek not for profit business goals. c. department stores. d. consumers who buy products for their own use. B0. Ehich of the following is true with respect to indi"idual buyers in organi!ational markets< a. (rgani!ational buyers always act rationally when making purchases for their company. b. (rgani!ational buyers tend to be less informed about the products they purchase than consumer buyers. c. (rgani!ational buyers often demand detailed information about a productHs quality, features, or technical specifications. d. (rgani!ational buyers are no different than buyers in consumer markets. B4. Problem recognition is the first step toward finding a solution to a marketing problem or launching a research study. /he first sign of a problem a. in"ol"es an informed guess or assumption about a certain set of circumstances. b. is usually accompanied by a costMbenefit analysis. c. most often comes in the form of customer complaints. d. is often mentioned in secondary data reports, such as trade 7ournals. e. is usually a departure from some normal function, such as a failure
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to attain ob7ecti"es. B6. % research technique is said to be 9999999999 if it produces almost identical results in successi"e repeated trials. a. belie"able b. "alid c. reliable d. dependable B8. Ehich of the following buying situations is most consistent with habitual buying< a. Igor buying his first pair of basketball shoes b. Mary buying a new set of tyres for her car c. %aron buying a new fishing rod and reel d. Stella buying a quarter pounder at Mc*onaldHs e. &ill buying a new software program B=. Suppose that Iellogg is introducing a new bran waffle for toasters. /he tele"ision commercial will be a key element in communicating the benefits associated with this product modification. Iellogg expects consumers to engage in what form of decision making< a. +outinised response beha"iour b. 'imited decision making c. Extended decision making d. Impulse buying BC. Ehich of the following is not a ser"ice product< a. %n Elton Gohn concert b. % flight on Southwest %irlines c. % )@@ percent ser"ice satisfaction guarantee d. %n o"ernight stay at 5oliday Inn BB. If Morton Salt marketers saw all table salt customers as pretty much alike and thus offered only one marketing mix, they would be using the 9999999999 strategy. a. directed b. undifferentiated c. segmented d. differentiated B1. If Mattel saw the toy market as composed of four age category groupings, each with different needs and desires, each grouping would be called a. an undifferentiated market. b. heterogeneous. c. a market segment. d. a marketing mix. 1@. Ehich of the following is true with respect to segmenting markets< a. Segmentation "ariables should be selected on a random basis. b. % companyHs resources and capabilities should ha"e no effect on how markets are

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segmented. c. /he best way to segment markets is through the use of demographic "ariables. d. /here is no best way to segment markets. 1). % brand is best defined as a a. registered design or symbol that may be displayed on the product or used to promote it. b. related group of words that describe the product. c. name, term, sign, symbol, design, or combination of these that identifies a sellerHs products. d. copyrighted word or group of words that gi"es the manufacturer exclusi"e ownership and the right to sell a product under that name. 10. % light bulb can be considered all of the following except a. a consumer product. b. an organi!ational product. c. either a consumer product or an organi!ational product. d.. a consumer product if it is used to light the office of the board of directors. 14. % group of closely related product items that are considered to be a unit because of marketing, technical, or end use considerations is a product a. category. b. dimension. c. extension. d. line. 16. $ombining products into collections that buyers want a"ailable at one place is a. sorting out. b. a sorting acti"ity. c. allotting. d. assorting. 18. %n organi!ation that employs part time sales persons calling on consumers homes is engaging in a. discount retailing. b. non store retailing. c. franchising. d. general merchandise retailing. 1=. MattHs girlfriend tells him she wants a cashmere sweater for $hristmas. Matt decides to go to a store that pro"ides the best possible selection of sweaters. 5is best choice would be to shop at a 9999999999 store. a. department
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b. catalogue c. discount d. specialtyMniche marketing 1C. %d"ertising is a ma7or promotion mix ingredient that is a a. paid form of personal communication. b. paid form of non personal communication. c. non paid form of personal communication. d. non paid form of non personal communication. 1B. % ma7or reason why a substantial amount of publicity material is re7ected by media personnel is that the material is a. not newsworthy. b. written at too high a reading le"el. c. submitted by organi!ations that the media do not like. d. not persuasi"e enough. 11. Sales promotion is best defined as aAn2 a. acti"ity andMor material used as a direct inducement to resellers, salespersons, or consumers. b. ad"ertising and publicity campaign. c. cyclical acti"ity aimed at producing short run effects on sales. d. non cyclical acti"ity aimed at producing long run effects. )@@. Ehich factor is least likely to affect pricing decisions< a. Shifting stock "alues b. 'egal and regulatory issues c. (rgani!ational and marketing ob7ecti"es d. &uyersH perceptions Section B Multiple 5hoices ). Ehich of the following is one of the /en +ules of +adical Marketing that is used to guide marketers< a. /he $E( must let the marketing be done by marketers. b. ,et face to face with the people who matter the most customers. c. +ely on marketing research as the most important tool. d. *onHt use common sense as a guide. 26 Marketing should pass through three stages when being implemented. Ehich one of the following is not one of the stages< a. $ontractual Marketing b. Entrepreneurial Marketing c. .ormulated Marketing d. Entrepreneurial Marketing 4. 9999999 demand is when a ma7or part of the market dislikes the product and may e"en pay a price to a"oid it. a. 'atent b. *eclining c. Irregular
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d. #egati"e 6. Ehich of the following is not an example of a $onsumer Market< a. ,rocery Stores b. Industrial /rade Shows c. +etail Stores d. $lothing Stores 8. Ehich of the following is not one of the entities that marketing people are in"ol"ed in marketing< a. ,oods b. Ser"ices c. #ews d. %ll of the abo"e can be marketed =. Marketing is the process of planning and executing the conception, pricing, 9999999999999, and distribution of ideas, goods, and ser"ices to create exchanges that satisfy indi"idual and organi!ational goals a. Promotion b. $ommercials c. Selling d. ad"ertising C.Ehen consumers go shopping on the Internet, they are said to be shopping in a 999999999999. a. marketplace b. market trace c. market d. marketspace B.9999999999 are wants for specific products backed by an ability to pay. a. $osts benefits b. &enefits costs c. &enefits in"estments d, (utcomes interests 1, /here are "arious types of communication channels that can be utili!ed by marketers. Ehich of the following is not one of those channels< a. %rticulate b. *ialogue c. *istribution d. Ser"ice )@.99999999999 hold that consumers will prefer products that are widely a"ailable and inexpensi"e. a. Product $oncepts b. Selling $oncepts c. Production $oncepts d. Marketing $oncepts )). /here are fi"e types of needs that consumers e"aluate and marketers need to probe. Ehich of the following is not one of those needs< a. Stated #eeds
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b. *elight #eeds c.:nrelated #eeds d. Secret #eeds )0. %An2 99999999 marketer disco"ers and produces solutions customers did not ask for but to which they enthusiastically respond a. responsi"e b. creati"e c. anticipati"e d. outstanding )4.9999999999 marketing is the task of hiring, training, and moti"ating able employees who want to ser"e customers well. a. Internal b. External c. Integrated d. interrelated )6. In 999999999999999999, the seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers. a. macro marketing b. mass marketing c. micro marketing d. market segmenting )8. %n attracti"e niche is characteri!ed by each of the following characteristics except for which one< a. /he customers in the niche ha"e a "arying set of needs b. /he customers in the niche will pay a premium for their needs to be satisfied. c. /he niche is not likely to attract other competitors. d. /he niche has si!e, profit, and growth potential. )=. (ne way to identify market segments is to identify preference segments. Ehich of the following is the segment that describes consumer preferences scattered throughout the space< a. 5omogeneous preferences b. $lustered preferences c. 5eterogeneous preferences d. *iffused preferences )C. In order for market segments to be successful they need to be measurable, substantial, accessible, differentiable, and what a. :nderstood b. %ctionable c. +eliable d. %udible )B. 99999999999999999 calls for di"iding the market into geographical units such as nations, states, regions, counties, cities, or neighborhoods. a. ,eographic segmentation b. ,eographic organi!ation c. 'ocation segmentation
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d. 'ocation organi!ation )1. 999999999999 is a Ndeeply held commitment to rebuy or repatroni!e a preferred product or ser"ice in the future despite situational influences and marketing efforts ha"ing the potential to cause switching beha"ior.N a. %d"ertising b. Personal selling c. &rand reliance d. 'oyalty 0@. Ehich of the following is not one of the examples of segmenting "ariables for business markets< a. Purchasing criteria c. &uyer seller similarity c. %ttitudes toward features d. :ser or nonuser status Section 5 &rue or $alse ) .Performing is the act of designing the companyHs offering and image to occupy a distincti"e place in the target marketHs mind. /rue .alse

0 .% unique selling position is the location of an ad"ertisement in an area where there is currently no competition. /rue .alse

4 ./he productHs quality image is also affected by packaging, distribution, ad"ertising, and promotion. /rue .alse

6 .(ne differential criteria recommended is that the difference should be preempti"e. /his means the difference was new to the market before the competition. /rue .alse

8 .%ccording to the &$, $ompetiti"e %d"antage Matrix, a "olume industry is one in which companies can only gain a few, but rather large, competiti"e ad"antages. /rue =. .alse

% productHs performance quality is measured at four le"els, low, a"erage, high, and superior. /rue .alse

C.

(rdering ease refers to how easy it is for the consumer to place an order with the company. /rue .alse

B .&etter trained personnel exhibit six characteristics, including the characteristic of personal
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hygiene. /rue .alse

1 . % companyHs heritage or history can be used to differentiate itself from the competition in a market and in the consumersH mind. /rue )@ . .alse

In order to say that a product does ha"e a product life cycle, one of the things that must be /rue

asserted is those products will rise and fall at different stages of the product life cycle. .alse )) .% fad is a currently accepted or popular style in a gi"en field. O /rue .alse

)0 ./he product life cycle goes through four distinct stages. /hey are introduction, growth, le"eling, and decline. /rue .alse

)4 .% market pioneer differs from a product pioneer by the fact the company that is the market pioneer would be the first to sell in a new product category. /rue .alse

)6 .$ommodity competition occurs when buyers pay a premium price for a product and the suppliers now earn only an a"erage rate of return. /rue .alse

)8.% new to the world product is one that allows a company to enter an established market for the first time. /rue .alse

)=.(ne reason a product fails is due to the fact that the product de"elopment costs are lower than expected. /rue .alse

)C.(ne reason a product fails is due to the fact that the product de"elopment costs are lower than expected. /rue .alse

IB.deas for new products can only come from customers, scientists, competitors, employees, channel members, and top management. /rue .alse

)1.% *+(P error occurs when the company dismisses an otherwise good idea.
0)

/rue

.alse

0@.$oncept testing in"ol"es presenting the product concept to appropriate target consumers and getting their reactions. /rue .alse

0)..ollowing a successful concept test, the new product manager will de"elop a preliminary marketing strategy plan for introducing the new product into the market. /rue .alse

00.'ab scientists are not responsible for de"eloping ways to communicate a productHs psychological aspects through physical cues. /hey are 7ust responsible for designing the productHs functional characteristics. /rue .alse

04.In sales wa"e research, consumers who initially try the product at no cost are reoffered the product, or a competitorHs product, at slightly reduced prices. /rue .alse

06.Ehen it comes to test markets, one of the decisions that a manager needs to address is which city or cities to do the test marketing. /rue .alse

08.Expensi"e industrial goods and new technologies will normally undergo alpha testing, but eliminate beta testing. /rue .alse

Ehen considering the timing of commerciali!ation, late entry is when it tries to time its entry to coincide with the competitorHs entry. /rue .alse

0=.$ritical path scheduling calls for de"eloping a master chart showing the simultaneous and sequential acti"ities that must take place to launch the product. /rue .alse

0C.(ne of the stages that adopters go through during a productHs adoption process is the purchase stage. /rue .alse

0B.Personal influence is the effect ad"ertising has on an indi"idualHs attitude or purchase probability. /rue .alse

00

01.% global industry is a firm that operates in more than one country and captures +P*, production, logistical, marketing, and financial ad"antages in its costs and reputation that are not a"ailable to purely domestic competitors. /rue .alse 4@.(ne of the risks in"ol"ed with going international is that the company might underestimate foreign regulations and incur unexpected costs. /rue .alse

Section 9 ,i"e short, concise answers in your answer book. ). 0. 4. 6. 8. =. C. B. 1. )@. )). )0. )4. )6. )8. /he procedures of marketing research. #ame one ad"antage and one disad"antage of using an intermediary. Please describe market mix Ehat is marketing< 5ow is marketing and marketing management defined today< 5ow has the marketing concept e"ol"ed< Ehat is the marketing mix and how is it affected by change< 5ow will marketing management continue to change as we enter the new millennium< Ehat strategies are being used to focus on customer satisfaction< 5ow will organi!ations build markets for the long term< Ehat is the importance of timely and rele"ant information inputs for marketing management decisions< Ehat is the typical problem sol"ing process followed by marketing managers< Ehat are the steps in the marketing research process, and what is the relationship between the marketing research process and creati"e problem sol"ing< 5ow can managers obtain information about the market, competitors, and other external stakeholders, and how can this information pro"ide NpowerN for marketing decisions< 5ow can information about internal organi!ational resources Afinancial, human, technological, marketing, etc2 be obtained and how can this information pro"ide NpowerN for marketing decisions< Ehat are the types and uses of databases used by marketing managers< Ehat are the components of a Marketing *ecision Support System AM*SS2 and a Marketing Information System AMIS2, and what are their purposes and applications< Ehat are the ad"antages, constraints, and issues in"ol"ed in the acquisition and use of information gained through marketing Ehat is the typical buying process engaged in by consumers, and what are the characteristics of each stage<
04

)=. )C. )B. )1.

0@. Ehat are the primary social and cultural influences that affect consumer buying decisions, and what are the implications for marketing management decisions< 0). 5ow are consumers influenced by others Areference groups, family2, life roles, and status in groups< 00. 5ow do each of an indi"idualHs personal and psychological characteristics influence the consumer buying process, and how do these influences affect marketing management decisions< 04. In what ways do product classifications affect the consumer buying process and the design of marketing programs< 06. In what ways does the purchase situation affect the consumer buying process and the design of marketing programs< 08. 5ow do the concepts of relationship marketing, the new marketing concept, and market dri"en management contribute to successful marketing programs< 0=. Ehat is the scope of business markets in terms of the types of customers, market si!e and trends. 0C. 5ow do the organi!ational and consumer buying beha"ior processes differ< 0B. Ehat are the stages in the business to business buying process, and what is the rele"ance of these stages to marketing decisions< 01. 5ow is the business to business buying process influenced by the structure of an organi!ation and the characteristics of its buyers or buying centerMpurchasing staff< 4@. Ehat are the primary types of purchasing decisions made by an organi!ation, and what is the effect of each type on the buying and selling process< 4). 5ow are purchase decisions influenced by factors related to the external en"ironment, internal organi!ation, and personal and product influences< 40. Ehat is meant by the term Nrelationship marketing,N and how is it achie"ed< 44. Ehat is the nature and purpose of market segmentation, target marketing, and positioning as an integral part of marketing planning< 46. Ehat is the difference between multi and single segment target marketing strategies, and when is each appropriate< 48. Ehat acti"ities are in"ol"ed in the market segmentation process< 4=. Ehat criteria are used to e"aluate potential market segments< 4C. 5ow are bases for segmenting consumer and business to business markets applied in the de"elopment of a segmentation strategy< 4B. Ehat is the relationship between product positioning and target marketing strategies< 41. 5ow and why do en"ironmental factors such as international marketing, technology, a rapidly changing marketplace, ethical concerns, and other contemporary issues impact market segmentation strategy decisions< Ehat is the distinction between positioning and differentiation and what are the key "ariables generally used to position an organi!ationHs goods and ser"ices< 6@. Ehat is a product and what are the dimensions of the Naugmented product conceptN< 6). 5ow can consumer goods be classified, and of what use are these classifications for consumer marketing strategy decisions< 60. 5ow can organi!ational goods be classified, and of what use are these classifications for business to business marketing strategy decisions<
06

64. Ehat are the key product related issues that confront marketers, and what are some ways that each issue can be resol"ed< 66. Ehat are the ad"antages, disad"antages, and significance of the product lifecycle concept, and how can it be applied to marketing decisions< 68. Ehy is test marketing used, and what are the ad"antages and disad"antages of using this approach when entering a new product andMor market situation< 6=. Ehat are the basic strategies for launching new products< 6C. Ehat are the elements of a branding strategy, and what role does brand equity play in an o"erall product and marketing strategy< 6B. Ehat is integrated marketing communications, and how does it relate to other elements of the marketing mix< 61. 5ow does the communications process NworkN< 8@. Ehat elements are present in each communication, and how do these relate to the "arious types of communication used by marketers< 8). Ehich promotional tools are a"ailable to marketers to use in an integrated marketing communications mix< 80. Ehat are the ma7or ob7ecti"es of integrated marketing communication< 84. 5ow is a pull IM$ strategy different from a push IM$ strategy< 86. Ehat measures of performance are appropriate for e"aluating the financial aspects of IM$< 88. Ehat specific tasks are in"ol"ed in salesforce management< 8=. Ehat are the different types of selling tasks, and when is each type appropriate to use< 8C. 5ow is the structure of a salesforce determined< 8B. 5ow are salespeople compensated and moti"ated< 81. Ehat are the determinants of fa"orable ad"ertising opportunities< =@. Ehat media alternati"es are a"ailable to ad"ertisers, when should each be used, and how do marketers e"aluate the effecti"eness of media< =). Ehen is it appropriate to use publicity and public relations tools in the IM$ mix< =0. 5ow is sales promotion related to the rest of the IM$ mix, and what types of sales promotion acti"ities can be used to support IM$ ob7ecti"es< =4. 5ow do components of the management process work together to achie"e strategic ob7ecti"es and facilitate the measurement of performance< =6. 5ow and when should e"aluation Aand control2 of marketing performance be conducted< =8. Ehat factors should be analy!ed to e"aluate marketing performance at each organi!ational le"el< ==. Identify and name the fi"e conditions required for a legitimate exchange process to take place. =C. #ame the three fundamental considerations for marketers adopting a societal marketing philosophy. =B. #ame one ad"antage and one disad"antage of using an intermediary. =1. Pro"ide four examples of publics that are part of the microen"ironment. C@. #ame the four basic ways of collecting primary data. C). Identify three potential problems associated with the use of secondary data. C0. Identify the four basic requirements that must be satisfied for a group of people to be classed as a market. C4. Identify four drawbacks of using $ustomer .orecasting sur"eys.
08

C6. #ame the four recognised methods of organisational buying. C8. Identify the four purchasing roles to be accomplished by any household. Section 3 3ssay @uestion )2 Illustrate the marketing research procedures. 02 Explain what is S/P, the bases of segmentation. 42 Ehat are marketing philosophies< 62 Ehat did you learn from marketing management< 82 Illustrate the marketing research procedures. =2 /he classification of consumer goods C2 Ehat are marketing philosophies< B2 Ehat did you learn from marketing management< 12. #ame the marketing communications mix. )@2. 'i st the number of intermediaries. ))2. Please describe brand strategies. )02. Identify three potential problems associated with the use of secondary data. )42Ehat are the key performance criteria, and why are they of importance to marketers< )625ow is the strategic profit model used to analy!e marketing performance< )82Ehere is information for performance e"aluation found, and how is its quality determined< )=2 Ehat is the typical structure of a marketing organi!ation, including the role of management at each le"el, the flow of authority, and the flow of information< )C25ow ha"e marketing organi!ations e"ol"ed o"er the past fi"e decades< )B2 Ehat is the purpose of an integrated management system AIMS2, and what are the elements that comprise it< )125ow is total quality management being implemented by marketing managers< 0@2Ehat trends are occurring in marketing as managers deal with change< 0)2Ehat is a "irtual organi!ation, and what factors ha"e contributed to its increased popularity< 002Each generation is profoundly influenced by the times in which it grows up. /hese groups are called $ohorts. :sing the se"en cohort groups discussed in the text, determine the e"ents, music, and other things that distinguish each group. 042People as indi"iduals and in groups can exert social factors to influence buying beha"iour. Ehat are these four social factor groupings 062>ou are a salesperson selling office equipment to a business. ,i"e an example of how you would sell to each of the three types of buyers based on their stage in the purchase decision process. 082 *escribe each of the steps of the Market Segmentation Process used to identify a market. 0=2In what ways do you think a sales representati"e could make the sales presentation more rele"ant and interesting for the prospecti"e customer< 0C2 In what ways and to what extent do you think that non store retailing poses a threat to con"entional retailers< 0B2. /o what extent and why do you think that a marketing managerDs pricing decision should be influenced by the competitionDs pricing< 012. 5ow might the product de"elopment stage differ for Aa2 an .M$, A.ast mo"ing $onsumer ,ood2 product and Ab2 an organisational product<
0=

4@2. #ame fi"e of the possible departments that may comprise the internal en"ironment of an organisation. 4)2 *escribe each of the four different types of business examined in the ,rowth Share Matrix. 402 >ou own a skateboard production company. ,i"e an example of how your company might use the components of the (rder to Payment $ycle to process orders for your customers. 442 State six ways, or steps, that were discussed, that a company might take to impro"e the quality of its marketing intelligence. 462 *escribe each of the steps in"ol"ed in the Marketing +esearch Process. 482 /here are four S&: strategies pursued by a business. /hey are build, hold, har"est, and di"est. Explain how each of these strategies works in relation to the four types of businesses examined in the ,rowth Share Matrix. 4=2 *iscuss the three types of marketing control mechanisms used to control how marketing plans are being implemented. 4C2 .rom your own personal standpoint, state three ways in which you create your expectations about your purchases as a consumer. 4B2 $ore competencies are important for a business to recogni!e in themsel"es in order to be competiti"e. $ore competencies ha"e three characteristics. State them 412 Ehat is the difference between a "isionary company and a comparison company< 6@2 *iscuss se"eral of the downsides of customi!ing products and ser"ices for consumers 6)2 *a"id Packard of 5ewlett Packard obser"ed, NMarketing is far too important to lea"e to the marketing department.N In your own words, what do you think he meant< 602 >ou own one of the many dotcom companies that ha"e failed. State fi"e reasons why dotcom companies ha"e failed 642 In the economic arena, companies and consumers are increasingly affected by global forces. *escribe fi"e of the examples suggested in the text. 662 *escribe the fi"e forces that determine the intrinsic long run profit attracti"eness of a market or market segment de"eloped by Michael Porter. 682 *iscuss what makes a NgoodN competitor and a NbadN competitor 6=2 /here are fi"e attack strategies that can be taken by a company when going after the competition. *iscuss each tactic and how it applies to marketing. 6C2 *escribe each of the "alues that a child growing up the :nited States would be exposed to from the %merican culture. 6B2 Marketers of technology products can segment consumers based on technology types. *escribe the type of consumers that would be classified in each of the segments. 612 Gohn has decided to go to college. :se the steps of the $onsumer &uying Process to describe how Gohn might go through the steps as he makes his decision. 8@2 Marketers often distinguish countries with fi"e different income distribution patterns. *iscuss those fi"e distinctions. 8)2 /he &ody Shop is commonly cited as an example of an organisation adopting a societal marketing approach. :sing other contemporary examples to illustrate your answer, discuss the growing significance of this approach to marketing. 802 02 :sing a well known national organisation of your choice, discuss the 842 principal factors from the macro en"ironment which are currently 862 shaping their marketing strategy.
0C

882 8=2 8C2 8B2 812 =@2

42 Explain the differences between primary and secondary research. Pro"ide examples of situations in which each approach may be considered most useful. :sing a well known national organisation of your choice, discuss the organisationDs approach to market segmentation. 5ow does it segment its market< Ehat segments does it ser"e<

0B