Exam Type Review questions

Say True or False

1. A firm with a "competitive advantage" has a marketing mix that the target market
sees as better than a competitor's mix.
2. Segmentation is the process a manager goes through to decide which subgroups of
customers to select.
3. Differentiation means that the firm's marketing mix is similar to its competitors'
mixes.
4. There are usually more different strategy possibilities than a firm can pursue.
5. Marketing opportunities involving present markets and present products are called
"market penetration" opportunities.
6. A market consists of a group of potential customers with similar needs.
7. When segmenting markets, "good" market segments are ones which are
heterogeneous within, homogeneous between, substantial, and operational.
8. Demographic segmenting dimensions are always more effective than behavioral
dimensions (such as needs, benefits sought, and rate of use).
9. "Positioning" refers to a packaged goods manufacturer's efforts to obtain the best
possible shelf or display location in retail stores.
10. The only way to "reposition" a product is to make some physical change in the
product.
11. Economic needs affect many buying decisions, but for some purchases the
behavioral influences are more important.
12. A drive is a strong need that is learned during a person's life.
13. Motivation theory suggests that people have hierarchies of needs, and that they
never reach a state of complete satisfaction.
14. Consumers select varying ways to meet their needs because of differences in
perception.
15. Selective perception refers to a person's ability to screen out or modify ideas,
messages, or information that conflict with previously learned attitudes and
beliefs.
16. Learning is a change in a person's thought processes caused by prior experience.
17. Reinforcement of the learning process occurs when a cue follows a response and
leads to a reduction in the drive tension.
18. An attitude is a person's point of view towards something.
19. Advertising is so powerful that changing consumers' negative attitudes is usually
the easiest part of the marketing manager's job.
20. Personality traits have been very useful to marketers in predicting which products
or brands target customers will choose.
21. Lifestyle analysis refers to the analysis of a person's day-to-day pattern of living-
as expressed in his activities, interests, and opinions.
22. Social influences are concerned with how an individual interacts with family,
social class, and other groups who may have influence on the buying process.
23. Buying responsibility and influence within a family vary greatly--depending on
the product and the family.

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 24. The Place part of the marketing mix is concerned with building channels of
distribution and providing the time, place, and possession utilities needed to
satisfy target customers.
25. A channel of distribution is any series of firms or individuals who participate in
the flow of goods and services from producer to final user or consumer.
26. Most consumer products are sold through middlemen.
27. There is no difference between direct distribution and direct marketing.
28. A direct instead of indirect channel is probably a better choice for a producer with
limited financial resources.
29. Because few customers can consume a big part of any producer's output, the large
quantities that mass production makes possible generally cause a discrepancy of
assortment.
30. In a traditional channel system the various channel members make little or no
effort to cooperate with each other.
31. Vertical marketing systems are channel systems in which the whole channel
focuses on the same target market at the end of the channel.
32. Promotion is communicating information between seller and potential buyer or
others in the channel-to influence attitudes and behaviour.
33. In total, personal selling is more expensive than advertising.
34. All of a firm's different communications to a target market should be consistent.
35. The overall objective of promotion is to affect behaviour.
36. The three basic objectives of promotion are to inform, persuade, and/or remind.
37. a major advantage of personal selling is that the source can get immediate
feedback to help direct subsequent communication efforts.
38. The term "noise" refers only to distorting influences within the message channel
which reduce the effectiveness of the communication process.
39. The communication process is complicated by the fact that receivers are usually
influenced not only by the message but also by the source and the message
channel.
40. Direct marketing is direct communication between a seller and an individual
customer using a promotion method other than face-to-face personal selling.
41. There is no one right promotion blend for all situations.
42. Salespeople should usually be expected to do all the promotion to middlemen.
43. Business customers are much less numerous than final consumers-- and therefore
it becomes more practical to emphasize mass selling in the promotion blends
aimed at these markets.
44. Business and organizational customers are wholesalers or retailers, but not buyers
who buy to produce other goods and services.
45. Since sellers usually approach each business or organizational customer directly
through a sales representative, it is possible that there can be a special marketing
strategy for each individual customer.
46. A buying centre consists of all the people who participate in or influence a
purchase.
47. Emotional needs are often quite relevant for the typical purchasing manager, and
therefore a marketing mix should seek to satisfy both the buyer's company needs
and the buyer's individual needs.

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 48. When the majority of a company’s purchases involve straight rebuy buying, these
purchases occupy most of an effective buyer's time.
49. Organizational buyers typically do not even see a sales rep for straight rebuys.
50. Competitive bids are the terms of sale offered by different suppliers in response to
the buyer's purchase specifications.
51. Competitive bidding over the Internet is becoming much more common.
52. "Just-in-time" delivery means reliably getting products there before or very soon
after they are needed. F
53. Even if a firm has developed the best marketing mix possible, it probably will not
get all of the business of its organizational customers.
54. Retailing covers all of the activities involved in the sale of products to final
consumers.
55. A consumer's choice of a retail store appears to be based almost entirely on
emotional needs-economic needs have almost no influence.
56. A specialty shop is a type of limited-line store that usually is small, has a distinct
personality, and aims at a carefully defined market segment by offering
knowledgeable salespeople, better service, and a unique product assortment.
57. Most modern wholesalers have become more streamlined in their operations,
more computerized in controlling their inventories, and more selective in their
distribution policies.
58. Rack jobbers are limited-function wholesalers, with relatively high operating
costs, who help retailers offer a more attractive assortment of products--especially
non-food items.

Choose the correct answer.

1. A SWOT analysis includes:
a. strengths.
b. weaknesses.
c. opportunities.
d. threats.
e. all of the above.
2. When a firm tries to increase sales by selling its present products in new markets, this
is called:
a. market penetration.
b. market development.
c. product development.
d. diversification.
e. market integration.
3. A market consists of:
a. a group of potential customers with similar needs who are willing to exchange
something of value.
b. various kinds of products with similar characteristics.
c. sellers offering substitute ways of satisfying needs.
d. all the firms within a particular industry.
e. both a and c.
4. Market segmentation:

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 a. tries to find heterogeneous submarkets within a market.
b. means the same things as marketing strategy planning.
c. assumes that most submarkets can be satisfied by the same marketing mix.
d. assumes that any market is likely to consist of submarkets.
e. All of the above are true statements.
5. Segmenting:
a. is essentially a disaggregating or 'break it down" process.
b. assumes that all customers can be grouped into homogeneous and profitable
market segments.
c. tries to aggregate together individuals who have similar needs and characteristics.
d. usually results in firms aiming at smaller and less profitable markets.
e. assumes that each individual should be treated as a separate target market.
6. "Good" market segments are those which are:
a. heterogeneous within.
b. operational.
c. homogeneous between.
d. substantial-meaning large enough to minimize operating costs.
e. all of the above.
7. Behavioural segmenting dimensions do not include:
a. benefits offered.
b. kind f shopping involved.
c. brand familiarity.
d. family life cycle.
e. type of problem-solving.
8. Which of the following is not a psychological variable?
a. Social class
b. Motivation
c. Perception
d. Attitudes
e. Learning
9. According to motivation theory, the last needs a family would usually seek to satisfy
would be:
a. Safety needs.
b. Personal needs.
c. Physiological needs.
d. Social needs.
10. Motivation theory suggests that:
a. lower-level needs must be completely satisfied before higher-level needs become
important.
b. a particular good or service might satisfy different levels of needs at the same
time.
c. all consumers satisfy needs in the same order.
d. self-esteem is an example of a social need.
e. All of the above are true statements.
11. Which of the following is not a major element in the learning process?
a. Drive

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 b. Cues
c. Dissonance
d. Reinforcement
e. Response
12. An attitude:
a. is easily changed.
b. is a person's point of view toward something.
c. is the same as opinion and belief.
d. is a reliable indication of intention to buy.
e. All of the above are true statements.
13. Which of the following is not a social influence?
a. Culture
b. Social class
c. Family
d. Reference group
e. Personality
14. The product life cycle has four stages. Which of the following is not one of these?
a. Market introduction
b. Market growth
c. Market maturity
d. Economic competition
e. Sales decline
15. During the market introduction stage of the product life cycle:
a. considerable money is spent on promotion while place development is left until
later stages.
b. products usually show large profits if marketers have successfully carved out new
markets.
c. most potential customers are quite anxious to try out the new-product concept.
d. funds are being invested in marketing with the expectation of future profits.
e. product and promotion are more important than place and price.
16. Which of the following statements regarding the market growth stage of the product
life cycle is false?
a. Innovators still earn profits-but this stage is less profitable for them than the
previous stage.
b. This is the time of peak profitability for the industry.
c. Many competitors enter the market resulting in much product variety.
d. The sales of the total industry are rising fairly rapidly as more and more
customers buy.
e. Monopolistic competition is common during this stage.
17. Regarding product life cycles, good marketing managers know that:
a. all competitors lose money during the sales decline stage.
b. they are getting longer.
c. industry sales reach their maximum during the market growth stage.
d. firms earn their biggest profits during the market introduction stage.
e. industry profits reach their maximum during the market growth stage.
18. Marketing managers should recognize that:

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 a.product life cycles appear to be getting longer.
b. every segment within a market has the same product life cycle.
c.the product life cycle describes the sales and profits of individual products, not
industry sales and profits.
d. firms that enter mature markets have to compete with established firms for
declining industry profits.
e. None of the above is a true statement.
19. In planning for different stages of the product life cycle, strategy planners must be
aware that:
a. losses can be expected during the market introduction stage.
b. the life cycles of mature product-markets can be extended through strategic
product adjustments.
c. offering the product to a new market segment may start a whole new life
cycle.
d. products can be withdrawn from the market before the sales decline stage-but
even here a phase-out strategy is usually required.
e. All of the above are true statements.
20. A channel of distribution:
a. is any series of firms or individuals who participate in the flow of goods and
services from producer to final user or consumer.
b. must include a middleman.
c. must have at least three members--a manufacturer, a wholesaler, and a retailer.
d. All of the above are true statements.
e. None of the above is a true statement.
21. The "Place" variable deals with the creation of:
a. time and place utilities only.
b. time, place, possession, and form utilities.
c. time utility only.
d. time, place, and possession utilities.
e. place and possession utilities only.
22. Promotion does not include:
a. personal selling.
b. advertising
c. publicity
d. sales promotion
e. Promotion includes all of the above
23. Sales promotion activities:
a. try to stimulate interest, trial or purchase
b. always involve direct face-to-face communication between sellers and potential
customers
c. usually take a long time to implement
d. are usually a good substitute for personal selling and advertising
e. All of the above.
24. Sales promotion can be aimed at:
a. final consumers or users
b. middlemen

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 c. the company's own sales force
d. all of the above
e. only a and b above
25. Which basic promotion objective should be emphasized by a firm whose product is
very similar to those offered by many competitors?
a. Communicating
b. Persuading
c. Reminding
d. Informing
e. Reinforcing
26. In comparison to the buying of final consumers, the purchasing of organizational
buyers:
a. is strictly economic and not at all emotional
b. is always based on bids from multiple suppliers
c. leans basically toward economy, quality, and dependability
d. is even less predictable
e. Both a and c are true statements
27. Today, many agricultural commodities and manufactured items are subject to rigid
control or grading. As a result, the buying and selling of these goods can be done at a
low cost by:
a. Inspection
b. Sampling
c. Description
d. negotiated contracts
e. competitive bids
28. The set of all products a firm sells is called its:
a. product line
b. individual products
c. product assortment
d. tangible products
29. Which of the following is not included as a product class in the classification system
for consumer products given in the text?
a. Convenience products
b. Staple products
c. Specialty products
d. Shopping products
e. Durable products
30. Motels are a good example of:
a. convenience products
b. shopping products
c. specialty products
d. unsought products
e. Could be any of the above
31. Which of the following is not a general characteristic of most business products?
a. Buyers tend to buy from only one supplier
b. Their demand is derived from the demand for final consumer products

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 c. Industry demand may be inelastic while each company's demand may be
elastic
d. Buying is basically concerned with economic factors
e. All of the above are characteristics for most business products
32. Which of the following would not be classified as accessory equipment?
a. Office typewriters
b. Filing cases
c. Portable drills
d. All of the above might be accessory equipment
e. None of the above is likely to be accessory equipment
33. A "Brand name" is:
a. any means of product identification
b. a word used to identify a seller's products
c. the same thing as "branding."
d. the same thing as a "trademark."
e. All of the above.
34. Which of the following conditions would not be favourable to branding?
a. Dependable and widespread availability is possible
b. Economies of scale in production
c. Fluctuations in product quality due to inevitable variations in raw materials
d. Product easy to identify by brand or trademark
e. Large market with a variety of needs and preferences
35. The product life cycle has four stages. Which of the following is not one of
these?
a. Market introduction
b. Market growth
c. Market maturity
d. Economic competition
e. Sales decline
36. During the market introduction stage of the product life cycle:
a. considerable money is spent on promotion while place development is left until
later stages.
b. products usually show large profits if marketers have successfully carved out
new markets
c. most potential customers are quite anxious to try out the new-product concept.
d. funds are being invested in marketing with the expectation of future profits.
e. product and promotion are more important than place and price.
37. Which of the following statements regarding the market growth stage of the
product life cycle is false?
a. Innovators still earn profits-but this stage is less profitable for them than the
previous stage.
b. This is the time of peak profitability for the industry.
c. Many competitors enter the market resulting in much product variety.
d. The sales of the total industry are rising fairly rapidly as more and more
customers buy.
e. Monopolistic competition is common during this stage.

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 38. Regarding product life cycles, good marketing managers know that:
a. all competitors lose money during the sales decline stage.
b. they are getting longer.
c. industry sales reach their maximum during the market growth stage.
d. firms earn their biggest profits during the market introduction stage.
e. industry profits reach their maximum during the market growth stage.
39. Marketing managers should recognize that:
a. product life cycles appear to be getting longer.
b. every segment within a market has the same product life cycle.
c. the product life cycle describes the sales and profits of individual products, not
industry sales and profits.
d. firms that enter mature markets have to compete with established firms for
declining industry profits.
e. None of the above is a true statement.
40. In planning for different stages of the product life cycle, strategy planners must be
aware that:
a. losses can be expected during the market introduction stage.
b. the life cycles of mature product-markets can be extended through strategic
product adjustments.
c. offering the product to a new market segment may start a whole new life cycle.
d. products can be withdrawn from the market before the sales decline stage-but
even here a phase-out strategy is usually required.
e. All of the above are true statements.

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Answers to review questions:

True/False
1 T 11 T 21 T 31 T 41 T 51 T
2 T 12 F 22 T 32 T 42 F 52 F
3 F 13 T 23 T 33 T 43 F 53 T
4 T 14 T 24 T 34 T 44 F 54 T
5 T 15 T 25 T 35 T 45 T 55 T
6 F 16 T 26 T 36 T 46 T 56 T
7 F 17 F 27 F 37 T 47 T 57 T
8 F 18 T 28 F 38 F 48 F 58 T
9 F 19 F 29 F 39 T 49 T
10 F 20 F 30 T 40 T 50 T
Multiple Choice
1 E 11 C 21 D 31 A
2 B 12 B 22 E 32 D
3 E 13 E 23 A 33 B
4 D 14 D 24 D 34 C
5 C 15 D 25 B 35 D
6 B 16 A 26 C 36 D
7 D 17 E 27 D 37 A
8 A 18 D 28 C 38 E
9 B 19 E 29 E 39 D
10 B 20 A 30 E 40 E

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