MARKETING PRINCIPLE

1. By definition, which of the following is not considered a marketing activity?

A. creating offerings

B. communicating offerings

C. delivering offerings

D. selling offerings

2. Which of the following is NOT required for marketing to occur?

A. two or more parties (individuals or organizations) with unsatisfied needs.

B. unsatisfied needs that can only be satisfied by physical products, not services.

C. a desire and ability on their part to be satisfied.

D. a way for the parties to communicate.

3. Effective marketing requires:

A. good common sense.

B. all departments within an organization to work together.

C. intimate knowledge and understanding of consumers and the marketplace.

D. selling unwanted things.

4. In a new marketing role, your manager says: "You will be responsible for five SBUs." You give a
puzzled look before remembering that SBU stands for:

A. strategic business unit.

B. standard business unit.

C. strategic benefit of usage.

D. service business unit.

5. Which of the following statements regarding the strategic business unit level is most accurate?

A. The strategic business unit level is the level that works most directly with the targeted customers.

B. The overall strategy for the organization is directed at the strategic business unit level.

C. In more complex organizations the corporate level and the strategic business unit level may merge.

D. The strategic direction is more specific at the strategic business unit level than at the corporate level.

6. Which of the following statements regarding environmental scanning is most accurate?

A. Environmental scanning changes the marketing environment.

B. Environmental scanning identifies and interprets potential trends.

C. Environmental scanning should be done at least every five years.

D. Environmental scanning focuses primarily on geographical factors.

7. Changes in social forces can have a dramatic impact on a marketing strategy, some of these social
forces in the environment include the demographic characteristics of the population, and it's _____.

A. living standards

B. social class

C. value

D. dialect

8. The moral principles and values that govern the actions and decisions of an individual or group are
known as:

A. Laws

B. Religious precepts

C. Ethics

D. Social norms

9. Ethics are the:

A. religious tenets of the country or ethnic region you live in.

B. social norms of a nation, community, or family.

C. laws of society that define a person's beliefs and behaviours.

D. moral principles and values that govern the actions and decisions of an individual group.

10. When considering buying the latest smartphone, you talk to various friends, research extensively
online, and demo several products in store. What are you undertaking?

A. Marketing

B. Consumer behaviour

C. Market research

D. Consumer management
11. After buying your new smartphone, you proceed through several stages that may include the feeling
of post-purchase anxiety. This end-to-end process is referred as:

A. situational analysis sequence.

B. VALS inventory.

C. hierarchy of learning.

D. purchase decision process.

12. One of your classmates consistently showed up to class late, finally your Professor, Stephen, asked
the student what the issue was. When the marketing student said, "It's really hard for me to get to class
on time without a car," she was entering which stage of the consumer decision process?

A. purchase decision

B. alternative evaluation

C. information search

D. problem recognition

13. The question "How long is the warranty for this smartphone?" would be asked during the _____
stage in the consumer purchase decision process.

A. problem recognition

B. information search

C. alternative evaluation

D. purchase decision

14. Manufacturers, wholesalers, retailers, and government agencies that buy goods and services for
their own use or for resale are examples of:

A. multinationals.

B. cooperatives.

C. organizational buyers.

D. ultimate consumers.

15. Organizational buyers include all the following EXCEPT:

A. retailers.

B. government.

C. manufacturers.

D. ultimate consumers.
16. An industrial firm is a firm that:

A. is distinguished by the amount of energy it uses and potential for pollution to the environment.

B. employs more than 500 people, who are paid minimum wage with few or no benefits.

C. deals exclusively with federal, state, and local governments, and often mediates governmental agency
disputes.

D. in some way reprocesses a good or service it buys before selling the product again to the next buyer.

17. A nation's ability to turn its natural resources, education, and infrastructure into a competitive
advantage is reflected in:

A. structural conditions.

B. factor conditions.

C. socio-cultural conditions.

D. competitive conditions.

18. Compared to traditional market research, using social media research is:

A. less expensive

B. more expensive

C. they both cost the same

D. you cannot compare the costs between the two, they are too different

19. By using social media to focus on unmet customer needs, it enables marketers to focus on:

A. product innovation

B. developing products only wanted by a small market group

C. tailoring content

D. those customers who are the ‘loudest’

20. The process of defining a marketing problem and opportunity, systematically collecting and
analyzing information, and recommending actions to improve an organization's marketing activities is
called:

A. market decision analysis.

B. statistical analysis.

C. marketing research.

D. SWOT analysis.

21. Marketing research attempts to identify and define both marketing _____ and _______.
A. weaknesses; threats

B. strategies; programs

C. problems; opportunities

D. segments; target markets

22. To be identified as a market segment, its members must:

A. represent a large share of the entire market and have critical buying power.

B. have common needs and respond similarly to marketing actions.

C. have different needs and have potential for future growth.

D. have different needs and respond similarly to market actions.

23. Market segmentation involves linking ______ to an organization's ________.

A. buyers' needs; marketing program

B. product benefits; capabilities

C. prospective buyers; marketing mix

D. market information; customer databases

24. Which of the following is NOT a criterion used for selecting a market segment?

A. size of the market

B. similarities of needs of potential buyers

C. competitive position

D. cost of reaching the segment

25. Within each product line, a specific product as noted by a unique brand, size, or price is referred to
as the ____________.

A. product item

B. universal product code

C. stock-keeping unit

D. order quantity code

26. Each of the following describes products that assist directly or indirectly in providing products for
resale EXCEPT:

A. Industrial goods

B. Consumer goods
C. B2B goods

D. Organizational goods

27. Which of the following statements about the introduction stage of the product life cycle is NOT true?

A. During the introduction stage, efforts are made to increase primary demand.

B. During the introduction stage, firms may choose a skimming strategy.

C. During the introduction stage, firms may choose a penetration pricing strategy.

D. During the introduction stage, firms stress competitive differences in their promotion.

28. During the maturity stage of the product life cycle, profit declines because:

A. there are fewer and fewer competitors in the market.

B. better products are only in the growth stage.

C. production costs increase the more a firm has to manufacture the same product.

D. there is fierce price competition among sellers.

29. Promotional expenses at the maturity stage of the product life cycle are often directed towards:

A. creating demand for the product class.

B. contests and games.

C. creating primary demand.

D. gaining new distributors.

30. All of the following might be used to create an authentic experience for a customer, except:

A. allow consumers to participate in the production process

B. provide personal interaction, rather than automation

C. allow consumers to share their interests

D. have defined services for consumers so they know what to expect

31. Organizations attempt to reduce the inconsistency in the delivery of services through:

A. higher incentives to employees for satisfactory performance.

B. collaboration.

C. the reduction of customer contact points in the service delivery process.

D. standardization and training.

32. Inseparability in services means:

A. consumers see little variation from one service provider in an industry to another.
B. consumers are unable to differentiate price from quality.

C. consumers cannot evaluate a service until it is being utilized.

D. consumers cannot separate the service from the deliverer of the service.

33. From a marketing viewpoint, price is _____ exchanged for the ownership or use of a good or service.

A. money or other considerations (including goods but not intangibles and services)

B. money or other considerations (including other goods and services)

C. money exclusively earmarked for the transaction

D. what is recognized as barter within a particular culture

34. Most consumers realize the quality of diamonds varies, and most believe the higher the price of the
diamond, the higher its quality. This is an example of price influencing the perception of overall quality,
and _____ to consumers.

A. acceptable cost

B. perceptual investment

C. value

D. return on investment

35. If you computed: (unit price x quantity sold) - total cost. What would you be calculating?

A. total revenue

B. profit

C. marginal revenue

D. average revenue

36. According to your text, which of the following is NOT one of the steps included in the six-step
process for setting price?

A. Set list or quoted price.

B. Estimate the break-even point.

C. Identify pricing constraints and objectives.

D. Select an approximate price level.

37. Intermediaries make the selling of goods more efficient by:

A. maximizing the number of contacts necessary between producer and consumer.

B. identifying target markets.

C. reducing manufacturing costs.

D. minimizing the number of sales contacts between producer and consumer.

38. The purpose of implementing a vertical marketing system is to:

A. achieve channel economies and create the maximum marketing impact

B. coordinate the agents and brokers

C. maximize marketing impact with agents and wholesalers

D. maximize marketing impact by working directly with consumers

39. Retailing is an important marketing activity. Not only do producers and consumers meet through
retailing actions, but retailing also creates ______ and has a significant impact on the economy.

A. the nation's largest source of tax revenues

B. public service to charities

C. harvesting possibilities

D. customer value

40. Direct selling involves ______ active customer involvement and _______ active retailer involvement.

A. low, low

B. low, high

C. high, low

D. high, high

41. Level of service refers to:

A. breadth and depth of goods provided.

B. degree of product liability held by the manufacturer.

C. degree of service provided to the customer.

D. relationship between the manufacturer, the retailer, and the consumer.

41. Communication is the sharing of message and requires six elements. Those elements are a source, a
_____, a channel of communication, a receiver, and the processes of encoding and decoding.

A. sender

B. source

C. receiver

D. message

42. A message is conveyed by means of a _____ such as a salesperson, advertising media, or public
relations tools.
A. encoding device

B. promotional program

C. channel of communication

D. direct feedback loop

43. All of the following are TRUE statements about how social media is impacting IMC programs,
EXCEPT:

A. social media is being used in news releases

B. social media is a component of the IMC audit

C. social media can be used as part of a direct marketing approach

D. social media is never used in the decline stage of the product life cycle

44. The communication flow from receiver back to sender, which indicates whether the message was
decoded and understood as intended, is called:

A. encoding.

B. a receiver response.

C. feedback.

D. an exchange cycle.

45. Product advertisements focus on selling a good or service and take three major forms. They are:

A. introductory, comparative, and reminder.

B. pioneering, competitive, and reminder.

C. institutional, competitive, and reminder.

D. introductory, competitive, and reminder.

46. Competitive product and brand advertising is typically used to:

A. inform the target market.

B. identify the target market.

C. persuade the target market.

D. reinforce previous knowledge.

47. Reminder advertising is most likely to be used at which stage of the product life cycle?

A. introduction

B. growth
C. maturity

D. decline

48. The objective of institutional advertisements is to ____, rather than promote a specific good or
service.

A. support worthy charities

B. increase frequency of purchases of new products

C. increase the total amount of products used

D. build goodwill or an image for an organization

49. Which of the following statements does NOT describe a role personal selling plays in an
organization's marketing effort?

A. Salespeople monitor investments in R&D and production facilities.

B. Salespeople match company interests with customer needs to satisfy both parties.

C. Salespeople play a dominant role in implementing an organization's push marketing strategy.

D. Salespeople are the critical link between organizations and their customers.

50. Customer value creation occurs through focusing on:

A. conference selling

B. relationship selling

C. formula selling

D. seminar selling

51. Social media are

A. online games.

B. online media where users submit news, photos, and videos—often accompanied by a feedback
process to identify "popular" topics.

C. any type of medium in which large groups of people read content generated by a business,
government, or corporation.

D. only media that allow face-to-face communication.

52. In what way are traditional and social media similar?

A. They both require specialized training.

B. They both rely upon contributions from established "experts" to create credibility and social
authority.
C. They both can reach either large or niche audiences.

D. They both are relatively inexpensive or free to produce.

53. Which of the following pieces of information is used in a SWOT analysis, the first step of the planning
phase of the strategic marketing process?

A. Corporate return on investment

B. Market share for the product

C. Revenues associated with each point of market share

D. Trends in past and current revenues for industry and competitors

54. The actions taken during the implementation phase of the strategic marketing process include: 1)
obtain resources, 2) __________, 3) develop schedules, 4) and execute the marketing program.

A. select target markets

B. design marketing organization

C. position the product

D. find points of difference

55. Setting up an organizational chart would most likely to occur during which phase of the strategic
marketing process?

A. planning

B. resourcing

C. implementation

D. assessment