PRACTICE QUESTIONS FOR MIDTERM EXAM

1. Articulate the meaning of "price fixing"? What is objectionable about price fixing? Have
your own experience, have you ever suspected or encountered the practice of price-fixing
in Canada?
2. What is the purpose of the Competition Act of Canada? Is Microsoft now or was ever
accused of being a monopoly? Explain. (Refer to discussion in class/lectures.)
3. Using examples, explain the concepts of “generalizability”/external validity and internal
validity? Under what conditions is “stratified” sampling appropriate?
4. Using the example of the brokerage industry (discussed in lectures) or using another
example, explain the three key tools that were used in constructing a positioning map?
5. What was the key argument used by Corporacion Habanos to prevent Jose Cuvervo from
marketing its product in Canada – with the brand name “Lazarro Cohiba” rum. Based on
classroom discussion and in view of the provisions of the Trade Mark Act of Canada,
explain how companies like Corporacion Habanos can protect the “personality” of their
brands.
6. What is a Strategic Business Unit? Using an example, explain how the BCG approach to
SBU analysis can be used to assess the viability of different products within a company’s
portfolio of products?
7. What is the marketing meaning of the word "product"? Using examples, explain how a
company can gain competitive edge by focussing on any aspect of the broadened
definition of what constitutes a product. Is there or might there be a legal problem with
such a broad definition of "product"?
8. Using examples, cite instances when monopolies are unavoidable? What is the classic
defence of monopolies? In other words, what is the argument for tolerating monopolies?
9. What is the marketing meaning of the word "product"? Using examples, explain how a
company can gain competitive edge by focussing on any aspect of the broadened
definition of what constitutes a product

10. What is relationship marketing? What is (are) the main driver(s) behind relationship
marketing?
11. What is a "good" Mission Statement? Using Telfer School of Management as an example
(look up the website), explain how their mission statement gives a strategic direction to the
School?
12. Why do products often start out as "question marks" and then move counter-clockwise
around BCG's growth-share matrix?
13. 3. Watch the "Beer Necessities" video. Are all beers "alike"? What is your view on the
marketing "art" of positioning and differentiating products that are essentially identical?
Is this practice unethical?
14. 4. Does marketing create needs - "forcing" people to buy trivial unnecessary products? Or
does it simply sell us what we demand? "I consume, therefore, I am." Comment.
15. In class, I said that, marketing today is all about building relationships with dealers,
distributors, customers and clients. Discuss the basis of this attempt to build long term
sustainable relationships. Cutting edge companies use sophisticated techniques to create
knowledge data bases which then they use to create new products, augment existing
 products and "dialogue" with customers. Discuss. Cite examples from your own
experiences.
16. After reading the article "Marketing Myopia" discuss whether you agree with the author?
Cite examples of marketing myopia from what you might have observed about Canadian
companies in the last 20 years or so.
17. How does economic theory and Freudian theory explain consumer behaviour?
18. What are the three main components of "comprehensive" model of consumer behaviour?
19. What is the relationship between lifestyles and psychographics? What is meant by
"lifestyle and psychographic" research?
20. It was said in class that a monopoly is hard to define.
Amazon, has only 4% of all retail sales in the US and a meagre 1% of all global retail sales.
However, they control nearly 38% of all e-commerce sales in the US. One operational definition
a monopolistic company is that it has complete control over the supply chain of a good or a
service in a given market. As a result, it is argued that monopolies can control prices and have an
adverse effect on competition. Amazon is also accused of being a monopsony (- a company that
is the sole buyer of products and services. Think about shipping companies and small town
warehouses that depend on Amazon for jobs. Amazon can easily exert control over what they pay
for services rendered and salaries of small town employees).

Amazon also owns a number of other businesses, most notably the Amazon Web Services
(AWS). AWS is a behemoth “cloud commuting” company that “enables” Amazon in gathering
and exploiting competitive information.

In addition, it is noteworthy that Amazon also sells third party goods. They hold all competitive
information about these sellers and can squeeze them “any way” they want. (A bit like apps sold
on Apple’s App Store.)

Based on your specific knowledge of Anti-trust legislation (Sherman Act and the Clayton Act, in
particular), take the positon that Amazon is really nothing more than a “successful” company.
Be sure to defend your position by making clear and specific references to the two Acts
mentioned above.