FINAL EXAM - MARKETING FUNDAMENTALS

 / 5 pts

(TCO 1) The more a marketing plan is based on _____ rather than guesses, the less uncertainty and fewer risks are associated with executing it.

industry forecasts and sales predictions

intuitions and forecasts

past historical data

facts and valid assumptions

contingencies

 / 5 pts

(TCO 1) Which marketing strategy focuses on a single market segment, but adds additional product lines?

Full coverage

Market specialization

Product specialization

Selective specialization

Market-product concentration

 / 5 pts

(TCO 1) Based on relative competitive scope (broad target to narrow target) and source of competitive advantage (lower cost to differentiation), Porter's four generic business strategies are differentiation, cost focus, differentiation focus, and

exclusivity.

electronic-focus.

quality focus.

cost leadership.

service leadership.

 / 5 pts

(TCO 1) Which of the following pieces of information is used in the implementation phase of the strategic marketing process?

Corporate return on investment

Gantt charts

Revenues associated with each point of market share

Trends in past and current revenues for industry and competitors in total and by segment

Possible cannibalization effects on other products in the line

 / 5 pts

(TCO 2) 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?

Corporate return on investment

Market share for the product

Revenues associated with each point of market share

Trends in past and current revenues for industry and competitors

Possible cannibalization effects on other products in the line

 / 5 pts

(TCO 6) The first decision in developing an advertising program is to

set the budget.

state the mission of the advertising program.

identify the target audience.

select the appeal.

select the media.

 / 5 pts

(TCO 6) The proper blend of elements in the promotional mix depends on the type of product. The three specific characteristics to be considered are complexity, risk, and _____.

ancillary services

size

durability

accessibility

acceptability

 / 5 pts

(TCO 4) The promotional objective of the decline stage of the product life cycle is to

inform.

persuade.

compare.

remind.

None of the above

 / 5 pts

(TCO 6) The _____ includes advertising, personal selling, sales promotion, public relations, and direct marketing.

promotion channel

communication chain

marketing matrix

Correct!

promotional mix

media mix

 / 5 pts

(TCO 7) Which of the following statements about the terms used for marketing intermediaries is true?

The most precise terms used to describe marketing intermediaries are dealer and distributor.

A retailer sells to consumers.

An agent has no legal authority to act on behalf of a manufacturer.

A wholesaler is an intermediary who sells to consumers.

Broker is a synonym for a dealer.

 / 5 pts

(TCO 5) Which of the following statements about the legal and regulatory aspect of pricing is true?

The Robinson-Patman Act deals with predatory pricing.

The Consumer Goods Pricing Act is the only federal legislation that deals directly with pricing issues.

The Sherman Act deals only with vertical price fixing.

The Federal Trade Commission Act deals with predatory pricing, deceptive pricing, and geographical pricing issues.

The Consumer Goods Pricing Act and the Robinson-Patman Act deal with price discrimination.

 / 5 pts

(TCO 5) _____ involve(s) specifying the role of price in an organization’s marketing and strategic plans.

A business mission

Pricing constraints

Correct!

Pricing objectives

A pricing plan

The list or quoted price

 / 5 pts

(TCO 5) The ratio of _____ to price is called value.

Correct!

perceived benefits

prestige value

value-added pricing

perceived revenue

perceived costs

 / 5 pts

(TCO 3) Market segmentation involves aggregating prospective buyers into groups that will respond similarly to a marketing action and

will pay attention to marketing messages.

have common needs.

be responsive to marketing research.

use the same payment methods.

go shopping on a regular basis.

 / 5 pts

(TCO 2) The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is called

environmental trending.

organizational scanning.

Correct!

environmental scanning.

a SWOT analysis.

acquisition scanning.

 / 5 pts

(TCO 1) A key role of the marketing department is to

allocate financial resources across business units.

set the overall mission of the company.

provide talent management services.

Correct!

look outward.

assess global political situations.

 / 5 pts

(TCO 1) Which of the following statements about relationship marketing is most true?

Relationship marketing has a short-term focus on increasing profits.

Relationship marketing is easy to implement.

Relationship marketing is more effective when there is a personal, ongoing relationship between individuals in the selling and buying organizations.

Very few companies today are engaged in relationship marketing.

The Internet is an ideal forum for relationship marketing.

 / 5 pts

(TCO 1) The Daniels College of Business at the University of Denver offers an outstanding business school education. Cali pays the tuition to attend Daniels and earns her MBA with a concentration in supply chain management. Upon graduating, she is offered a high-paying, fulfilling position. Was this a marketing exchange?

No, because the university is a private one

Yes, because the university is profitable

Yes, because paying tuition was exchanged for knowledge that directly led to Cali's fulfilling, new job

No, because money was exchanged

No, because the school did not provide Cali with a product

 / 5 pts

(TCO 3) Which of the following is the BEST description of the target market for the latest Disney animated movie?

Everyone who can afford to buy a movie ticket

Everyone who likes movies

Correct!

Professionals who are parents of children between the ages of 6 and 12

People who collect movie memorabilia

People who live near a movie theater

 / 5 pts

(TCO 1) The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes for the old-fashioned products it markets. Concern about the _____ element of the marketing mix would make it eager to be featured in an upcoming edition of Taste of Home magazine.

product

price

promotion

place

production

 / 5 pts

(TCO 2) The Lemon Tree is a high-fashion boutique selling top-of-the-line women's clothing and accessories. The keys to its success include knowing the customers' changing tastes and providing something different from other retailers. In addition, because of the high value of the merchandise, The Lemon Tree's management is exploring the use of computerized inventory controls and sales order processing. From this description, one can infer that the environmental category of least importance to The Lemon Tree is

economic.

regulatory.

technological.

social.

competitive.

 / 5 pts

(TCO 2) Recently a federal appeals court rendered a unanimous decision that Microsoft Corp. does not have an automatic right to put whatever features it wants into its Windows operating system; rather, each new feature needs to be evaluated separately. Many of these features are also made by much smaller companies. This ruling grew out of the power that Microsoft® holds in the software market, because it owns a major share of the marketplace. What purpose did this ruling have?

Protecting companies from one another

Protecting consumers from unfair trade practices

Protecting the future interests of society from dangerous business practices

Protecting consumers from one another

Protecting businesses from unfair consumer practices

 / 5 pts

(TCO 2) Graham-Field Health Products makes hospital beds and wheelchairs from component parts and materials it buys. It sells its products to hospitals, nursing homes, and retailers of healthcare products. Graham-Field Health Products operates in a(n) _____ market.

consumer

government

industrial

reseller

demographic

 / 5 pts

(TCO 3) The Book Promoters Association of Canada's members recently questioned what could be done to rejuvenate the Canadian book publishing industry. Some members claimed the problem was that Canadian retailers had been replaced by Walmarts. Others said the problem was with stodgy promotions. Still others said the problem was caused by too little money being budgeted to fund marketing programs. It was time that Canadian book publishers used _____ to save the industry.

advertising

sales promotion

publicity

marketing research

tactical support

 / 5 pts

(TCO 3) DirectProtect is an insurance provider that uses telemarketers, rather than insurance agents, to sell its insurance and to deal with claims. It wants to introduce its product into new markets, but before it does so, it wants to have a prediction of how successful its sales efforts will be. One of the first things researchers did was to invite a group of eight people with insurance to talk about home and auto insurance with a moderator. One of the purposes of this exploratory research was to gather information about the group members' attitudes toward insurance and their awareness of DirectProtect. Although additional research still needs to be done, the marketing researchers were able to use a focus group to gather _____ data.

hypothetical

generative

questionnaire

evaluative

experiential

 / 5 pts

(TCO 4) Sara Burns is the owner of a company called Spice and was looking for a new product to go with her company's line of food condiments when a customer suggested combining spices with tea. This is an example of

accidental invention.

idea generation.

bootlegging ideas.

serendipitous management.

serendipitous innovation.

 / 5 pts

(TCO 4) A few years ago, Who Wants to Be a Millionaire premiered as the first nighttime game show in a couple of decades. Once the show became a hit and televised several nights a week, other networks quickly created their own version of what they hoped to be a successful game show format. Greed and Twenty-One are the names of but two of the new shows that were created to compete with Who Wants to Be a Millionaire. At this point in time, the nighttime televised game show genre entered which stage of its product life cycle?

Growth stage

Decline stage

Commercialization stage

Maturity stage

Introduction stage

 / 5 pts

(TCO 7) In an episode of the Andy Griffith television series, two local farmers were selling the produce they grew on their farms from the backs of their pickup trucks to local people who drove by on the road. The farmers selling their products without wholesalers or retailers were an example of a

roadside channel of distribution.

traveling channel of distribution.

intermediate channel of distribution.

informal channel of distribution.

direct channel of distribution.

 / 5 pts

(TCO 6) Disney is using an integrated marketing communications program (IMC) to promote group travel to its theme parks, because

its strategy includes using all types of promotional activities that deliver a consistent message.

it does not want to reach any member of its target audience more than once.

IMC is less expensive than other forms of promotion, such as public service announcements.

if it didn't, Disney would have to use indirect personal selling.

it is more concerned about frequency than reach.

 / 5 pts

(TCO 6) The local radio station broadcast a story about the dry cleaners that requested coat donations. They would clean the coats and deliver them to people in need. The various addresses of the dry cleaner chain were also broadcast so that donations could be dropped off. Because this featured business did not pay for this exposure, it is benefiting from

publicity.

advertising.

direct marketing.

personal selling.

a public service announcement.

 / 5 pts

(TCO 1) Assume that McDonald's is engaging in a market penetration strategy. Which of the following actions best illustrates a market penetration strategy?

Opening the first McDonald's in China

Developing a line of McDonald's toys to be sold through Toys"R"Us stores

Adding a line of new deli sandwiches to the menu of existing McDonald's stores

Running a promotion based on the Monopoly game, whereby customers have a chance to win prizes with each purchase

Removing slow-moving products from its menus

 / 30 pts

(TCO 1) Imagine that you are creating a marketing plan for a company that will sell motor scooters. As you consider the marketing program, what types of strategy should you consider including in the plan? Propose one specific example of each type of strategy that you are considering, and present your rationale (reasoning) for your strategy selections.

 / 30 pts

(TCO 1) In China, many people are removing their money from the state banks and lending it out themselves. The interest rate earned in a state bank account is about one half the rate of inflation. On the other hand, loaning money to friends, relatives, and even unrelated entrepreneurs can often earn the investor double or more over the inflation rate. The gray market, an underground network of investors and private businesses, moves the cash from lenders to businesses. Judge whether marketing occurred in this situation, and justify your conclusions. Appraise the effectiveness of government regulation in controlling markets.

 / 30 pts

(TCO 4) Managing the product through successive stages of the product life cycle is an important role for a product manager. Assess the three ways to manage a product through its life cycle, including examples to help clarify your assessment. Indicate the reasoning why you would prefer one method over another in a given situation. You can use any product in your examples.

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