BASIC MARKETING

1. A macro – marketing system should:

a. Provide everyone with the same goods and services.

b. Be part of market-directed economy, not a command economy.

c. Accomplish a particular society's objectives, whatever they are.

d. All of the above are true.

2. The difference between target marketing and mass marketing is that target marketing

a. means focusing on a small market.

b. focuses on short-run objectives, while mass marketing focuses on long-run objectives.
c. focuses on specific customers, while mass marketing aims at an entire market.
d. aims at increased sales, while mass marketing focuses on increased profits.

3. Which of the following objectives of a business is the most important?

a. To engage in some specific business activity which will perform a socially and
economically useful function.
b. To develop an organization to carry on the business and implement its strategies.
c. To earn enough profit to survive.
d. All three of the above are equally important, because a failure in any one could lead to
a total failure of the business.

4. Herbal Essences tries to sell its hair shampoos and conditioners to adult women,ages
18-24. These women represent Herbal Essences' primary:

a. marketing strategy.
b. target market.
c. marketing mix.
d. channel of distribution.

5. Any series of firms or individuals that participate in the flow of products from
producer user or consumer is known as:

a. customer service.
b. a production line.
c. a channel of distribution.
d. mass marketing,

6. Which of the following statements about positioning is not true? Positioning

techniques:

a. Position products on a graph based on price level and quantity demanded.

 b. Require a firm to collect data about consumer perceptions of products.
c. Are sometimes called "perceptual mapping" techniques.
d. Typically rely on a "product space" diagram to show the relationship among various
products
a. 7. When ranked in importance from greatest to least, the four Ps line up as
follows:
b. a. Product, price, promotion, place
c. Promotion, place, product, price
d. Place, product, price, promotion
e. The four Ps are of equal importance.

8. An appropriate marketing mix should be determined PRIMARILY by

a. the needs of a target market.

b. the budget available to spend,
c. the past experiences of the marketing manager.
d. what product the firm can produce with economies of scale.

9. The main difference between a "marketing strategy" and a "marketing plan is that:

a. time-related details are included in a marketing plan.

b. a marketing plan includes several marketing strategies.
c. a marketing strategy provides more detail.
d. a marketing plan does not include a target market.

10…….means that services cannot be seen, tasted, felt, heard, or smelled before they are
bought.

a. Service intangibility
b. Service perishability
c. Service inseparability
d. Service variability

11."Product" is NOT concerned with:

a. branding.
b. wholesale price.
c. packaging.
d. warranty.

12. Which of the following would be most helpful for predicting why a final consumer
selects one of several similar brands?

a. Population data
b. Consumer spending patterns
c. Behavioral science theories
d. Consumer income
13. If Wal-Mart were to purchase the Zenith Radio Corporation, this would be an
example of:

a. Vertical integration.
b. Internal expansion.
c. Horizontal integration.
d. An administered channel system.

14.In a ___, two or more companies at one level join together to develop a new marke
opportunity.

a. Franchise
b. Horizontal marketing system
c. Corporate VMS
d. Multichannel distribution system

15.Professional Dental Supply has been successfully selling dental instruments to

dentists for the past 20 years, and has developed strong customer relations. When
looking for new marketing opportunities, Professional Dental Supply will most likely
look first at

a. Market development.
b. Diversification.
c. Product development.
d. Market penetration

16.When Herbal Essences offers "dollar-off coupons" to adult women to try to get them
to try its shampoos and conditioners, this is an example of:

a. publicity.
b. sales promotion.
c. product development.
d. distribution.

17. When a marketing manager anticipates that the early stages of the product life cycle
will move quickly, a ______ is a good strategy choice.

e. low initial price

f. ignoring channels of distribution
g. multiple target market approach
h. persuading and reminding promotion

18. Marketing specialists develop to adjust "discrepancies" in the marketplace.

Which of the following best explains the concept of "discrepancies"?

a. There are many more consumers than there are producers.

 b. The assortment and quantity of products wanted by a customer may be different than
the assortment and quantity of products normally produced by a manufacturer.
c. Supply and demand is no longer determined by market forces because "big business"
is more powerful than the individual consumer.
d. Price is not always a reliable measure of a product's quality.

19. The marketing managment process

includes the on-going job of planning marketing activities

20. Which of the following statements about channel systems is true?

a. Indirect channel systems seem to be generally more effective than direct channels.
b. The independence of firms in traditional channel systems has led to channel
efficiencies because of greater freedom of decision making.
c. All vertical marketing systems are also contractual channel systems.
d. Some administered channel systems have achieved the advantages of vertically
integrated systems while retaining more flexibility.

21. 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.

22.Having segmented its market, the Martinez Corp. has decided to treat each of two
segments as a separate target markets, with each requiring a different marketing mix.
Apparently, Martinez is following the _______ target market approach.

a. single
b. combined
c. multiple
d. separate

23 .Which of the following is least likely a result of shifts in the cultural and social
environment?

e. Domino's Pizza finds that demand for pizza delivered at home has expanded as more
consumers are willing to pay for more convenience.
f. Haagen-Dazs introduces a nonfat yogurt that is also "low cal."
g. Sony recruits more women graduates for sales management positions.
h. A toy manufacturer recalls a playpen with a defective latch and Toys 'R' Us stores
remove them from the shelf.

24. How can consumer-generated ads benefit companies and their products?
 a. Consumers trust the opinions of people similar to themselves.
b. Viewers find user-generated advertisements more humorous than professional ads.
c. Viewers enjoy participating in product contests and being in commercials.
d. Consumers become engaged in the product and consider its value in their lives

25 .Based on the following company statements, which company is most likely to be in

the marketing company era?

"Our long-range plan—developed by our marketing manager—is to expand across regions so

that we can profitably meet the long-term needs of our customers."

26. Which of the following is most likely a true statement about shopping products?

a. Shopping products tend to be less expensive than convenience products.

b. The existence of such products is generally unknown to consumers.
c. Shopping products are purchased less frequently than convenience products.
d. Consumers typically spend very little time comparing shopping products

27. Which of the following is a shortcoming of advertising?

a. It does not allow dramatization of the brand or company.

b. It only provides one-way communication with customers.
c. It can be too customized and only attracts small, niche markets.
d. It reaches targeted customers too slowly in most cases

28 .The difference between "production orientation" and "marketing orientation" is

best explained as follows:

a. there are no separate functional departments in a marketing-oriented firm.

b. in a marketing-oriented firm the total system's effort is guided by what individual
departments would like to do.
c. Production-oriented firms usually do not have a marketing manager.
d. in a marketing-oriented firm, every department's activities are guided by what
customers need and what the firm can deliver at a profit.

29. Inglast, a chocolate producer, is faced with a class action suit when customers found
pieces of plastic in boxes of cocoa powder. Inglast settles the case and then releases an
advertising campaign to show the new and improved safety seals on all containers of
cocoa powder. Which kind of advertisement has Inglast most likely used?

a. persuasive
b. informative
c. comparative
d. reminding

30. The statement, "Of course people will buy our product-each of its features is better
than the competition," most closely reflects which consumer behavior concept?
a. Psychographics
b. Reference groups
c. Needs
d. The economic-buyer theory