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BUS-M 370 > Midterm Sample Exam Questions > Flashcards

Midterm Sample Exam Questions Flashcards

1
Q

All of the following are accurate descriptions of modern marketing, EXCEPT which one?

A) Marketing is the creation of value for customers.
B) Marketing is managing profitable customer relationships.
C) Selling and advertising are synonymous with marketing.
D) Marketing involves satisfying customers’ needs.
E) Marketing is used by for-profit and not-for-profit organizations.

A

C) Selling and advertising are synonymous with marketing

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2
Q

________ is defined as a social and managerial process by which individuals and organizations obtain what they need
and want through value creation and exchange.

A

Marketing

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3
Q

According to the simple five-step model of the marketing process, a company needs to ________ before designing a
customer-driven marketing strategy.

A

Understand the marketplace and customer needs and wants

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4
Q

What do companies call a set of benefits that they promise to consumers to satisfy their needs?

A

Value Proposition

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5
Q

Which of the following refers to sellers being preoccupied with their own products and losing sight of underlying
consumer needs?

A

Marketing Myopia

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6
Q

A(n) ________ is the set of actual and potential buyers of a product.

A

Market

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7
Q

Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers?
A) All customers will be delighted.
B) Customer-perceived value will increase.
C) Customer evangelists will become unpaid salespersons for the service or product.
D) Not all customers will be satisfied.
E) The company will need to follow up with a demarketing campaign.

A

D) Not all customers will be satisfied

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8
Q

In the case of excess demand, ________ may be required to reduce the number of customers or to shift demand
temporarily or permanently.

A

Demarketing

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9
Q

The art and science of choosing target markets and building profitable relationships with them is called ________.

A

Marketing management

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10
Q

Selecting which segments of a population of customers to serve is called ________.

A

Target marketing

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11
Q

Which of the following is the set of benefits a company promises to deliver to the customer to satisfy their needs?

A

A value proposition

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12
Q

Which customer question is answered by a company’s value proposition?

A) “Why should I buy your brand rather than a competitor’s?”
B) “How does your brand benefit me and society?”
C) “What are the costs and benefits of your brand?”
D) “What kind of experience will I have with products and services associated with this brand?”
E) “What are the benefits of being a loyal consumer of your brand?”

A

A) “Why should I buy your brand rather than a competitor’s?”

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13
Q

Which concept holds that achieving organizational goals depends on knowing the needs and wants of target markets
and delivering the desired satisfactions better than competitors do?

A

Marketing

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14
Q

The product concept says that a company should do which of the following?

A) improve marketing of its best products
B) market only those products with high customer appeal
C) focus on the target market and make products that meet those customers’ demands
D) focus on making continuous product improvements
E) make promoting products the top priority

A

D) Focus on making continuous product improvement

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15
Q

Customer-driven marketing usually works well when ________ and when customers ________.

A

A clear need exists; know what they want

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16
Q

The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society’s
interests, and ________.

A

Company profits

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17
Q

The set of marketing tools a firm uses to implement its marketing strategy is called the ________.

A

Marketing mix

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18
Q

Of the following, which is the most important concept of modern marketing?

A) customer relationship management
B) societal marketing
C) consumer-generated marketing
D) properly trained salespeople
E) low prices
A

CRM (customer relationship management)

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19
Q

Building, keeping, and growing profitable relationships by delivering customer value and satisfaction is called
________.

A

Customer Relationship Management

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20
Q

It is most accurate to say that customers buy from stores and firms that offer which of the following?

A) the highest value for the dollar
B) the highest customer-perceived value
C) the highest level of customer satisfaction
D) the most attractive company image
E) the most concern for society’s interests

A

B) The highest customer-perceived value

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21
Q

________ is defined as the customer’s evaluation of the differences between all the benefits and all the costs of a
marketing offer relative to those of competing offers.

A

Customer-perceived value

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22
Q

iRobot, the makers of Roomba, have involved their customers in product development, marketing, and technical
support in an effort to foster which of the following?

A) basic relationships
B) customer delight
C) selective relationship management
D) customer-perceived value
E) frequency marketing programs
A

B) Customer delight

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23
Q

Using customer profitability analysis to weed out unprofitable customers and target winning ones for pampering is
referred to as ________.

A

Selective relationship management

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24
Q

Which of the following best explains why consumers have greater power and control in today’s marketplace?

A) The production concept and competition have lowered prices.
B) Implementation of the product concept has resulted in continually improving products.
C) Customer-driven marketing creates products and services that meet customers’ future needs.
D) More companies are implementing social marketing and weighing long-term costs and benefits.
E) Through new communication technologies, customers have more access to information and more methods of
sharing their opinions with other customers.

A

E) Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers

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25
Q

To create customer value and build strong customer relationships, marketers know they cannot go it alone; therefore,
they practice ________.

A

Partner relationship management

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26
Q

Through ________, many companies today are strengthening their connections to all partners, from providers of raw
materials to components to final products that are delivered to final buyers.

A

Supply chain management

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27
Q

The final step in the marketing process is ________.

A

Capturing value from customers

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28
Q

Stew Leonard, the owner of a highly successful regional supermarket chain, reacts adversely to losing a single customer
sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he or
she remains in the area. Stew Leonard’s concern is an illustration of which of the following?

A) share of customer
B) market share
C) profitability
D) customer lifetime value
E) market share maintenance
A

Customer lifetime value

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29
Q

Beyond simply retaining good customers, marketers want to constantly increase their “share of customer.” What does
this mean in marketing terms?

A

Marketers want to increase the share they get of the customer’s purchasing in their product categories

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30
Q

Customers can be classified into four relationship groups, according to their profitability and projected loyalty. Which
type of customers have the highest profit potential and strong loyalty?

A

True friends

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31
Q

Which of the following involves adapting a firm to take advantage of opportunities in its constantly changing
environment?

A) long-range planning
B) short-range planning
C) media planning
D) strategic planning
E) annual planning
A

Strategic planning

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32
Q

When a firm develops and maintains a strategic fit between its goals and capabilities, it is performing ________.

A

Strategic planning

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33
Q

33) Which of the following is the first step in strategic planning?

A) set objectives and goals
B) develop the business portfolio
C) define the company mission
D) plan marketing strategies
E) identify threats and weaknesses
A

Define the company mission

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34
Q

Which of the following provides an answer to these questions: What is our business? Who are our customers? What do
our customers value? What should our business be?

A) objectives and goals
B) a mission statement
C) a business portfolio
D) marketing and functional strategies
E) operational strategies
A

A mission statement

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35
Q

________ should be market oriented and defined in terms of ________.

A

Mission statements; customers’ needs

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36
Q

Revlon has clearly defined its “mission” of selling lifestyle and self-expression. In order for the firm to launch its
strategic plan, the mission needs to next be turned into detailed ________ that guide each level of the company.

A

Supporting objectives

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37
Q

Which of the following can be a company division, a product line within a division, or sometimes a single product or
brand?

A

An SBU (strategic business unit)

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38
Q

After management has identified the key businesses making up its company, what is the next step in portfolio analysis?

A

Assessing the attractiveness of its SBUs

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39
Q

In the Boston Consulting Group approach, ________ provides a measure of market attractiveness.

A

Market growth rate

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40
Q

The BCG growth-share matrix classifies four types off SBUs. They are ________, ________, ________, and ________.

A

Stars, question marks, cows and dogs

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41
Q

In the BCG approach, ________ are high-share, high-growth businesses or products. They need heavy investment to
finance rapid growth. When their growth slows down, they turn into ________.

A

Stars; cash cows

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42
Q

________ are low-growth, high share businesses or products. They generate a lot of cash that the firm uses to pay its
bills and support other SBUs that need investment.

A

Cash cows

43
Q

The four possible strategies that can be pursued for each SBU are building, holding, ________, and ________.

A

harvesting; divesting

44
Q

Making more sales to current customers without changing a firm’s products is ________.

A

Market penetration

45
Q

Tim Hortons works to train people who come into Tim Hortons first thing in the morning for coffee and breakfast to
return several times during the rest of the day. This effort by Tim Hortons management is an example of ________.

A

Market penetration

46
Q

A common practice among marketers is to identify and develop new markets for their existing products. This practice is
called ________.

A

Market development

47
Q

Jack Welch, former CEO at General Electric, said that “Companies can’t give job security, only ________ can.”

A

Customers

48
Q

Multinationals like Honda Motor Co. and Wal-Mart stores have designed programs to work closely with their suppliers
to help them reduce their costs and improve quality. This illustrates the importance of an efficient ________.

A

Value delivery network

49
Q

A sound marketing strategy begins with which of the following?

A) customer analysis
B) positioning
C) differentiation
D) promotion
E) SWOT analysis
A

A) Customer analysis

50
Q

Your firm is attempting to divide up the total market to determine the best segments it can serve. Which is the correct
order of doing so?

A) market segmentation, target marketing, market positioning
B) target marketing, market positioning, market segmentation
C) market positioning, market segmentation, target marketing
D) market segmentation, market positioning, target marketing
E) mass marketing, demographic segmentation, psychographic segmentation

A

A) Market segmentation, target marketing, market positioning

51
Q

Effective positioning begins with ________ the company’s marketing offer in order to give consumers more perceived
value.

A

Differentiating

52
Q

Which of the four Ps describes the goods-and-services combination the company offers to the target market?

A

Product

53
Q

In the marketing management functions, a SWOT analysis should ________ a marketing plan.

A

Precede

54
Q

In a basic SWOT analysis, the “T” stands for _____.

A

Threats

55
Q

In SWOT analysis, which of the following would be considered a strength?

A) internal limitations
B) trends in the market
C) favourable factors in the environment
D) factors that challenge the company's performance
E) internal resources
A

E) Internal resources

56
Q

A marketing plan begins with an executive summary, which quickly overviews goals and ________.

A

Recommendations

57
Q

Berman Electric, a chain of 18 appliance stores, has a marketing organization in which specialists head different
marketing activities. What is this type of organization called?

A

Functional

58
Q

Evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are
attained is called ________.

A

Marketing control

59
Q

The marketing control process entails the following steps in order: setting goals, ________, evaluating performance, and
________.

A

Measuring performance; taking corrective action

60
Q

Which of the following measures the profits generated by investments in marketing activities?

A

Marketing ROI

61
Q

You are directed to study the actors close to the company that affect its ability to serve its customers-departments within
the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. What are you studying?

A

The microenvironment

62
Q

You are directed to study the demographic, economic, natural, technological, political, and cultural factors that are
larger societal forces affecting your company. What are you studying?

A

The macroenvironment

63
Q

Banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the
risks associated with the buying and selling of goods and services are referred to as ________.

A

Financial intermediaries

64
Q

Workers, managers, and members of the board are all part of a company’s ________ public.

A

Internal

65
Q

Percy Original caters to a market of individuals and households that buys goods and services for personal consumption.
Percy Original caters to a ________ market.

A

Consumer

66
Q

Rachel Patino works for a wholesale company called Distributors Unlimited. She is responsible for buying and selling
goods at a profit to small retailers. What is her market?

A

Reseller

67
Q

Which of the following descriptions most accurately characterizes the baby boomers?

A

They control over 50 percent of the country’s wealth

68
Q

Large tween and teen markets belong to which demographic group?

A

Millenials

69
Q

Which of the following descriptions most accurately characterizes Millennials?

A) They are children of baby boomers.
B) They are less ethnically diverse than Gen Xers.
C) They have reached their peak earning and spending years.
D) They were once labeled “the MTV generation.”
E) They have graduated from college and are taking over positions of power in the business world.

A

A) They are children of baby boomers

70
Q

The ________ environment consists of factors that affect consumer purchasing power and spending patterns.

A

Economic

71
Q

A country with a(n) ________ economy has rich markets for many different kinds of goods.

A

Industrial

72
Q

Value marketing is the strategy of offering consumers ________.

A

Reasonable quality at a fair price

73
Q

Which of the following groups of expenses uses up the most household income?

A) food, housing, retirement planning
B) housing, insurance, taxes
C) food, housing, transportation
D) housing, taxes, transportation
E) food, travel, savings
A

C) Food, housing, transportation

74
Q

Ernst Engel’s laws generally have been supported by recent studies. He discovered that as family income rises, the percentage spent on ________ declines and the percentage spent on ________ remains about constant.

A

Food; housing

75
Q

Which of the following has encouraged marketers to pursue environmentally sustainable strategies?

A) the competition act
B) the black market
C) the green movement
D) deregulation
E) green intervention
A

C) The green movement

76
Q

Legislation affecting business around the world will continue to ________.

A

Increase

77
Q

The legislation created that requires certain commodities to be properly labelled or described in advertising for the
purpose of indicating material content or quality is called the ________.

A

National Trademark and True Labelling Act

78
Q

Business legislation has been created for three basic reasons: to protect companies from each other, to protect consumers,
and to ________.

A

Protect the interests of society

79
Q

The recent rash of business scandals and increased concerns about the environment have created fresh interest in the
issues of ________ and ________.

A

Ethics; social responsibility

80
Q

Cause-related marketing is a(n) ________.

A

Primary form of corporate giving

81
Q

A society’s basic values, perceptions, preferences, and behaviours are all part of its ________ environment.

A

Cultural

82
Q

A society’s ________ are expressed in how people view themselves, organizations, society, nature, and the universe.

A

Cultural values

83
Q

Trends in people’s views of organizations indicate that which of the following has increased in the past twenty years?

A

A loss of confidence in big business

84
Q

Which trend related to people’s attitudes towards others suggests less demand for theatre-going and greater demand for
home improvement, home office, and home entertainment products?

A

Cocooning

85
Q

The ________ is specifically focused on future company needs only.

A

Strategic planning concept

86
Q

A long-standing charge against intermediaries is that they mark up prices beyond the ________.

A

Value of their services

87
Q

A heavily promoted brand of flu medicine sells for much more than a virtually identical store-branded product. Critics
would likely charge that promotion for the branded flu medicine adds only ________ to the product rather than
functional value.

A

Psychological value

88
Q

________ persuades people to buy goods they had no thought of buying.

A

High pressure selling

89
Q

The success of the Tom Dennis Ford dealership has been built largely on return customers and word-of-mouth
recommendations. The majority of sales are made to customers who have purchased a vehicle at the dealership before or
who know someone who had a positive experience purchasing a vehicle there. The sales force at the Tom Dennis Ford
dealership most likely knows that using high-pressure selling does not work if the dealership wants to ________.

A

Build long-term relationships with customers

90
Q

Critics have charged that some companies intentionally manufacture their products with materials or components that
cause the product to need to be replaced before it actually should need replacement. What is this called?

A

Planned obsolescence

91
Q

Critics claim that companies in the ________ industries introduce planned streams of new products that make older
models obsolete, a form of planned obsolescence that harms consumers.

A

Consumer electronics and computer

92
Q

On a deeper level, our wants and values are influenced not only by marketers but also
by all of the following, EXCEPT ________.

A) family
B) education
C) religion
D) cultural background
E) intermediaries
A

E) Intermediaries

93
Q

Large marketing companies can use patents and heavy promotion spending to ________.

A

Set up barriers for others wanting to enter the industry

94
Q

After Sony and Microsoft soundly beat and outsold Nintendo’s GameCube in the Video Game War of 2001, the smallest
of the three game platform makers needed a new plan. The resulting Wii system, with its intuitive motion-sensitive
controller and interactive games, appealed not only to teen boys but also to their sisters, moms, dads, and even
grandparents. The system immediately outsold both the PlayStation 3 and Xbox 360. This is a successful example of
________ marketing.

A

Innovative

95
Q

A marketing information system (MIS) consists of people and procedures to assess information needs, ________, and
help decision makers analyze and use the information.

A

Develop the needed information

96
Q

Marketing information from which type of database usually can be accessed more quickly and cheaply than other
information sources?

A

Internal

97
Q

________ is the systematic collection and analysis of publicly available information about consumers, competitors, and
developments in the marketing environment.

A

Marketing intelligence

98
Q

Which of the following statements regarding marketing intelligence is true?

A) The advantage of using competitive intelligence is negligible.
B) All marketing intelligence is available for free.
C) Marketing intelligence relies upon privately held information.
D) Marketing intelligence relies upon publicly available information.
E) Marketing intelligence gathering is more focused on gaining insights into consumer activities than competitors’
activities.

A

D) Marketing intelligence relies upon publicly available information

99
Q

________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation
facing an organization.

A

Marketing research

100
Q

What is the first step in the marketing research process?

A

Defining the problem and research objectives

101
Q

The hardest step of the marketing research process is what?

A

Defining the problem and research objectives

102
Q

What is the second step of the marketing research process?

A

Translating research objectives into specific information needs

103
Q

Secondary data consists of what information?

A

Information that already exists but was collected for a different purpose

BUS-M 370 (1 decks)

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