2004 Marketing Page 8
Indicate whether the sentence or statement is True or False. Mark "A" for True and "B" for False.1. Marketing research is a continuous flow of information for the marketing information system. a / a. True / b. False
2. Secondary data are data collected from inside the organization; primary data are those collected outside the organization. b / a. True / b. False
3. The two major product categories are industrial and institutional. b / a. True / b. False
4. Bread is usually a convenience product. a / a. True / b. False
5. Intensive distribution is the most common approach for distributing specialty products. b / a. True / b. False
6. Sales peak in a product's maturity stage. a / a. True / b. False
7. Advertising is one element of the promotion mix that is too expensive for small business firms. b / a. True / b. False
8. A change in sales volume would be a form of feedback for advertising. a / a. True / b. False
9. A news story appearing in the paper about a product is an example of sales promotion. b / a. True / b. False
10. Advertising can play a vital role in the actual success or failure of a business. a / a. True / b. False
11. The demand for any product is virtually unlimited. b / a. True / b. False
12. The type of media used for promotion influences the content and form of the message. a / a. True / b. False
13. Publicity, unlike advertising, is not particularly useful for promoting an organization's image. b / a. True / b. False
14. The first step of the personal selling process is making the presentation. b / a. True / b. False
15. Marketers have more difficulty adjusting their prices than any other marketing mix variable.b / a. True / b. False
16. Advertisements that promote goods and services are called promotional advertisements. a / a. True / b. False
17. Setting prices for industrial buyers is very similar to setting prices for consumers. B / a. True / b. False
18. The use of price skimming discourages competitors from entering a market. b / a. True / b. False
19. Of all the ingredients in the promotion mix, personal selling is used most widely. a / a. True / b. False
20. The greatest number of products falls into the cash cow category. b / a. True / b. False
Mark the correct answer on your Scantron sheet for each of the following questions.
21. Marketing activities are specifically aimed at b / a. distributing something of value to buyers and sellers. / b. facilitating and expediting satisfying exchanges. / c. exploring consumer behavior. / d. promoting a product.
22. Which one of the following statements best reflects the marketing concept? a / a. We have organized our business to make certain that customers get what they want. / b. We believe that the marketing department must organize to sell what we produce. / c. We try to produce only high-quality, technically efficient products. / d. We have organized, in our company, an aggressive sales force to promote our products.
23. The major thrusts of the marketing concept is to b / a. sell products. / b. satisfy customers' needs. / c. reduce costs. / d. expand market share.
24. The marketing concept focuses on d / a. achieving goals of top executives. / b. maximizing sales. / c. maximizing market share. / d. satisfying customers' needs at a profit.
25. The purpose of market segmentation is to b / a. differentiate among products that are similar. / b. divide the total market to enable a marketer to develop a more precise marketing mix. / c. identify a single marketing mix that will be satisfactory for general market segments. / d. meet the needs of homogeneous markets.
26. The process of dividing a total market into market groups so that persons within each group have relatively similar product needs is called a / a. segmenting. / b. differentiating. / c. target marketing. / d. concentrating.
27. A marketer who uses a segmentation strategy based on characteristics such as age, sex, and income is using which group of segmentation variables? a / a. Demographic / b. Geographic / c. Psychographic / d. Behaviorist
28. Short-range sales forecasts cover a period of d / a. less than one year. / b. one to three years. / c. one month. / d. less than six months.
29. The segmentation variable that would most likely be used to segment the women's magazine market is c / a. geographic location. / b. religion. / c. age. / d. rate of usage.
30. For which of the following items would the consumer need to make the most extensive buying decision? a / a. Stereo equipment / b. Shaving cream / c. Breakfast food / d. Kitchen utensils
31. Buyers remember information inputs that support their feelings and beliefs and forget inputs that do not. This is known as selective c / a. exposure. / b. distortion. / c. retention. / d. information.
32. When the purchasing agent for Acme Inc. buys cloth and thread, he/she considers a variety of factors. Which one of the following is least likely to concern the agent when making a purchasing decision? c / a. Does the quality of the goods meet company specifications? / b. Does the supplier consistently deliver on time? / c. Does the supplier also sell to my competitors? / d. Does the price meet company budget requirements?
33. The real value of marketing research to an organization can best be understood by d / a. its immediate impact on profits. / b. the increase in sales volume or market share. / c. how much it costs. / d. improvements in the ability to make decisions.
34. The first step in planning a marketing research project is c / a. conducting a cost-benefit analysis. / b. searching the environment. / c. defining and locating problems. / d. assessing organizational resources.
35. Data compiled inside or outside the organization for some purpose other than the current research investigation are considered c / a. organizational data. / b. primary data. / c. secondary data. / d. descriptive data.
36. Data observed and recorded, or collected directly from respondents are d / a. organizational data. / b. secondary data. / c. exploratory data. / d. primary data.
37. When working as a summer intern for a local retailer, Barbara was sent to the library to locate data on population forecasts for the city of Charlotte, NC. The population information she found would be considered d / a. primary data. / b. secondhand data. / c. research data. / d. secondary data.
38. Which sampling design gives every member of the population an equal chance of appearing in the sample? B / a. Area sampling / b. Simple random sampling / c. Quota sampling / d. Stratified sampling
39. The biggest disadvantage of mail surveys is that b / a. the sampling procedure is usually biased. / b. there may be a small response rate. / c. survey costs can be relatively low. / d. they require a tremendous amount of time and resources.
Questions 40-41 are based on the following situation.
Because of the development of optical scanners and cable TV, marketing researchers can now test the effectiveness of advertising more precisely. Volunteers in a minimum of six cities are offered food discounts in return for allowing marketing research firms to monitor grocery purchases and send trial commercials to their homes through cable TV.
The research subjects shop only at stores equipped with UPC scanners and their purchases are identified by a special card. Respondents are also told that some of the commercials they see on cable TV may differ from those seen by their neighbors. Buying patterns are then compared. For example, Post tested a new cereal promotion using this system. Half of the 5,000 participating homes in one city saw a commercial announcing the promotion; the other half saw a commercial that did not mention the contest. Post used scanner data to evaluate the promotion's success and offered the commercials nationwide.
40. The promotional test by Post is an example of d / a. classifying information. / b. creating a marketing data bank. / c. an internal information source. / d. marketing research.
41. The research firm compared the average sales of Post cereal for the group that saw the promotion with the average sales for the group that did not see the promotion. They are at which stage of the marketing research process? c / a. Defining and locating problems / b. Reporting research findings / c. Collecting data / d. Interpreting research findings
42. Barbara is administering a questionnaire at a retail store. While the customer completes the questionnaire, she makes notes about the customers' appearance and behavior. This type of data is d / a. indirect data. / b. secondary data. / c. direct data. / d. primary data.
43. Which of the following is the most flexible variable in the marketing mix? b / a. Product / b. Price / c. Promotion / d. Place
44. Marketers should try to set prices that c / a. are based solely on return on investment. / b. will always be well under the competition's. / c. are consistent with the goals of the organization. / d. will always maintain the status quo.
45. A marketer sometimes uses temporary price reductions to b / a. increase the number of competitors. / b. gain market share. / c. increase revenue per item. / d. control demand.
Questions 46-48 are based on the following situation.
Norwich Products produces Norwich Salt, chemicals, and household products. For several years, the company has been trying to move into the pharmaceuticals market, but has suffered from strategy failures. Low sodium diets and salt substitutes have lowered the sales of salt, Norwich's largest and most profitable product. Although the company produces a salt substitute, heavy promotion of it could be viewed as an incrimination of salt.
These problems have led to a company reassessment. A decision has been made to seek growth in the fields of household products and specialty chemicals, abandoning plans for pharmaceuticals. The company's drug subsidiary has been sold to Lever Brother for nearly $400 million, and a specialty chemical company has been purchased for $60 million. Norwich's new areas of concentration should require less spending on research and development. Chemicals have also been experiencing higher sales. Norwich has a leading position in adhesives, one area of the chemical industry not yet adversely affected by the economy. Norwich hopes to purchase companies in market niches where it could apply its marketing expertise. Spending its newly acquired cash reserve is important in order to prevent unwelcome acquisition attempts.
46. For Norwich, "growth in the fields of chemical and household products" is best defined as a(n) D / a. marketing objective. / b. organizational resource. / c. environmental force. / d. overall organizational goal.
47. Norwich Salt is a ____ for the firm. a / a. cash cow / b. dog / c. star / d. problem child
48. Norwich's adhesive division is a c / a. cash cow. / b. dog. / c. star. / d. problem child.
49. The first step in analyzing a foreign market should be to c / a. set up a test market. / b. initiate promotion. / c. gather secondary data. / d. gather primary data.
50. The sale of products in foreign markets at prices lower than those charged in the home country is referred to as c / a. standardization. / b. squeezing. / c. dumping. / d. economic push.
Questions 51-53 are based on the following situation.
Acme is a network of wholesalers that supplies merchandise to auto parts houses in the southeastern section of the U.S. Acme carries a wide range of foreign and domestic auto parts as well as a full line of accessories. Acme sells to independent auto dealers, national chains, and other wholesalers. For supplying this channel function, Acme gets a substantial percentage above cost. Executives are considering expanding west into the southwest United States. They are also contemplating the opening of retail outlet in the upper Mississippi delta.
51. Acme is operating in what kind of organizational market? b / a. Producer market / b. Reseller market / c. Institutional market / d. Covert market
52. Given the type of organizational market in which Acme is currently operating, which group would they be least likely to sell to? D / a. Producers / b. Governments / c. Retailers / d. Ultimate consumers
53. When making a decision about future purchases, which of the following would Acme consider least important? D / a. Level of demand for the product / b. Level of price at which it can be sold / c. Amount of labor required in production / d. Amount of space required
54. Products that are relatively inexpensive and are purchased frequently with minimal effort can be classified as ___ products. b / a. shopping / b. convenience / c. industrial / d. specialty
55. Barbara wanted to buy a plane ticket to visit her parents for the holidays. She called several airlines to compare rates and chose a flight on Acme Airlines because it had a better reputation for service for comparable prices. The plane ticket is an example of which type of product? a / a. Shopping / b. Convenience / c. Specialty / d. Industrial
56. In which state of the product life cycle should potential buyers be made aware of a product's features, uses, and advantages? a / a. Introduction / b. Decline / c. Maturity / d. Growth
57. New technology, or a new social trend, may cause profits, as well as sales, to take a sharp turn downward. This signals the beginning of which state of the product life cycle? b / a. Growth / b. Decline / c. Maturity / d. Introduction
58. One disadvantage of test marketing a new product is that b / a. the product is distributed on regional basis. / b. competitors may copy the product. / c. the results give little indication of the product's future success. / d. price, advertising, and packaging cannot be varied from market to market.