Download 2005 DECA Ontario December Provincials Test 858 MARKETING

2005 DECA Ontario December Provincials
Test 858
MARKETING MANAGEMENT
1
1. The owner of a small company decides to stock a new product. Which business activity should the owner
use to inform potential customers about the new product?
A. Marketing
C. Management
B. Finance
D. Production
2. A company that needs cash to cover expenses until profits are realized might use the financing activity of
A. handling disbursements.
C. locating sources of capital.
B. recording money receipts.
D. monitoring credit transactions.
3. Which production activity issues work orders telling employees what their job assignments are?
A. Dispatching
C. Scheduling
B. Routing
D. Follow-up
4. A business's buying buildings, vehicles, and equipment is an example of money flowing out in order to
acquire
A. supplies.
C. staples.
B. products.
D. assets.
5. What is the name of the financial report that contains the company's assets, liabilities, and net worth?
A. Balance sheet
C. Accounts payable ledger
B. Profit-and-loss statement
D. Accounts receivable journal
6. With people at what level of management would a cashier in a quick-serve restaurant be most likely to
interact on a daily basis?
A. Top level
C. First-line
B. Middle level
D. Executive level
7. One of the most important ways that businesses use budgets is for
A. promotion.
C. research.
B. evaluation.
D. renovation.
8. One of the most important reasons why management often focuses on improving quality throughout the
organization is to
A. remain competitive.
C. implement change.
B. allocate resources.
D. delegate authority.
9. A characteristic of a sole proprietorship is that the owner
A. has access to unlimited funds.
C. transfers all the risk.
B. receives all the profit.
D. delegates all functions.
10. Which of the following is a reason why it is important for businesses to carry automobile insurance on
employees who drive their own cars on company business:
A. Customers may sue if they purchase faulty products.
B. Companies may fail if key employees resign.
C. Employees need benefits if injured on the job.
D. Businesses are liable if an accident occurs.
11. The aisles of a business should be kept free of clutter in order to prevent
A. customers from falling.
C. carpet wear.
B. spontaneous combustion.
D. shoplifting.
12. A business signed a contract with another business to use its facilities. The contract should be written so
that it is not
A. open to multiple interpretations.
C. based on forecasts.
B. full of technical terms.
D. longer than one page.
Copyright © 2006 by Marketing Education Resource Center ®, Columbus, Ohio
2005 DECA Ontario December Provincials
Test 858
MARKETING MANAGEMENT
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13. What is the tax on imports that is designed to protect domestic industries from foreign competition and
preserve jobs?
A. Tariff
C. Sales tax
B. Quota
D. Value-added tax
14. Which of the following is a true statement about sales taxes:
A. Sales taxes are deferred if a business shows a loss.
B. Businesses collect sales taxes for government agencies.
C. Businesses pay sales taxes along with their income taxes.
D. Businesses forward a percentage of sales taxes to the government.
15. What is one reason why the federal government awards patents to businesses that have invented new
products or manufacturing processes?
A. To protect consumers
C. To restrict monopolies
B. To encourage research
D. To monitor advertising
16. Which of the following is a general guideline for answering the telephone in a businesslike manner:
A. Identify the firm or department and yourself
B. Address the caller by his/her first name
C. Take immediate action on the caller's request
D. Record the correct spelling of each caller's name
17. Which of the following is an example of persuasive messages that businesses write:
A. Electronic mail
C. Handwritten note
B. Collection letter
D. Interoffice memo
18. One of the purposes of staff communication is for managers to provide
A. customers with product information.
C. stockholders with financial reports.
B. employees with access to the grapevine.
D. employees with guidance and direction.
19. A supervisor explaining how to perform a job task to an employee should give the instructions in
A. rapid succession.
C. chronological order.
B. technical jargon.
D. abbreviated language.
20. A guideline for those who conduct staff meetings is to
A. allow staff members to speak as long as they wish.
B. sit at the head of the meeting table.
C. prevent any disagreements from occurring.
D. assign someone to take notes during the meeting.
21. A business that obtains private information about a customer's financial status and makes that
information public is behaving in an __________ manner.
A. immoral
C. illegal
B. unethical
D. impersonal
22. Spartan Trucking Company delivers goods to several small businesses in our city. This company is
engaged in
A. warehousing.
C. promotion.
B. leasing.
D. distribution.
23. Technological advancements have made it possible for some manufacturers to communicate directly with
customers, which reduces the need to use
A. suppliers.
C. intermediaries.
B. warehouse personnel.
D. freight carriers.
2005 DECA Ontario December Provincials
Test 858
MARKETING MANAGEMENT
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24. A manufacturer selling its products through a toll-free phone system, a company web site, and several
retailers is a legal example of
A. restricted sales territories.
C. tying agreements.
B. exclusive dealing.
D. dual distribution.
25. Businesses that buy products from suppliers who are not the authorized distributors for the products'
manufacturers are involved in the
A. gray market.
C. export business.
B. outlet industry.
D. discount trade.
26. In the following example, calculate the extensions for each item ordered and determine the total amount
of the invoice:
Item No.
395C
568A
245B
Quantity
15
9
11
A. $666.00
B. $660.50
Unit Price
$21.25
$14.75
$19.50
Total
C. $665.00
D. $656.25
27. Because of their strategic significance in providing place utility, it is usually easier to change price or
promotional efforts than to change
A. market strategies.
C. distribution channels.
B. target markets.
D. packaging.
28. Which two groups in the soft goods industry have experienced decades of conflict in their relationship in
the channel of distribution?
A. Manufacturers and retailers
C. Customers and retailers
B. Suppliers and customers
D. Manufacturers and suppliers
29. What is the direct channel strategy that a manufacturing company is using when it owns its own sales
outlets?
A. Multiple channel distribution
C. Backward integration
B. Forward integration
D. Indirect distribution
30. Which of the following are types of criteria that are often used to evaluate the performance of channel
members:
A. Economic goals
C. Liquid assets
B. Sales quotas
D. Resale prices
31. Sugar and flour that are purchased to make baked goods are classified as
A. installations.
C. supplies.
B. materials.
D. parts.
32. If the demand for a good or service is constant, even when the product's price changes, its demand is
A. inelastic.
C. low.
B. flexible.
D. elastic.
33. Which of the following is most likely to affect the selling price of roses:
A. A large number of rose bushes are killed by disease.
B. Plants and small shrubs are also sold at the flower shop.
C. The flower shop also carries silk flowers.
D. A reorder shipment of roses arrives.
2005 DECA Ontario December Provincials
Test 858
MARKETING MANAGEMENT
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34. Government tries to protect competition by
A. preventing all monopolies.
B. restricting the production of certain products.
C. controlling the prices of products.
D. regulating monopolies.
35. Money that is left after a business subtracts the cost of merchandise from sales income defines
A. gross profit.
C. inventory.
B. net sales.
D. cost of goods.
36. One of the benefits of competition to consumers is that competition encourages
A. businesses to limit their product lines.
C. government to fix prices.
B. businesses to develop new products.
D. government to finance business activity.
37. Which of the following is an advantage to a company of having a specialized labor force:
A. Decreased enthusiasm
C. Complicated training
B. Increased production
D. Increased obsolescence
38. What is the collective term for the phases of production—increasing, diminishing, and negative returns?
A. Marginal production
C. Revenue production
B. Stages of production
D. Marginal cost production
39. What often happens to an economy during a mildly inflationary period?
A. Increased growth
C. Decreased profits
B. Decreased prosperity
D. Increased unemployment
40. What credit legislation gives businesses specific deadlines to follow in responding to customers'
complaints about errors in their credit statements?
A. Equal Credit Opportunity Act
C. Truth-in-Lending Act
B. Fair Credit Billing Act
D. Fair Credit Reporting Act
41. Determine whether the following statement is true or false: Businesses engage in marketing-information
management only to assist in the development of new products and the identification of new customers.
A. False, it also helps companies keep track of current products and markets.
B. False, marketing-information management is only used for advertising purposes.
C. True, additional research is not needed when a product or company is successful.
D. True, research is too costly to conduct on products that have already been introduced.
42. To determine marketing-information needs, business owners often conduct a __________ analysis.
A. primary
C. secondary
B. relative
D. situational
43. Which of the following is an example of marketing information that a business could gather by surveying
its customers:
A. The company's current market share
C. Planned product improvements
B. Location of the company's market
D. Financial status of competitors
44. Computerized databases make it possible for marketing researchers to
A. limit their use of biographical databases.
B. obtain desired information immediately.
C. gain unrestricted access to statistical data.
D. reduce the use of off-line data collection methods.
2005 DECA Ontario December Provincials
Test 858
MARKETING MANAGEMENT
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45. When a business sends out general questionnaires to consumers and uses computers to analyze the
data, the business is conducting __________ marketing research.
A. descriptive
C. specific
B. complex
D. objective
46. When processing marketing information, assigning numeric value to different responses or types of data
is known as
A. editing.
C. coding.
B. interpreting.
D. formulating.
47. A business that conducts research and finds that most of its customers visit the business four times a
week has identified the
A. mean.
C. mode.
B. median.
D. range.
48. What product factor should a business consider when selecting a good or service to offer its customers?
A. Types of inventory control
C. Availability of credit
B. Channels of distribution
D. Level of quality
49. What is a negative financial possibility for international businesses that operate in countries where
military takeovers or revolutions are common?
A. Elimination of the workforce
C. Cultural change
B. Political corruption
D. Nationalization of property
50. The identification and selection of markets for a business or for a product is known as
A. a consumer market.
C. mass marketing.
B. target marketing.
D. an industrial market.
51. Which of the following is a technique that some businesses use in order to identify a target market for
their products:
A. Analyzing attitudes
C. Forecasting sales
B. Developing tests
D. Conducting surveys
52. Why do businesses develop marketing plans?
A. To attract the target customer
B. To expand the distribution system
C. To provide quality service
D. To prepare a revenue statement
53. When conducting an external environmental analysis, businesses often focus on
A. previous demand.
C. marketing goals.
B. industry growth.
D. financial costs.
54. One reason for conducting a SWOT analysis for use in the marketing-planning process is to identify a
business's ___________ strengths and weaknesses.
A. internal
C. regional
B. financial
D. external
55. Which of the following would be the most appropriate method of forecasting sales for a business with a
limited budget:
A. Quantitative
C. Bottom-up
B. Long-range
D. Qualitative
56. The marketing strategy component of a marketing plan should include a(n)
A. proposed annual budget.
C. detailed product description.
B. explanation of accounting methods.
D. list of current employees.
2005 DECA Ontario December Provincials
Test 858
MARKETING MANAGEMENT
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57. A factor that businesses consider when conducting marketing audits is marketing
A. strategies.
C. concepts.
B. research.
D. technology.
58. People with a mature attitude tend to believe in the __________ of other people.
A. equality
C. deficiency
B. inferiority
D. superiority
59. Jamie has been asked to join a group of students who are working together to establish a school store.
Jamie has been asked to be part of a
A. team.
C. strike.
B. boycott.
D. media channel.
60. Many businesses try to foster positive customer/client relations by encouraging employees to be
A. authoritative.
C. reserved.
B. talkative.
D. friendly.
61. Which of the following situations best displays a customer-service mindset:
A. A fast-food restaurant offering overtime pay to all its employees
B. A hotel chain offering its frequent guests the option of checking in as early as 9:00 a.m. and
checking out as late as 5:00 p.m.
C. An automobile dealership providing its employees with the option of attending a seminar on
improving their selling skills
D. A large corporation being open during normal business hours
62. Customers who have questions or complaints that are more complicated than the employees can handle
usually are referred to
A. managers.
C. the rack jobber.
B. the firm's president.
D. coworkers.
63. "I buy only the most expensive brands," is a statement that characterizes the __________ customer.
A. suspicious
C. domineering/superior
B. disagreeable
D. slow/methodical
64. Customers who feel their complaints have been handled poorly by a business
A. will not tell others about their experience.
C. usually have caused their own problems.
B. may not return to the business.
D. will probably purchase additional items.
65. Why do businesses often maintain several different personnel files for each employee?
A. To make record keeping easier
C. To organize general information
B. To protect employees' privacy
D. To be prepared for an emergency
66. An example of a company change that might create a need for its employees to have additional training
and development opportunities is
A. providing employees with a payroll savings plan.
B. installing a new computer network and additional software.
C. adding a canopy and carpet to the building's entrance.
D. offering dental insurance for employees and their families.
67. Which of the following training methods would involve having a trainee make quick decisions about a
series of hypothetical, but true-to-life, problems:
A. In-basket simulations
C. Junior boards
B. Job rotation
D. Understudy
2005 DECA Ontario December Provincials
Test 858
MARKETING MANAGEMENT
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68. A supervisor who schedules more employees than are needed for each job is likely to
A. reduce net profit.
C. be promoted.
B. improve employee morale.
D. meet demand better.
69. Which of the following is characteristic of a proactive business:
A. Watching for any changes in the external environment
B. Reacting to changes made by competitors
C. Using a creative promotional mix
D. Taking action to create marketing opportunities
70. The initial value of a good or service is usually stated in terms of
A. credit.
C. image.
B. money.
D. profit.
71. Competing businesses that agree to coordinate the discounts and credit terms that they offer their
customers are
A. unit pricing.
C. target pricing.
B. price planning.
D. price fixing.
72. A foreign company is selling a product for $333 in its own country, while charging $180 for the same
product in another country with the intention of driving rivals from the other country's market. This is an
example of
A. price negotiation.
C. price comparison.
B. limited competition.
D. predatory dumping.
73. The majority of businesses that use profit-oriented pricing want to
A. reduce their return on investment.
C. create a negative cash flow.
B. balance their financial statements.
D. earn a reasonable amount of profit.
74. A promise made in a specific statement concerning the quality of a product is called a(n) __________
warranty.
A. implied
C. full
B. express
D. limited
75. The development of the computer database impacts the way that a business manages products because it
A. protects information that is used to track promotional policies.
B. reduces the risk of error during the order-entry process.
C. compromises the employees' right to privacy.
D. provides quick and easy access to purchasing histories.
76. What tools are needed when using the synectics method of creative thinking?
A. Analogies and metaphors
C. Allegories and syntax
B. Syntax and antonyms
D. Metaphors and antonyms
77. Which of the following is a source that businesses use to develop standards:
A. Suppliers
C. Accountants
B. Lawyers
D. Advertisers
78. What product-mix strategy is being used when a company adds a new product to its product mix?
A. Expansion
C. Contraction
B. Trading-up
D. Positioning
79. For a single price, a business sells widgets, trains people to use the widgets, and arranges for the
delivery of the widgets. This is an example of
A. personal selling.
C. captive pricing.
B. brand positioning.
D. product bundling.
2005 DECA Ontario December Provincials
Test 858
MARKETING MANAGEMENT
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80. Advantages of quality product modification include all of the following except
A. creating customer loyalty for the quality product.
B. cutting costs in other areas to offset more expensive components.
C. enabling the business to charge a higher price for the product.
D. allowing the business to remain competitive.
81. A business that sets up a free telephone hot line to answer customers' questions is providing its
customers with a(n)
A. process.
C. service.
B. allowance.
D. opinion.
82. A business uses a strategy that positions a new product directly against a similar item made by another
company. To be successful in the marketplace, the business must first
A. create brand awareness outside the target market.
B. understand customer needs better than the competition.
C. identify potential items to include in line extensions.
D. implement a marketing plan that is similar to the competition.
83. The foundation of a brand is its
A. values and characteristics.
B. promotional elements.
C. name and logo.
D. product design.
84. Web-based businesses take advantage of technology by allowing customers to
A. purchase products over the telephone.
C. access information online.
B. hack into the business's web server.
D. return unwanted merchandise to a local store.
85. When developing strategies to position products, businesses should consider which
A. markets to target.
C. segments to identify.
B. differences to promote.
D. locations to develop.
86. The role that promotion plays in marketing is to
A. determine what consumers want and need to buy.
B. communicate the benefits of the products to buyers.
C. help businesses to keep their prices competitive.
D. ensure that businesses offer appropriate products.
87. A company's ad features the care it takes not to damage the environment with its manufacturing
methods. This is an example of what type of promotion?
A. Primary
C. Product
B. Institutional
D. Patronage
88. Which of the following is not part of the promotional mix:
A. Pricing
C. Selling
B. Publicity
D. Advertising
89. Advertising a product at an unusually low price to bring people into the business, and then attempting to
sell them a higher priced model by claiming that the advertised product is out of stock is a deceptive
practice called
A. partial disclosures.
C. false testimonial.
B. false promises.
D. bait and switch.
90. Which technological advancement has enhanced the efficiency and quality of photographs, copy, and
illustrations in printed promotional pieces?
A. Interactive viewing capabilities
C. Spreadsheet computer software
B. Graphic design software
D. Database tracking capabilities
2005 DECA Ontario December Provincials
Test 858
MARKETING MANAGEMENT
91. What is an excellent source for locating good mailing lists to use in a direct advertising campaign?
A. Postal service
C. An SRDS directory
B. The Yellow Pages
D. Thomas Register
92. The first step in developing a promotional plan is reviewing the business's
A. investments.
C. equipment.
B. objectives.
D. liabilities.
93. A discount business that selects low-priced products to advertise is trying to promote goods that are
compatible with its business
A. policy.
C. cycle.
B. image.
D. audit.
94. Joe is a salesperson who will sometimes forgo a sale in order to satisfy a customer's needs. Carol
always attempts to close a sale at all costs. Who is likely to be the more successful salesperson?
A. Joe, because he is a nice person
B. Carol, because Joe is too timid to close a sale
C. Joe, because he will get more repeat business
D. Carol, because she will make more sales
95. Selling policies concerned with pricing, product availability, and discounts are categorized as
__________ policies.
A. delivery
C. terms-of-sale
B. selling-activity
D. service
96. A salesperson who refuses to accept kickbacks or payoffs in order to make a sale is demonstrating
__________ behavior.
A. unsocial
C. special
B. legal
D. ethical
97. Which of the following is a sales practice that may be considered illegal:
A. Partnering
C. Showmanship
B. Persuasion
D. Reciprocity
98. An important reason that salespeople should know what products are featured in a business's
promotions is so they
A. will be able to evaluate the promotional effort.
B. can use the information in their selling efforts.
C. won't have to spend their time reading ads.
D. can tell customers to watch for upcoming promotions.
99. Asking and answering questions occurs during which of the following phases of the selling process:
A. Reaching closure
C. The entire selling process
B. Discovering client needs
D. Prescribing solutions to needs
100. An important part of a sales manager's job often includes responsibility for
A. routine selling.
C. training salespeople.
B. developing compensation.
D. recruiting customers.
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Test 858
MARKETING MANAGEMENT — KEY
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