Download Test 1 Revised 2017

1. Which of the following statements about marketing plans is most accurate?
A. A marketing plan has little or no value unless it projects plans at least five years into the
future.
B. In truth, no single "generic" marketing plan can apply to all organizations or all situations.
C. It is important to use the exact market plan format regardless of the product or industry.
D. Although sales figures will vary greatly, the marketing plan for a small family owned food
store will be almost identical to the marketing plan of a large supermarket chain, if written
correctly.
E. Although the target audience and purpose affect the design of a marketing plan, the type of
industry plays a relatively small role in its design, if any at all.
2. Which of the following is one of the top six questions most lenders and prospective investors
expect to be included in the marketing plan?
A. Does the prospective product meet all government safety standards?
B. Who is your competition and what are they doing?
C. Who will be your key suppliers?
D. How will you calculate your profit margins?
E. Is there something unique or distinctive about the product or service that separates it from
substitutes and competitors?
3. The Situation Analysis is a snapshot to answer the question
A. "Where are we now?"
B. "What is the competition doing?"
C. "How will our organization change?"
D. "What is happening in the industry?
E. "What are we asking you to do?"
4. The chances of success for a new product are significantly increased if
A. the company sets goals that are both flexible and adaptable.
B. objectives are set for the product, and target market segments are identified for it.
C. at least 25% of the initial budget includes advertising and promotional expenditures.
D. all initial production, distribution, and promotion is done in-house where management can
exert the greatest quality control.
E. the firm outsources those elements of production, distribution, or promotion in which they
have the least expertise.
5. The Target Market section of a marketing plan identifies the specific niches or __________
toward which the company's products are directed. When appropriate or when space permits, this
section may also include a __________.
A. target markets; market-product grid
B. market segment; situational analysis
C. customer base; growth-share matrix
D. market segment; growth-share matrix
E. target markets; situational analysis
6. The greatest single factor in a new product's failure is
A. a lack of advertising and promotion.
B. too small a target market.
C. too few competitors.
D. insignificant point of difference.
E. lack of experienced management.
7. The Marketing Program section of a marketing plan consist of
A. the four marketing mix elements.
B. the five environmental forces.
C. the financial forecasts for the industry and the company itself.
D. the target market identification and market segment selection.
E. the specific steps that will be taken to implement the plan.
8. Gantt charts are often used to __________ and __________.
A. prioritize marketing activities; set deadlines
B. assign tactical marketing decisions; specify target markets
C. prioritize marketing activities; assign resources
D. specify target markets; assign resources
E. set deadlines; assign responsibilities for tactical marketing decisions
9. In which section of a Marketing Plan would you most likely expect to see a Gantt chart?
A. Five Year Projections
B. Organization
C. Implementation Plan
D. Evaluation and Control
E. Appendix
10. More than half of new businesses fail within __________ years of their launch.
A. two
B. three
C. four
D. five
E. ten
11. Marketing refers to
A. the production or provision of goods or services that will generate the highest return on
investment.
B. the strategies used in the advertising and promotion of goods and services.
C. the process of identifying the greatest number of target markets for a good or service.
D. the activity for creating, communicating, delivering, and exchanging offerings that benefit the
organization, its stakeholders, and society at large.
E. the activity involved in actually getting a product or service to the ultimate user.
12. The common factor among the chairman of the board, the stockholders, the suppliers, the
laborers in the factory, and finally the customer who purchases the product is
A. everyone has a say in the ultimate design of the product.
B. everyone is legally culpable if something goes wrong with the product.
C. all of the people listed in the question are stakeholders and should benefit by marketing of the
product.
D. all of the people and/or organizations had to make some type of direct financial investment in
the product.
E. all of the people listed in the question use the product or service themselves.
13. To serve both buyers and sellers, marketing seeks to __________ and satisfy the needs and
wants of prospective customers.
A. change
B. create
C. discover
D. manipulate
E. weigh
14. Exchange refers to
A. the trade of things of value between buyer and seller so that each is better off after the trade.
B. the replacement of one product for another product of equal or greater value, as compensation
for a product that failed to meet expectations.
C. the proffering of money, whether in the form of cash, check, or credit card, for a product or
service at the time of purchase.
D. a legally binding agreement to purchase a product or service allowing for a grace period of
three days during which the contract can be dissolved without penalty.
E. an international agency with the responsibility of determining relative values for currency
throughout the world, on a daily basis; also referred to as the foreign exchange rate.
15. A factor that might doom a product is referred to as a(n) __________.
A. albatross
B. monkey wrench
C. showstopper
D. loose cannon
E. wild card
16. People with both the desire and ability to buy a specific offering are referred to as a
__________.
A. customer pool
B. customer base
C. market
D. sales set
E. target segment
17. One or more specific groups of potential consumers toward which an organization directs its
marketing program is referred to as a
A. mass market.
B. tangential market.
C. market aggregation.
D. target market.
E. promotional market.
18. The element of the marketing mix demonstrated when a company places an ad in the Yellow
Pages is __________.
A. product
B. price
C. promotion
D. place
E. process
19. The marketing manager's controllable factors-product, price, promotion, and place-that can
be used to solve a marketing problem are referred to as the __________.
A. marketing concept
B. marketing mix
C. marketing program
D. environmental factors
E. management tools
20. The four Ps of the marketing mix are
A. priorities, personnel, placement, and profits.
B. prediction, production, pricing, and promotion.
C. product, price, production, and place.
D. product, price, promotion, and place.
E. profitability, productivity, packaging, and placement.
21. The uncontrollable forces in a marketing decision involving social, economic, technological,
competitive, and regulatory forces are referred to as __________.
A. the five forces of marketing
B. environmental forces
C. potential powers
D. marketing wild cards
E. deal breakers
22. Customer value refers to
A. the need of a customer to receive the highest quality product at the lowest possible price.
B. the degree to which a customer is willing to sacrifice quality for price.
C. the range of price (from lowest to highest) a customer will ultimately be willing to pay for a
specific level of quality.
D. the potential long-term profits that can be generated by a single customer over time if a firm is
able to keep him or her as a loyal customer.
E. the unique combination of benefits received by targeted buyers that includes quality,
convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
23. Which of the following terms best describes the marketing concept era?
A. Production oriented
B. Sales oriented
C. Society oriented
D. Consumer oriented
E. Competition oriented
24. Utility refers to
A. the benefits or customer value received by users of the product.
B. the adaptability of a marketing program to adjust to changes from environmental forces.
C. the number of alternative uses or benefits that can be provided by a single product or service.
D. the fixed costs associated with the production of a single unit of a product within a product
line.
E. the variable costs associated with the production of a single unit of a product within a product
line.
25. In marketing, an organization refers to
A. a legal entity of people who share a common mission.
B. a group of people or firms united through contractual or corporate ownership.
C. a legal entity of people engaged in business activities solely with the intent of making a profit.
D. a legal entity of people engaged in business activities solely with the intent of serving a
population but without the intent of making a profit.
E. a highly stylized protocol of productivity with a clear division of roles and responsibilities.
26. An organization's __________ are the fundamental, passionate, and enduring principles that
guide its conduct over time.
A. goals
B. core values
C. corporate ideals
D. proprietary values
E. written mission statements
27. Mission refers to
A. the target goal set by a company regarding future profits.
B. the target goal set by a company regarding future market share.
C. the functional philosophy of a corporation that dictates the behavior of all its employees.
D. specific strategies and tactics that will be used to counteract any advantages of its
competitors.
E. a statement of the organization's functions in society, often identifying its customers, markets,
products, and technologies.
28. Environmental scanning refers to
A. assessing any possible negative impact a firm's activities might have on the local ecology.
B. continually acquiring information on events occurring outside the organization to identify and
interpret potential threats.
C. setting up a regimented schedule for assessing the performance of different divisions within a
firm.
D. initiating an internal talent search to identify employees for promotion, who not only do their
jobs well, but who can think "outside the box."
E. requiring all employees to spend time outside the office to avoid the "ivory tower" syndrome.
29. The five major environmental forces considered in marketing are
A. climate change, natural resources, pollution, natural disasters, and global conflict (war).
B. corporate ownership, internal management, supplier relations, manufacturing capabilities, and
consumer demand.
C. product, price, promotion, place, and process.
D. social, technological, economic, competitive, and regulatory.
E. natural resources, weather, social awareness, economic factors, and regulation.