Download Chapter 1

Section 1: Multiple Choices (75%)
This section has 30 questions, each worth 2.5%. For each question, you
must choose ONLY one choice which you think best fits in. Please transfer
the code of your choice into the attached Answer Sheet.
1. Marketing seeks to create and manage profitable customer relationships by
delivering ________ to customers.
a. competitive prices
b. superior value
c. superior service
d. superior promotion
e. product assortment
2. Customer satisfaction depends on the product’s perceived value relative to
the buyer’s ________.
a. cost of obtaining the product
b. expectations
c. cost of competing products
d. cost of the lost experience
e. all of the above
3. To reduce demand for space on congested expressways in Washington,
D.C., the Metropolitan Washington Council of Governments has attempted
to engage in ________.
a. target marketing
b. deregulation
c. demarketing
d. gray marketing
e. integration
4. 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
5. A company with limited resources might enter a new market by serving
________ segment(s).
a. the largest
b. the most profitable
c. dual
d. one or a few
e. three or more
6. Today the four Ps are compared to the four Cs. Product and place are called
________ and ________, respectively.
a. convenience; customer solution
b. customer cost; convenience
c. communication; customer solution
d. customer solution; convenience
e. communication; convenience
7. This systematic collection and analysis of publicly available information about
competitors and developments in the marketing environment is very useful.
What is it called?
a. marketing data
b. marketing intelligence
c. Web master
d. sales and sales management
e. secondary data
8. Survey research is best suited for gathering ________ information.
a. personal
b. preference
c. attitude
d. descriptive
e. exploratory
9. Which form of data can usually be obtained more quickly and at a lower cost?
a. primary
b. census
c. secondary
d. syndicated
e. tertiary
10. ________ are people within a reference group who, because of special
skills, knowledge, personality, or other characteristics, exert influence on
others.
a. Opinion leaders
b. Habitual buyers
c. Charismatic personalities
d. Perceptionists
e. Wild ducks
11. ________ are defined as smaller cultural groups of people with shared
value systems based on common life experiences and situations.
a. Alternative evaluations
b. Cognitive dissonances
c. Subcultures
d. Motives
e. Attitudes
12. To marketers, more important than reality is ________, the process by
which people select, organize, and interpret information to form a
meaningful picture of the world.
a. personality
b. perception
c. selective group
d. habitual behavior
e. assessment
13. Markets can be segmented into groups of nonusers, ex-users, potential
users, first-time users, and regular users of a product. This method of
segmentation is called ________.
a. user status
b. usage rate
c. benefit
d. behavior
e. product frequency
14. Mass marketers, such as Target and Venture Stores, ignore market
segment differences and target the whole market with one offer. What is
their approach to segmenting?
a. undifferentiated marketing
b. differentiated marketing
c. target marketing
d. blanket marketing
e. intelligent marketing
15. A segmenting approach that has been around for a long time that can be
very effective—________— tailors brands and promotions to the needs
and wants of specific cities, neighborhoods, and even specific stores.
a. micromarketing
b. differentiated marketing
c. niche marketing
d. local marketing
e. A or D
16. ________ are consumer products and services with unique
characteristics or brand identification for which a significant group of
buyers is willing to make a special purchase effort.
a. Shopping products
b. Unsought products
c. Specialty products
d. Industrial products
e. Line extensions
17. A(n) ________ is a name, term, sign, symbol, design, or a combination
of these, that identifies that maker or seller of a product or service.
a. service
b. brand
c. co-brand
d. internal market
e. external market
18. Product mix ________ refers to the number of different product lines the
company carries. Procter & Gamble markets 250 brands organized into
many product lines.
a. length
b. height
c. width
d. perimeter
e. depth
19. General Electric worked with Culligan to develop its Water by Culligan
Profile Performance refrigerator with a built-in Culligan water filtration
system. This is an example of ________.
a. brand extension
b. brand equity
c. co-branding
d. internal marketing
e. cannibalization
20. Which of the stages in the product life cycle is characterized by rapid
market acceptance, increasing sales, and increasing profits?
a. introduction
b. maturity
c. growth
d. decline
e. development
21. What actually leads to greater competition in the maturity stage of the
PLC?
a. overcapacity
b. many competitors
c. poor management
d. inadequate promotion
e. a lack of money
22. Some companies have adopted a ________ strategy, offering just the
right combination of quality and good service at a fair price.
a. value-based pricing
b. good-value pricing
c. cost-plus pricing
d. low-price image
e. none of the above
23. Lawyers, accountants, and other professionals typically price by adding a
standard markup for profit. This is known as ________.
a. variable costs
b. cost-plus pricing
c. value-based pricing
d. break-even price
e. penetration pricing
24. Consumer perceptions of the product’s value set the ________.
a. demand curve
b. floor
c. ceiling
d. variable cost
e. image
25. By definition, a conventional distribution channel consists of one or more
independent producers, wholesalers, and ________.
a.
products
b.
retailers
c.
contracts
d.
strangers
e.
merchants
26. The most common type of contractual agreement in business is the
________.
a.
franchise organization
b.
vertical marketing system
c.
conventional marketing channel
d.
corporate VMS
e.
scrambled system
27. A recent major trend, whereby producers are bypassing intermediaries
and going directly to final buyers, or radically new types of channel
intermediaries are emerging to displace traditional ones is referred to as
________.
a.
the vertical marketing system
b.
the corporate marketing system
c.
disintermediation
d.
the corporate merger
e.
a hostile takeover
28. The communication tools a company uses to pursue its advertising and
marketing objectives is often referred to as the company’s ________.
a. direct marketing
b. integrated marketing
c. promotion mix
d. competitive marketing
e. target marketing
29. The major promotion tool that includes catalogs, telephone marketing,
kiosks, the Internet, and more is called ________.
a. sales promotion
b. direct marketing
c. affordable method
d. public relations
e. advertising
30. A message showing a product’s quality, economy, value, or performance
is called a ________ appeal.
a. structural
b. rational
c. emotional
d. moral
e. linguistic
1.
B
2. B
3. C
4. A
5. D
6.
D
7. B
8. D
9. C
10. A
11. C
12. B
13. A
14. A
15. D
16. C
17. B
18. A
19.
20. D
21. A
22. B.
23. B
24. C
25. B
26. A
27. C
28. C
29. B
30. B
A
Section 2 Short Answer Questions (25%)
Answer each question with adequate knowledge you have learned in this
course. You need to present your answer and the question number in the
Attached Answer Sheet.
1. Outline the four major steps in designing a customer-driven marketing
strategy. (7%)
Answer Keys
The first step is market segmentation: dividing a market into smaller groups of buyers
with distinct needs, characteristics, or behaviors, who might require separate products or
marketing mixes. The company then identifies different ways to segment the market and
develops profiles of the resulting market segment. The third step is differentiating the
firm’s market offering to create superior customer value. The final step is market
positioning: arranging for a market offering to occupy a clear, distinctive, and desirable
place relative to competing products in the minds of target consumers..
2. Discuss the importance of consumer perceptions of value and costs to
setting prices. (8%)
Answer Keys
Customer perceptions of value set the upper limit for prices, and costs set the lower limit.
However, in setting prices within these limits the company must then consider other
internal and external factors. Internal factors affecting pricing include the company’s
overall marketing strategy, objectives, and marketing mix, as well as other organizational
considerations. External factors include the nature of the market and demand,
competitors’ strategies and prices, and other environmental factors.
3. What advantages do multichannel distribution systems offer in today’s
markets? (8%)
Answer Keys
What is the principle advantage of using a multichannel distribution system?
With each new channel in a multichannel distribution system the company expands its sales
and market coverage and gains opportunities to tailor its products and services to the specific
needs of diverse customer segments.