1)Which of the following is characterized by customer orientation?   Production orientation Marketing concept Sales orientation Sales forecasting Mathematical modeling   Brand has the closest association to _____ in a firm’s marketing mix

1)Which of the following is characterized by customer orientation?

 

Production orientation

Marketing concept

Sales orientation

Sales forecasting

Mathematical modeling

 

Brand has the closest association to _____ in a firm’s marketing mix.

 

price

promotion

production

product

place

 

Once a company has created value, the next thing that the company must do is to:

 

deliver that value to potential customers.

create a need for that value.

communicate that value.

gauge customer confidence in that value.

understand customers’ perceptions of value.

 

 

Needs are states of felt deprivation that:

 

do not fit well with basic human makeup.

cannot be satisfied by a process of exchange.

are shaped by personality, culture, and buying situation.

can be created solely by marketers.

are created when customers lack something useful or desirable.

 

 

 

 

 

 

 

Freez is an ice-cream manufacturer in Ceda, a predominantly agrarian nation. Freez does not spend too much on marketing its products. Instead, it focuses on improving the processes through which it manufactures ice-cream. Freez believes that the quality of the ice cream alone is enough to differentiate itself from other manufacturers and generate sales. In this scenario, Freez’s marketing strategy is:

 

promotion oriented.

relationship-marketing oriented.

sales oriented.

production oriented.

marketing-concept oriented.

 

 

Why should marketers distinguish between needs and wants?

 

It helps marketers show customers that their wants are actually needs in disguise.

It allows them to create different products for wants and needs which are inherently different.

It helps them provide products that fulfill customers’ wants and satisfy their underlying needs.

It guarantees the sale of products due to clear distinction of product functionality.

It ensures that the customer is aware of whether a want is being satisfied or a need.

 

The name, term, symbol, design, or any combination of these that identifies and differentiates a firm’s products is termed as:

 

brand.

valuation.

product definition.

marketing mix.

sales orientation.

 

8. P7J, a chain of discount stores across the United States, has many store brands including Wire, a line of sports shoes. Wire is a popular brand among regular store customers and they vouch for its quality being as good as other top brands. Facing competition from other shoe brands, P7J reduced the prices on Wire products by 30 percent. While it sold an average of 800 units per day at a price of $30 per unit amounting to $24,000 before the discount, it sold 1,000 units per day amounting to $21,000 after the discount. Which of the following is exemplified by this scenario?

 

Customers’ positive perception of a brand does not always translate to more sales.

A reduction in pricing does not necessarily increase overall revenue earned from a product.

A product that is priced higher is perceived to be of a higher quality.

Competing on product quality generates more sales than competing on price.

Pricing is typically the most difficult marketing mix element to change.

 

 

Which of the following can be considered a product decision?

 

Determining the target market of the product

Determining the number of salespeople to sell a product

Determining the discount or introductory offers on a product

Determining the price of a product

Determining the features of a product

 

_____ are moral standards expected by a society.

 

Needs

Exchanges

Wants

Relationships

Ethics

 

Which of the following is true of customer value?

 

Supply chains are not related to customer value.

To create value, the new good, service, or idea must satisfy a perceived marketplace demand.

The monetary benefits associated with a product do not impact the customer value.

Marketers should not worry about getting their message out to customers.

A customer's perception of value is not defined by a customer's wants.

 

Which of the following is a useful guideline to make ethical decisions?

 

When dealing with ethical problems, protecting internal stakeholder interests should be the primary concern.

Consider how an ethical decision will affect stakeholders rather than discussing it with them.

The first alternative available must be chosen when solving an ethical problem.

It is possible to avoid ethical problems if the ethical issue is clearly identified.

The factual elements of a problem cannot be determined without the influence of personal bias.

 

Which of the following makes it absolutely essential that nonprofit organizations engage in marketing efforts?

 

Nonprofit organizations are among the major contributors to the U.S. economy.

Churches, zoos, and universities attract the most funding in the United States.

Funding from the government is directed toward nonprofit organizations like hospitals.

Nonprofit organizations, like for-profit organizations, layoff people during recessions.

Successful marketing helps attract membership and much-needed funds.

 

During the rainy season, people look to buy raincoats and umbrellas. Raindrop, an apparels manufacturer, caters to this need. Which of the following actions would represent the conversion of this need into a want?

 

Raindrop introduces a line of see-through umbrellas that glow in the dark.

Raindrop produces umbrellas and raincoats in different sizes to cater to different ages.

Raindrop produces umbrellas and raincoats under different brand names.

Raindrop offers a discount on raincoats and umbrellas during summer.

Raindrop sells umbrellas and raincoats as bundled products.

 

Lara and her friends visit a new restaurant in town called Betelgeuse. They just happen to notice it while on a long drive. Lara and her friends like the ambience, décor, as well as the food. Lara is surprised when she finds out that the restaurant has been open for two years and neither her friends nor she knew of it until that day. At which of the following aspects of marketing has Betelgeuse failed?

 

Catering to both needs and wants of customers

Measuring the customers' perception of value

Creating value for potential customers

Delivering value to customers

Communicating value to potential customers

 

What did firms such as Ford do during the Great Depression when product sales decreased?

 

They focused on attracting, maintaining, and enhancing customer relationships.

They resorted to personal selling and advertising.

They stressed on the need to satisfy customers' wants.

They employed company-wide policies to improve human resource acquisition.

They scaled production capacities to flood the market with new products.

 

Which of the following is the role of the promotion element in the marketing mix?

 

Selling the value of a product to customers

Making the value of a product affordable for customers

Delivering the value of a product to customers

Communicating the value of a product to customers

Creating the value of a product for prospective customers

 

Corporate social responsibility (CSR) can be defined as an organization’s obligation to:

 

proactively recognize and respond to international marketing opportunities.

expand its business and increase profits.

maximize its positive impact and minimize its negative impact on society.

determine whether a company should cater to the needs or wants of customers.

make standard pricing for each product in different regions of the world.

_____ refers to the perceived benefits, both monetary and nonmonetary, that customers receive from a product.

 

19. Customer relationship

Customer value

Customer service

Consumer confidence

Purchasing power

 

Which of the following led to the development of the marketing concept strategy?

 

The economic slowdown during the Great Depression

The surplus of products in the market beginning in the early 1950s

The introduction of new media such as electronic mail

The creation of products that catered to particular ethic groups

The optimization of manufacturing facilities

 

Which of the following is a major risk associated with licensing?

 

22. The licensor loses unique insight about its local consumers.
23. The licensor has to adhere to regulations of the licensee’s country.
24. The licensee might improve on the licensor’s technology and ask the licensor to pay for it.
25. The licensor may be inadvertently creating a future competitor in the form of the licensee.
26. The licensee is free to modify the licensor’s proprietary technology.

 

_____ is the process of thoughtfully defining a firm’s objectives and developing a method for achieving those objectives.

 

Situation analysis

Strategic planning

Stakeholder management

Diversification

Marketing strategy

 

 

 

 

 

 

The primary strategic planning tool for directing and coordinating the marketing effort is the:

 

marketing trend.

marketing mix.

marketing research.

marketing concept.

marketing plan.

 

Which of the following is true of contingency planning?

 

It provides an outline of the organizational structure.

It helps hold specific departments and individuals responsible for specific parts of the marketing plan.

It clarifies the accountability of people responsible for completing different tasks in the marketing department.

It defines the actions the company will take if the initial marketing strategy does not achieve results.

It provides a detailed account of how the specific actions of the marketing plan will be carried out.

 

A market penetration strategy:

 

revolves around discontinuing older products in favor of selling new products in new markets.

involves creating new goods and services for existing markets.

focuses on selling existing goods and services to new customers.

emphasizes selling more of existing goods and services to existing customers.

seeks to attract new customers by offering new products that are unrelated to the existing products produced by the organization.

 

Joint ventures work best when the partners’:

 

strategic goals diverge.

core business interests lie in different industries.

firms do not create a new entity.

proprietary skills are interchangeable.

competitive goals diverge.

 

 

 

 

Which of the following is a feature of the executive summary?

 

It provides a standard to ensure that the business never strays too far from its core goals and values.

It is a concise affirmation of the firm’s long-term purpose.

It provides employees with a shared sense of ambition, direction, and opportunity.

It is the primary influence on a firm’s overall marketing strategy.

It must be done after the rest of the marketing plan has been completed.

 

The _____ is an action-oriented document or playbook that guides the analysis, implementation, and control of the firm’s marketing strategy.

 

business record

market requirements document

marketing plan

marketing collateral

marketing operation document

 

Resco is an apparels manufacturer whose products are carried only by two major retailers in the United States. In the context of SWOT analysis, which of the following can be classified as a weakness of Resco in this scenario?

 

A cargo truck carrying Resco’s shipment turned over on a highway and went up in flames.

Resco’s research and development department is on the verge of a major breakthrough and needs extra funding.

Resco’s manufacturing units use legacy technology that sometimes leads to backorders.

One of the retailers plans to start manufacturing its own brand of clothes.

One of the retailers tells Resco that it will carry Resco’s products with its own brand name.

 

Carson James is the owner of Artwall, a chain of bookstores that sells children’s books. Carson believes that all children deserve access to quality education. In line with this philosophy, Carson starts a nonprofit organization called Edufund Foundation, primarily funded by profits from Artwall, to help educate children who can’t afford it. Carson’s team at Artwall is tasked with creating a mission statement, and they come up with the following drafts. Which of the following should Carson pick?

 

Our goal is to educate children.

Artwall and Edufund have joined hands to ensure that even children who do not buy from us are educated.

Edufund’s mission is in line with Artwall’s strategy of educating children.

Children are the future of this nation and they deserve education.

Our mission is to ensure that all children have access to education

 

.

Zbar, a mobile phone-manufacturing company, decides to pursue a market development strategy to further its business prospects. In this situation, which of the following actions falls in line with Zbar’s latest strategic direction?

 

Zbar announces the creation of a new phone.

Zbar persuades its customers to buy more accessories for their phones.

Zbar tries to get existing customers to buy a new version of their mobile phones for their spouses.

Zbar enters a price-sensitive market with its low-end phones.

Zbar tries to get existing customers to buy its new easy-to-use phones for their grandparents.

 

The mission statement of a firm:

 

should focus on as many goals as possible to ensure that all of the firm’s plans are covered in the statement.

provides a standard to ensure that the business never strays too far from its core goals and values.

defines the way external stakeholders communicate with the firm.

provides a shared purpose and motivation for the customers of the firm.

should be framed based on the long-term marketing strategy of a firm.

 

Franchising is an attractive method of entering foreign markets because:

 

franchisees assume the majority of the capital costs and human resource issues.

it increases the ease of direct oversight over the franchisee.

franchisees have to adhere to the regulations of the franchisor’s country.

franchisees can use and modify the technology and trademarks as they deem fit.

franchisees provide the knowledge and information required to run the business.

 

The mission statement of a firm:

 

primary strategic planning tool for directing and coordinating the marketing effort of a firm.

requires the input, guidance, and review of employees throughout the various departments of the firm.

is a concise affirmation of the firm’s long-term purpose.

should not influence the firm’s strategic planning.

is an action-oriented document or playbook that guides the analysis, implementation, and control of the firm’s marketing strategy.

 

 

 

 

A firm with a “cash cow” product is most likely to:

 

reallocate the marketing resources available for the cash cow product to products with more profit potential.

invest heavily in its production and marketing to create and communicate value.

have a large market share in an industry with high growth rates.

invest just enough money to maintain strong sales.

discontinue the product.

 

Which of the following is a function of the marketing strategy in a marketing plan?

 

Detailing financial projections

Defining the target market

Analyzing the marketing environment

Synopsizing the marketing plan’s main points

Monitoring the marketing plan

 

In the context of SWOT analysis, which of the following can be classified as an opportunity for a manufacturing firm?

 

An internal production technique that increases efficiency by 30 percent

A renewed business contract with a supplier for raw materials

A technological breakthrough by its research and development department

A rise in demand for products that the firm manufactures

A lawsuit filed by an environmental outfit concerning environmental pollution

 

43. Vida is an Italian car manufacturer with manufacturing plants all over the world, including the United States. In the context of SWOT analysis, which of the following can be classified as one of Vida’s strengths?

One of Vida’s component suppliers has decided to start manufacturing cars.

The prices of fuel have dropped, encouraging customers to buy more cars.

Vida recently recruited two senior engineers from one of its major competitors.

There is a recent increase in demand for hybrid cars in the U.S.

The auto industry all over the world is booming.

 

 

 

 

 

A product possesses a competitive advantage when it enjoys a superior position over competing products because:

 

the manufacturing firm is pursuing a product development strategy.

the competing firms are pursuing different marketing strategies.

consumers believe it has more value than other products in its category.

the product is in the “question mark” product category of BCG matrix.

competing products are manufactured in small numbers.

 

Ruth designs games for mobile operating systems such as iOS and Windows. The demand for games on mobile devices is high. Ruth’s latest game, Viper Slash, is yet to generate profitable sales despite receiving rave reviews. According to the BCG matrix, Viper Slash can be classified as a:

 

question mark product.

cash cow product.

star product.

threatened product.

dog product.

 

Indirect competition occurs when:

 

competition is not established between two companies in the same industry.

customers do not prefer one product over another.

products provide alternative solutions to the same market.

a pioneer faces competition from late entrants to an industry.

multiple products compete for the same market.

 

Taymen Inc., a furniture manufacturer based in Arizona, has tie-ups with raw material suppliers and shipping companies who provide Taymen a uniform pricing option across the United States. Despite the cost of production and distribution being the same across the United States, Taymen charges more for its products on the West Coast than in other parts of the United States. Which of the following acts prohibits this practice?

 

Credit Card Accountability, Responsibility, and Disclosure Act

Wheeler-Lea Amendment

Telephone Consumer Protection Act

Robinson-Patman Act

Sherman Antitrust Act

 

 

 

A recession occurs when:

 

a nation’s GDP increases in one quarter and decreases in the next.

a nation’s GDP per capita is lesser than that of neighboring countries.

a nation’s GDP of the current year is lesser than that of the previous year.

a nation’s GDP per capita is lesser than the estimated level of GDP per capita.

a nation’s GDP declines for two or more consecutive quarters.

 

What is the relationship between purchasing power and inflation?

 

Purchasing power and inflation are independent of each other.

Purchasing power increases with rising inflation.

Purchasing power and inflation rise and fall together.

Purchasing power increases with decreasing inflation.

Purchasing power decreases with rising inflation.

 

What is the major difference between a nonprofit organization and a for-profit organization?

 

Nonprofit organizations find it relatively easier to secure funds during an economic slowdown.

Funding is not an issue with nonprofits because of continuous support from benefactors.

Nonprofits do not have to worry about external factors such as political or technological factors.

Nonprofits are not subject to government regulations, unlike for-profit organizations.

The benefactors of nonprofit organizations do not receive any direct benefit, unlike customers

 

.

Cunaxa (CX), an agrarian nation, has a GDP of CX$ 23 million in 2013 during the first quarter. During the next two quarters, it records a GDP of CX$21 million and CX$ 20.5 million respectively. This trend can be classified as a(n):

 

drop in consumer confidence

reduction in income distribution

inflation

recession

increase in purchasing power

 

Radio Z and Buzz are radio stations in direct competition with each other. The target audience for both radio stations is the same, with most of their income coming from commercials. Which of the following strategies can Buzz use to differentiate its services from Radio Z?

 

53. It can hire talent from Radio Z to gain competitive advantage.

It can forgo commercials.

It can tune its shows to cater to specific needs of the audience.

It can partner with Radio Z to create a new radio station.

It can offer its services via a different medium.

The _____ authorizes the Federal Trade Commission to restrict unfair or deceptive acts.

 

54. Credit Card Accountability, Responsibility, and Disclosure Act

Wheeler-Lea Amendment

Telephone Consumer Protection Act

Sherman Antitrust Act

Robinson-Patman Act

 

Assuming that a kilo of wheat sold for $1 in 2002 and $3 in 2013, which of the following can be inferred?

 

The inflation has reduced over the years.

The level of consumer confidence in the country has reduced.

The economy of the country is currently in recession.

The purchasing power of the consumers has decreased.

The GDP has increased over the years.

 

Which of the following is true about various demographics in the United States?

 

Seniors are more likely to complain and require more attention than their younger counterparts.

Seniors have the greatest familiarity with and most use for digital communication.

Male control over the majority of consumer spending makes them a target for marketers.

Younger people have more free time and disposable income to shop for products.

Male consumers now account for 85 percent of all consumer purchases in the United States.

 

Platia (P) and Orania (O) are two neighboring countries that engage in foreign trade. In a particular month, P$1 is equivalent to O$2. Three months later, P$1 is equivalent to O$2.5. How will this currency fluctuation impact trade between the two countries?

 

This change in currency rate will stall trade relations between Orania and Platia.

This change in currency rate will reduce the purchasing power of people in Platia.

This change in currency rate will increase the demand for Oranian goods in Platia.

This change in currency rate will decrease the demand for Oranian goods in Platia.

This change in currency rate will increase the demand for Platian goods in Orania.

 

Which of the following is true of the World Trade Organization?

 

It allows exporters and importers to conduct their business without restrictions imposed by government regulations.

It is the only international organization dealing with the rules of trade between nations.

It ensures that currency exchange rates maintain stability.

It provides monetary assistance to countries that are in debt.

It guarantees the free trade of finances and goods between member nations.

 

Which of the following exemplifies a strategy to cater to the sociocultural factor of busier families in America?

 

The increase in cosmetics targeted at women

The creation of products that cater to a particular ethic group

The launch of online ticket-booking options

The distribution of advertisements in multiple languages

The creation of advertisements that engage users on an intellectual level

 

_____ is the most common gauge of the overall expansion or contraction of an economy.

 

Income distribution

Recession

Inflation

Gross domestic product

Consumer confidence

 

If the economy of a country contracts and people lose jobs:

 

the purchasing power of the population increases.

consumers tend to spend more money.

consumer confidence decreases.

inflation rises.

the GDP per capita in the country remains constant.

 

One of the functions of the International Monetary Fund is to:

 

help importers and exporters conduct their business in member countries.

help member countries manage their debt by providing resources to them.

reduce barriers to the free trade of goods and services between countries.

ensure that member nations adhere to WTO agreements.

ensure that member countries adhere to trade agreements.

 

Why do marketers tend to target educated consumers?

 

They are hard to please and cannot be convinced easily.

They have very low levels of disposable income.

Their earnings are similar to those who are not educated.

They are more likely to comprehend an advertising message.

They mostly belong to generation Y, the wealthiest generation in U.S. history.

 

 

Which of the following pairs of products can be regarded as substitute products?

 

Toothpaste and toothbrush

Television and books

Movies and plays

Butter and cheese

Internet radio and traditional radio

 

The higher percentage of U.S. exports to Canada and Mexico rather than to other individual country can be attributed to the:

 

North American Free Trade Agreement.

International Monetary Fund.

World Trade Organization.

European Union.

Dominican Republic-Central America Free Trade Agreement.

 

Marketers are attracted to countries with a growing middle class because a nation’s:

 

middle class is the least affected when there is inflation.

purchasing capability tends to increase as the proportion of middle-income households increases.

rise in GDP is directly proportional to the rise in income of the middle class in the country.

middle class has higher disposable income than the rest of the population.

middle class will continue to splurge on products even during a recession.