1. (TCO 4) Three commonly used methods of evaluating marketing programs are marketing metrics, marketing dashboards and (Points : 5)
marginal analysis.
marketing audits.
marketing ROI.
marginal analysis.
marketing control boards.

 

2. (TCO 1) Ideally, in effective marketing planning, goals should be __________ in terms of what is to be accomplished and when. (Points : 5)
loose and vague
as general as possible
flexible or elastic
quantified and measurable
none of the above

 

3. (TCO 3) Which marketing strategy focuses its efforts on a single product line and market segment? (Points : 5)
full coverage
market specialization
product specialization
selective specialization
market-product concentration

 

4. (TCO 1) Based on relative competitive scope (broad target to narrow target) and source of competitive advantage (lower cost to differentiation), Porter’s four generic business strategies are differentiation, cost focus, differentiation focus, and (Points : 5)
exclusivity
electronic-focus.
quality focus.
cost leadership.
service leadership.

 

5. (TCO 2) Which of the following pieces of information is used in the implementation phase of the strategic marketing process? (Points : 5)
corporate return on investment
marketing research reports
revenues associated with each point of market share
trends in past and current revenues for industry and competitors in total and by segment
possible cannibalization effects on other products in the line

 

6. (TCO 6) Which of the following pieces of information is used in a SWOT analysis, the first step of the planning phase of the strategic marketing process? (Points : 5)
corporate return on investment
market share for the product
revenues associated with each point of market share
projection of future sales, expenses, and profits
possible cannibalization effects on other products in the line

 

7. (TCO 3) When developing the advertising program, which step helps advertisers with other choices in the process such as selecting media and evaluating a campaign? (Points : 5)
identify the target audience
specify the advertising objectives
design the advertising
pretest the advertising
schedule the advertising program

 

8. (TCO 2) The proper blend of elements in the promotional mix depends on the type of product. The three specific characteristics to be considered are __________, risk, and ancillary services. (Points : 5)
Complexity
Size
Durability
Accessibility
Acceptability

 

9. (TCO 4) The promotional objective of the decline stage of the product life cycle is to (Points : 5)
inform
persuade
compare
remind
do none of the above.

 

10. (TCO 2) The __________ can be used to inform prospective buyers about the benefits of the product. (Points : 5)
promotion channel
communication chain
marketing matrix
promotional mix
media mix

 

11. (TCO 8) Which of the following statements about the terms used for marketing intermediaries is true? (Points : 5)
The least precise terms used to describe marketing intermediaries are dealer and distributor.
A retailer sells to business markets.
An agent has no legal authority to act on behalf of a manufacturer.
A wholesaler is an intermediary who sells to consumers.
A broker is a synonym for a dealer.

 

12. (TCO 7) Price fixing is (Points : 5)
an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor.
the practice of charging a very low price for a product with the intent of driving competitors out of business.
the practice of charging different prices to different buyers for goods of like grade and quality.
a conspiracy among firms to set prices for a product.
a seller’s requirement that the purchaser of one product also buy another product in the line.

 

13. (TCO 2) Pricing objectives may change depending on (Points : 5)
the financial position of the company as a whole.
the success of company products.
the segments in which the company is doing business.
where the company is doing business by country.
all of the above.

 

14. (TCO 3) The ratio of perceived benefits to price is called (Points : 5)
the price-quality relationship.
prestige pricing.
value-added pricing.
value
value analysis.

 

15. (TCO 6) Market segmentation involves aggregating prospective buyers into groups that have common needs and will (Points : 5)
pay attention to marketing messages.
respond similarly to a marketing action.
be responsive to marketing research.
use the same payment methods.
go shopping on a regular basis.

 

16. (TCO 5) Which of the following statements about environmental scanning is true? (Points : 5)
Environmental scanning changes the marketing environment.
Environmental scanning identifies and interprets potential trends.
Environmental scanning is an annual event.
Environmental scanning focuses primarily on geographical factors.
All of the above statements about environmental scanning are true.

 

17. (TCO 1) A key role of the marketing department is to (Points : 5)
allocate financial resources across business units.
set the overall mission of the company.
provide talent management services.
look outward.
assess global political situations.

 

18. (TCO 1) Which of the following acts as a barrier to the development of relationship marketing? (Points : 5)
the large number of one-to-one relationships customers are asked to sustain
the large number of products on the market
the increasing number of retail stores that are closing
the changing regulatory environment
diluted cultural diversity

 

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Week 8 : Final Exam – Final Exam

 

Time Remaining:

 

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Analysis and Application of Marketing Concepts

 

There are 15 multiple choice questions worth 8 points each designed to test your ability to analyze and apply the marketing concepts you have learned in this couse. Take your time and consider your answers carefully.

 

1. (TCO 1) Your neighbor is tired of conventional soft drinks and wants something different. Coincidentally, Cadbury Beverages, Inc. has begun distributing Country Time lemonade through the supermarket at a price comparable to that of soft drinks. Which of the conditions needed for marketing to occur is described in this situation? (Points : 8)
The creation of unrealized needs
Two parties with unsatisfied needs
One-way communication
A physical location for an exchange to take place
Time and place utility

 

2. (TCO 6) Kraft produces Lunchables, a prepackaged meal usually consisting of several crackers, small slices of meat and, small slices of cheese. Some versions contain Capri Sun drinks. Others are called Cracker Stackers and Fun Fuel. The box is bright yellow and the quantity of food contained within is small. The target market for Kraft Lunchables is most likely

 

(Points : 8)
Moms of school-age children
Business people looking for a quick snack
Business travelers
Teenagers
Seniors

 

3. (TCO 3) The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes used in the old-fashioned cookies the company produces and markets. This statement deals with which part of the marketing mix?

 

(Points : 8)
Product
Process
Price
Place
Promotion

 

4. (TCO 5) Google’s myspace.com is a social network that is targeted primarily to people under the age of 25. Increasing use of myspace.com as a networking tool for this target market is an example of how __________ forces impact the marketing (Points : 8)
Economic
Competitive
Social
Regulatory

 

5. (TCO 7) A car collector, Mr. F. Hansen, who said his 1975 Chevrolet Corvette was certified as the last Corvette convertible to be produced, sued General Motors to stop it from manufacturing any more of the convertible sports cars. The suit also requested $1.5 million in damages. Hansen claimed he bought the car for its collector’s value. It came with a letter from GM dated August 25, 1975, that said the car was “the last Corvette convertible that General Motors Corp. would ever manufacture”. Hansen said the value of his car has been decreasing ever since GM resumed manufacturing Corvette convertibles in 1985. If the court ruled in favor of Mr. Hansen, what general type of regulation would such a ruling represent?

 

(Points : 8)
Protecting companies from one another
Protecting consumers from unfair trade practices
Protecting the future interests of society from dangerous business practices
Protecting consumers from one another
Protecting businesses from unfair consumer practices

 

6. (TCO 6) Graham-Field Health Products makes hospital beds and wheelchairs from component parts and materials it buys. It sells its products to hospitals, nursing homes and retailers of health care products. Graham-Field Health Products operates in a(n) __________ market.

 

(Points : 8)
Consumer
Government
Industrial
Reseller
Demographic

 

7. (TCO 1) The Book Promoters Association of Canada members recently questioned what could be done to rejuvenate the Canadian book publishing industry. Some members claimed the problem was Canadian retailers had been replaced by Wal-Marts. Others said the problem was with stodgy promotions. Still others said the problem was caused by too little money being budgeted to fund marketing programs. It was time that Canadian book publishers used __________ to save the industry. (Points : 8)
Advertising
Sales promotion
Publicity
Marketing research
Tactical support

 

8. (TCO 3) The Belsen interview is a means of pretesting media surveys. It gathers facts and figures by asking people about their attitudes, beliefs and awareness of various media. With this technique, the respondent is interviewed twice—first by an interviewer using the proposed survey and then by a different interviewer, who asks questions about the survey itself. The Belsen interview uses __________ data.

 

(Points : 8)
Observational
Secondary
Intercept
Questionnaire
Synergistic

 

9. (TCO 4) A 3M researcher worked with university students to develop the Post-it Flag Highlighter. His team evaluated the technical feasibility of the proposed design and whether the idea met the new-product objectives. In which stage of the new-product process was this product? (Points : 8)
Idea generation
Screening and evaluation
Business analysis
New-product strategy development
Concept testing

 

10. (TCO 4) A few years ago Who Wants to Be a Millionaire premiered as the first nighttime game show in several decades. The marketing for the show was intent on making television viewers aware of its existence and excited enough about the show that we would watch the first episode. Based on this description, in which stage of the product life cycle would this show be?

 

(Points : 8)
Introduction
Growth
Maturity
Decline
Harvest

 

11. (TCO 8) In an episode of the Andy Griffith television series, two local farmers were selling the produce they grew on their farms from the back of their pickup trucks to local people that drove by on the road. The farmers selling their products without wholesalers or retailers were an example of a

 

(Points : 8)
Roadside channel of distribution
Traveling channel of distribution
Intermediate channel of distribution
Informal channel of distribution
Direct channel of distribution

 

12. (TCO 2) Disney is using an integrated marketing communications program (IMC) to promote group travel to its theme parks because (Points : 8)
Its strategy includes using all types of promotional activities that deliver a consistent message
It does not want to reach any member of its target audience more than once

 

IMC is less expensive than other forms of promotion such as public service announcements
If it didn’t, Disney would have to use indirect personal selling
It is more concerned about frequency than reach

 

13. (TCO 2) When a news story covers a terrible disaster and viewers are asked to send donations to the American Red Cross, the American Red Cross is receiving (Points : 8)
Publicity
Advertising
Direct marketing
Personal selling
A public service announcement

 

14. (TCO 8) Recently American Express, Visa and MasterCard have been pushing hard into the small-ticket end of the credit card market. The purchase of items such as fast food meals, movie popcorn and candy have been targeted as growth areas for credit card usage. This is an example of a __________ strategy on the part of the credit card companies.

 

(Points : 8)
Market penetration
Market development
Product development
Diversification
Product dissemination

 

15. (TCO 5) In a survey conducted immediately after the World Trade Center attack, 47 percent of the women who responded to the survey said they would not treat themselves to small luxuries like manicures and 54 percent said they would not buy any expensive clothes. The results of this survey most directly relate to __________ forces within the environmental scan. (Points : 8)
Economic
Regulatory
Cost
Competitive
Legal

 

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Week 8 : Final Exam – Final Exam

 

Evaluation and Synthesis
In this section of the exam, you will answer 3 essay questions worth 30 points each. Take time to think through your answer and organize your response. Remember to save your work before preceeding to the next question.

 

1. (TCO 3)
Imagine you are creating a marketing plan for a company that will sell bikes. As you consider the marketing program, what types of strategy should you consider including in the plan? Propose one specific example of each type of strategy that you are considering and present your rationale (reasoning) for your strategy selections.
(Points : 30)

 

2. (TCO 1) Imagine you are the marketing manager responsible for developing marketing strategy for a bicycle company. Propose the strategic marketing process you will use being sure the name the stages, the activities included in the stages and stage specific examples related to marketing bicycles. (Points : 30)

 

3. (TCO 4) Imagine you are the product manager for a new electric car similar to the Chevrolet Volt. Using all your knowledge of the new product life cycle, speculate on the stages of the life cycle your electric car will pass through being sure to discuss the marketing objectives in each stage giving specific examples of the objectives along with your reasoning for creating the objective. (Points : 30)

 

4. In China, many people are removing their money from the state banks and lending it out themselves. The interest rate earned in a state bank account is about one-half the rate of inflation. On the other hand, loaning money to friends, relatives and, even unrelated entrepreneurs can often earn the investor double or more over the inflation rate. The gray market, an underground network of investors and private businesses, moves the cash from lenders to businesses. Judge whether marketing occurred in this situation and justify your conclusions. Appraise the effectiveness of government regulation in controlling markets.

 

5. Managing the product through successive stages of the product life cycle is an important role for a product manager. Assess the three ways to manage a product through its life cycle including examples to help clarify your assessment. Indicate the reasoning why you would prefer one method over another in a given situation. You can use any product in your examples.

 

SET 2

 

1. (TCO 4) Three commonly used methods of evaluating marketing programs are (Points : 5)
sales analysis, marginal analysis, and cost analysis.
sales analysis, profitability analysis, and marketing audits.
marketing ROI, metrics, and dashboards.
sales audits, cost audits, and marketing audits.
internal audits, external audits, and marketing control boards.

 

Question 2. 2. (TCO 1) Ideally in effective marketing planning, goals should be _____ in terms of what is to be accomplished and when. (Points : 5)
loose and vague
as general as possible
flexible or elastic
quantified and measurable
None of the above

 

Question 3. 3. (TCO 3) Which marketing strategy focuses on a single market segment but adds additional product lines? (Points : 5)
Full coverage
Market specialization
Product specialization
Selective specialization
Market-product concentration

 

Question 4. 4. (TCO 1) Based on relative competitive scope (broad target to narrow target) and source of competitive advantage (lower cost to differentiation), Porter’s four generic business strategies are differentiation, cost focus, cost leadership, and (Points : 5)
exclusivity.
electronic-focus.
quality focus.
differentiation focus.
service leadership.

 

Question 5. 5. (TCO 2) Which of the following pieces of information is used in the implementation phase of the strategic marketing process? (Points : 5)
Corporate return on investment
Marketing research reports
Revenues associated with each point of market share
Trends in past and current revenues for industry and competitors in total and by segment
Possible cannibalization effects on other products in the line

 

Question 6. 6. (TCO 6) Which of the following pieces of information is used in a SWOT analysis, the first step of the planning phase of the strategic marketing process? (Points : 5)
Corporate return on investment
Market share for the product
Revenues associated with each point of market share
Projection of future sales, expenses, and profits
Possible cannibalization effects on other products in the line

 

Question 7. 7. (TCO 3) The first decision in developing an advertising program is to (Points : 5)
set the budget.
state the mission of the advertising program.
identify the target audience.
select the appeal.
select the media.

 

Question 8. 8. (TCO 2) The proper blend of elements in the promotional mix depends on the type of product. The three specific characteristics to be considered are _____, risk, and ancillary services. (Points : 5)
complexity
size
durability
accessibility
acceptability

 

Question 9. 9. (TCO 4) Reminding buyers of the product’s existence is the promotional objective during which stage of the product life cycle? (Points : 5)
Introduction
Growth
Maturity
Decline
All of the above

 

Question 10. 10. (TCO 2) The _____ can be used to inform prospective buyers about the benefits of the product. (Points : 5)
promotion channel
communication chain
marketing matrix
promotional mix
media mix

 

Question 11. 11. (TCO 8) Which of the following statements about the terms used for marketing intermediaries is true? (Points : 5)
The most precise terms used to describe marketing intermediaries are dealer and distributor.
A retailer sells to business markets.
An agent has no legal authority to act on behalf of a manufacturer.
A wholesaler is an intermediary who sells to other intermediaries.
Broker is a synonym for a dealer.

 

Question 12. 12. (TCO 7) Which of the following statements about the legal and regulatory aspect of pricing is true? (Points : 5)
The Robinson-Patman Act deals with predatory pricing.
The Consumer Goods Pricing Act is the only federal legislation that deals directly with pricing issues.
The Sherman Act deals only with vertical price fixing.
The Federal Trade Commission Act deals with predatory pricing, deceptive pricing, and geographical pricing issues.
The Consumer Goods Pricing Act and the Robinson-Patman Act deal with price discrimination.

 

Question 13. 13. (TCO 2) Pricing objectives may change depending on (Points : 5)
the financial position of the company as a whole.
the success of company products.
the segments in which the company is doing business.
where the company is doing business by country.
All of the above

 

Question 14. 14. (TCO 3) The ratio of perceived benefits to _____ is called value. (Points : 5)
price
prestige value
value-added pricing
value analysis
perceived costs

 

Question 15. 15. (TCO 6) Market segmentation involves aggregating prospective buyers into groups that will respond similarly to a marketing action and (Points : 5)
will pay attention to marketing messages.
have common needs.
be responsive to marketing research.
use the same payment methods.
go shopping on a regular basis.

 

Question 16. 16. (TCO 5) The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is called (Points : 5)
environmental trending.
organizational scanning.
environmental scanning.
a SWOT analysis.
acquisition scanning.

 

Question 17. 17. (TCO 1) The marketing department helps keep the organization focused on creating value both for it and for customers. This is accomplished by (Points : 5)
listening to customers.
developing offerings.
producing offerings.
implementing marketing program activities.
All of the above

 

Question 18. 18. (TCO 1) Which of the following acts as a barrier to the development of relationship marketing? (Points : 5)
The large number of one-to-one relationships that customers are asked to sustain
The large number of products on the market
The increasing number of retail stores that are closing
The changing regulatory environment
Diluted cultural diversity

 

Question 19. 19. (TCO 1) Your neighbor is tired of conventional soft drinks and wants something different. Coincidentally, Cadbury Beverages Inc. has begun distributing Country Time lemonade through the supermarket at a price comparable to that of soft drinks. Which of the conditions needed for marketing to occur is described in this situation? (Points : 5)
The creation of unrealized needs
Two parties with unsatisfied needs
One-way communication
A physical location for an exchange to take place
Time and place utility

 

Question 20. 20. (TCO 6) Kraft produces Lunchables, a prepackaged meal usually consisting of several crackers, small slices of meat, and small slices of cheese. Some versions contain Capri Sun drinks. Others are called Cracker Stackers and Fun Fuel. The box is bright yellow and the quantity of food contained within is small. The target market for Kraft Lunchables is most likely (Points : 5)
moms of school-aged children.
business people looking for a quick snack.
business travelers.
teenagers.
seniors.

 

Question 21. 21. (TCO 3) Which element of the marketing mix is demonstrated when the Mars Company has a sale on M&M’s® brand candies? (Points : 5)
Product
Price
Promotion
Place
Production

 

Question 22. 22. (TCO 5) The Lemon Tree is a high-fashion boutique selling top-of-the-line women’s clothing and accessories. The keys to its success include knowing the customers’ changing tastes and providing something different from other retailers. In addition, because of the high value of the merchandise, The Lemon Tree’s management is exploring the use of computerized inventory controls and sales order processing. From this description, one can infer that the environmental category of least importance to The Lemon Tree is (Points : 5)
economic.
regulatory.
technological.
social.
competitive.

 

Question 23. 23. (TCO 7) In 1998, F. Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies, were ordered to pay $725 million in fines for plotting to raise and fix prices of vitamins used in virtually every home in the United States. This is an example of how _____ forces affect the marketing environment. (Points : 5)
economic
ecological
technological
social
regulatory

 

Question 24. 24. (TCO 6) Mile High Frozen Foods is a distributor for McDonald’s. It also bakes the buns used by McDonald’s in several states. Mile High purchases flour, yeast, and sesame seeds, manufactures the buns, and then distributes them to the retail stores. Mile High Frozen Foods is operating in a(n) _____ market. (Points : 5)
reseller
government
institutional
psychographic
industrial

 

Question 25. 25. (TCO 1) Several years ago, SwissAir made some unwise investments to pay for a planned expansion. As a result, the company had to make some cost-cutting moves that alienated its customers. Eventually the company declared bankruptcy, regrouped, and found itself able to resume business. Its board of directors recently announced that the company would like to resume flying. Before resuming flying, SwissAir needed to determine what percentage of its former customers it could expect to return to the airline. If not enough former customers were willing to use SwissAir again, the resumption of flights would not be profitable. The determination of the percentage of returning patrons that would be needed to resume operation is an example of a (Points : 5)
research risk.
research objective.
research uncertainty.
research decision.
research definition.

 

Question 26. 26. (TCO 3) When Marine Midland Bank sent market researchers with surveys door-to-door in the neighborhoods of its branch banks to ask people with savings accounts why they did not also have checking accounts and credit cards with Marine Midland, the researchers were gathering _____ data. (Points : 5)
questionnaire
secondary
intercept
observational
nonprobability

 

Question 27. 27. (TCO 4) Sara Burns is the owner of a company called Spice and was looking for a new product to go with her company’s line of food condiments when a friend suggested combining spices with tea. In the _____ stage of the new-product process, the spices and tea mixtures were exposed to prospective consumers under realistic purchase conditions. (Points : 5)
idea generation
screening and evaluation
business analysis
market testing
commercialization

 

Question 28. 28. (TCO 4) A few years ago, Who Wants to Be a Millionaire premiered as the first nighttime game show in several decades. The marketing for the show was intent on making television viewers aware of its existence and excited enough about the show that they would watch the first episode. Based on this description, in which stage of the product life cycle would this show be? (Points : 5)
Introduction
Growth
Maturity
Decline
Harvest

 

Question 29. 29. (TCO 8) In an episode of the Andy Griffith television series, two local farmers were selling the produce they grew on their farms from the backs of their pickup trucks to local people who drove by on the road. The farmers selling their products without wholesalers or retailers were an example of a (Points : 5)
roadside channel of distribution.
traveling channel of distribution.
intermediate channel of distribution.
informal channel of distribution.
direct channel of distribution.

 

Question 30. 30. (TCO 2) Disney is using an integrated marketing communications program (IMC) to promote group travel to its theme parks, because (Points : 5)
its strategy includes using all types of promotional activities that deliver a consistent message.
it does not want to reach any member of its target audience more than once.
IMC is less expensive than other forms of promotion, such as public service announcements.
if it didn’t, Disney would have to use indirect personal selling.
it is more concerned about frequency than reach.

 

Question 31. 31. (TCO 2) When a news story covers a terrible disaster and viewers are asked to send donations to the American Red Cross, the American Red Cross is receiving (Points : 5)
publicity.
advertising.
direct marketing.
personal selling.
a public service announcement.

 

Question 32. 32. (TCO 8) For several years, advertisements for Arm & Hammer Baking Soda have prompted consumers to place an opened box of the product in the refrigerator to lessen food odor and to replace that box monthly. The same ads advise customers to pour the used box down their kitchen sinks to freshen drains. Arm & Hammer employed a _____ strategy in its attempt to sell more baking soda. (Points : 5)
market penetration
market development
product development
diversification
product penetration

 

33. (TCO 3) Imagine that you are creating a marketing plan for a company that will sell motor scooters . As you consider the marketing program, what types of strategy should you consider including in the plan? Propose one specific example of each type of strategy that you are considering, and present your rationale (reasoning) for your strategy selections. (Points : 30)

 

34. Discriminate between primary data and secondary data and their usefulness to business decision making, being sure to discuss the advantages and disadvantages of each. Your response should also identify the typical sources for primary and secondary data and what you would rely on most heavily in making your marketing decisions. (Points : 30)

 

35. (TCO 4) You are the product manager responsible for a horrible product failure, but in your wisdom, you are evaluating why the product failed. What factors would you consider in your evaluation? What actions could you have taken to prevent the failure? Does product innovation need a willingness to accept failure? (Points : 30)