MKT 551 Sample Exam

KEY: Correct answer has the > beside it.

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In the definition of Marketing, the KEY phrase that best describes Marketing is:
a.
The fact that it is a Process
b.
That it is both planning and executing
c.
That it serves to create exchanges
d.
The satisfaction of individual and organizational objectives

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Marketing is more than selling or advertising

a.
True
b.
False

Production and Marketing provide 5 kinds of utility. The one that is appropriate for a
product that is intangible is:
a.
Task utility
b.
Possession utility
c.
Place utility
d.
Form utility

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Which of the following is NOT one of the universal functions of marketing?

a.
Buying
b.
Transporting
c.
Production
d.
Standardization and Grading

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The social process that directs an economys flow of goods and services is:
a.
Macro-marketing
b.
Magnum-marketing
c.
Micro-marketing
d.
Magic-marketing

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In a Planned economic system:

a.
People in government decide who makes what goods
b.
Business people decide who will make the goods
c.
Consumers decide what goods will be made
d.
Business and Consumers decide what goods will be desired and therefore
made

Effective marketing solves problems of:

a.
Discrepancies of Quantity
b.
Discrepancies of Assortment
c.
Spatial Separation
d.
All of the above

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Those opposed to globalization of markets continue to protest at meetings of:

a.
NAFTA
b.
EU
c.
GATT
d.
WTO

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Marketing activities are criticized because:

a.
New products are often not really new
b.
Promoting unsafe products
c.
Deceptive advertising
d.
All of the above
The evolutionary stage in which business could sell all it could produce is:
a.
Marketing department era
b.
Production era
c.
Sales era
d.
Marketing company era

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Which of the following is NOT one of the three elements of the Marketing Concept?
a.
Production mentality
b.
Customer orientation
c.
Focus on profit, not sales
d.
Marketing integration with all areas of the firm

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Engaging in proper behavior in specific situations refers to:

a.
Marketing ethics
b.
Marketing concept
c.
Social responsibility
d.
Community relations

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The controllable variables within the control of the Marketing Manager are called:
a.
Targeting variables
b.
Codes of ethics
c.
Marketing mix
d.
Market processes

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Being socially responsible will benefit the firm in the short-run as well as the long-run.
a.
True
b.
False
Personal selling would be part of the _______ variable.
a.
Product
b.
Place
c.
Promotion
d.
Price

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Installation would be part of the _______ variable

a.
Product
b.
Place
c.
Promotion
d.
Price

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Firms with offerings that the market views as superior to competitors are said to have a:
a.
Breakthrough opportunity
b.
Competitive advantage
c.
Differentiation
d.
Marketing strategy

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The strategy of increasing sales in present markets with present products is:
a.
Diversification
b.
Product development
c.
Market development
d.
Market penetration
International markets offer opportunities because:
a.
Most countries are in various stages of economic development
b.
Trade barriers are being reduced
c.
Foreign markets are often less restrictive for products such as cigarettes
d.
All of the above are reasons

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A small, new company is most likely to use the targeting strategy of:
a.
Single target market approach
b.
Multiple target market approach
c.
Combined target market approach
d.
Geographic concentration approach

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When Universal Studios identifies itself as being in the entertainment industry, it is

describing its:
a.
Geographic market
b.
Product market
c.
Generic market
d.
Economic market

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How your target market thinks of your brand in relation to other, competing brands is:
a.
Segmentation
b.
Positioning
c.
Clustering
d.
Differentiation
Which of the following is NOT one of the basic objectives when setting a firms long-term
course?
a.
Engage in specific activities that will perform a socially and economically
useful function
b.
Earn enough profit to survive
c.
Develop the marketing skills for a competitive advantage
d.
Develop an organization to carry on the business and implement its
strategies
Which of the following is something we would want to do in a competitive environment?
a.
Choose opportunities that avoid head-to-head competition
b.
Analyze competitors to find a competitive advantage
c.
Seek information about competitors
d.
All of the above are things we want to do

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NAFTA and the European Union would be issues of the ________ environment.
a.
Political
b.
Competitive
c.
Technological
d.
Legal

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One of the biggest changes in the cultural and social environment is the increase of:

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a.
b.
c.
d.

Working women
Women entering law school
Birth rates
College students

An organizational unit within a firm that is treated as a separate profit center is a(n):
a.
Product Business Unit
b.
Strategic Business Unit
c.
Management Business Unit
d.
Divisional Business Unit

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On the Continuum of Environmental Sensitivity, industrial products would likely be:

a.
On the insensitive side
b.
On the sensitive side
c.
In the middle of the sensitivity scale
d.
Industrial products are not on the continuum, only consumer products

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The ______ should be the focus of all business and marketing activity.
a.
Bottom line
b.
Long-term
c.
Customer
d.
Stockholder

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Around the world, advertising in print may be difficult because ____ of the worlds
population is illiterate.
a.
One fourth
b.
One third
c.
One half
d.
Two thirds

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From 1990 to 2000, Michigans population growth was:

a.
About half as fast as the U.S. growth
b.
Twice as fast as the U.S. growth
c.
The same rate as the U.S. growth
d.
Flat, with virtually no growth

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The top 20% of income earners in the U.S. account for about ______ of total wages paid.
a.
5%
b.
20%
c.
40%
d.
50%

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Your take-home pay (after-tax income) is your:

a.
Disposable income
b.
Taxable income
c.
Discretionary income
d.
Allocation income

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People who know all the facts and logically compare choices are called:
a.
Psychological shoppers

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b.
c.
d.

Economic buyers
Consumption shoppers
Rational buyers

The need for love and friendship are examples of:

a.
Physiological needs
b.
Safety needs
c.
Social needs
d.
Personal needs

A change in a persons thought processes and/or behavior caused by prior experience is:
a.
Belief
b.
Perception
c.
Attitude
d.
Learning
Changing attitudes is considered difficult, but the attempt to change the attitude toward
drinking and driving is called:
a.
Social marketing
b.
Ethical marketing
c.
Attitudinal marketing
d.
Cultural marketing
The reference group that is considered the first, and most powerful, is the:
a.
Peer group
b.
Opinion leaders
c.
Family
d.
Celebrities
The first step in the 5-step Problem-Solving Process is:
a.
Information gathering
b.
Problem recognition
c.
Decision
d.
Evaluating alternative solutions
When faced with a new--and important--purchase situation, the level of problem solving
would likely be:
a.
Routinized Response Behavior
b.
Limited Problem Solving
c.
Extensive Problem Solving
d.
Adoption Problem Solving

In the chart of business and organizational categories, financial institutions were in:
a.
Middlemen
b.
Governments
c.
Producers
d.
Nonprofits

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Organizational customers are not considered consumers.

a.
True
b.
False

43

All of the following must be included in a buying decision, but which one will make the
final determination whether to buy your product?
a.
Users
b.
Deciders
c.
Gatekeepers
d.
Influencers

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Which of the following types of buying is likely to be computer automated?

a.
New-task buying
b.
Modified rebuy
c.
Single buying
d.
Straight rebuy
The trend in business buying is to:
a.
Use fewer suppliers
b.
Insist that suppliers use JIT or some other procedure
c.
Link suppliers to your firm using EDI
d.
All of the above are trends

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Which of the following is TRUE concerning Producers of Services?

a.
There are more producers of services than manufacturers
b.
Producers of services tend to be larger in size than manufacturers
c.
Buying tends to be more formal than with manufacturers
d.
Producers of services tend to be more geographically concentrated than are
manufacturers

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Which of the following is NOT TRUE of the Government Market?

a.
Governments buy virtually every kind of good
b.
Government units in the U.S. spend almost $2 trillion
c.
Specifications are written so that few, or only one, suppliers qualify
d.
To sell to the government, one must be on an approved supplier list

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An organized way of continually gathering and analyzing data to provide marketing

managers with information they need to make decisions is:
a.
MIS
b.
DSS
c.
Marketing model
d.
Intranet
The unethical practice of pretending to conduct research, when in fact one is trying to sell
something, usually over the telephone, is called:
a.
SUGGING
b.
HUGGING
c.
LUGGING
d.
DUGGING
The Hypothesis is:
a.
The most important part of the first stage of marketing research

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b.
c.
d.

A decision-making approach to be objective and orderly when testing ideas

An educated guess about relationships between things
The same as the situation analysis

The first step in the Five-Step Approach to marketing research is:

a.
Analyzing the situation
b.
Getting problem-specific data
c.
Solving the problem
d.
Defining the problem
A one to two page summary of the research results is called a(n):
a.
Researchers report
b.
Executive summary
c.
Decision support
d.
Data observation

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Looking for secondary data would be part of which step?

a.
Analyzing the situation
b.
Getting problem-specific data
c.
Solving the problem
d.
Defining the problem

54

The goal of research is to provide:

a.
Problem solutions
b.
Actionable information
c.
Large quantities of information
d.
Decision criteria

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Which of the following is TRUE about goods and/or services?

a.
The difference between goods and services lie in a continuum of how much service
is present
b.
Services can be produced far away
c.
Services can be stored
d.
There is often a time lapse between the creation of a service and when it is
provided to the consumer

56

A set of individual products that are closely related is a:

a.
Product assortment
b.
Product width
c.
Product depth
d.
Product line

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Staples, such as bread, milk, toilet tissue, would be types of:

a.
Convenience goods
b.
Specialty goods
c.
Unsought goods
d.
Shopping goods

58

Life insurance and funerals would be types of:

a.
Convenience goods
b.
Specialty goods

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c.
d.

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The assumption that the brands are similar so I search for the lowest price, would be:
a.
Homogeneous shopping goods
b.
Heterogeneous shopping goos
c.
Impulse products
d.
Emergency products

60

The fact that ALL business products depend on the ultimate wants/needs of consumers
explains the concept of:
a.
Inferred demand
b.
Selective demand
c.
Derived demand
d.
Primary demand

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Unsought goods
Shopping goods

MRO items would come under the business product class of:
a.
Accessories
b.
Supplies
c.
Professional Services
d.
Raw Materials

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An unusually strong, emotional association between a brand and its user is called:
a.
Brand Worship
b.
Brand Buddy
c.
Brand Loyalty
d.
Brand Equity

63

The preferred level of brand familiarity would be:

a.
Brand nonrecognition
b.
Brand preference
c.
Brand rejection
d.
Brand recognition
e.
Brand insistence

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Which of the following is NOT TRUE about packaging?

a.
It can be used for promoting the product
b.
It should protect the product
c.
It should not cost more than the product inside
d.
It can make the product easier to use

In the PLC, products are often unprofitable in the ________ stage.

a.
Market growth
b.
Market decline
c.
Market introduction
d.
Market maturity
The competition is tougher and firms fight for market share in the ________ stage.
a.
Market growth

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b.
c.
d.

Market decline
Market introduction
Market maturity

Promotions with the goal of developing Primary Demand would be in ________ stage.
a.
Market growth
b.
Market decline
c.
Market introduction
d.
Market maturity
The purpose of the New-Product Development Process is to give all good ideas a chance
in the marketplace.
a.
True
b.
False
Developing rough estimates of costs, sales, and profits are performed in the _____ step in
the New-Product Development Process.
a.
Commercialization
b.
Idea generation
c.
Screening
d.
Development
e.
Idea evaluation

The series of firms or individuals who participate in the flow of goods and services from
producer to final user is called the:
a.
Channel of Distribution
b.
Channel Chain
c.
Logistical Channel
d.
B2B Channel
Which of the following is a reason to use an INDIRECT channel?
a.
Gain more control over the marketing job
b.
Gain direct contact with customers
c.
Suitable middlemen are not available
d.
Customers have established purchase patterns
Which of the following is TRUE about middlemen?
a.
May offer credit to retailers
b.
May help firm with cash flow
c.
Are probably more efficient than the firm trying to avoid using their services
d.
All of the above are true
Today, if channel captains develop, they are most likely to be the:
a.
Manufacturer
b.
Wholesaler
c.
Retailer
d.
Any of the above may become a channel captain
Selective Distribution is likely to be used with:
a.
Shopping goods
b.
Convenience goods

c.
d.
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Specialty goods
Unsought goods

To handle returned merchandise, channels need to develop:

a.
Dual distribution system
b.
Reverse channels
c.
Credit channels
d.
Service channel distribution

The storing and transporting of goods to match target customers needs with a firms
marketing mix is:
a.
Channels of Distribution
b.
Containerization
c.
Physical Distribution
d.
None of the above
The Total Cost Approach says that to minimize the total cost of all storing and
transporting services, one must minimize the cost of each component.
a.
True
b.
False
If speed is the only concern, the firm should use _________ transportation:
a.
Water
b.
Truck
c.
Pipeline
d.
Rail
e.
Air

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To ship salt used for winter roads, a city would want to use _____ if possible:
a.
Water
b.
Truck
c.
Pipeline
d.
Rail
e.
Air

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Intermodal transportation requires the use of:

a.
Trains
b.
Containerization
c.
Products the same size and weight
d.
Identical Physical Distribution systems

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The activity of selling to merchants and commercial users, but rarely to consumers, is:
a.
Manufacturing
b.
Wholesaling
c.
Retailing
d.
Marketing

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Creating store atmospherics that are interesting and exciting is creating the:
a.
Retail experience
b.
Retail mood
c.
Retail loyalty
d.
Retail branding

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Most conventional retailers try to avoid price competition.

a.
True
b.
False

84

Early retailers who carried anything they could sell in reasonable volume were called:
a.
Single-line stores
b.
General stores
c.
Mass-Merchandisers
d.
Supermarkets

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Retailers who operate on low margins, but are profitable because they rely on large sales
volumes, are called:
a.
Department stores
b.
General stores
c.
Mass-Merchandisers
d.
Convenience stores
The first retailers to introduce the concept of Self-Service were:
a.
Discount houses
b.
Catalog showrooms
c.
Supercenters
d.
Supermarkets
The best example of a Category Killer would be:
a.
Amway
b.
Toys R Us
c.
Sams Club
d.
Wal*Mart
From the graphic of the Three-Dimensional View of retailers, the retailer that offers
much depth, little width, and is service oriented, is most likely:
a.
Specialty shops
b.
Convenience food stores
c.
Most single-line stores
d.
Mass-merchandisers
A wholesaler-sponsored group working with independent retailers is called a:
a.
Cooperative Chains
b.
Corporate Chains
c.
Franchise
d.
Voluntary Chain
Any wholesaler who takes title to (owns) the products they handle is best called a(n):
a.
Agent Middlemen
b.
Merchant Wholesalers

c.
d.

Service Wholesalers
Brokers

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An example of a Limited-Function wholesaler is a:

a.
Drop-shipper
b.
Broker
c.
Selling agent
d.
All of the above are limited-function wholesalers

92

The most common type of wholesaler (most in numbers and greatest percent) is:
a.
Agent Wholesalers
b.
Catalog Wholesalers
c.
Manufacturer Sales Brances
d.
Merchant Wholesalers

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Any paid form of nonpersonal presentation of ideas, goods, or services by an identified

sponsor is:
a.
Personal Selling
b.
Publicity
c.
Advertising
d.
IMC
Using promotional techniques to achieve changes in national attitudes and behavior such
as reducing drunk driving and drug use is called:
a.
Social Marketing
b.
Political Marketing
c.
Ethical Marketing
d.
Public Marketing
IMC stands for:
a.
International Marketing Concepts
b.
Integrated Marketing Communications
c.
Imperative Marketing Correlation
d.
Internal Marketing Coordination

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The first stage of the AIDA model is:

a.
Attention
b.
Application
c.
Action
d.
Advertising

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Promotions targeting channel members are called:

a.
Pushing
b.
Pulling

98

Opinion leaders are usually in the ________ category of the adoption process.
a.
Laggard
b.
Innovators

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c.
d.
e.

Early Majority
Late Majority
Early adopters

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My dad bought his first VCR last year. He would probably be in the ________ category.
a.
Laggard
b.
Innovators
c.
Early Majority
d.
Late Majority
e.
Early adopters

100
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Most personal selling is for B2B, and is excellent for developing relationships.
a.
True
b.
False

101

Missionary salespeople are classified under this category:

a.
Order-getting
b.
Order-taking
c.
Supporting Sales

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Which of the following statements is most likely to be TRUE?

a.
Canned presentations are easier to learn than consultative presentations
b.
Personality tests are not allowed as part of the hiring process for
salespeople
c.
Straight salary is better than straight commission for salespeople
d.
Compensation packages can be motivating even if hard to understand

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Good salespeople are trained, not born.

a.
True
b.
False

104

From the graphic Key Steps in the Personal Selling Process, which of these steps comes
first?
a.
Close sale
b.
Preplan sales call
c.
Set effort priorities
d.
Select target customer

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In 2002, the total measured advertising in the U.S. was:

a.
$236 billion
b.
$503 billion
c.
$892 billion
d.
$112 billion

106

Testimonial and Comparative ads would fall under the ________ stage of the adoption
process.
a.
Decision

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b.
c.
d.
e.

Confirmation
Interest
Awareness
Evaluation and Trial

When a manufacturer shares in the cost of a retailers advertising, it is called:

a.
Advertising allowance
b.
Institutional advertising
c.
Producer advertising
d.
Cooperative advertising
When deciding the best media to use for your message, the first thing you should consider
is:
a.
Your promotion objectives
b.
Your target market
c.
Funds available
d.
Nature of the media

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Which of the following is NOT one of the three largest forms of advertising?
a.
Radio
b.
TV
c.
Direct Mail
d.
Newspapers

110

Linking ads on the internet with specific topics is called:

a.
Search engine advertising
b.
Click-through advertising
c.
Context advertising
d.
AIDA-based advertising

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A type of interstitial ad is:

a.
Pop-up ad
b.
Banner ad
c.
Button ad
d.
Movie ads

112

Advertising Agencies are primarily judged by:

a.
Their ability to minimize costs
b.
Meeting sales goals
c.
Their ability to match media with target markets
d.
Their creative work

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The reason that sales promotions are growing while advertising is shrinking is:
a.
Most products are in the mature stage of the PLC
b.
Consumers are more price sensitive
c.
Technology has made promotionslike couponsmore efficient
d.
All of the above
For a consumer products firm, the total promotional budget is about:
a.
One-fourth for advertising, and the rest for trade and consumer promotions
b.
One-third for advertising, and the rest for trade and consumer promotions
c.
One-half for advertising, and the rest for trade and consumer promotions

d.
Three-fourths for advertising, and the rest for trade and consumer
promotions
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The one-price pricing policy strategy is to charge the same price throughout the PLC.
a.
True
b.
False
Prices are guided by company objectives, such as:
a.
The flexibility of pricing
b.
Price levels over the PLC
c.
Who get allowances and when
d.
How will transportation costs be covered
e.
All of the above

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Target Returns would be an example of:

a.
Profit-oriented objective
b.
Sales-oriented objective
c.
Status quo pricing objective
d.
Strategy-oriented objective

118

Market Share would be an example of:

a.
Profit-oriented objective
b.
Sales-oriented objective
c.
Status quo pricing objective
d.
Strategy-oriented objective

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The ability to charge different customers different prices based on their ability to pay is:
a.
Skimming pricing
b.
Database pricing
c.
Penetration pricing
d.
Flexible pricing