This document provides the questions and multiple choice answers for an MKT 431 Final Exam. The exam covers topics related to marketing, including identifying business opportunities, marketing research methods, SWOT analysis, positioning, pricing strategies, and competition. The exam is due by Monday at 11:59 MST and students should record their multiple choice answers on an Answer Sheet.

1. MKT 431 Final Exam
Answer the following questions by choosing the
BEST
answer. Place the letter corresponding to your choice in the
space beside the question numbers on the Answer Sheet.
The Answer Sheet is due by Monday at 11:59 MST
.
1.
The most important environmental trends to follow, in the
context of discovering
new business ideas, are economic trends, social trends,
technological advances, and political action and regulatory
changes. Of these, the trend that is changing the most rapidly
is:
a.
economic trends
b.
technological advances
c.
social trends
d.
political action and regulatory changes
2.
The most common way to identify business ideas quickly is
through:
a.

2. Brainstorming
b.
Focus groups
c.
Library research
d.
Internet research
3.
A marketing research approach that uses a discussion leader to
interview groups of 6 to 10 past, present, or prospective
customers is referred to as
a.
An in-depth (or individual) interview.
b.
Data mining.
c.
A Focus group.
d.
A Discussion forum.
4.
Secondary data is often where marketing research begins.
Secondary data consists of information ____.
a.

3. that does not currently exist in an organized form
b.
that already exists somewhere, having been collected for
another purpose
c.
used by competition
d.
that the researcher can obtain through surveys and observation
5.
By conducting a SWOT, the company should discover:
a. how weaknesses will constrain threats
b. how weaknesses will determine vulnerability to
opportunities
c. how strengths can be used to leverage opportunities
d. how strengths will determine vulnerability to threats
6.
Organizational feasibility analysis is conducted to determine
whether
a proposed business has certain characteristics. Which of the
following is NOT part of an organizational feasibility analysis?
a.
sufficient management expertise,

4. b.
organizational competence
c.
resources to successfully launch its business
d.
low competition
7.
Wal-Mart has built arguably the most efficient distribution
system in the retailing world. Through the employment of
various initiatives, such as Vendor Inventory, RFID and
distribution center layouts with cross-docking keep costs down.
The low cost (relative to other retailers) distribution system
would best be called a:
a.
Business model
b.
Core competency
c.
A differentiation strategy
d.
A positioning strategy
8.
Criteria for forming segments involve both similarities and
differences. Which of the following statements is most
accurate?

5. a.
Within a segment the needs of potential buyers should be
similar; between
segments, the needs of buyers should be different.
b. The needs of buyers should be different, both between
segments and within
segments.
c. The needs of buyers should be the same, both between
segments and within segments
d.
Within a segment the needs of potential buyers should be
different; among segments, the needs of buyers should be
similar
9.
Which of the listed choices is NOT a positioning task?
a.
Identifying a set of possible competitive advantages upon which
to build a
position
b.
Surveying frequent users of the product
c.
Selecting an overall positioning strategy
d.
Effectively communicating and delivering the chosen position
to the market

6. 10.
Small businesses can compete with larger rivals with bigger
budgets by employing unconventional, low-cost creative
techniques known as:
a.
market research.
b.
astonishing customer service.
c.
guerrilla marketing strategies.
d.
psychographics.
11.
One "natural" advantage small businesses have over large
businesses, which can be a significant competitive advantage,
is:
a.
by building a community with customers and connecting with
them on an emotional level.
b.
their ability to conduct market research.
c.
their lower costs.
d.

7. their ability to serve many highly diverse target markets.
12.
The unique selling proposition (USP) focuses on:
a.
a feature that is unlike others found in competing products that
answers the question: What is different?
b.
a unique customer benefit that answers the question: What's it
in for me?
c.
a premier priced product that answers the question: What
product offers the highest quality?
d.
emulating the most successful products in the industry.
13.
Seiko makes watches. It markets its higher quality watches
under the Seiko or Lasalle name, and its lower-priced watches
are sold under the Pulsar brand. Seiko uses a __________
strategy.
a.
Multibranding
b.
Generic branding
c.
Multiproduct branding

8. d.
Trademarked branding
14.
Rather than trying to compete head to head with the dominant
players on the Web with greater access to resources,
entrepreneurs should consider focusing on:
a.
building a Web site in-house
b.
serving a geographic niche.
c.
only brick-and-mortar retail channels.
d.
serving a market niche.
15.
Technology has disrupted distribution channels through:
a.
The death of distance
b.
Homogenization of time
c.
Irrelevance of location
d.

9. All of the above
16.
The total amount a customer will spend on a given product
category over a strategically meaningful time period is called:
a.
Customer Lifetime Value
b.
Customer Worthiness
c.
Customer Equity
d.
Customer Profitability Analysis
17.
A common pricing mistake entrepreneurs make is lowering
prices because they fail to recognize the:
a.
extra value, convenience, service, and quality they offer their
customers.
b.
advantages they have due to their lower cost structure.
c.
complexities that larger competitors have to face.
d.
driving need that all customers have to find the lowest price

10. possible.
18.
The acceptable price range of a product or service is the area
between the ________ defined by customers in the market and
the ________ established by the company's cost structure.
a.
price floor; price ceiling
b.
image; quality
c.
price ceiling; price floor
d.
price floor; value
.
19.
The promotional mix refers to
a.
the three key elements that make advertising and promotion
effective: (1) sex appeal, (2) humor, and (3) fear
b.
the combination of one or more communication tools used to:
(1) inform prospective buyers about the benefits of the product,
(2) persuade them to try it, and (3) remind them later about the
benefits they enjoyed by using the product.
c.
the combination of both paid and non-paid marketing tools used
to promote product interest and draw sales away from

11. competitors.
d.
a series of interrelated advertisements that each concentrates on
a unique aspect of a product's benefits: (1) primary purpose, (2)
ease of use, and (3) distinction from competitors.
20.
Most importantly, a company and marketing manager must
work out a philosophy of ________.
a. customer responsibilities
b. supplier responsibilities
c. governmental responsibilities
d. social responsibility and ethical behavior
21.
A competitor analysis is:
a.
a detailed analysis of a firm’s competition
b.
a piece of a broader description of a firm’s strengths and
weaknesses
c.
a method used to identify economic market structures
d.
something that must be done annually
22.
When we practice ________, we arrange for a product to occupy
a clear, distinctive, and desirable place relative to competing

12. products in the minds of target consumers.
a.
repositioning
b.
target segmenting
c.
positioning
d.
product distribution
23.
Threat of Substitute Products/Services, Threat of New Entrants
into the Industry, Rivalry Among Existing Firms, Bargaining
Power of Suppliers and Bargaining Power of Buyers are all part
of:
a.
Herzberg’s Theory
b.
Maslow’s Hierarchy
c.
Porter’s Five Forces Model
d.
Brannon’s Competitive Factors Model
24.
When searching for products via the Internet, very few
shoppers look beyond the first page of the search engine
results. Consequently, it is important for businesses to engage

13. in a process called --------------___________________:
a.
search cost per click analysis
b.
search engine optimization
c.
search engine minimization
d.
search engine maximization
25.
As a small business owner, you know that competing with major
retail chains is very difficult. A small business owner can best
compete with major chains by:
a.
matching the prices set by the big stores
b.
carrying the same product assortment of the big stores
c.
using guilt appeals in their promotions
d.
offering superior customer service