This document contains 57 multiple choice questions assessing understanding of marketing concepts. The questions cover topics such as the marketing mix, market segmentation, product life cycles, marketing strategies, marketing research, and ethics. Correct answers are provided for each question to test comprehension of key ideas in marketing.

1. MKT 421 Guide 8
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1) Predicting what types of bicycles different customers will want and deciding which of these
customers the business will try to satisfy are activities a firm should do as part of
A. A command economy.
B. Making goods or performing services.
C. Marketing.
D. Production.
2) For Tesla, a new firm that makes an electric sports car, estimating how many competitors will
make electric vehicles and what kinds they will make, is:
A. A production activity.
B. A part of marketing.
C. An example of the micro-macro dilemma.
D. One of the universal functions of innovation.
3) According to the text, marketing means:
A. Selling.
B. Advertising.

2. C. Producing and selling.
D. Much more than selling and advertising.
4) To compete more successfully with its many competitors offering packaged cookies, Famous
Amos added its own line of extra chunky premium cookies. This seems to be an effort at:
A. Market penetration.
B. Product development.
C. Combination.
D. Market development.
5) Professional Dental Supply has been successfully selling dental instruments to dentists for
the past 20 years, and has developed strong customer relations. When looking for new
marketing opportunities, Professional Dental Supply will most likely look first at
A. Diversification.
B. Product development.
C. Market penetration.
D. Market development.
6) Which of the following statements regarding marketing strategies is FALSE?
A. These strategies must meet the needs of target customers, and a firm is likely to get a
competitive advantage if it just meets needs in the same way as some other firm.
B. These strategies require decisions about the specific customers the firm will target and the
marketing mix the firm will develop to appeal to that target market.
C. It is useful to think of the marketing strategy planning process as a narrowing-down process.
D. Developing successful marketing strategies does not need to be a hit-or-miss proposition.

3. 7) The marketing mix
A. Includes the target market
B. Includes four variables—advertising, personal selling, customer service, and sales promotion.
C. Includes four variables—People, Place, Promotion, and Price.
D. Helps to organize the marketing strategy decision areas.
8) A firm's marketing mix decision areas would NOT include:
A. People
B. Product
C. Promotion
D. Price
9) Product is NOT concerned with:
A. Branding.
B. Packaging.
C. Quality level.
D. Wholesale price.
10) When one considers the strategy decisions organized by the four Ps, branding is related to
packaging as:
A. Production is to marketing.
B. Personal selling is to mass selling.
C. Branding is to pricing.
D. Store location is to sales force selection.

4. 11) Dell, Inc. wants to offer customers televisions in addition to computers. This is a change in
their _____________________
A. promotional.
B. product.
C. pricing.
D. personnel.
12) Big Fizz Co., a manufacturer of cola-flavored drinks, wants to add packaged fruit juices to its
existing product line. Big Fizz must make some decisions regarding packaging and branding of
the fruit juices. These decisions would fall under which variable of the marketing mix?
A. Place
B. Promotion
C. Price
D. Product
13) A marketing plan is:
A. A marketing strategy.
B. A marketing strategy—plus the time-related details for carrying it out.
C. A target market and a related marketing mix.
D. A marketing program.
14) The main difference between a marketing strategy and a marketing plan is that:
A. A marketing plan includes several marketing strategies.
B. A marketing strategy provides more detail.

5. C. A marketing strategy omits pricing plans.
D. Time-related details are included in a marketing plan.
15) Which of the following would probably NOT be in a proposed marketing plan?
A. A statement of how frequently the design of the website will be changed.
B. Expected sales and profit results.
C. A description of the target market and marketing mix.
D. A list of what company resources (costs) would be required.
16) Marketing strategy planners should recognize that:
A. Mass marketing is often very effective and desirable.
B. Large firms like General Electric, Target, and Procter & Gamble are too large to aim at clearly
defined markets.
C. Target marketing is not limited to small market segments.
D. Target markets should not be large and spread out.
17) Good marketing strategy planners know that:
A. Target marketing does not limit one to small market segments.
B. Mass marketing is often very desirable and effective
C. The terms mass marketing and mass marketer mean basically the same thing.
D. Firms like Nabisco and WalMart are too large to aim at clearly defined target markets.
18) Target marketing, in contrast to mass marketing,
A. Assumes that all customers are basically the same.

6. B. Ignores markets that are large and spread out.
C. Focuses on fairly homogeneous market segments.
D. Is limited to small market segments.
19) Clustering techniques applied to segmenting markets
A. Usually require computers to group people based on data from market research.
B. Remove the need for managerial judgment.
C. Eliminate the need for marketing managers to specify in advance what dimensions might be
relevant for grouping consumers.
D. All of the above are true.
20) The process of naming broad product-markets and then segmenting them in order to select
target markets and develop suitable marketing mixes is called:
A. Market segmentation.
B. Market development.
C. Market research.
D. Market penetration.
21) ______________ is the process of naming broad product-markets and then segmenting
these broad product-markets in order to select target markets and develop suitable marketing
mixes.
A. Market segmentation
B. Mass marketing
C. Diversification
D. Market positioning

7. 22) A ______________ is an organized way of continually gathering and analyzing data to get
information to help marketing managers make ongoing decisions.
A. Marketing model
B. Marketing information system
C. Marketing research department
D. Marketing research project
23) ________________ ________________ utilizes qualitative and quantitative analysis
procedures to help marketing managers make more informed decisions.
A. Marketing processing.
B. Marketing planning.
C. Marketing research.
D. Marketing structure.
24) Procedures that develop and analyze new information to help marketing managers make
decisions are called:
A. Operational planning.
B. Strategy planning.
C. Marketing research.
D. Analytical research.
25) The part of the relevant population that is surveyed by a researcher is called the:
A. Focal group.
B. Representative group.
C. Sample.

8. D. Target population.
26) One of the major disadvantages of the focus group interview approach is that
A. It is difficult to measure the results objectively.
B. Ideas generated by the group cannot be tested later with other research.
C. There is no interviewer, so the research questions may not be answered.
D. It is difficult to get in-depth information about the research topic.
27) When focus group interviews are used in marketing,
A. The typical group size is 15 to 20 typical consumers whether online or off-line.
B. Each person in the group answers the same questionnaire, to focus the discussion.
C. The research conclusions will vary depending on who watches the interview whether online
or off-line.
D. It is primarily as a follow-up to more quantitative research.
28) The marketing manager at Massimino & McCarthy, a chain of retail stores that sells men's
clothing, is reviewing marketing research data to try to determine if changes in marketing
strategy are needed. Which of the following sources of data would be a secondary data source?
A. Reviewing videotapes of a recent focus group.
B. Looking through the company's marketing information system to see past sales trends.
C. Spending time in stores observing customers' behavior.
D. Making phone calls to some of the best customers to learn their interest in a new line of
clothing.

9. 29) A small manufacturing firm has just experienced a rapid drop in sales. The marketing
manager thinks that he knows what the problem is and has been carefully analyzing secondary
data to check his thinking. His next step should be to:
A. Develop a formal research project to gather primary data.
B. Conduct an experiment.
C. Develop a hypothesis and predict the future behavior of sales.
D. Conduct informal discussion with outsiders, including intermediaries, to see if he has
correctly defined the problem.
30) The observing method in marketing research:
A. May require customers to change their normal shopping behavior.
B. Is not suitable for obtaining primary data.
C. Uses personal interviews.
D. Is used to gather data without consumers being influenced by the process.
31) Market segmentation:
A. Assumes that most submarkets can be satisfied by the same marketing mix.
B. Tries to identify homogeneous submarkets within a product-market.
C. Means the same thing as marketing strategy planning.
D. Is the same thing as positioning.
32) Which is the first step in market segmentation?
A. Clustering people with similar needs into a market segment.
B. Evaluating market segments to determine if they are large enough.
C. Finding one or two demographic characteristics to divide up the whole mass market.

10. D. Naming a broad product-market of interest to the firm.
33) The first step in market segmentation should be:
A. Evaluating what segment(s) you currently serve.
B. Defining some broad product-markets where you may be able to operate profitably.
C. Deciding what new product you could develop.
D. Finding a demographic group likely to use your products.
34) Which of the following is NOT one of the text's product life cycle stages?
A. Market penetration
B. Market growth
C. Market maturity
D. Market introduction
35) Which of the following is a DEMOGRAPHIC segmenting dimension?
A. Brand familiarity.
B. Family life cycle.
C. Rate of use.
D. Type of problem solving.
36) The product life cycle has four stages. Which of the following is NOT one of these?
A. Market growth
B. Economic competition
C. Market introduction

11. D. Market maturity
37) Regarding product life cycles, which of the following is NOT true?
A. The level of promotion usually decreases in market maturity because there is less revenue to
cover the cost.
B. It is usually expensive for a new firm to enter in the market maturity stage.
C. Industry profits are likely to level off or decline before sales level off.
D. Many close substitutes are usually competing in the market maturity stage.
38) During the MARKET INTRODUCTION stage of the product life cycle:
A. Price and promotion are more important than Place and Product.
B. Money is invested—in the hope of FUTURE profits.
C. Large profits are typical—until competition arrives.
D. Much money is spent on Promotion, while spending on Place is left until later.
39) An industry's sales have leveled off and profits are declining in oligopolistic competition.
Consumers see competing products as homogeneous. Several firms have dropped out of the
industry, but a new one entered recently. Firms in the industry are trying to avoid price-cutting
by spending on persuasive advertising. These firms are competing in which stage of the product
life cycle?
A. Market maturity
B. Market introduction
C. Market growth
D. Market development
40) Noise (in the traditional communication process) refers to:

12. A. Radio advertising interference only.
B. Efforts by a firm's competitors to block its message channel.
C. Any distractions that reduce the effectiveness of the communication process.
D. Messages which are too loud or bold.
41) SGCA is having a sales contest to encourage retailers to quickly reduce the inventory of
SuperGamer computers. Retailers with the highest sales during the next month win an expense
paid trip to a special dealer meeting at a resort in Hawaii. This is A. An example of cooperative
advertising.
B. An example of a producer using sales promotion in the channel.
C. Probably illegal because it might encourage price competition among retailers.
D. The type of promotion that continues to impact sales even after the promotion is over.
42) Price reductions given to channel members to encourage them to advertise or otherwise
promote a firm's products locally are:
A. Brokerage allowances.
B. Advertising allowances.
C. Quantity discounts.
D. Push money allowances.
43) The Canyonlands Corporation is introducing a new product next month. To prepare for the
introduction, the marketing manager is having his sales force call on distributors to explain the
unique features of the new product, how the distributors can best promote it, and what sales
volume and profit margins they can reasonably expect. In addition, Canyonlands is budgeting
2% of its estimated sales for magazine advertising. This is an example of:
A. A pulling policy.
B. A pushing policy.

13. C. Selective distribution.
D. Exclusive distribution.
44) American Tourister, Inc.—a producer of luggage—is planning to introduce a new product
line. The marketing manager is having her sales force call on retailers to explain American
Tourister's consumer advertising plans, the unique features of the new luggage, how the
distributors can best promote it, and what sales volume and profit margins they can reasonably
expect. This is an example of:
A. Intensive distribution.
B. A pushing policy.
C. A pulling policy.
D. Selective distribution.
45) A producer using very aggressive promotion to get final consumers to ask intermediaries for
a new product has:
A. A target marketing policy.
B. A pushing policy.
C. A pulling policy
D. A selective distribution policy.
46) Which of the following statements about positioning is NOT TRUE?
A. It refers to how customers think about proposed or present brands in a market.
B. It helps marketing managers know how customers view the firm's offering.
C. It often makes use of techniques such as perceptual mapping.
D. Positioning issues are especially important when competitors in a market are very dissimilar.

14. 47) Positioning analysis
A. Is not a product-oriented approach.
B. Is a visual aid to understanding a product-market.
C. Shows that managers and customers usually view present brands similarly.
D. Helps managers understand the actual characteristics of their products.
48) Quality Ceramic, Inc. (QCI) defined five submarkets within its broad product-market. To
obtain some economies of scale, QCI decided NOT to offer each of the submarkets a different
marketing mix. Instead, it selected two submarkets whose needs are fairly similar, and is
counting on promotion and minor product differences to make its one basic marketing mix
appeal to both submarkets. QCI is using the
A. Single target market approach
B. Multiple target market approach.
C. Mass marketing approach.
D. Combined target market approach.
49) Which of the following is NOT a trend affecting marketing strategy planning in the area of
international marketing?
A. More attention to exporting by small companies.
B. Global communication over the Internet.
C. Decreasing role of airfreight.
D. Tensions between have and have-not cultures.
50) When a company grows globally, this is an example of:
A. Product development.
B. Diversification.

15. C. Market penetration.
D. Market development
51) A _____ is a market with very similar needs and sellers offering various close substitute
ways of satisfying those needs.
A. Standard market
B. Target market
C. Product-market
D. Generic market
52) Which of the following is a key trend affecting marketing strategy planning?
A. Slower new-product development.
B. Less use of technology in personal selling.
C. Growth of marketing information systems.
D. Senior and ethnic submarkets are getting smaller.
53) Which of the following statements DOES NOT indicate that a marketing manager is about to
make a serious mistake?
A. "International competition is just a fad. We can ignore it."
B. "I leave marketing applications of technology to the information technology staff. There's no
need for me to learn about them."
C. "I try to place myself in the position of the consumer and do unto others as I would have
them do unto me."
D. "When it comes to my marketing strategy, if it ain't broke, don't fix it."
54) Identify the incorrect statement about sales promotions.

16. A. Sales promotions can be used as tools to overcome consumer price resistance.
B. Changes in technology have made sales promotions more efficient.
C. The availability of more ad agencies and specialists has spurred growth in sales promotions.
D. Sales promotions have increased because of competition in emerging markets.
55) Many Internet sites, such as Autobytel.com and Edmunds.com, have extensive information
about the prices of new and used vehicles that anyone can use for free. In light of the
availability of this information, what is the responsibility of consumers to use it?
A. Consumers have a responsibility to use the information and be smarter customers.
B. Consumers should not use it because it gives them an unfair advantage over car dealers.
C. Consumers should not trust any information they receive from any source except the
government.
D. Consumers can use it, but should not feel a responsibility to do so.
56) Which of the following statements about ethical behavior in business is true?
A. The legal environment sets the maximum standards of ethical behavior.
B. The legal environment sets the highest standards of ethical behavior.
C. The legal environment sets the normative standards of ethical behavior.
D. The legal environment sets the minimum standards of ethical behavior
57) The future poses many challenges for marketing managers because:
A. The marketing concept has become obsolete.
B. New technologies are making it easier to abuse consumers' rights to privacy.
C. Social responsibility applies only to firms—not to consumers.
D. It is marketing managers who have full responsibility to preserve our macro-marketing
system