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1) Predicting whattypes of bicycles different customers will wantand deciding which ofthese customers the business
will try to satisfyare activities a firm should do as partof
A. A command economy.
B. Production.
C. Marketing.
D. Making goods or performing services.
2) For Tesla,a new firm that makes an electric sports car, estimating how manycompetitors will make electric
vehicles and what kinds they will make,is:
A. A part of marketing.
B. One of the universal functions ofinnovation.
C. A production activity.
D. An example of the micro-macro dilemma.
3) According to the text, marketing means:
A. Advertising.
B. Much more than selling and advertising.
C. Selling.
D. Producing and selling.
4) Which of the following statements regardingmarketing strategies is FALSE?
A. These strategies require decisions aboutthe specific customers the firm will target and the marketing mixthe firm
will develop to appeal to that target market.
B. It is useful to think of the marketing strategy planning process as a narrowing-down process.
C. These strategies mustmeetthe needs oftarget customers,and a firm is likely to get a competitive advantage if it
justmeets needs in the same wayas some other firm.
D. Developing successful marketing strategies does notneed to be a hit-or-miss proposition.
5) To compete more successfullywith its manycompetitors offering packaged cookies,Famous Amos added its own
line of extra chunky premium cookies.This seems to be an effort at:
A. Productdevelopment.
B. Combination.
C. Market penetration.
D. Market development.
6) Professional Dental Supplyhas been successfullyselling dental instruments to dentists for the past20 years, and
has developed strong customer relations.When looking for new marketing opportunities,Professional Dental Supply
will mostlikelylook firstat
A. Productdevelopment.
B. Market penetration.
C. Diversification.
D. Market development.
7) Product is NOT concerned with:
A. Packaging.

2. B. Quality level.
C. Branding.
D. Wholesale price.
8) The marketing mix
A. Includes four variables—advertising,personal selling,customer service,and sales promotion.
B. Includes four variables—People,Place,Promotion,and Price.
C. Includes the target market
D. Helps to organize the marketing strategydecision areas.
9) The four Ps of a marketing mixare:
A. Product, Place,Promotion,and Price
B. Production,Personnel,Price,and PhysicalDistribution
C. Promotion,Production,Price, and People
D. Product, Price, Promotion,and Profit
10) Dell,Inc. wants to offer customers televisions in addition to computers.This is a change in their
_____________________
A. promotional.
B. pricing.
C. product.
D. personnel.
11) A firm's decisions regarding channel type,marketexposure,and kinds of intermediaries would fall under
the marketing mixvariable of
A. Place.
B. Product.
C. Price.
D. Promotion.
12) When one considers the strategy decisionsorganized by the four Ps,branding is related to packaging as:
A. Production is to marketing.
B. Branding is to pricing.
C. Personal selling is to mass selling.
D. Store location is to sales force selection.
13) Which of the following would probablyNOT be in a proposed marketing plan?
A. A statementofhow frequently the design ofthe website will be changed.
B. A listof what companyresources (costs) would be required.
C. A description ofthe target market and marketing mix.
D. Expected sales and profitresults.
14) The main difference between a marketing strategyand a marketing plan is that:
A. A marketing plan includes several marketingstrategies.
B. Time-related details are included in a marketing plan.
C. A marketing strategyomits pricing plans.
D. A marketing strategyprovides more detail.
15) Which of the following is partof a completemarketing plan?
A. Competitors' marketing strategies.
B. What companyresources (costs) are required and atwhat rate.
C. How different marketing mixes (for different target markets) relate to each other.

3. D. All of these.
16) Marketing strategy planners should recognize that:
A. Mass marketing is often very effective and desirable.
B. Target markets should notbe large and spread out.
C. Target marketing is notlimited to small marketsegments.
D. Large firms like General Electric, Target, and Procter & Gamble are too large to aim at clearly defined markets.
17) Good marketing strategyplanners know that:
A. Target marketing does notlimitone to small marketsegments.
B. Firms like Nabisco and WalMartare too large to aim at clearly defined targetmarkets.
C. The terms mass marketing and mass marketer mean basically
19) Clustering techniques applied to segmenting markets
A. Usuallyrequire computers to group people based on data from marketresearch.
B. Remove the need for managerial judgment.
C. Eliminate the need for marketing managers to specifyin advance whatdimensions mightbe relevant for grouping
consumers.
D. All of the above are true.
20) ______________ is the process ofnaming broadproduct-markets and then segmenting these broadproduct-
markets in order to selecttarget markets and develop suitable marketing mixes.
A. Market segmentation
B. Market positioning
C. Diversification
D. Mass marketing
21) The process ofnaming broad product-markets and then segmenting them in order to selecttarget markets and
develop suitable marketing mixes is called:
A. Market development.
B. Market penetration.
C. Market segmentation.
D. Market research.
22) ________________ ________________ utilizes qualitative and quantitative analysis procedures to
helpmarketing managers make more informed decisions.
A. Marketing structure.
B. Marketing planning.
C. Marketing processing.
D. Marketing research.
23) Procedures thatdevelop and analyze new information to help marketing managers make decisions are called:
A. Analytical research.
B. Strategy planning.
C. Operational planning.
D. Marketing research.
24) A ______________ is an organized wayof continuallygathering and analyzing data to get information to
help marketing managers make ongoing decisions.
A. Marketing research project
B. Marketing information system
C. Marketing model

4. D. Marketing research department
25) The part of the relevant population thatis surveyed by a researcher is called the:
A. Target population.
B. Representative group.
C. Focal group.
D. Sample.
26) Focus groups:
A. Always do a good job of representing the broader targetm arket.
B. Are usuallycomposed of10 to 15 people asparticipants.
C. Yield results thatare largely dependenton the viewpointof the researcher.
D. Are expensive compared to other marketing research methods.
27) One of the major disadvantages ofthe focus group interview approach is that
A. It is difficultto get in-depth information about the research topic.
B. Ideas generated by the group cannotbe tested later with other research.
C. It is difficult to measure the results objectively.
D. There is no interviewer,so the research questions maynotbe answered.
28) A small manufacturing firm has justexperienced a rapid drop in sales.The marketing manager thinks thathe
knows whatthe problem is and has been carefullyanalyzing secondarydata to check his thinking.His next step
should be to:
A. Conduct informal discussion with outsiders,including intermediaries,to see if he has correctly defined the problem.
B. Conductan experiment.
C. Develop a formal research projectto gather primarydata.
D. Develop a hypothesis and predictthe future behaviorof sales.
29) Which of the following statements aboutconsumer products is true?
A. Specialty products are those that customers usuallyare leastwilling to search for.
B. Convenience products are those thatcustomers wantto buy at the lowestpossible price.
C. Shopping products are those products for which customers usuallywantto use routinized buyingbehavior.
D. Unsoughtproducts are notshopped for at all.
30) The attitudes and behavior patterns of people are part of the
A. Political environment.
B. Social and cultural environment.
C. Firm's resources and objectives.
D. Competitive environment.
31) The firststep in marketsegmentation should be:
A. Deciding whatnew productyou could develop.
B. Evaluating what segment(s) you currently serve.
C. Defining some broad product-markets where you maybe able to operate profitably.
D. Finding a demographic group likelyto use your products.
32) Which is the first step in marketsegmentation?
A. Finding one or two demographic characteristics to divide up the whole mass market.
B. Clustering people with similar needs into a marketsegment.
C. Evaluating marketsegments to determine ifthey are large enough.
D. Naming a broad product-marketof interestto the firm.

5. 33) ______________ is the process ofnaming broadproduct-markets and then segmenting these broadproduct-
markets in order to selecttarget markets and develop suitable marketing mixes.
A. Market segmentation
B. Strategic planning
C. Market positioning
D. Mass marketing
34) The productlife cycle:
A. Describes the stages a new productidea goes through from beginning to end.
B. Has five major stages.
C. Shows that sales and profits tend to move together over time.
D. Applies more to individual brands than to categories or types of products.
35) Which of the following is a DEMOGRAPHIC segmenting dimension?
A. Rate of use.
B. Brand familiarity.
C. Family life cycle.
D. Type of problem solving.
36) Which of the following is NOTone of the text's product life cycle stages?
A. Market maturity
B. Market penetration
C. Market growth
D. Market introduction
37) During the MARKET INTRODUCTION stage of the product life cycle:
A. Large profits are typical—until competition arrives.
B. Price and promotion are more importantthan Place and Product.
C. Money is invested—in the hope of FUTURE profits.
D. Much moneyis spenton Promotion,while spending on Place is leftuntil later.
38) During the market introduction stage of the productlife cycle:
A. Considerable moneyis spenton promotion while place developmentis leftuntil later stages.
B. Products usuallyshow large profits ifmarketers have successfullycarved out new markets.
C. Funds are being invested in marketing with the expectation of future profits.
D. Most potential customers are quite anxious to try out the new-productconcept.
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 outof the industry, but a new one entered
recently. Firms in the industryare trying to avoid price-cutting by spending on persuasive advertising.These firms are
competing in which stage ofthe productlife cycle?
A. Market growth
B. Market maturity
C. Market introduction
D. Market development
40) Typically the _____ is responsible for building gooddistribution channels and implementing place policies.
A. Advertising manager
B. Human resources manager
C. Public relations manager
D. Sales manager

6. 41) SGCA is having a sales contestto encourage retailers to quicklyreduce the inventory of SuperGamer computers.
Retailers with the highestsales during the next month win an expense paid trip to a special dealer meeting ata resort
in Hawaii.This is
A. The type of promotion thatcontinues to impactsales even after the promotion is over.
B. An example of a producer using sales promotion in the channel.
C. Probably illegal because itmightencourage price competition among retailers.
D. An example of cooperative advertising.
42) While watching a television program,Liza gets a phone call justas a commercial is starting.She presses the
mute button on the television's remote control and takes the call,so she pays no attention to the commercial.In terms
of the communication process,the telephone call is an example of:
A. Decoding.
B. Feedback.
C. Encoding.
D. Noise.
43) The Canyonlands Corporation is introducing a new productnext month.To prepare for the introduction,
themarketing manager is having his sales force call on distributors to explain the unique features of the new product,
how the distributors can bestpromote it,and whatsales volume and profitmargins theycan reasonablyexpect. In
addition,Canyonlands is budgeting 2% ofits estimated sales for magazine advertising.This is an example of:
A. Exclusive distribution.
B. A pushing policy.
C. Selective distribution.
D. A pulling policy.
44) Integrated direct-response promotion:
A. Is not necessaryor useful when the channel ofdistribution involves intermediaries.
B. Is usuallypart of a pushing effort rather than part of a pulling approach.
C. Focuses on achieving a measurable,directresponse from specific targetcustomers.
D. None of these are true.
45) American Tourister,Inc.—a producer of luggage—is planning to introduce a new product line.
The marketingmanager is having her sales force call on retailers to explain American Tourister's consumer
advertising plans,the unique features ofthe new luggage,how the distributors can bestpromote it,and whatsales
volume and profit margins theycan reasonablyexpect. This is an example of:
A. Selective distribution.
B. A pushing policy.
C. A pulling policy.
D. Intensive distribution.
46) Positioning analysis
A. Is a visual aid to understanding a product-market.
B. Shows thatmanagers and customers usuallyview presentbrands similarly.
C. Helps managers understand the actual characteristics oftheir products.
D. Is not a product-oriented approach.
47) 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 productdifferences to make its
one basic marketing mixappeal to both submarkets.QCI is using the

7. A. Multiple target market approach.
B. Mass marketing approach.
C. Combined targetmarket approach.
D. Single target market approach
48) Which of the following statements aboutpositioning is NOTTRUE?
A. Positioning issues are especiallyimportantwhen competitors in a marketare very dissimilar.
B. It helps marketing managers know how customers view the firm's offering.
C. It often makes use oftechniques such as perceptual mapping.
D. It refers to how customers think aboutproposed or presentbrands in a market.
49) A _____ is a marketwith very similar needs and sellers offering various close substitute ways of satisfying those
needs.
A. Target market
B. Product-market
C. Generic market
D. Standard market
50) Which of the following is NOTa trend affectingmarketing strategyplanning in the area of internationalmarketing?
A. Tensions between have and have-not cultures.
B. Decreasing role ofairfreight.
C. Global communication over the Internet.
D. More attention to exporting by small companies.
51) When a companygrows globally,this is an example of:
A. Market development
B. Market penetration.
C. Diversification.
D. Product development.
52) Which of the following statements DOES NOT indicate that a marketing manager is aboutto make a serious
mistake?
A. "When it comes to my marketing strategy, if it ain't broke, don't fix it."
B. "I try to place myselfin the position ofthe consumer and do unto others as I would have them do unto me."
C. "I leave marketing applications oftechnologyto the information technologystaff. There's no need for me to learn
aboutthem."
D. "International competition is justa fad. We can ignore it."
53) It is usuallythe _________ job,perhaps with help from specialists in technology,to decide whattypes of sales
technologytools are needed and how they will be used.
A. Sales manager's
B. Purchasing manager's
C. Marketing executive's
D. Procurementmanager's
54) Which of the following is a key trend affectingmarketing strategyplanning?
A. Senior and ethnic submarkets are getting smaller.
B. Growth of marketing information systems.
C. Less use oftechnologyin personal selling.
D. Slower new-productdevelopment.
55) Which of the following statements aboutethicalbehavior in business is true?

8. A. The legal environmentsets the highest standards ofethical behavior.
B. The legal environmentsets the normative standardsofethical behavior.
C. The legal environmentsets the minimum standardsofethical behavior
D. The legal environmentsets the maximum standardsofethical behavior.
56) Many Internet sites,such as Autobytel.com and Edmunds.com,have extensive information aboutthe prices of
new and used vehicles thatanyone can use for free. In light of the availability of this information,whatis the
responsibilityof consumers to use it?
A. Consumers should notuse itbecause itgives them an unfair advantage over car dealers.
B. Consumers should nottrustany information theyreceive from any source except the government.
C. Consumers can use it,but should notfeel a responsibilityto do so.
D. Consumers have a responsibilityto use the information and be smarter customers.
57) The future poses manychallenges for marketingmanagers because:
A. New technologies are making iteasier to abuse consumers'rights to privacy.
B. Social responsibilityapplies onlyto firms—notto consumers.
C. It is marketing managers who have full responsibilityto preserve our macro-marketing system.
D. The marketing concepthas become obsolete.