The document contains a series of true/false and multiple-choice questions related to marketing concepts, principles, and practices. Key topics include the evolution of marketing from production to relationship-focused strategies, the importance of consumer needs, and the role of technology in modern marketing. Additionally, the material addresses regulatory issues, the impact of economic environments on marketing strategies, and the use of social media in business contexts.

1. PM Exam 1g (16e) Ch. 1-5True/FalseIndicate whether the
statement is true or false.
__T__ 1. An exchange process is an activity in which two
or more parties give something of value to each other to satisfy
perceived needs.
__T__ 2. Product-oriented rather than customer-oriented
management endangers the future growth of an organization.
__T__ 3. The most obvious distinction between not-for-
profit organizations and for-profit firms is the focus on
generating revenues above and beyond the costs.
__T__ 4. A theater group promoting a performance to
raise funds in the fight against cancer is an example of both
cause marketing and event marketing.
__F__ 5. Marketing of sporting, cultural, and recreational
activities to selected target markets is known as cause
marketing.
__T__ 6. The traditional view of marketing can be
described as transaction-based marketing.
__T__ 7. Compared to transaction marketing, relationship
marketing relies more heavily on information technologies.
__F__ 8. Information technology has enhanced the
effectiveness of relationship marketing by leveraging mass-
marketing campaigns.
__F__ 9. Buzz marketing excludes visual aspects as it
does not consist of a tangible expression of an issue or position.

2. __T__ 10. Intermediaries that operate between producers
and resellers are known as wholesalers.
__T__ 11. The planning process creates a blueprint that
everyone in the organization must follow in order to achieve the
organizational objectives.
__T__ 12. As the senior vice-president of marketing,
Naomi will be closely involved in her firm’s strategic planning.
____ 13. The statement of Starbucks to “inspire and nurture the
human spirit – one person, one cup and one neighborhood at a
time.” is an example of a mission statement.
__T__ 14. A mission can be defined as an essential purpose
that differentiates one company from others.
__T__ 15. A SWOT analysis helps planners compare
internal organizational strengths and weaknesses with external
opportunities and threats.
__F__ 16. Matching an external opportunity with an
internal weakness produces a situation known as leverage.
__T__ 17. A customer-driven organization begins its
marketing strategy with a detailed description of its target
market.
__T__ 18. In addition to planning for change, marketers
must set goals to meet the concerns of customers, employees,
shareholders, and members of the general public.
__F__ 19. The antitrust laws in the United States were
designed to protect the interests of organizations having
monopoly positions.

3. ____ 20. The success or failure of a product is independent of
the competitive environment.
__T__ 21. The Sherman Antitrust Act, Clayton Act, and
Federal Trade Commission Act are evidence of federal
commitment to maintaining a competitive business environment
in the United States.
____ 22. The first phase of federal regulation of business was
aimed at protecting competitors and included the Robinson-
Patman Act, passed in the 1930s.
____ 23. The Federal Trade Commission was established to
facilitate trade by removing tariffs and other trade barriers
among Canada, Mexico, and the United States.
____ 24. During an economic recession, marketers look to
emphasize value in their offerings by reducing prices in order to
help consumers stretch their budget dollars.
____ 25. Laura decided to quit her job and travel for a year.
She can be considered a part of the population that is
unemployed.
__T__ 26. Colleges and universities, and other not-for-
profit institutions play major roles in the development of new
technology.
____ 27. The federal government has imposed strict
regulations on food advertising for children based on their
nutritional standards.
____ 28. Paying universities for the use of their logo, team
name, and mascot in advertising products and services to their
students is considered ethical.

4. ____ 29. CafeMom is a website that provides a platform for
mothers and mothers-to-be to interact with each other. The
website also provides information on various topics such as
parenting dilemmas, baby care, and green living. CafeMom can
be regarded as a social networking site.
____ 30. The content programmer of a social news site decides
which news postings get the most prominent display on the site.
____ 31. Microblogging allows people to communicate
extensively through lengthy blog postings.
____ 32. Wonderlist is a task and note manager for mobile
phones that helps users to organize “to-do” lists and increase
efficiency. Wonderlist is an app.
____ 33. Marketers direct some parts of their social media
marketing efforts toward trust building in order to facilitate the
two-way conversation between the company and the consumer.
__F__ 34. The target audience for a social media marketing
campaign depends on the goal of the marketing effort.
____ 35. Marketing efforts aimed at creating brand awareness
will have a broader target audience compared to those aimed at
strengthening relationships with existing customers.
____ 36. The goal of content marketing is to drive the target
audience toward a desired action.
____ 37. An effective social media marketing campaign should
contain good keywords that the targeted audience are most
likely to search for when looking for information about goods
and services.

5. ____ 38. Comment Sniper helps companies to monitor the
comments on their products and also the discussions on online
forums. Comment Sniper is an example of social media
analytics tool.
__T__ 39. An online community manager is the primary
decision maker who runs the firm’s social media program.
____ 40. Online marketing differs from e-marketing as online
marketing encompasses digital technologies that do not involve
computers.
____ 41. A private exchange is also called c-business because
of its relatively more collaborative nature.
__T__ 42. The term e-tailing refers to online retail sales.
__T__ 43. Bots are programs that aid online consumers in
comparison shopping.
____ 44. The public key in the Secure Sockets Layer (SSL)
technology is used to decipher encrypted information.
____ 45. A firewall is an electronic barrier between a
company’s internal network and the Internet that limits access
into and out of the network.
____ 46. Phishing is the voice equivalent of vishing.
____ 47. To be successful at e-business, firms must establish
and maintain competitive standards for customer service.
____ 48. Blogs have created interest among marketers as they
can be effective at quickly forming public opinion.
____ 49. Internet advertising includes banner ads, pop-up ads,

6. and links listed with major search engines.
__F__ 50. The first step to be taken in developing a Web
presence for a company is to determine the domain name for the
website.
Multiple ChoiceIdentify the choice that best completes the
statement or answers the question.
__D__ 1. A company produces a high-quality product,
with a maximum monthly output of 10,000 units. Production
levels are constant and the company relies on its marketing
department to find customers for its output. This approach is
consistent with which era in marketing history?
a.
Production era
b.
Relationship era
c.
Marketing era
d.
Sales era
____ 2. The emergence of the marketing concept can best be
explained by:
a.
higher production levels.
b.
greater sophistication in the production of goods.
c.
the shift from a seller’s market to a buyer’s market.
d.
a focus on product quality.

7. ____ 3. The business philosophy incorporating the marketing
concept that emphasizes first determining unmet consumer
needs and then designing a system for satisfying them is known
as:
a.
customer persuasion.
b.
consumer orientation.
c.
aggressive marketing.
d.
sales orientation.
____ 4. Which of the following is true regarding the
marketing concept?
a.
During tough economic times, the marketing concept focuses on
the objective of achieving short-term profits instead of long-run
success.
b.
The marketing concept believes that consumers will resist
purchasing nonessential goods and services.
c.
The marketing concept emphasizes cutting costs and boosting
revenues during tough economic times.
d.
A firm’s survival and growth are built into the marketing
concept.
____ 5. State bureaus of tourism and conventions typically
engage in _____ marketing.
a.
organization
b.

8. person
c.
place
d.
cause
__D__ 6. Which of the following is a combination of
person, cause, and organization marketing?
a.
Tiger Woods’ endorsement of Nike, a sports company and
Accenture, a consulting company
b.
The Nobel Peace Prize for Al Gore for his work on global
warming
c.
UNICEF’s work to improve the living conditions of children
across the world
d.
Angelina Jolie’s role as a UN Goodwill Ambassador for
refugees
____ 7. Which of the following is true of relationship
marketing?
a.
It focuses on finding new customers.
b.
It prefers not to maintain existing customers due to high costs.
c.
It does not believe in generating repeat sales.
d.
It believes in maintaining existing customers.
____ 8. Relationship marketing focuses more attention on

9. _____ customers because new customers are _____ to acquire
compared to existing customers.
a.
existing; less expensive
b.
new; less expensive
c.
existing; more expensive
d.
new; more expensive
____ 9. Which of the following is a facilitating function of
marketing?
a.
Buying
b.
Selling
c.
Standardization and grading
d.
Distribution
____ 10. Manufacturers create goods and services based on
research and their belief that consumers need them. In doing so,
what marketing function are they performing?
a.
Financing
b.
Standardizing and grading
c.
Risk taking
d.
Physical distribution

10. ____ 11. ADA Inc. stopped its production of oral care goods
after determining apparel production to be its new primary
objective. This is a direct result of the _____ planning process
at ADA Inc.
a.
tactical
b.
research
c.
strategic
d.
economic
____ 12. If an automobile manufacturer was planning to
introduce a sports car powered by a hydrogen-oxygen fuel cell
when the price of gasoline in the United States reached $4 per
gallon, this would best be described as a direct result of its
_____ plan.
a.
short-term
b.
operational
c.
strategic
d.
tactical
____ 13. The U.S. Sports and Fitness Federation is determining
where they should build their permanent training facility. They
want it to be located near a populated center but it must also
provide ample access to those who don’t reside in cities. The
federation is engaged in _____ planning.
a.

11. strategic
b.
short-term
c.
operational
d.
economic
____ 14. Operational planning:
a.
should be used to establish the fundamental strategies of the
organization.
b.
is used to determine departmental rules and procedures.
c.
is the primary responsibility of the top management.
d.
should be completed at the same time the total budget is
prepared.
____ 15. General Electric’s NBC division acquired Universal
Studios and the highest executive who approved this acquisition
was most likely GE’s CEO. This decision is the direct result of
_____ planning process at GE.
a.
tactical
b.
strategic
c.
operational
d.
technological

12. ____ 16. The _____ is the organizational program for selecting
a target market and satisfying customers in that market through
the marketing mix.
a.
operational plan
b.
marketing strategy
c.
relationship marketing approach
d.
short-term plan
____ 17. Which of the following would qualify as an example
of a firm’s weakness?
a.
A bill passed by the government regarding the work timings of
all organizations
b.
A competitor planning to open a new branch close to the firm’s
place of operations
c.
The firm’s failure to pay its taxes on time leading to a poor
reputation in the market
d.
A ban imposed on the use of animals for testing cosmetics
____ 18. The term marketing mix describes:
a.
a composite analysis of all environmental factors inside and
outside the firm.
b.
a series of business decisions that aid in selling a product.
c.
the relationship between a firm's marketing strengths and its

13. business weaknesses.
d.
a blend of the four strategic marketing elements to satisfy
specific target markets.
____ 19. An international apparel manufacturer changed its
pricing strategy as it entered a new market where recessionary
trends are being observed. This implies that the _____ factors of
the marketing environment led the firm to change its pricing
decisions.
a.
legal
b.
political
c.
environmental
d.
economic
____ 20. As chief executive of Stalwart Shipfitting Company, a
diversified producer of marine supplies and equipment, John
needs a method for spotting promising product lines that
warrant commitment of additional resources, as well as those
that should be removed from the firm's product portfolio. A
good choice for this firm at this stage would be to use:
a.
computer models.
b.
strategic business units.
c.
a marketing audit.
d.
an industry analysis.

14. ____ 21. One of General Electric’s business units produces a
variety of light bulbs and generates healthy revenue. The
revenues of this business unit are used to finance the growth of
other business units with higher growth potentials. How would
this unit be classified on the BCG market share/market growth
matrix?
a.
Cash cow
b.
Star
c.
Question mark
d.
Dog
____ 22. A pharmaceutical company that works with the Food
and Drug Administration to create new regulations is practicing:
a.
strategic planning.
b.
environmental scanning.
c.
marketing research.
d.
environmental management.
____ 23. When Kevin analyzes recent data from the U.S.
Census Bureau to uncover new markets for his firm’s product,
he is engaging in:
a.
demarketing.
b.
time-based competition.

15. c.
environmental scanning.
d.
marketing management.
____ 24. Last summer, the Thomas family had to decide
whether to buy a new car, go to Disney World, or remodel their
basement. They chose the vacation. This illustrates:
a.
that competition can be defined in terms of dissimilar products
vying for a limited supply of discretionary buying power.
b.
how the most direct form of competition plays a role in a
consumer’s decision making.
c.
how competition for essential items leaves unlimited
discretionary funds for non-essentials.
d.
that there can be no competition among dissimilar products.
____ 25. Lockheed Martin won the largest military contract
ever by proving it could be the first company to develop and fly
a new model plane. This illustrates the importance of _____.
a.
rapid prototyping of new products
b.
demarketing
c.
time-based competition
d.
the legal environment
____ 26. Which of the following is the newest regulatory

16. frontier for federal and state regulators in the United States?
a.
Protecting competitors
b.
Industry deregulation
c.
Antimonopoly
d.
Cyberspace
____ 27. When Jonathan was contacted by his insurance firm
regarding certain medical claims he had made recently, he
realized that someone else had used his name and insurance
information without his consent to make false claims for
medical services and goods. Which of the following acts will
enable Jonathan to take action against the person who stole his
personal information?
a.
The Clayton Act
b.
The Identity Theft Enforcement and Restitution Act
c.
The Sherman Antitrust Act
d.
The Digital Millennium Copyright Act
____ 28. Which of the following components of the marketing
environment consists of factors that influence consumer buying
power and marketing strategies?
a.
Competitive environment
b.
Cultural environment
c.

17. Economic environment
d.
Regulatory environment
____ 29. When marketers offer new products, increase their
promotional efforts, and expand their distributional limits, it is
a sign of:
a.
low inflation and low unemployment.
b.
low inflation and high unemployment.
c.
high inflation and high unemployment.
d.
high inflation and low unemployment.
__A__ 30. Which of the following usually indicates a
strong economy?
a.
Growth in services such as banking and restaurants
b.
Cautious spending by businesses and consumers
c.
A focus on basic, functional products with lower price tags
d.
Increase in purchasing power coupled with uncertain consumer
demand
____ 31. Which technology creates a common interface for
data to be carried across networks between different devices?
a.
IMS
b.

18. Wi-Fi
c.
VoIP
d.
RFID
____ 32. Oneview is a social media platform that provides a
space for its users to save, organize, and tag links of their
favorite websites. The users can also share these links with
other members of the platform. Oneview is an example of a
_____.
a.
social networking site
b.
social news site
c.
blogging site
d.
bookmarking site
__D__ 33. In a B2B context, businesses use social media
mainly to:
a.
share views and make final buying decisions.
b.
learn about new goods and services.
c.
connect with the general public.
d.
build relationships, including partnerships with other
companies.
__B__ 34. Not-for-profit organizations use social media to:

19. a.
learn about new methods of production.
b.
connect with the general public, the business community, and
each other.
c.
learn about new goods and services.
d.
lobby for political gains.
____ 35. The content for a social media marketing campaign is
said to be effective if it:
a.
focuses on promoting the company outright.
b.
contains detailed information about competing product offerings
in the market.
c.
has a strong brand focus.
d.
presents the SMM effort as a one-way conversation, much like
traditional marketing.
____ 36. Job seekers can use social media to improve their job
prospects in the market by:
a.
being active on most of the social media sites.
b.
including friends and family on their LinkedIn network.
c.
accepting all LinkedIn requests in order to widen their network.
d.
being proactive on LinkedIn and connecting with people who
work for companies of interest.

20. ____ 37. Jonathan, who has experience in graphics designing,
was hired by a firm to oversee the look and feel of its Facebook
page. Jonathan was most likely hired as a _____.
a.
social media designer
b.
copywriter
c.
social media developer
d.
brand manager
____ 38. Sharon Rice is part of a team that handles the social
media marketing campaign of a company. She is responsible for
managing external engagement with customers in social media
channels such as Facebook, Twitter, and other blogging sites.
Sharon can be regarded as a(n) _____.
a.
social media designer
b.
social media developer
c.
brand manager
d.
online community manager
____ 39. An e-business vendor who creates products, such as
clothing or computers, to the exact specifications of individual
customers is practicing:
a.
personalization.
b.

21. interactive marketing.
c.
integrated marketing.
d.
right-time marketing.
____ 40. The corporate website of a company is established
with an intention to:
a.
sell its goods and services directly to the consumers.
b.
increase the purchase of its products by consumers by engaging
them in interactions.
c.
increase the visibility of the company and promote their
offerings.
d.
provide a transaction gateway for goods and services.
____ 41. The most important goal of a marketing website is to:
a.
give prospective employees the opportunity to apply for jobs
online.
b.
provide financial information to investors.
c.
increase purchases by visitors.
d.
build relationships with customers.
____ 42. TechnoMarket, a retailer of consumer electronics, has
its branches worldwide in around 25 countries. The company is
looking for a website that will allow it to communicate with its

22. employees worldwide. The website should also enable the
employees to access details regarding the new products, their
functionality, and their availability in the store. Which of the
following will best suit this purpose?
a.
Private exchange
b.
Extranet
c.
Electronic storefront
d.
Intranet
____ 43. Simply-Fyde Shopping’s website has an online
catalog with the details of the products on offer. When
customers pick their choices from the list, the items are
automatically populated into a(n):
a.
online trading database.
b.
electronic shopping cart.
c.
point-of-sale system.
d.
Web browser.
____ 44. Aaron Corporation is an insurance firm that provides
a range of consumer directed health insurance products. The
company has detailed personal information of its patients
including their date of birth, email address, health related and
occupation details, and address. Which of the following types of
software can the company use to protect the consumer
information from hackers?
a.

23. Spyware
b.
Shopbot
c.
Webtrends Analytics
d.
Firewall
____ 45. Seth reads an online tour journal from his favorite
musician. With the help of this journal, fans can post comments
or occasionally ask questions to the musician. This online
journal is an example of a(n):
a.
blog.
b.
social network.
c.
electronic bulletin board.
d.
newsgroup.
____ 46. Josh is interested in mountain biking and regularly
visits a specialized online service that provides information on
various topics related to mountain biking. Josh is most likely to
be visiting a(n):
a.
corporate website.
b.
podcast.
c.
electronic bulletin board.
d.
electronic storefront.

24. ____ 47. A _____ is a Web page anyone can edit, so that a
reader can, in addition to asking questions or posting comments,
actually make changes to the Web page.
a.
blog
b.
wiki
c.
tweet
d.
news feed
____ 48. Which of the following is the most common form of
Internet advertising?
a.
Preroll video ad
b.
Pop-up ad
c.
Search marketing
d.
Banner ad
____ 49. Keith is a marketer for Olympus cameras. He
arranged for an agreement with a search engine whereby
Olympus would pay the search engine for listing its products
among the top three results whenever a computer user ran a
search for digital cameras. This is an example of:
a.
integrated marketing.
b.
active marketing.
c.

25. search marketing.
d.
interactive marketing.
____ 50. The first step in creating an effective website is to:
a.
create an eye-catching home page.
b.
establish the layout of the website.
c.
determine the tools to be used and their graphical content.
d.
understand the purpose of the site.