course material

1. Hewlett-Packard sells personal computers through specialty computer
stores, electronics superstores, and its own Internet site. What is the
marketing mix variable that is being considered here?
MKT 421 Final Exam – Solution Answer1) Big Fizz Co., a manufacturer of cola-flavored
drinks, wants to aID packaged fruit juices to its existing product line. Big Fizz must make
some decisions regarding packaging and branding the fruit juices. These decisions would
fall under which variable of the marketing mix?A. ProductB. PlaceC. PromotionD. Price2)
Hewlett-Packard sells personal computers through specialty computer stores, electronics
superstores, and its own Internet site. What is the marketing mix variable that is being
considered here?A. PriceB. PromotionC. ProductD. Place3) Marketing strategy planners
should recognize that:A. target markets should not be large and spread outB. mass
marketing is often very effective and desirableC. large firms like General Electric, Target,
and Procter & Gamble are too large to aim at clearly defined marketsD. target marketing is
not limited to small market segments4) Target marketing, in contrast to mass marketing,A.
is limited to small market segmentsB. assumes that all customers are basically the sameC.
ignores markets that are large and spread outD. focuses on fairly homogeneous market
segments5) The process of naming broad product-markets and then dividing them in order
to select target markets and develop suitableA. market penetrationB. market
segmentationC. market developmentD. market research6) ______________ 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 positioningB.
Market segmentationC. Mass marketingD. Diversification7) Marketing research which seeks
structured responses that can be summarized is calledA. focus group researchB.
quantitative researchC. qualitative researchD. situation analysis research8) One of the
major disadvantages of the focus group interview approach is thatA. ideas generated by the
group cannot be tested later with other researchB. it is difficult to measure the results
objectivelyC. it is difficult to get in-depth information about the research topicD. there is no
interviewer, so the research questions may not be answered9) When focus group
interviews are used in marketing,A. each person in the group answers the same
questionnaire, to focus the discussionB. the typical group size is 15 to 20 typical consumers
whether online or off-lineC. it is primarily as a follow-up to more quantitative researchD.
the research conclusions will vary depending on who watches the interview whether online
or off-line10) Focus groupsA. are usually composed of 10 to 15 people as participantsB.

2. yield results that are largely dependent on the viewpoint of the researcherC. always do a
good job of representing the broader target marketD. have a low cost per participant11) 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 toA. conduct an experimentB.
develop a formal research project to gather primary dataC. conduct informal discussion
with outsiders, including intermediaries, to see if he has correctly defined the problemD.
develop a hypothesis and predict the future behavior of sales12) 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. Looking
through the company’ s marketing information system to see past sales trendsB. Reviewing
videotapes of a recent focus groupC. Making phone calls to some of the best customers to
learn their interest in a new line of clothingD. Spending time in stores observing
customers’ behavior13) Which of the following statements about consumer products is
true?A. Convenience products are those that customers want to buy at the lowest possible
price.B. Shopping products are those products for which customers usually want to use
routinized buying behavior.C. Specialty products are those that customers usually are least
willing to search for.D. Unsought products are not shopped for at all.14) The attitudes and
behavior patterns of consumers making a purchasing decision are part of theA. political
environmentB. social and cultural environmentC. competitive environmentD. firm’ s
resources and objectives15) The observing method in marketing researchA. uses personal
interviewsB. may require customers to change their normal shopping behaviorC. is used to
gather data without consumers being influenced by the processD. is not suitable for
obtaining primary data16) The first step in market segmentation should beA. deciding what
new product you could developB. evaluating what segments you currently serveC. finding a
demographic group likely to use your productsD. defining some broad product-markets
where you may be able to operate profitably17) The product life cycleA. describes the
stages a new product idea goes through from beginning to endB. has three major stagesC.
applies to categories or types of products as opposed to brandsD. shows that sales and
profits tend to move together over time18) Which of the following is one of the product life
cycle stages?A. Market analysisB. Market growthC. Market feedbackD. Market research19)
While watching a television program, Liza gets a phone call just as 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 what?A. EncodingB. NoiseC. DecodingD. Feedback20) Which of the
following functions are performed by wholesalers in the channel of distribution?A.
Providing information to retailersB. Placing radio advertisements for retailersC. Placing
newspaper advertisements for retailersD. Providing goals for retailers21) Typically the
______________ and the marketing manager are responsible for building good distribution
channels and implementing place policies.A. public relations managerB. sales managerC.
advertising managerD. human resources manager22) SGCA is having a sales contest to
encourage retailers to quickly reduce the inventory of SuperGamer computers. Retailers

3. with the highest sales during the next month win an expense paid trip to a special dealer
meeting at a resort in Hawaii. This isA. probably illegal because it might encourage price
competition among retailersB. an example of cooperative advertisingC. the type of
promotion that continues to impact sales even after the promotion is overD. an example of a
manufacturer using trade sales promotion in the channel23) Advertising allowancesA. are
incentive monies given to firms further along in the channel to encourage them to advertise
or otherwise promote the firm’ s productsB. involve intermediaries and producers sharing
in the cost of adsC. allow for coordination and integration of ad messages in the channelD.
set the allowance amount as a percent of the retailer’ s actual purchases24) Price
reductions given to channel members to encourage them to promote or otherwise promote
a firm’ s products locally areA. quantity discountsB. brokerage allowancesC. push money
allowancesD. advertising allowances25) A producer using very aggressive promotion to get
final consumers to ask intermediaries for a new product hasA. a pulling policyB. a target
marketing policyC. a selective distribution policyD. a pushing policy26) Nantucket
Hammocks, Inc., uses dealer incentives, discounts, and sales contests in order to encourage
retailers to give special attention to selling its products. Nantucket Hammocks is usingA.
exclusive distributionB. a corporate channel systemC. dual distributionD. pushing27)
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 theA. combined target market approachB. single
target market approachC. multiple target market approachD. mass marketing approach28)
When segmenting broad product-markets, cost considerations tendA. to encourage
managers to disregard the criterion that a product-market segment should be substantialB.
to lead to more aggregatingC. to be unimportant as long as the segmenting dimensions are
operationalD. to lead to a large number of small, but very homogeneous, product-market
segments29) ______________ focuses on introducing new products to existing markets.A.
Market developmentB. Product developmentC. DiversificationD. Market penetration30)
When a company grows globally by introducing existing product lines to new markets, this
is an example of what?A. Market developmentB. Product developmentC. DiversificationD.
Market penetration