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Multiple Choice - Terminology/Concept
E c 1.Which one of the following is NOT a part of the marketing environment?
a.Controllable factorsc.Interest rates
b.Uncontrollable factors d.Adaptation
E c 2.Which is a major uncontrollable factor to both the firm and its marketers?
a.Overall objectivesc.Competition
b.Role of other business functionsd.Line of business
E a 3.A firm monitors uncontrollable factors and evaluates its strengths and weaknesses in
a.feedback.c.control.
b.adaptation.d.differential advantage analysis.
E c 4.In which part of the marketing environment does a firm monitor uncontrollable factors and assess its strengths and weaknesses?
a.Adaptationc.Feedback
b.Corporate cultured.Target marketing
E d 5.The part of the marketing environment in which an organization plans changes in its marketing plan to reflect a new consumer trend is
a.corporate culture.c.feedback.
b.strategic planning.d.adaptation.
E b 6.After studying its uncontrollable environment, a firm decides to change its pricing strategy. This decision involves
a.feedback.c.marketing myopia.
b.adaptation.d.mass marketing.
D a 7.Which of the following are parts of a marketer’s macroenvironment?
a.A firm’s societal environmentc.A firm’s distributors
b.The capabilities of the firm itselfd.A firm’s pricing strategy
E b 8.The elements that are internally directed by a firm and its marketers are known as
a.the marketing mix.c.marketing strategies.
b.controllable factors.d.marketing tactics.
D c 9.Which of the following is NOT a controllable factor that is directed by top management?
a.Role of marketingc.Selection of a target market
b.Overall objectivesd.Line of business
Multiple Choice - Terminology/Concept
D c 10.Which of the following factors is NOT directed by top management?
a.Role of other business functions
b.Role of marketing
c.Determination of the target market
d.The firm’s corporate culture
E d 11.When business managers outline a firm’s functions, geographic coverage, and the specific business of the firm, they are detailing the firm’s
a.corporate culture.c.marketing organization.
b.target market.d.line of business.
D b 12.An appliance retailer has decided to limit its business to marketing major appliances in a size suitable for smaller apartments. This represents its
a.role of marketing.c.corporate culture.
b.line of business.d.overall objectives.
E d 13.Marketing is given an important role in a company if
a.marketing functions are narrowly defined.
b.the firm invests heavily in distribution facilities.
c.marketing personnel have both short-term and long-term objectives.
d.marketing personnel have decision making authority and adequate resources are provided.
E c 14.A firm’s corporate culture refers to its
a.short- versus long-term focus.
b.degree of consumer orientation.
c.shared values, norms, and practices.
d.role of marketing in the firm.
D b 15.Which of these factors is generally considered NOT to be controllable by marketing personnel?
a.The marketing mixc.The selection of a target market
b.Overall objectivesd.The marketing organization
D c 16.A commonly used market segment would classify consumers on the basis of
a.perceived risk.c.age group.
b.ownership.d.risk tolerance.
E c 17.The particular group of customers a firm proposes to serve with a particular marketing program is its
a.unified segment.c.target market.
b.benefit segment.d.market segment.
Multiple Choice - Terminology/Concept
E b 18.The process of subdividing a market into clear subsets of customers that act in the same way or have comparable needs is referred to as
a.demographic marketing.c.lifestyle segmentation.
b.market segmentation. d.target marketing.
D a 19.Which of these is NOT a marketing objective?
a.To reduce dependence on a key supplier
b.To improve a company’s overall image
c.To increase a firm’s average purchase from its customers
d.To increase customer inquiries
D d 20.Which of the following is an example of a marketing objective?
a.To maintain return on investment at 14 percent
b.To earn a 7-year payback period on a new plant
c.To double the current research and development budget
d.To increase market share to 15 percent
E b 21.The unique features in a firm’s marketing program that cause consumers to patronize the firm, and not competitors, is its
a.marketing mix.c.corporate culture.
b.differential advantage.d.technological mix.
D a 22.A firm is a low-cost provider in an industry on the basis of cost economies due to its high market share and key patents. This illustrates its
a.differential advantage.c.target market.
b.marketing objective.d.marketing mix.
E c 23.The structural arrangement that directs marketing functions is outlined in the
a.marketing mix.c.marketing organization.
b.firm’s objectives.d.corporate culture.
D c 24.In a functional form of marketing organization, responsibility is assigned on the basis of
a.customer location.
b.customer size.
c.buying, selling, promotion, and distribution.
d.product category.
Multiple Choice - Terminology/Concept
E d 25.In which marketing organization format does a firm use a single individual to make packaging, advertising, distribution, and pricing decisions for each individual brand?
a.Centralizedc.Market-oriented
b.Functionald.Product-oriented
E c 26.Managers are assigned on the basis of customer type and/or geographic market in which marketing organization format?
a.Centralizedc.Market-oriented
b.Product-orientedd.Functional
E c 27.The specific combination of marketing elements used to achieve objectives and satisfy the target market is the
a.differential advantage.c.marketing mix.
b.marketing strategy.d.marketing plan.
E b 28.Which of the following is NOT a component in a firm’s marketing mix?
a.Pricing decisionsc.Product decisions
b.Feedback and adaptationd.Distribution decisions
E b 29.The marketing mix involves
a.planning, implementation, and control decisions.
b.product, distribution, promotion, and price decisions.
c.strengths, weaknesses, opportunities, and threats (SWOT) analysis.
d.product, packaging, personnel, and promotion decisions.
E b 30.Decision making relating to supplier choice and what functions to assign to others are part of
a.pricing decision making.c.promotion decision making.
b.distribution decision making.d.product decision making.
E a 31.Which statement concerning uncontrollable factors is correct?
a.Uncontrollable factors cannot be fully directed by an organization and its marketers.
b.While uncontrollable factors can be fully directed by top management, they cannot be directed by its marketers.
c.Uncontrollable factors cannot be incorporated into a marketing plan.
d.Uncontrollable factors are not susceptible to contingency planning techniques.
Multiple Choice - Terminology/Concept
D a 32.Which of these is an uncontrollable factor for both an organization and its marketers?
a.The unemployment rate
b.The firm’s marketing organization
- The role of marketing in the firm
- The firm’s corporate culture
E b 33.In which competitive structure does a firm have the most control over its marketing plan?
a.Pure competitionc.Monopolistic competition
b.Monopolyd.Oligopoly
D d 34.In a monopoly situation, the firm’s key marketing task is to
a.differentiate its products on the basis of nonprice factors.
b.differentiate its products on any factors.
c.ensure a large product supply at low prices.
d.maintain its uniqueness and to prevent competitors from entering the market.
E b 35.In an oligopoly,
a.just one firm sells a particular good or service.
b.a few firms comprise most of an industry’s sales.
c.several firms, each with a unique marketing mix, exist in an industry.
d.many firms sell virtually identical goods or services.
E d 36.In an oligopolistic competitive structure,
a.the market is often quite small.
b.there are no discernible consumer segments.
c.each firm has total control over its marketing plan.
d.firms like to engage in nonprice competition.
E a 37.Which competitive structure most closely describes the bottled/canned soda industry?
a.Oligopolyc.Monopolistic competition
b.Monopolyd.Pure competition
E a 38.When an industry has several firms, each of which is striving to offer a unique marketing mix, which competitive structure exists?
a.Monopolistic competitionc.Oligopolistic competition
b.Differentiated competitiond.Pure competition
Multiple Choice - Terminology/Concept
E b 39.The most common competitive structure in the United States is
a.monopoly.c.oligopoly.
b.monopolistic competition.d.pure competition.
D a 40.An important characteristic of monopolistic competition is that
a.startup costs are relatively low.
b.major firms have significant patent protection.
c.barriers to entry exist which reduce competition.
d.most firms sell identical products.
E d 41.In which competitive structure are firms unable to create a long-run differential advantage?
a.Oligopolyc.Monopoly
b.Monopolistic competitiond.Pure competition
D a 42.A firm that looks carefully at the marketing strategy of its indirect competitors
a.defines its competitors in generic terms.
b.is in a monopolistic competition competitive environment.
c.practices marketing myopia.
d.views competition in a narrow framework.
E b 43.Federal legislation affecting marketers can be divided into three major categories: antitrust, discriminatory pricing, and unfair trade practices; industry deregulation; and
a.natural resource conservation and protection.
b.consumer protection.
c.fraudulent business practices.
d.regulation of mergers and acquisitions.
D d 44.The goal of legislation designed to maintain “a level playing field” is to
a.reduce price competition among competing firms.
b.protect consumers from unethical marketing practices.
c.make domestic firms more competitive with foreign firms.
d.protect smaller firms from anticompetitive activities of larger firms.
D d 45.The major role of the Federal Trade Commission is to
a.ensure that consumers obtain low prices.
b.protect businesspeople from unfair competition from foreign-owned firms.
c.develop and enforce rules relating to consumer product safety.
d.enforce rules against unfair methods of competition and deceptive business practices.
Multiple Choice - Terminology/Concept
E b 46.The annual value of goods and services produced in a country less net foreign investment is a country’s
a.trade surplus.c.balance of payments.
b.gross domestic product.d.trade deficit.
D a 47.Real income is the
a.income earned by a person adjusted by the rate of inflation.
b.income earned by a person after deducting all costs for luxuries.
c.actual dollar income earned by a person.
d.actual after-tax income earned by a person.
E c 48.Technology refers to the development and use of
a.research and development.
- major innovations.
- machinery, products, and processes.
- engineering resources.
D a 49.A consumer survey conducted by an industrial marketer to determine the images of its multiple brand is an illustration of which part of the marketing environment?
a.Feedbackc.Objectives
b.Adaptationd.Uncontrollable factors
E d 50.In marketing myopia, a firm
a.defines its business in terms of broadly defined consumer needs.
b.acquires intermittent consumer feedback.
c.has an aggressive approach to marketing.
d.has a narrow-minded view of marketing and its environment.
Multiple Choice - Applied/Comprehensive/Integrative
E b 51.In developing a marketing plan, a marketing manager must take into account marketing factors that are uncontrollable by marketing personnel. These variables include
a.pricing and distribution management.
b.consumers and competition.
c.marketing objectives and technology.
d.marketing organization and supplier prices.
Multiple Choice - Applied/Comprehensive/Integrative
D d 52.When the top management of a computer manufacturer decides to purchase a former supplier of computer cases, this decision has the greatest impact on the company’s
a.overall objectives.c.corporate culture.
b.marketing functions.d.line of business.
D a 53.A firm defines its line of business broadly to take advantage of potential opportunities. For example, instead of classifying itself as a manufacturer of high fidelity equipment, it views itself as an entertainment technology firm. The firm
a.defines competition in generic terms.
b.practices marketing myopia.
c.practices mass marketing.
d.has a flexible corporate culture.
D c 54.Which controllable factor is defined in broad terms for a conglomerate?
a.Corporate culturec.Line of business
b.Overall objectivesd.Role of other business functions
E d 55.In contrast to its overall objectives, a firm’s marketing objectives are more frequently stated in terms of
a.long-term objectives.c.return on investment.
b.profits.d.consumer image.
D a 56.The role of marketing is greatest in which competitive structure?
a.Monopolistic competitionc.Oligopoly
b.Pure competitiond.Monopoly
D d 57.A firm calls its employees “associates,” prefers to promote from within, uses participative management, and focuses on long-term (not short-term) performance. These values reflect the firm’s
a.formality.c.marketing orientation.
b.controllable factors.d.corporate culture.
D c 58.When the senior executives at a home improvement center communicate the firm’s concern for high levels of customer service and for honesty in dealing with customers (they should sell a $1 washer instead of a $100 faucet, if only the washer is needed), the executives are communicating the firm’s
a.marketing mix.c.corporate culture.
b.role of marketing.d.line of business.
Multiple Choice - Applied/Comprehensive/Integrative
D c 59.A restaurant appeals to consumers who desire family-oriented meals. It offers an informal dining atmosphere, family-size portions, and special menus for children accompanied by family members. Most of its patrons live within 5 miles of the restaurant, have annual family incomes in excess of $50,000, and dine with their children. These consumers comprise the restaurant’s
a.marketing target.c.target market.
b.marketing mix.d.customer base.
E b 60.Objectives relating to the time span between a customer’s ordering merchandise and its receipt, and customer satisfaction ratings are examples of
a.overall objectives.c.short-term objectives.
b.marketing objectives.d.long-term objectives.
D a 61.A hospital supply firm has a unique computer program which facilitates reordering hospital supplies. Orders are placed directly to the wholesaler who guarantees next day delivery. This program and order cycle time represent the wholesaler’s
a.differential advantage.c.marketing mix.
b.marketing philosophy.d.target strategy.
E c 62.Without a differential advantage, a company would have a
a.poorly integrated marketing plan.
b.limited target market.
- “me-too” philosophy.
- mass-market orientation.
D c 63.Which statement about a differential advantage is correct?
a.It is most difficult to get and keep a differential advantage in a monopoly.
b.Only large firms can develop and maintain a differential advantage.
c.Individual firms can have no differential advantage in pure competition.
d.A firm can develop a differential advantage in pure competition through nonprice marketing factors.
E d 64.A personal computer manufacturer generates consumer loyalty through the use of direct marketing, Web-based ordering, high levels of customer service, and low prices due to its assuming wholesale and retail functions. These strategic elements constitute its
a.marketing plan.c.marketing mix.
b.market segmentation approach.d.differential advantage.
Multiple Choice - Applied/Comprehensive/Integrative
D c 65.A marketing organization
- is usually headed by a product or sales manager.
- is independent of a firm’s corporate culture.
- should adapt to situational factors.
- is not subject to the control of top management.
Questions 66 and 67 are linked to this scenario: As vice-president of marketing of a major appliance manufacturer (that specializes in refrigerators and ranges), you are considering various alternative organizational forms for the marketing function.
D d 66.One alternative structure would be based upon satisfying two criteria: (1) minimizing total personnel costs, and (2) having clear lines of authority and responsibility. The most appropriate organization form on the basis of these criteria is
a.market-oriented.c.product-oriented.
b.mixed. d.functional.
D c 67.Another alternative organization design would be based upon best meeting the needs of different market segments. For example, organizational consumers (such as builders and property owners) often purchase major appliances on the basis of cost, the availability and cost of replacement parts, and ease of repair. Final consumers, on the other hand, typically purchase major appliances largely on the basis of style and color preferences. The most appropriate organization form for the firm is
a.product-oriented.c.market-oriented.
b.mixed.d.functional.
E b 68.A tire manufacturer has different managers responsible for different channel members (car manufacturers who buy direct versus final consumers who purchase replacement tires from service stations, tire retailers, and mass merchandisers like Wal-Mart), even though the tires are exactly the same for each channel. This firm is using what type of marketing organization?
a.Matrix-orientedc.Product-oriented
b.Market-orientedd.A mixture
D c 69.A plumbing parts manufacturer has distinct market segments (professional versus do-it-yourself) that require different distribution channels. What type of marketing organization should the firm use?
a.Matrix-orientedc.Market-oriented
b.Product-orientedd.A mixture
Multiple Choice - Applied/Comprehensive/Integrative
D b 70.A firm finds that its customers’ needs vary significantly by their industry focus. The optimal marketing organization should be
a.functional.c.product-oriented.
b.market-oriented.d.matrix-oriented.
D d 71.A company has these marketing executives: two brand managers, one market research director, and three regional advertising managers. What marketing organization format is it using?
a.Product-orientedc.Functional
b.Decentralizedd.A mixture
D b 72.An off-price retailer charges low prices for name-brand merchandise, does not advertise, uses low-rent locations, and relies on self-service. Together, these factors comprise the firm’s
a.differential advantage.c.target market.
b.marketing mix.d.corporate culture.
D d 73.A maker of inexpensive computer software provides low-cost documentation (that is available on the Web through a frequently asked questions and search format), offers limited telephone support, and does not advertise. This strategy enables the software provider to undercut competitors, while offering a high-quality product. This marketing mix is
a.poorly integrated.c.distinctive.
b.too expensive for the firm.d.consistent.
E a 74.Contingency plans are most often used with what type of factor?
a.Uncontrollable factor
b.Controllable factor
c.A factor controllable by marketing, but not top management
d.A factor controlled by top management, but not marketing
E c 75.A firm with patent protection can utilize which competitive structure?
a.Pure competitionc.Monopoly
b.Monopolistic competitiond.Oligopoly
D a 76.When deregulation makes it easier for new firms to enter a market,
a.an oligopoly changes into monopolistic competition.
b.oligopolistic competitive structures change to monopolies.
c.pure competition competitive structures change to monopolistic competition.
d.a monopoly changes to an oligopoly.
Multiple Choice - Applied/Comprehensive/Integrative
E c 77.In an oligopoly situation, a firm should seek to
a.attain differential advantages through marketing mixes that are both different from competitors and desirable to consumers.
b.lower prices to drive competitors out of the market.
c.differentiate its products on the basis of nonprice factors.
d.maintain its unique status.
D d 78.An important characteristic of monopolistic competition is that
a.a kinked demand curve faces all firms.
b.few firms exist.
c.each firm has total control over price.