Subject: Marketing BRUMMANA HIGH SCHOOL Mid Year Exams – February 2011 Class/Section: 11/12IP Teacher: Jessica Laine Fahed Date: Monday February 7 Time of exam: 10:45 AM Time allowed: 2.5 Hours Student’s Name: __________________________________ Student exam room number:________________________No. of pages: 10 True / False Questions: For each of the following questions, circle the appropriate answer. (1 PT Each) 1. Marketing is basically selling and advertising. True False 2. Customer satisfaction is the extent to which a firm fulfills a consumer's needs, desires, and expectations. True False 3. If a firm produces the right goods or services, marketing has little role to play in creating customer satisfaction. True False 4. Marketing encourages the development and spread of new ideas, goods, and services. True False 5. The micro view of marketing sees it as the performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client. True False 6. Marketing only applies to profit organizations. True False 7. Marketing activities should begin with potential customer needs, not with the production process. True False 8. Marketing does not occur unless there are two or more parties who want to exchange something for something else. True False 9. Macro-marketing emphasizes how the whole marketing system works. True False 10. Effective marketing in an advanced economy is difficult because producers and consumers are often separated in several levels. True False 11. "Economies of scale" prevent a company from taking advantage of mass production. True False 12. Planning, implementation, and control are basic jobs of all managers. True False 13. Strategic planning is a top management job that includes planning only for marketing areas. True False 14. Finding attractive opportunities and developing profitable marketing strategies are the tasks included in the marketing manager's marketing strategy planning job. True False 15. A marketing strategy is composed of two interrelated parts--a target market and a marketing mix. True False 16. Mass marketing means focusing on some specific customers, as opposed to assuming that everyone is the same and will want whatever the firm offers. True False 17. The "four Ps" of the marketing mix are Product, Position, Promotion, and Price. True False 18. The marketing manager can control the variables in the marketing environment. True False 19. Earning a profit probably should be one of the objectives of a firm, but it should not be the only one. True False 20. A mission statement sets out the organization's basic purpose for being. True False Multiple Choice Questions: For each of the following questions, circle the appropriate answer. (2 pts Each) 1. 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. one of the universal functions of innovation. B. a production activity. C. an example of the micro-macro dilemma. D. best left to intermediaries. E. a part of marketing. 2. Which of the following is NOT a reason for you to study marketing? A. Marketing affects almost every aspect of daily life. B. Marketing will be important to your job. C. Marketing involves actually making the goods that people need. D. Marketing affects innovation and consumers' standard of living. E. Marketing plays a big part in economic growth and development. 3. __________ __________ is the extent to which a firm fulfills a customer's needs, desires, and expectations. A. Customer forecast. B. Customer satisfaction. C. Customer service. D. Customer support. 4. _______ is defined as the performance of activities that seek to accomplish an organization's objectives by anticipating customer needs and directing a flow of needsatisfying goods and services from producer to customer. A. Innovation B. Advertising C. Selling D. Marketing E. Sales promotion 5. Marketing is NOT needed in a ______________ economy. A. consumer-oriented B. command C. pure subsistence D. market-directed E. none of the above 6. _____ is the managerial process of developing and maintaining a match between an organization's resources and its market opportunities. A. Strategic (management) planning B. Target marketing C. Mass marketing D. Resource allocation E. Marketing control 7. Target marketing, in contrast to mass marketing: A. Assumes all customers have the same needs. B. Assumes everyone is a potential customer. C. Focuses only on small market segments. D. Tailors a marketing mix to fit some specific group of customers. E. Makes it more likely that a firm will face direct competition. 8. _____ assume(s) that everyone is the same—and consider(s) everyone to be a potential customer. A. Mass marketers B. Target marketing C. Mass marketing D. Target marketers E. Objective marketing 9. A firm's "marketing mix" decision areas would NOT include: A. Price. B. Promotion. C. Product. D. Place. E. Profit. 10. "Product" is concerned with: A. branding and warranties. B. physical goods and/or services. C. packaging. D. developing the right new product for a market. E. all of the above might be involved. 11. Suzuki's 3 year/36,000 mile new car warranty is part of which marketing mix decision area? A. price B. target market C. place D. product E. promotion 12. Big Fizz Co., a manufacturer of cola-flavored drinks, wants to add packaged fruit juices to its existing product line. Big Fizz needs to make some decisions regarding packaging and branding of the fruit juices. These decisions would fall under which variable of the marketing mix? A. Product. B. Place. C. Promotion. D. Price. E. Personal selling. 13. "Place" is concerned with: A. intermediaries. B. transporting. C. channel members. D. storing. E. all of the above might be involved. 14. A "channel of distribution": A. usually has three members--a manufacturer, a distributor, and a retailer. B. is any series of firms (or individuals) from producer to final user or consumer. C. should be as short as possible. D. is not involved if a firm sells directly from its own website to final customers. E. All of the above are true. 15. "Promotion" may include: A. personal selling to channel members. B. point-of-purchase materials. C. mail-order selling. D. advertising on the Internet. E. all of the above. 16. The basic objective of a firm should be to: A. engage in some specific business activity that will perform a socially and economically useful function. B. develop an organization to carry on the business and implement its strategies. C. earn enough profit to survive. D. All of the above. E. Only B and C above. 17. A mission statement A. should never be revised. B. sets out the organization's basic purpose for being. C. should embrace everything rather than focus on a few key goals. D. substitutes for more specific objectives. E. supplies guidelines for general situations but not for situations where managers face difficult decisions. 18. Typically, firms need a hierarchy of objectives. Which of the following best represents a correct hierarchy of a firm's objectives? A. Company objectives, sales promotion objectives, marketing objectives, promotion objectives. B. Marketing objectives, company objectives, promotion objectives, sales promotion objectives. C. Company objectives, marketing objectives, promotion objectives, sales promotion objectives. D. Marketing objectives, promotion objectives, sales promotion objectives, company objectives. E. Promotion objectives, sales promotion objectives, company objectives, marketing objectives. 19. When doing "positioning," a marketing manager should: A. avoid targeting strategies. B. focus on specific product features of all generic competitors. C. rely on how customers think about proposed and/or existing brands in a market. D. plan physical product changes rather than image changes. E. All of the above. A store that is popular with newlyweds runs a wedding gift registry. Five minutes before closing time on a Sunday, a young couple enters the store and wants to register—a process that usually takes 30 minutes or more. A sales associate advises the couple to come back when they have more time, even though a recent memo from the store’s regional manager specifically instructed store personnel to stay after closing time to help such customers. Which key element of the marketing concept is the main problem area in this situation? a. Customer need b. Total company effort c. Customer satisfaction d. Marketing orientation e. Product orientation 20. 21. Which of the following statements, made by marketing managers, illustrates an understanding of the concept of customer value? a. “It’s more important to acquire new customers than to retain old ones.” b. “The only time it’s really necessary to demonstrate superior customer value is right before the actual sale.” c. “My main concern is with meeting this month’s sales quota—I’ll worry about relationship building later.” d. “I might think my product is a good value, but what really counts is if the customer thinks it’s a good value.” e. “Customer value really boils down to which product is the least expensive.” 22. A large consumer products company markets several different lines of products, with many individual products in each line. Each product has its own marketing plan. The company president wants to bring together all of the different marketing plans into a single integrated document that can become part of the company’s strategic plan. It appears that the company president plans to create a: a. marketing super-plan. b. marketing program. c. marketing strategy. d. operational plan. e. mass-marketing approach. 23. An electronics superstore sends a special coupon to its current customers offering them a special discount for purchases made during an upcoming week that occurs during a traditionally slow sales period. This is an example of: a. market penetration. b. market development. c. product development. d. diversification. e. a breakthrough opportunity 24. A moderately-priced jewelry store is trying to differentiate itself from other jewelry stores. The store prices products somewhat lower than the super-premium jewelry stores, but offers better products and services than low-end jewelry stores provide. The market situation this store faces sounds most like: a. pure competition. b. monopoly. c. oligopoly. d. monopolistic competition. e. oligopolistic competition 25. Ford announced that it would begin offering Bluetooth wireless to help consumers more easily make hands free cell phone calls in their cars. The development of Bluetooth is a significant development in the: a. technological environment. b. legal environment. c. corporate environment. d. social environment. e. personal environment. Short Answer: 1. Draw a diagram of the PSSP Hierarchy of needs and briefly explain what needs are met at each level. (10 PTS) 2. Briefly explain the 6 steps (in the correct order) involved in the adoption process. (10 PTS) 3. Briefly explain each of the 5 marketing environments. ( 5 PTS) 4. Define the term “Demographic Segmentation” and briefly explain the major variables used in this type of segmentation. (5 PTS)