Unit 1 Test
Name:__________________
Date:______________
Period:__________________
General Directions: Be sure to write your name on the test. Read instructions to each section
carefully. When you are done, place your test in the exam folder on the teacher’s desk.
I. (2 points each) True or False: Write the words true or false in the blank next to the number.
___1. Decisions about the payment options offered to customers are part of the pricing function
of marketing.
ANS: F
___2. Purchasing means buying products for a business's operation.
ANS: T
___3. According to the text, the skills and knowledge that are important for a marketing career
include an ability to work well with others and an understanding of manufacturing
techniques.
ANS: F
___4. The costs associated with marketing cause an increase in the cost of products, particularly
when a company manufactures a large quantity of product.
ANS: F
___5. Selling camping gear through catalogs mailed to Sierra Club members and other outdoorspeople is an example of place utility.
ANS: T
___6. Companies are described as "sales oriented'' when they focus on their employees' ability to
persuade rather than their customers' needs and wants.
ANS: T
___7. In marketing terms, customers are the people who use a product.
ANS: F
___8. The value of a product is determined by the price a company charges for it.
ANS: F
___9. Mrs. Yamura bought her son Kalen a radio-controlled car for his birthday. In the eyes of
marketers for radio-controlled cars, Kalen is the customer.
ANS: F
___10. Susan, who wants to sell her old but reliable car, places an ad about the car in her local
newspaper. In marketing terms, Susan has made a promotion decision.
ANS: T
___11. Pretty Posies Seed Company shows its understanding of its customers' psychographics by
advertising its drought-resistant plant seeds only in newspapers in southwestern states.
ANS: F
Unit 1 Test
Name:__________________
Date:______________
Period:__________________
___12. Companies are described as ''sales oriented'' when they focus on their employees' ability
to persuade rather than their customers' needs and wants.
ANS: T
___13. Products designed to appeal specifically to ''baby boomers'' (people born between 1946
and 1964) reflect a concern for customers' demographics.
ANS: T
___14. A business must have a complete customer profile in order to create a strong marketing
mix.
ANS: T
___15. ''Positioning'' as defined by Al Ries and Jack Trout means deciding how and where to
place a product in the stores.
ANS: F
II. Multiple Choice: (2 points each) Read each question carefully and choose the response
which best answers the question. Write your response in the blanks provided to the left of the
question.
___1. What term is used to describe the process of selling a product in the marketplace?
a. marketing
b. utility
c. pricing
d. exchange
ANS: D
___2. Big Ed's 24-Hour Diner recently began accepting VISA and Mastercard because Ed
wanted to increase his product's_________.
a. information utility.
b. time utility.
c. form utility.
d. possession utility.
ANS: D
___3. The owner of a miniature golf business provides her customers with
a_________________.
a. service.
b. promotion.
c. good.
d. exchange.
ANS: A
Unit 1 Test
Name:__________________
Date:______________
Period:__________________
___4. The owners of the Totally Outrageous Shoe Store decided to rent store space next to a
music store where teenagers frequently shop. What did the owners' decision add to their
product?
a. promotion
b. place utility
c. time utility
d. improved distribution
ANS: B
___5. At the end of her one-week stay at the Hyatt Regency Hotel in Waikiki, Elena completed
a form rating the hotel's service, food, and accommodations. Elena's form is an example of
a. information utility.
b. promotion.
c. product planning.
d. marketing research.
ANS: D
6. The Good Ol' Barbeque Sauce Company began marketing a new sauce that Includes spices
often found in Asian cuisine. The creation of the new sauce indicates the company is
segmenting its market based on
a. psychographics.
b. product benefits.
c. geographics.
d. demographics.
ANS: D
7. __________ is using marketing approaches that encourage consumers to think about a
product in a certain way.
a. Target marketing
b. Positioning
c. Segmenting
d. Product planning
ANS: B
8. The Music Stand direct-mail company sends catalogs to music teachers, dancers, and other
music lovers based on the company's study of _________________ data.
a. demographic b. geographic c. physiographic d. product benefits
ANS: C
9. The Cracked Pot Potteryware company decided to sell its coffee mugs in the local espresso
shops. What type of marketing decision was this? a. price b. place c. promotion d. product
ANS: B
10. In order to get its product into ''the mind of its prospective customer," what should a new
company do?
a. Look for underserved markets.
Unit 1 Test
Name:__________________
Date:______________
Period:__________________
b. Play to the competition's weaknesses.
c. Target different market segments.
d. Lead with its strength.
ANS: A
Unit 1 Test
Name:__________________
Date:______________
Period:__________________
III. (3 points each) Match the best answer to each phrase. Place the letter of the best answer in
the blank next to the question.
____1. Buying goods and services for a
a. distribution
business's operation.
____2. Transporting and storing products.
b. product planning
____3. Deciding how much to charge for
goods and services
c. financing
____4. Determining the payment options to
be offered to a business's information
customers.
d. purchasing
____5. Selecting products for sale to
consumers.
e. marketing
____6. Providing customers with goods and
services they want to buy.
f. risk management
____7. Preventing or reducing business loss.
g. pricing
____8. Informing consumers about a
business's operation.
h. marketing management
____9. Developing, promoting, and
distributing products.
i. promotion
j. selling
____10. Gathering and analyzing facts about
products and consumers' wants and needs.
ANS:1. d, 2. a, 3. g, 4. c, 5. b, 6. j, 7. f, 8. i, 9. e, 10. h
Unit 1 Test
Name:__________________
Date:______________
Period:__________________
1. Information about where people live.
a. marketing oriented
2. People with common needs, desires, and
purchasing abilities.
3. Reasons for charging a particular amount
for a product.
4. Using one plan to sell a product to all
potential customers.
5. Attempting to meet the individual needs
and desires of potential customers.
6. Features of a product that appeal to
specific consumers.
7. Choices involving product packaging.
8. Information about where and how a person
lives and what he or she wants and needs.
9. Creating a plan to meet the needs and
desires of a specific group of potential
customers.
10. Separating a large group of potential
customers into smaller groups based on
particular characteristics.
b. Geographics
c. product benefits
d. customer profile
e. market segmentation
f. price decisions
g. target marketing
h. product decisions
i. mass-marketing
j. market
ANS: 1. b, 2. j, 3. f, 4. i, 5. a, 6. c, 7. h, 8. d, 9. g, 10. e
IV. (4 points each) Fill in the blank with the best answer.
1. During the last three months of the year, a grocery store stocks its shelves with plenty of
canned pumpkin in order to increase the pumpkin's _______________ utility.
ANS: time
2. Of the five economic utilities involved with all products, only _______________ utility is
NOT directly related to marketing.
ANS: form
3. The employees of a home-improvement warehouse are expert craftspeople who enjoy
giving customers advice about do-it-yourself projects. The employees' advice increases the
______________________ utility of their goods.
ANS: information
4. Changing old glass bottles into beautiful new sculptures is an example of
____________________ utility.
ANS: form
5. For success in a marketing career, two essential skills are communication and
____________.
Unit 1 Test
Name:__________________
Date:______________
Period:__________________
ANS: interpersonal
6. Bob, owner of Bob's Pretty Good Coffee store, felt threatened when Sally's Heavenly
Espresso store moved in across the street. Bob devised a promotional campaign to improve
his store's image. Bob's campaign is an example of _____________________ management.
ANS: risk
7. Obtaining the money needed to start and operate a business is a marketing function known
as _______________________ .
ANS: financing
8. The four basic marketing decisions are price, place, __________________, and promotion.
ANS: product
9. A combination of geographic, demographic, and psychographic data about a group of
people can be used to create a customer ________________________.
ANS: profile
10. In offering several types of bath soaps for people with different types of skin (sensitive,
dry, oily, etc.), the Dial Corporation is segmenting its bath soap market by product
_____________. ANS: benefit(s)
11. The personal satisfaction a customer receives from using a good or service is defined as
the product's ___________________________.ANS: value
12. Information about the values and attitudes that shape consumers' lifestyles is called
_______________________. ANS: psychographics
V. Short Answer: (5 points each) In the space provided answer the following question.
Write a two-to-three-paragraph answer to one of the following questions.
1. Explain how marketing helps to lower the prices of products.
2. Explain how marketing can affect the introduction and improvement of products.
3. In two to three paragraphs, explain why today's businesses emphasize market
segmentation rather than mass-marketing when creating and marketing their products.
4. List three approaches to positioning a product and, for each approach, describe a detailed
situation in which the approach would be most useful.
AN'S:
1. Marketing increases the demand for products. Increased demand causes manufacturers to
make products in larger quantities, thus reducing the unit cost of each product because the
manufacturers are spending less per unit on fixed costs. Increased demand for a product also
encourages competitors to enter the marketplace, thereby causing the original manufacturer
to find ways to lower the product's price in order to stay in business.
Unit 1 Test
Name:__________________
Date:______________
Period:__________________
2. Marketing increases the demand for products, thereby encouraging competitors to
introduce products with new characteristics that are better than the original at meeting
consumers' needs and wants. Also, because the essence of marketing is to satisfy consumers'
needs and wants, companies continually strive to develop new products that will satisfy their
customers and cause the customers to buy the company's products.
3. Mass-marketing uses one approach to market a product to everyone. When everyone in a
population is eager for a particular product, a single marketing plan will appeal to all
potential customers. As people become more selective in their tastes, however, they are less
likely to be persuaded by a ''one-plan-fits-all'' marketing approach. Market segmentation, on
the other hand, allows businesses to use geographic, demographic, and psychographic data to
create and market products that are (nearly) exactly what a particular group needs and wants.
Instead of relying on just one product and marketing plan, businesses use market
segmentation data (customer profiles) to increase their profits by creating many variations of
the same product, with each variation targeted for a specific population.
4. The text lists four approaches to positioning a product: Play to the competition's
weaknesses. A business uses its marketing tools to show the consumer ways in which a
competitor's product is weak, ineffective, and/or harmful. The business then demonstrates
why its product is superior to the competition's. The approach works best when a business
actually has a product that is significantly superior or that represents a clear improvement
over similar products.
Look for underserved markets. A business alters or refines its products in order to meet the
needs and wants of a population that had been overlooked. This approach works well for a
company that is small (and needs a niche), new, or relatively unknown and in competition
against a better-known company.
Lead with your strengths. A business that is highly successful uses this approach to inform
consumers of its success and of the excellence of its product. The approach can be a quite
blatant form of bragging, but probably works best when excellence and superiority are
implied rather than stated.
Target different market segments. A company can create two (or more) similar products--one
targeted for an upscale market and another positioned for economy-minded consumers. Such
a practice allows a company to expand into several socioeconomic groups at once. This
approach works best when the company has the ability and financial wherewithal to
manufacture a variety of products.