S2/07 HBM 110 MARKETING CONCEPT REVISION EXERCISE

CHAPTER ONE

1. What is the definition of marketing?

A. The process in which needs and wants are obtained by creating and exchanging
value with others.
B. A process of identifying new products
C. Coordinating production assembly lines
D. Producing products and services for consumers
E. Bidding on products and services

2. How does the marketing process serve consumers?

A. By focusing on customers' needs, wants and demands.
B. By creating global business opportunities
C. It captures value from customers
D. It develops buying power
E. By forming strategic business alliances

3. What are the key building blocks for developing and managing customer
relationships?

A. Customer value and gaining the competitive edge

B. Customer value and customer satisfaction
C. High expectation levels
D. Product innovation and global marketing strategies
E. Building partnerships

4. Which of the following is NOT one of the alternative concepts under which organizations
design and carry out their marketing strategies?

A. marketing concept
B. production concept
C. distribution concept
D. product concept
E. selling concept

5. Identify the Four P's of marketing.

A. Product, price, place, and promotion

B. Promise to produce, promise to promote, price, and performance
C. Producing for consumer satisfaction, profits, promise to deliver timely, and price analysis
D. Pricing, performance, purchase order entries, and profit margins
E. Planning, programming, performing, and producing

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6. What is the key to building lasting customer relationships?

A. Delivering superior customer value and satisfaction

B. Developing a concrete societal marketing strategy
C. Reducing customer costs
D. Customer evaluation surveys
E. Developing competitive marketing strategies

7. What is the purpose of marketing?

A. To attract global customers

B. To develop new products
C To generate customer value profitably
D. To create brand-building advertising
E. To increase sales promotions

8. What is the new view of marketing?

A. To gain a competitive edge by any means necessary

B. The science and art of finding, retaining, and growing profitable customers
C. Using the Internet to market products and services
D. To sell products using direct marketing techniques
E. To build partner relationships

9. When a company loses a customer they lose sales opportunities and _____.

A. Customer lifetime value

B. Customer loyalty
C. Stock options
D. Global business opportunities
E. Customer equity

10. How do social responsibility and environmentalism impact marketing?

A. They require marketers to have greater responsibility for their actions.

B. They don't have an impact on marketing.
C. Their impact is minimal and only concern marketing strategies.
D. Social responsibility and environmentalism are not important to marketing.
E. Social responsibility and environmentalism only impact for-profit businesses.

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 CHAPTER TWO

1. What tasks are involved in strategic planning?

A. Defining the market and identifying customers

B. Identifying local and global markets
C. Selecting the company strategy for long-run survival and growth
D. Identifying the long-term and short-term goals of the company
E. Understanding the company's financial power

2. What is a mission statement?

A. The blueprint of the strategic plan

B. An analysis of the market environment
C. A simple definition of marketing's role in business
D. A plan for small business owners
E. A statement of the organization's purpose

3. What is the purpose of strategic planning?

A. To find ways of using strengths to target attractive opportunities in the environment

B. To develop new products
C. To identify competitors
D. To develop formal matrix methods
E. To design methods of counting cash cows

4. When companies evaluate products and businesses that make up the company, the
process is called _____.

A. Diversification
B. Marketing planning
C. Portfolio analysis
D. Developing product strategies
E. Fitting the environment

5. What is the definition of product development?

A. A company growth strategy that offers modified or new products for current market
segments
B. A process used to improve marketing strategies
C. Strategic planning for the entire company
D. Monitoring the progress of cash cows and dogs
E. The creation of value chain commitments

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6. What does market penetration involve?

A. More sales without changing products

B. Sales and diversification
C. More sales with new products
D. Developing strategic markets for new products
E. Market development and profit margins

7. Which of the following best describes the role of marketing?

A. Marketing is only a partner in attracting, keeping, and growing customers.

B. Marketing is independent of all other business units.
C. The role of marketing is only significant for large corporations.
D. Marketing plays a leading role for small businesses.
E. Only small businesses benefit from marketing.

8. What does target marketing involve?

A. Evaluating the attractiveness of each market segment

B. Evaluating company resources
C. Identifying the market positioning
D. Dividing the total market and design strategies
E. Dividing the market into distinct groups of buyers

9. What are the main components of a marketing plan?

A. Executive summary, marketing situation, threats and opportunities analysis,

objectives and issues, marketing strategy, action programs, budgets, and controls
B. Executive summary, marketing situation and controls
C. Executive summary, threats and opportunities
D. Marketing situation, threats and opportunities analysis
E. Marketing situation, marketing strategy, and controls

10. What determines successful marketing implementation?

A. How well the company blends people, organizational structure, and finances
B. How well the company blends its people, organizational structure, decision and reward
systems, and culture
C. A strong company culture
D. A strong marketing mix, marketing expenditure levels, and marketing budgets
E. Functional organizational structuring

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 CHAPTER THREE

1. What is the role of a marketing intermediary?

A. To identify customer markets

B. To identify marketing service agencies
C. To help companies promote, sell, and distribute goods to final buyers
D. To minimize supply costs
E. To identify business markets

2. Identify the major forces in a macro-environment.

A. Demographic, economic, natural, technological, political, and social

B. Demographic, natural, economic, political, social, and cultural
C. Demographic, economic, natural, technological, political, and cultural
D. Demographic, economic, natural, social, political, and legal
E. Legal, political, economic, demographic, social, and cultural

3. Why is the demographic environment a major interest to marketers?

A. Because it involves global financing

B. Because it involves people and people make up markets
C. Because demographics involve diverse consumer products
D. Because demographics focus on local marketing opportunities
E. Because microenvironment and macroenvironments are the key components of any
marketing effort

4. Why have marketers paid close attention to the smaller upper crust of the baby
boomer generation?

A. Because they are more educated, mobile, and wealthy

B. The boomer generation is the largest segment of the population
C. Baby boomers are wealthier than War Babies
D. Baby boomers tend to have more males than females
E. Baby boomers are wealthy and mobile

5. How will marketers be able to take advantage of opportunities in fast-growing

segments?

A. By limiting their products and services

B. By diversifying their marketing programs
C. By focusing on value marketing
D. By following market trends
E. By focusing on consumer spending patterns

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6. What are today's marketers looking to offer more financially conscious buyers?

A. Greater value
B. Inexpensive products
C. Quality services
D. Economic value
E. Increased buying power

7. Identify the major economic variables that have an impact on the marketplace.

A. Income and cost of living

B. Income and interest rates
C. Income, cost of living, interest rates, and savings
D. Income, cost of living, interest rates, savings, and borrowing patterns
E. Interest rates and borrowing patterns

8. What would happen if marketers failed to keep up with technological changes?

A. Nothing would happen

B. They would miss new product opportunities
C. Their competitors would corner the market
D. Their products would lose their market value
E. They would find their products outdated, miss new product and market opportunities

9. Define the Consumer Product Safety Act of 1972.

A. The Act establishes the Consumer Product Safety Commission and authorizes the
Commission to safety standards for products and penalties.
B. Protects manufacturer from consumer complaints
C. Prohibits discrimination against people with disabilities
D. Explains public policy
E. Protects distinctive name brands

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 CHAPTER FOUR

1. Why do companies need information on a daily basis?

A. To produce superior value and satisfaction for customers

B. To conduct market research
C. To design effective marketing strategies
D. To identify potential new products
E. To prevent marketing research mistakes

2. What does MIS begin and end with?

A. Information needs
B. Marketing managers
C. Information users
D. New products
E. Experienced marketing managers

3. What is an internal database?

A. An electronic collection of data sources within the company

B. An electronic collection of information obtained from data sources within the
company
C. A database of secondary marketing research
D. Records of the company's accomplishments
E. Limited company information

4. What is the goal of marketing intelligence?

A. To improve strategic decision making

B. To identify competitors
C. To improve customer relations
D. To identify opportunities and threats
E. To improve strategic decision making, assess and track competitor's actions, and
provide early warning of opportunities and threats

5. What is marketing research?

A. The systematic collection of data

B. The systematic design, collection and analysis of data
C. The systematic design, collection, analysis, and reporting of data relevant to a
specific marketing situation facing an organization
D. Data analysis and information management
E. Detailed information

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6. What is the objective of exploratory research?

A. To explore marketing possibilities

B. To gather information that will help define the problem and suggest hypotheses
C. To define research problems
D. To identify marketing problems
E. To expand the research plan

7. How can a commercial online database help researchers?

A. Researchers can conduct their own searches of secondary data sources.

B. They provide primary data resources.
C. Commercial online databases are not helpful to researchers.
D. They provide new information.
E. They provide instant sources for marketers.

8. Identify the research approaches for gathering primary data.

A. Observation and experiments

B. Observations and interviews
C. Observations, surveys, and the examination of primary data sources
D. Observation, surveys, and experiments
E. Experiments and surveys

9. What does ethnographic research involve?

A. Conducting personal interviews

B. Sending trained observers to watch the subjects
C. Identifying a research method
D. Eliminating all potential harmful hypotheses to the research
E. Identifying focus groups

10. What is a marketing information system (MIS) comprised of?

A. People, equipment, and data gathering

B. People, equipment, procedures to gather, sort, analyze, evaluate, and distribute needed,
timely, and accurate information to marketing decision makers
C. A system used to gather data
D. Confidential computer data
E. Effective marketing management techniques

11. Identify the objective of descriptive research.

A. To test theories
B. To identify a research plan
C. To describe the market research for a product
D. To examine cause-and-effect relationships
E. To identify a demographic customer base

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12. What is the difference between secondary and primary data?

A. Secondary data is never used and primary data is used absent credible documentation.
B. Secondary data consists of information that already exists and primary data consists of
information less than 30 days old.
C. Secondary data consists of information that already exists and primary data consists of
information collected for a specific purpose.
D. Secondary data is only used in descriptive research studies and primary data may be used
for all research studies.
E. Secondary data is used to conduct new market research and primary data is used to
research new product possibilities.

CHAPTER FIVE AND SIX

1. Who comprises the consumer market?

A. All the individuals and households who buy or acquire goods and services for
personal consumption
B. Households that participate in marketing surveys
C. Households with more than $50,000 in income
D. Harley Davidson consumers
E. Consumers that acquire high-end products

2. What is culture?

A. The set of basic values, perceptions, wants, and behaviors learned by a member of
society from family and other important institutions
B. The set of basic morals and values of consumers
C. Social class
D. Perceptions and values
E. Consumer behavior

3. What do subcultures include?

A. Nationalities, religions, racial groups, and geographic regions

B. Nationalities and racial groups
C. Ethnic groups and geographic regions
D. Religions and geographic regions
E. Nationalities, religions, and racial groups

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4. What is an opinion leader?

A. A person able to lead small groups of lower class people

B. A person with controversial opinions
C. A member of an aspirational group
D. A person within a reference group who, because of special skills, knowledge,
personality or other characteristics, exerts influence over others
E. Trend driver

5. Why do motivation researchers collect in-depth data information from consumers?

A. To identify brand users

B. To uncover the deeper motives for their product choices
C. To identify safety needs for infant products
D. To identify self-esteem needs
E. To identify social needs and self-actualization needs

6. Identify the human needs identified in Maslow's Hierarchy.

A. Psychological needs, health needs, physical needs, and educational needs

B. Psychological needs, social needs, and esteem needs
C. Motivational needs, psychological needs, and social needs
D. Psychological needs, safety needs, social needs, esteem needs, and self- actualization
needs
E. Psychological needs and physical needs

7. When does habitual buying behavior occur?

A. When conditions of low consumer involvement become noticeable

B. When consumers suffer a loss of income
C. When conditions of low consumer involvement and little significant brand
difference occur.
D. During the buyer decision process
E. When brand name switching occurs

8. Identify the stage of the buyer decision process during which the buyer is aroused to
search for more information.

A. The need recognition stage

B. The new product stage
C. The product trial stage
D. Information search
E. The beginning

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9. What is the stage of the buyer decision process in which the consumer uses
information to evaluate brands in the choice set?

A. The pre-purchase stage

B. The alternative evaluation stage
C. The situational stage
D. The experimental stage
E. The informative stage

10. Identify the sources consumers use to obtain information.

A. Personal sources and public sources

B. Personal sources, commercial sources, public sources, and non-experimental sources
C. Personal sources, commercial sources, public sources, and experiential sources
D. Experimental and non-experimental sources
E. Knowledge sources and commercial sources

11. What do purchases for business buyers involve?

A. Large sums of money

B. Complex technical and economic considerations
C. Large sums of money, complex technical and economic considerations, and
interactions among many people at many levels of the buyer's organization
D. Supplier development, large sums of money, complex technical and economic
considerations
E. Consumer surveys, large sums of money, considerations, and interactions among many
people at many levels of the buyer's organization

12. How do business-to-business marketers keep a customer's sales?

A. By purchasing and supplier development

B. Direct marketing techniques and supplier development
C. By meeting current needs and by partnering with customers to help them solve their
problems
D. By identifying new supply techniques and by partnering with competitors
E. By developing systematic marketing efforts, innovative techniques, and new
products

13. Identify the type of demand that business markets have more of.

A. Derived demands
B. Steady demands
C. Consistent
D. Fluctuating
E. Competitive

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14. Identify the term used when buyers buy without modifications.

A. New task
B. Same order
C. Straight rebuy
D. Usual rebuy
E. Reorder

15. When buying a product or service for the first time, what type of situation will the buyer
encounter?

A. Mistakes
B. Modified rebuy
C. System selling
D. New task
E. Error

16. What does problem recognition result from?

A. Business buying
B. Potential problems
C. External stimuli
D. Internal recognition
E. Buying process

17. Identify the stage of the business buying process where the buyer invites qualified
suppliers to submit proposals.

A. Proposal solicitation
B. Supplier solicitation
C. Bidding
D. Supplier search
E. Value analysis

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