Principles of Marketing : Multiple Choice with Questions and their Answers

• Which of the following is NOT a typical supply chain member?
  A) resellers
  B) customers
  C) intermediaries
  D) government agencies
  E) raw materials supplier

• ________ the manufacturer or service provider is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service.
  A) Downstream from
  B) Upstream from
  C) Disintermediated from
  D) Horizontal to
  E) Parallel with

• Another term for the supply chain that suggests a sense and respond view of the market is ________.
  A) supply and demand chain
  B) demand chain
  C) channel of distribution
  D) distribution channel
  E) physical distribution

• Most producers today sell their goods directly to ________.
  A) final users
  B) final users and marketing members
  C) intermediaries
  D) warehouses
  E) third-party logistics providers

• From the economic system's point of view, the role of marketing intermediaries is to transform the assortment of products made by producers into the assortment of products wanted by ________.
  A) channel members
  B) distributors
  C) consumers
  D) manufacturers
  E) marketers

• Producers benefit from using intermediaries because they ________.
  A) offer greater efficiency in making goods available to target markets
  B) bring a fresh point of view to strategy development
  C) eliminate risk
  D) are generally backlogged with orders
  E) refuse to store products for longer than a few days

• Intermediaries play an important role in matching ________.
  A) dealer with customer
  B) supply and demand
  C) product to region
  D) manufacturer to product
  E) information and promotion

• Which of the following is NOT a key function that intermediaries play in completing transactions?
  A) promotion
  B) information
  C) matching
  D) risk taking
  E) negotiation

• In a(n) ________ channel, the same member both produces and distributes a product or service.
  A) tiered
  B) direct
  C) horizontal
  D) vertical
  E) exclusive

• ________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.
  A) Franchising
  B) Retailing
  C) Brokering
  D) Wholesaling
  E) Disintermediation

• In recent years, ________ has been growing fast. This includes selling to final consumers through direct mail, catalogs, telephone, and the Internet.
  A) social marketing
  B) shopper marketing
  C) franchising
  D) nonstore retailing
  E) e-commerce

• At Neiman Marcus, a first-class department store, customers shop for high-end products and have come to expect assistance in every phase of the shopping process. Neiman Marcus is a ________.
  A) self-service retailer
  B) limited-service retailer
  C) full-service retailer
  D) specialty store
  E) power center

• At Neiman Marcus, a first-class department store, customers shop for high-end products and have come to expect assistance in every phase of the shopping process. Neiman Marcus is a ________.
  A) self-service retailer
  B) limited-service retailer
  C) full-service retailer
  D) specialty store
  E) power center

• Specialty stores carry ________ with ________ within them.
  A) convenience items; mostly staples
  B) narrow product lines; deep assortments
  C) narrow product lines; shallow assortments
  D) wide product lines; shallow assortments
  E) wide product lines; deep assortments

• Which type of store carries a wide variety of product lines and differentiates itself through service, but has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other?
  A) chain
  B) department
  C) factory outlet
  D) merchant wholesaler
  E) independents

• ________ are facing slow sales growth because of slower population growth, increased competition, and the rapid growth of out-of-home eating.
  A) Convenience stores
  B) Department stores
  C) Chain stores
  D) Supermarkets
  E) Hypermarkets

• Which type of small store carries a limited line of high-turnover convenience goods and makes most of its revenues from cigarette, beverage, and gasoline sales?
  A) convenience
  B) chain
  C) department
  D) supermarket
  E) hypermarket

• A company's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. This is also called ________.
  A) direct marketing
  B) integrated marketing
  C) the promotion mix
  D) competitive marketing
  E) target marketing

• The use of short-term incentives to encourage the purchase or sale of a product or service is called ________.
  A) direct marketing
  B) sales promotion
  C) personal selling
  D) public relations
  E) publicity

• Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________.
  A) sales promotion
  B) advertising
  C) direct marketing
  D) personal selling
  E) public relations

• The promotion mix is the company's primary communication activity; the marketing mix must be coordinated for the greatest communication impact. What is NOT included in the entire marketing mix?
  A) product
  B) competitor
  C) price
  D) place
  E) promotion

• Which of the following is NOT a factor in the changes occurring in today's marketing communications?
  A) Mass markets have fragmented, and marketers are shifting away from mass marketing.
  B) Improvements in communication technologies are changing how companies and customers communicate with each other.
  C) Companies routinely invest millions of dollars in the mass media.
  D) Mass media no longer capture the majority of promotional budgets.
  E) Today's consumers are better informed about products and services.

• Moving away from ________, marketers have been shifting toward highly focused marketing, spawning a new generation of more specialized and highly targeted communications efforts.
  A) mass marketing
  B) advertising
  C) direct marketing
  D) pull strategies
  E) push strategies

• Which of the following is NOT an example of a specialized and highly targeted media that an advertiser might use to reach smaller customer segments?
  A) cable television channels
  B) e-mail
  C) cell phone content
  D) network television
  E) online social networks

• Advertising is used mostly by which of the following?
  A) governments
  B) business firms
  C) social agencies
  D) independent professionals
  E) not-for-profit organizations

• Competitive parity and objective-and-task are two options for ________ made when developing an advertising program.
  A) sales objectives
  B) budget decisions
  C) message decisions
  D) media decisions
  E) advertising evaluations

• Competitive parity and objective-and-task are two options for ________ made when developing an advertising program.
  A) sales objectives
  B) budget decisions
  C) message decisions
  D) media decisions
  E) advertising evaluations

• An advertising objective is classified by its primary purpose, which is to inform, persuade, or ________.
  A) convince
  B) compete
  C) remind
  D) explain
  E) encourage

• Which of the following is an objective of informative advertising?
  A) build brand preference
  B) change customer perceptions of brand value
  C) encourage customers to switch brands
  D) suggest new uses for a product
  E) keep brand in customer minds during off-seasons

• What is one of the primary goals of reminder advertising?
  A) maintain customer relationships
  B) build brand preference
  C) correct false impressions
  D) inform the market of a price change
  E) restore company image

• Gaining ________ requires delivering more value and satisfaction to target consumers than competitors do.
  A) competitive advantage
  B) competitor analysis
  C) benchmarking
  D) a market-center
  E) a target advantage

• The first step in initiating competitive marketing strategies is to conduct ________.
  A) a private screening
  B) a competitive advantage analysis
  C) management modifications
  D) competitor analysis
  E) absolute advantage processing

• Strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage are ________.
  A) competitor analyses
  B) customer relationship strategies
  C) competitive marketing strategies
  D) competitive relationship strategies
  E) universal strategy analyses

• Companies can identify competitors from a ________ point of view by defining competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group.
  A) customer's
  B) market nicher's
  C) market
  D) database
  E) industry

• A company is guilty of ________ if the company forgets latent competitors and only focuses on current competitors.
  A) marketing myopia
  B) misdirected segmentation
  C) competitor synergy
  D) competitor phobia
  E) competitor myopia

• From a(n) ________ point of view, Pepsi might see its competition as Coca-Cola, Dr Pepper, 7UP, and the makers of other soft drink brands. From a(n) ________ point of view, however, the customer really wants "thirst quenching."
  A) market; industry
  B) market; consumer's
  C) industry; competitive
  D) industry; market
  E) company's; consumer's

• Each competitor has a mix of objectives. The company wants to know the relative importance that a competitor places on all of the following EXCEPT ________.
  A) company history
  B) current profitability
  C) market share growth
  D) cash flow
  E) technological and service leadership

• A company that pursues ________ leadership will react much more strongly to a competitor's ________ manufacturing breakthrough than to the same competitor's advertising increase.
  A) high-cost; cost reducing
  B) low-cost; cost reducing
  C) service; cost reducing
  D) high-cost; efficiency improving
  E) market share; efficiency improving

•  ________ industries are safe from foreign competition.
  A) Most
  B) Major
  C) Few
  D) NAFTA
  E) European Union

• As global trade is growing, global competition is ________.
  A) leveling off
  B) declining
  C) erratic
  D) intensifying
  E) stabilizing

• Firms that play it safe and do not enter the global market are likely to lose their chances to enter other markets ________.
  A) but protect themselves from competition at home
  B) but gain a competitive edge against imports in their home markets
  C) but successfully shield themselves from foreign competition
  D) and risk losing their home markets
  E) A and B

• A ________ is one that, by operating in more than one country, gains marketing, production, research and development, and financial advantages that are not available to purely domestic competitors.
  A) global firm
  B) domestic firm
  C) whole-channel view
  D) direct investment
  E) free trade zone

• All of the following are major decisions a company faces in international marketing EXCEPT which one?
  A) deciding which markets to enter
  B) deciding how to enter the market
  C) deciding how to set standardized prices
  D) deciding on the global marketing program
  E) deciding on the global marketing organization

• Of the following, a company should make which major decision about international marketing first?
  A) deciding which markets to enter
  B) deciding how to enter the market
  C) deciding on the global marketing organization
  D) deciding on the global marketing program
  E) deciding on the global communication program

• A(n) ________ is a tax levied by a foreign government against certain imported products.
  A) embargo
  B) tariff
  C) export
  D) exchange control
  E) quota

• A(n) ________ is a limit on the amount of goods that an importing country will accept in certain product categories.
  A) embargo
  B) tariff
  C) benchmark
  D) quota
  E) exchange control

• ________ calls for meeting the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.
  A) Sustainable marketing
  B) Innovation
  C) Consumerism
  D) Environmentalism
  E) The strategic planning concept

• The ________ is specifically focused on future company needs.
  A) societal marketing concept
  B) strategic planning concept
  C) sustainable marketing concept
  D) marketing concept
  E) consumer business concept

• McDonald's "Plan to Win" strategy has added healthy food options to its menu, phased out traditional artery-clogging trans fats, launched a major multifaceted education campaign, and addressed environmental issues. "Plan to Win" best exemplifies which concept?
  A) sustainable marketing concept
  B) marketing concept
  C) societal marketing concept
  D) strategic planning concept
  E) consumer business concept

• Many critics charge that the American marketing system causes ________ to be higher than they would be under more "sensible" systems.
  A) imports
  B) exports
  C) prices
  D) product safety measures
  E) employee morals

• A long-standing charge against intermediaries is that they mark up prices beyond the ________.
  A) value of their services
  B) delivery charges
  C) going market price
  D) promotion cost
  E) resale value

• Marketers respond to charges of high advertising and promotion costs that unnecessarily increase retail prices by arguing all of the following factors EXCEPT which one?
  A) Advertising and promotion make consumers feel wealthy.
  B) Advertising and promotion make consumers feel attractive.
  C) Advertising and promotion adds quality to the product.
  D) Advertising and promotion adds value by informing potential buyers of the availability and merits of a brand.
  E) Advertising and promotion is necessary for a firm to match competitors' efforts.

• Critics point out that in the drug industry, a pill that costs five cents to make may cost the consumer $2 to buy. This is an example of which of the following?
  A) deceptive advertising
  B) redlining
  C) excessive markups
  D) high-pressure selling
  E) shoddy products

• Deceptive practices fall into three groups: deceptive ________, deceptive ________, and deceptive ________.
  A) product; pricing; promotion
  B) pricing; promotion; placement
  C) pricing; promotion; packaging
  D) packaging; product; promotion
  E) product; packaging; placement