ASC 1 Pre-Test Quiz fully solved & updated

1. Identify core concepts that creates a foundation for marketing management. Check all that applies * Needs and wants growth strategy communication channels supply chain ANSOFF matrix - ANSWER-Needs and wants, communication channels, supply chain 2. What marketing strategy is responsible for warranties and services * product strategy price strategy place strategy promotion strategy marketing strategy - ANSWER-product strategy 3. A market orientation view is * customer centric production centric sales centric relationship centric - ANSWER-customer centric 4. A marketing company realizes that there is a slight defect in the design of its ball pens. It spends thousands of dollars to promote the product with the intention of rapidly finishing the inventory of few thousand ball pens. What is the marketplace orientation this scenario depicts? * market orientation product orientation selling orientation production orientation - ANSWER-selling orientation 5. What is the attitude of a market oriented organization * Creative marketing will overcome customer resistance to buying A great product will sell itself. Successful businesses respond to and fulfill consumer needs. Good relationships with consumers drive sales. Other: - ANSWER-Successful businesses respond to and fulfill consumer needs. 6. A company decides to change order processing processes. Which component of marketing mix is the company addressing * product price place promotion - ANSWER-place 7. What condition is required for an exchange. Check all that applies * Two or more parties are involved. each party has something of value to offer to the other party One of the party needs to have foreign exchange one of the party needs to promote the product 8. Which component of the marketing plan - ANSWER-Two or more parties are involved. each party has something of value to offer to the other party 8. Which component of the marketing plan requires a SWOT analysis * executive summary marketing strategy situation analysis financial projections - ANSWER-situation analysis 9. How does the price component of the marketing mix correspond with the customers "four C's" * customer solution customer cost customer convenience communication - ANSWER-customer cost 10. which steps follow defining the problem and developing the research plan? * present findings analyze the information collect the information make the decision - ANSWER-collect the information 11. The number of baby boomer population is declining. This trend represents a change in which element of the macroenvironment? * Socio-cultural demographic technological political-legal - ANSWER-demographic 12. The country has a new law that prevents companies from going to few countries to do business. This represents a change in which element of the macro environment? * socio-cultural demographic technological political-legal - ANSWER-demographic 13. Why do companies complete an internal environment analysis? * to identify trends in macroenvironment to evaluate internal strengths and weaknesses of the company to manage product development to identify changes in the demographic environment - ANSWER-to evaluate internal strengths and weaknesses of the company 14. What is a characteristics of a oligopoly competition? * Many competitors offer the same product or service. A small number of large firms produce products. Only one firm provides a certain product or service in a given area. A limited number of companies produce a small number of products. - ANSWER-A small number of large firms produce products. 15. What is a characteristics of a monopoly? * Many competitors offer the same product or service. A small number of large firms produce products. Only one firm provides a certain product or service in a given area. A limited number of companies produce a small number of products. - ANSWER-Only one firm provides a certain product or service in a given area. 16. Competitors are defined as direct or indirect from a market point of view. Below is a list of companies. Identify whether they are direct or indirect competitors * direct indirect Mc Donalds and Wendy's Shell and Marathon Gas stations Mc Donalds and Pizza Hut Europe vacation and enrolling for a degree in a college - ANSWER-direct Vs indirect Mc Donalds and Wendy's-direct Shell and Marathon Gas stations-direct Mc Donalds and Pizza Hut-indirect Europe vacation and enrolling for a degree in a college- indirect 17. Match the rows with the columns * oligopoly share of heart share of mind pure competition monopoly Many competitors offer the same product or service Few Large firms offer products Sole producer of a product and service When ever you want to buy tissue paper you always buy Charmin The product has maximum product awareness. This may or may not translate into sale of the product. For eg when ever you have to mention a brand of coffee, starbucks is your answer, but that does not translate into buying starbucks. This means starbucks has high ..... Many competitors offer the same product or service - ANSWER-oligopoly, share of heart, share of mind, pure competition, or monopoly Many competitors offer the same product or service- Pure Comp Few Large firms offer products- Oligopoly Sole producer of a product and service- Monopoly When ever you want to buy tissue paper you always buy Charmin- share of heart The product has maximum product awareness. This may or may not translate into sale of the product. For eg when ever you have to mention a brand of coffee, starbucks is your answer, but that does not translate into buying starbucks. This means starbucks has high ..... Many competitors offer the same product or service- share of mind 18. How are competitors defined from a market point of view * as direct and indirect by entry and exit barriers by sonsumer buying behavior as intermediaries Other: - ANSWER-as direct and indirect 19. Which of the following Target marketing strategies creates more total sales but increases costs of doing business * differentiated undifferentiated single market segment Niche marketing - ANSWER-differentiated 20. A company is in the retail business and carries only ties. This is an example of what strategic market position? * market leader market challenger market nicher market follower - ANSWER-market nicher 21.A lawnmower manufacturer thinks that consumers think that noisy lawnmowers are more powerful. The company has therefore differentiated its product by making its motor noisy. This is an example of what type of differentiation? * product differentiation image differentiation channel differentiation promotion differenatiation - ANSWER-product differentiation 22. Hyatt regency hotels developed distinctive atrium lobbies to give a grandeur to the hotel. This is an example of what type of differentiation? * product differentiation image differentiation channel differentiation promotion differenatiation - ANSWER-image differentiation 23. What do product positioning approaches enable an organization to efficiently do? click all that applies * Develop new products for its target market Differentiate its products from those of competitors Initiate an integrative growth strategy Frequently change the way consumers perceive the product creating a customer-focused value proposition so that the product occupies a distinctive position in minds of buyers Other: - ANSWER-Develop new products for its target market, creating a customer-focused value proposition so that the product occupies a distinctive position in minds of buyers 24.What is an example of diversification strategy? * Acquiring related businesses Acquiring unrelated businesses Intensifying current business activities Downsizing older businesses 25.What best describes promotion - ANSWER-Acquiring unrelated businesses 25.What best describes promotion strategy for Maturity stage of product life cycle? check all that applies * increasing promotion to increase brand switching reducing advertising costs reduce promotion increases advertising expenditure - ANSWER-increasing promotion to increase brand switching, increases advertising expenditure 26. what is an example of corporate strategic planning? * allocating resources to each SBU Defining the business unit mission Designing an action plan Developing monitoring procedures - ANSWER-allocating resources to each SBU 27. To avoid head-on competition with a market leader, which is the best strategy for a small company that does not have many resources * Niche-strategy market follower strategy market challenger strategy Diversification strategy - ANSWER-Niche-strategy 28.When a market-leader launches a new product in the market before any other company, is an example of what defense strategy * position defense counteroffensive defense pre-emptive strike mobile defense - ANSWER-pre-emptive strike 29. What marketing strategy is a firm using when it is launching its product in a different country? * Expand total market demand Protect current market share Increase market share Increase price of film - ANSWER-Expand total market demand 30. When a person takes a successful business model in one country and applies it to a different country is called ------------strategy * Imitator Leader Counterfeiter Adapter - ANSWER-Imitator 31.What specialist role would describe the niche of a store that sells computer software only to a specific customer segments * Product-line specialist Product-feature specialist Specific-customer specialist End-user specialist - ANSWER-Specific-customer specialist 32. A company first served the higher upscale market. Due to economic downturn decided to serve a lower scale market. What type of line-stretching strategy did the company use? * Two-way stretch Downmarket stretch Upmarket stretch Parallel stretch - ANSWER-Two-way stretch 33. John finds that the customer service in Golden coffee shop is excellent in Florida. He recently relocated to China, where Golden coffee shop has few stores. He finds the customer service in the stores very unsatisfactory. This conveys which characteristic of service. * intangibility inseparability variability perishability - ANSWER-variability 34. When P&G launched Tide Pen for small spills on clothes, the company was using which strategy? * Brand extension Multibrands sub-brands Branded variants - ANSWER-Brand extension 35.What component of a product do retailers add to justify charging higher prices without alienating customers? * better warranties better promotions availability in many retail stores colorful packaging - ANSWER-better warranties 36. A company sets a high-price for a new product launch because it is innovative. What is the company trying to maximize? * Market share sales maximizing Investment Profit - ANSWER-Profit 37.Select the answer for each row * second degree discrimination customer-segment pricing countertrade loss-leader pricing Buyers offer other items in payment stores drop prices on well-known brands to stimulate additional traffic in stores different customer groups are charged different prices for the same product or service seller charges less to buyers who buy a larger volume - ANSWER-second degree discrimination, customer-segment pricing, countertrade, or loss-leader pricing Buyers offer other items in payment- countertrade stores drop prices on well-known brands to stimulate additional traffic in stores- loss leader different customer groups are charged different prices for the same product or service- customer segment seller charges less to buyers who buy a larger volume- 2nd degree price discrimination 38.When determining pricing, what is done before determining demand? * Selecting a price method Establishing objectives Estimating costs Determining demand - ANSWER-Selecting a price method 39. What are some of the objectives a company may pursue through pricing? check all that applies * Survival maximum product development maximize current profit maximum market skimming Increasing consumer awareness Ethical objective Other: - ANSWER-maximum product development maximize current profit maximum market skimming 40.What is one way that customers might interpret a price cut? * The item is selling well and is popular with customers. The item has a high product-quality relationship. The item has a high profit ratio. firm is in financial trouble - ANSWER-firm is in financial trouble 41. What is an example of distribution intermediary? * wholesaler manufacturer customer company - ANSWER-wholesaler 42. What do you think will be intensity of distribution for chewing gum? * Selective distribution Exclusive distribution Territorial distribution Intensive distribution - ANSWER-Intensive distribution 43. What criterion should be used to evaluate an intermediary? * financial strength marketing budget perception of the intermediary price strategy - ANSWER-financial strength 44. True or False- A company is selling its product to another business using a broker. This is a direct channel of distribution. * True False - ANSWER-False 45. When a manufacturer is using only its current dealers to display its new car model, it is using ---type of distribution structure * Exclusive distribution Area distribution Geographical distribution Intensive distribution - ANSWER-Exclusive distribution 46. What channel strategy involves two parties agreeing to resort to neutral third party. * Diplomacy Co-optation Mediation Adoption - ANSWER-Mediation 47. A company wants to use non-marketing oriented promotion mix strategy to build image. What strategy should the company use? publicity direct marketing guerilla marketing sales promotion advertisement - ANSWER-publicity 48. After determining objectives what is the next step in developing an effective integrated marketing communications plan? * identifying target audience designing communications selecting the communication strategy establish budget - ANSWER-designing communications 49. A company's objective is to generate customer awareness and to disseminate information to geographically dispersed audience.Which is the best strategy? * advertisement public relations direct marketing sales promotion - ANSWER-advertisement 50. One of the disadvantage of sales promotion is * only effective for smaller compaies unable to measure effectivess retailers dont like sales promotion too many companies use the same kind of sales promotional strategies - ANSWER-too many companies use the same kind of sales promotional strategies 51.What is the next step in developing a creative advertising strategy after message generation. * evaluating the message copy strategy statement social responsibility view evaluating a target audience - ANSWER-evaluating the message 52. A client wants to discuss the technical complexity of the product. Which promotion strategy will the company be using? * Personal sales Public relations Advertising Sales promotion - ANSWER-Personal sales 53. What strategy works best when company wants to communicate personalized messages and offers to prospective customers? * Direct marketing Personal selling Public relations Sales force - ANSWER-Direct marketing 54.What is a backward invention in global marketing? * Creating a new product to meet a need in another country Creating a new product to meet a need in the home country Reintroducing a product that adapts well to a foreign market Reintroducing a product that adapts well to a home market - ANSWER-Reintroducing a product that adapts well to a foreign market 55. What is the goal of the preapproach step in the sales process? * on the best contact approach like telephone call or a letter to access customers interest level to give information about the product to overcome any resistance that prospective may have - ANSWER-to access customers interest level 56. What is a good way to evaluate sales representatives performance? * sales reps work plan call reports current and past performance all of the above none of the above - ANSWER-all of the above 57.A company wants its sales force to concentrate on maintaining relationship with customers.What type of sales strategy would the sales force be using? * transaction oriented relationship sales consumer sales business sales - ANSWER-relationship sales 58.A certain company sells many products to many types of customers .What type of sales structure would this company use? * Territorial geographical Market Complex Option 5 - ANSWER-Market