Multiple Choice Answers

1.  When a company considering expansion beyond its home territory begins to review demographic profiles of the customers and profiles of regions it’s considering, it’s engaged in the important marketing function of
A. understanding customers.
B. economic analysis.
C. production efficiency.
D. inventory analysis.

2. When Mattel quickly recalled some of its toys upon learning of potential lead hazards, it used ethical principles and approaches to
A. maintain its strong relationship with its customers.
B. shed unprofitable product lines and dispose of defective products.
C. make sure it didn’t get blamed for the problem.
D. minimize the damage by focusing on the few product lines affected.

3. Identifying target markets and developing products, prices, distribution, and promotion activities that
appeal to each of those target markets are all aspects of
A. a competitive assessment.
B. vision development.
C. a marketing strategy.
D. strategic planning.

4. The many demands on consumers today have made it more difficult for marketers to
A. differentiate between the needs of Tweens and Baby Boomers.
B. deliver products just-in-time.
C. decide what to offer.
D. grab consumers’ attention.

5. The idea of value-based marketing requires firms to charge a price that
A. covers costs and generates a modest profit.
B. captures the value customers perceive they’re receiving.
C. offers customer excellence above operational excellence.
D. includes the value of the effort the firm put into the product or service.

6. Effective marketers are quite aware of the relationship among
A. green, yellow, and red marketing.
B. Tweens, Beans, and Twinkies.
C. cohorts, conflicts, and congestion.
D. education, income, and occupation.

7. Henry often observes the FedEx and UPS delivery people who bring packages to his law firm, counting
the number of packages they deliver to other law firms in the building. He also regularly reviews court
documents about upcoming cases to see which firms are representing clients. Henry is engaged in
A. intuitive diagnostics.
B. macroeconomic variable analysis.
C. demographic data collection.
D. competitive intelligence.

8. The centerpiece of the marketing environment analysis framework is
A. green marketing.
B. corporate partners.
C. competitive intelligence.
D. consumers.

9. Products that may damage the environment, the use of sweatshop labor, and the marketing of hazardous products are examples of
A. marketing social issues.
B. situational ethical issues.
C. managerial issues, but not marketing issues.
D. internal, controllable marketing issues.

10. When studying culture, the challenge for marketers is to determine whether culture
A. is regional or national.
B. can help identify a particular group that might be interested in the marketer’s products.
C. is related to educational achievement.
D. reinforces cultural stereotypes.

11. Almost every organization includes values and ethics as part of their mission statement and includes a set of explicit rules in the company’s employee handbook. Once the rules are in place, there must be
A. commitment from customers to accept these rules.
B. a system of controls that rewards appropriate behavior and punishes inappropriate behavior.
C. weekly reminder seminars to enforce guidelines.
D. a Web site where employees can vent their frustration over lapses in ethical behavior.

12. The idea that a good product sells itself is associated with the _______ era of marketing.
A. value-based marketing
B. marketing

C. production
D. sales

13. In value-based marketing, promotion communicates the
A. company’s operational excellence.
B. value proposition.
C. targeted creative solution.
D. relative market value.

14. When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged?
A. Planning
B. Control
C. Segmentation
D. Implementation

15. In most companies, marketing resource allocation decisions are made at the SBU or _______ level of
the firm.
A. accounting
B. product line
C. corporate
D. customer care

16. The first step in conducting an STP analysis is
A. generating a sum of segments.
B. dividing the marketplace into subgroups.
C. repositioning existing segments.
D. targeting potential segments.

17. most marketers spend heavily on customer-retention programs because they recognize that customer retention leads to
A. sustainable price decreases.
B. product design excellence.
C. increased long-term profits.
D. mission statement satisfaction.

18. For some products, marketers can combine education level with other data like occupation and income
to obtain
A. a sense of consumers’ regional demographic culture.
B. consumers’ interest rate sensitivity quotient.
C. producers’ just-in-time expectancy rate.
D. useful predictions of purchase behavior.