SECTION A MULTIPLE CHOICE QUESTIONS [20 MARKS]

Answer ALL questions. Each question carries ONE (1) mark.

Choose one alternative that best answers the question

1. Effective relationship marketing is based in part on the use of ___________.

A. inside information about competitors.

B. databases to track customer preferences.

C. larger advertising budgets.

D. knowledge about changes in economic conditions.

2. The ___________ is the organizational program for selecting a target market and satisfying

customers in that market through the marketing mix.

A. marketing objectives

B. marketing strategy

C. marketing plan

D. strategic plan

3. In general, the purpose behind a domestic firm forming a strategic alliance with a firm in a

foreign market is to ___________.

A. stabilize prices in both markets

B. acquire a dominant position in the foreign market.

C. acquire local expertise for a company expanding its operations abroad.

D. change its identity and appear more local in the foreign market.

4. Attaining organizational objectives by predicting and influencing the competitive,

political-legal, economic, technological, and social-cultural environments is referred to

as___________________.

A. research and development.

B. marketing research.

C. environmental management.

D. environmental analysis.

5. When groups establish values and behaviors, they deem appropriate for their members,

those values and behaviors are called group ___________.

A. Rules.

B. norms.

C. ideals.

D. behaviors.

6. According to A. H. Maslow, one's need for burglar alarm systems, retirement investments,

insurance, and smoke and carbon monoxide detectors grows out of one's need for

___________.

A. esteem.

B. belongingness.

C. education.

D. safety.

7. Marketing research, by presenting pertinent information in a useful format, ___________.

A. provides managers with a means to judge worker performance.

B. aids decision makers in analyzing data and in suggesting possible actions.

C. provides sufficient information about a situation after it occurs to be able follow its path of

occurrence.

D. provides consumers with information concerning why the product or service is useful to

them.

8. Marketers usually decide whether to conduct a marketing research study internally or

through an outside organization based on ___________.

A. the cost involved in doing it.

B. where the greater expertise resides, regardless of the cost.

C. the nature of the study. Whether you do it yourself or use an outside supplier depends on

what needs to be done.

D. the amount of time it is expected to take to complete the work.

9. Amantle Mafoko is a marketing specialist who has recommended that one of her clients

focus its efforts on profitably satisfying only one market segment. This strategy is called

A. niche marketing.

B. one stop marketing.

C. undifferentiated marketing.

D. people marketing.

10. What interactive medium might help micro marketers boost the effectiveness of their

strategy by tracking specific demographic and personal information and communicating

directly to individuals who are most likely to buy that product?

A. customized direct mail packages

B. the internet

C. personalized telemarketing messages

D. fax marketing

11. The purpose of conducting market segmentation and market opportunity analysis in the

second stage of the market segmentation process is to ___________.

A. identify the specific members of each segment to be able to contact each of them directly.

B. determine the level of resources that must be committed to each segment.

C. produce a forecast of market potential within each segment.

D. design marketing strategy and tactics to reinforce the firm's image.

12. Customer relationship management is ___________.

A. the defining concept that identifies communication between the parties to a transaction.

B. a process used to retain customers when purchases are based on low price or convenience.

C. best used when the seller has infrequent customer contact.

D. the combination of strategies and tools that drive relationship programs, reorienting the

entire firm to a concentrated focus on satisfying customers.

13. If internal marketing is to be successful, employees must not only be informed about

company goals and strategies, they must also be ___________.

A. carefully supervised and strongly disciplined if they make mistakes.

B. taught to compete with each other for promotions and raises.

C. given the necessary tools to address customer requests and problems in a timely manner.

D. prepared to give up family time and vacations on short notice.

14. If internal marketing is to be successful, employees must not only be informed about

company goals and strategies, they must also be ___________.

A. carefully supervised and strongly disciplined if they make mistakes.

B. taught to compete with each other for promotions and raises.

C. given the necessary tools to address customer requests and problems in a timely manner.

D. prepared to give up family time and vacations on short notice.

15. In developing a pricing strategy, the service marketer need NOT consider which of the

following?

A. cost of production of the service.

B. the demand for the service.

C. packaging regulations.

D. marketing and administrative costs.

16. Consumer shopping products can be classified as homogeneous or heterogeneous. It would

be true to say that ___________.

A. heterogeneous products are relatively undifferentiated: one brand is perceived as much the

same as another.

B. price and value issues are not relevant for either homogeneous or heterogeneous products.

C. price and value are important factors for homogeneous products; style, color, and fit are

important in heterogeneous products.

D. homogeneous products are shopping products, and heterogeneous products are really

specialty products.

17. A new alarm clock has been developed that looks conventional but gives the owner the

choice of being wakened to the music of Bach, a selection of bird calls, the sound of a

cannon firing, or the crash of lightning. The best definition and classification for this alarm

clock is as a(n) ___________.

A. shopping product; when people are looking for an alarm clock, they want to compare

features and benefits among several models. The special features are not obvious.

B. shopping product; due to its unique - some would even say unusual - and highly visible

characteristics, consumers will prize this brand.

C. specialty product; because few retailers will be carrying this item, most consumers will

travel a great distance to purchase it.

D. specialty product; even though the product does not have a well-known brand name, it is a

specialty item.

18. That a firm with a broad product line can usually market its products directly to retailers

or business users since its own sales force can offer a variety of products reflects an

___________.

A. objective set by many firms to enhance their survivability.

B. organizational factor that affects the choice of a channel of distribution.

C. unusual capacity possessed by many firms to avoid the use of marketing channels at all.

D. advocacy position taken by many firms to press their products on the public

19. The increase in media options provides _______ ways to give consumers product

information. It can also _______ information overload.

A. more; decrease.

B. more; increase.

C. fewer; decrease.

D. fewer; increase

20. The new pricing strategy that has emerged in recent years that emphasizes the benefits a

product provides in comparison to the price and quality levels of competing offerings is

called ___________.

A. benefits maximization.

B. head-on pricing.

C. prestige pricing.

D. value pricing.

SECTION B -TRUE /FALSE QUESTIONS [15 MARKS]

Answer ALL questions. Each question carries ONE (1) mark

State whether each of the following is True or False

1. Marketers are responsible for functions such as identifying customer needs and designing

products to meet these needs. Pricing decisions are typically left to the finance or accounting

department.

2. Tactical planning involves actions that focus on current and near-future activities that must be

completed to implement larger strategies.

3. The goal of environmental scanning is to determine whether the trends detected by analyzing

the information scanning yields represent opportunities or threats to the company.

4. Marketers must address several aspects of the ecology in their businesses, including planned

obsolescence, pollution control, recycling waste materials, and resource conservation.

5. While cultural influences and family influences significantly affect consumer behavior, the

influence of reference groups on consumer behavior tends to be minimal, especially for

children.

6. The life insurance salesperson who begins his sales presentation to a married couple by shaking

hands with the husband, keeps eye contact with the husband, and speaks directly toward the

husband while the wife looks on during the presentation, is probably assuming the decision to

purchase or not purchase the insurance will be a syncratic decision.

7. A well-defined problem allows the researcher to focus on securing the exact information

needed to solve that problem.

8. Distribution channels play a key role in marketing strategy because they provide the means

whereby the firm moves its products to ultimate users.

9. Development of a successful marketing strategy depends on pinpointing a number of factors

affecting the buying behavior of the target market segment.

10. Automobile manufacturers and food processing companies usually look at the same

characteristics of the inhabitants of a region when using geography as the basis for market

segmentation.

11. A differentiated marketing strategy may capture enough small segments of the market to defeat

a competitor's undifferentiated marketing strategy.

12. Internal marketing involves selling products to employees of the firm that they resell as part of

their compensation package.

13. A long-term relationship between a buyer and a seller is often based entirely on low prices and

other financial incentives.

14. Database marketing involves the use of information technology to analyze data about

customers and their transactions.

15. Unsought products are marketed to consumers who do not yet recognize any need for these

products. Examples of typical unsought products are life insurance and funeral services.