Marketing Practice Test

Chapter 3

1. Market segmentation:
A.means the same thing as marketing strategy planning.
B.assumes that most submarkets can be satisfied by the same marketing mix. the same thing as positioning.
D.tries to identify homogeneous submarkets within a product-market.
E.All of the above are true.

2. A beer distributor, concerned about increasing regulation of alcoholic beverages, decides to start a new business distributing children's toys. This company seems to be pursuing development.
C.product development. penetration.
E.None of the above.

3. Which of the following is the best example of a "product-market?"
A.The water skis market
B.The young adult exercise market
C.The software market
D.The convenience market
E.The status symbol market

4. Which of the following is LEAST likely to compete in the same generic market with the others?
B.soft drink.
D.cookie. cream.

5. The combined target market approach:
A.tends to focus on small, homogeneous market segments.
B.aims at several target markets and offers each target market a unique marketing mix.
C.tries to improve the general appeal of a firm's basic marketing mix rather than tailor it to meet the strongly felt needs of some people. well only when each submarket of a product-market has a different demand curve.
E.All of the above.

6. The main difference between naming broad product-markets and market segmentation is:
A.naming is a computerized process, while segmentation requires more thought.
B.naming is concerned with customers, while segmentation is concerned with product features.
C.naming involves breaking down markets, while segmentation involves aggregating customers with similar needs.
D.naming involves looking for similarities, while segmentation involves looking for differences.
E.None of the above is true.

7. Kraft Foods recently increased its advertising and couponing to its present cheese customers. It appears that Kraft is pursuing what kind of opportunity?
A.Market penetration
B.Product development
C.Market development
D.Mass marketing

8. A "product-market" is a market in which:
A.all sellers offer exactly the same product. firm has achieved a competitive advantage.
C.all sellers offer products that are unique and innovative.
D.sellers offer very close substitute ways of satisfying potential customers' needs.
E.sellers offer substitute products which are quite different physically or conceptually.

9. Cartwright Co. segmented its broad product-market and decided to aim at two different segments, offering each segment a different marketing mix. Cartwright Co. is following the ______________ approach.
A.mass marketing
B.multiple target market
C.combined target market
D.single target market
E.All of the above.

10. A generic market description should NOT include any:
A.customer needs.
B.geographic area.
C.product type.
D.customer types.
E.none of the above.

11. A pencil, a dictating machine, and a word processor might compete in the same market.
B.generic market.
D.Any of the above.
E.None of the above.

12. Segmenting, in contrast to combining:
A.tends to focus more on customer similarities than on differences.
B.tries to identify homogeneous submarkets and develop different marketing mixes for each submarket.
C.usually means settling for a smaller sales potential.
D.relies more on promotion appeals and minor product differences to create general customer appeal among several submarkets.
E.All of the above are true statements except C.

13. When evaluating international markets, the marketing manager should:
A.focus primarily on consumer markets because foreign business markets are in general too risky.
B.not worry very much about segmenting because marketing concepts are not very well developed in most other economies.
C.consider the whole "foreign market" as a segment.
D.use broad criteria, such as geographic region or stage of economic development, to define submarkets before further segmenting.
E.treat each foreign market as a separate segment.

14. Which of the following best illustrates a "breakthrough opportunity?"
A.A recording company's new CD gets unexpected national publicity on MTV and almost every teenager wants a copy for Christmas.
B.A drug company develops a patented pill that people can take once a year and safely avoid catching a cold.
C.A bank puts its credit card machines in convenient drive-up locations--so they will be more convenient for customers.
D.A nurse realizes that the growing number of older people will increase the demand for nursing home services, so she quits her job and opens a quality nursing center for the elderly.
E.A cellular phone company introduces a new service that is less expensive than any other service in its market area.

15. Segmenting international markets (as contrasted with domestic markets): more complicated because qualifying dimensions are not helpful.
B.may be more difficult because critical data may not be available or dependable.
C.usually involves less risk because more potential target markets are available.
D.usually involves fewer segmenting dimensions.
E.All of the above are true.

16. A ______________ market is a market with broadly similar needs and sellers offering various--and often diverse--ways of satisfying those needs.

17. When a firm tries to increase sales by selling its present products in new markets, this is called:
A.product development.
B.diversification. penetration.
D.mass marketing. development.

18. When deciding how far to carry the segmenting process,
A.profit should be the balancing point--determining how unique a marketing mix the firm can offer to some target market. is easier to develop effective marketing mixes for larger, more heterogeneous segments.
C.cost considerations encourage less aggregating.
D.the threat of potential competitors suggests more aggregating.
E.All of the above are true.

19. Segmenting international markets can be more difficult because:
A.the concepts and approaches for segmenting domestic markets simply do not apply.
B.there are more dimensions and many unfamiliar variables.
C.there are fewer useful dimensions.
D.a manager must rely entirely on his or her own judgments about people in other countries.
E.the quantity and quality of available market data are usually greater.

20. Differentiation refers to the ______________ of the firm's marketing mix to meet the needs of the target market.
E.none of the above

21. "Qualifying dimensions," in contrast to "determining dimensions,"
A.are the only kind of dimensions useful for marketing strategy planning.
B.indicate whether a person might be a potential customer but do not show which product or brand that person might buy.
C.are the customer-related dimensions in a product-market.
D.affect the product or brand a person is likely to purchase.
E.None of the above is true.

22. Sharper Image, a mail-order marketer of innovative gift items, decides to sell products in its own retail stores--to reach consumers who don't like to buy without first seeing the item in person. This is an example of: development.
B.diversification. penetration.
D.product development.
E.None of the above.

23. Which of the following is NOT one of the target marketing approaches for developing market-oriented strategies in a broad product-market?
E.All of the above are target marketing approaches.

24. Wendy's continues to come out with new offerings like stuffed pitas. This suggests that Wendy's is pursuing ______________. myopia.B. mass marketing.
B.product development. development.

25. A "market" consists of:
A.customers who are willing to exchange something of value.
B.a group of potential customers with similar needs.
C.sellers offering various ways of satisfying customer needs.
D.all of the above.
E.none of the above.

26. A pencil, a typewriter, and a laptop computer might compete in the same
A.single target market.
B.multiple target market.
D.combined target market.
E.generic market.

27. "Good" market segments are those that are:
A.homogeneous between.
B.heterogeneous within.
C.operational and substantial. in nature.
E.All of the above.

28. A mail-order marketer of flower bulbs to gardening hobbyists decides to sell the bulbs in grocery stores--to reach nonhobbyists who might be interested in pretty flowers. This is an example of: development.
B.diversification. penetration.
D.product development.
E.None of the above.

29. Builders Ceramic, Inc. defined five submarkets within its broad product-market. To obtain some economies of scale, Builders decided NOT to offer each of the submarkets a different marketing mix. Instead, it selected two submarkets whose needs are fairly similar, and is counting on promotion and minor product differences to make its one basic marketing mix appeal to both submarkets. Builders is using the:
A.combined target market approach.
B.single target market approach.
C.multiple target market approach.
D.mass marketing approach.
E.All of the above.

30. A firm's "relevant market for finding opportunities" should:
A.have no geographic boundaries. bigger than the firm's present product-market--but not so big that the firm couldn't be an important competitor. no larger than the firm's present product-market.
D.usually be named in product-related terms.
E.have no strong competitors.

31. The most risky types of marketing opportunity to pursue usually involve development. penetration.
D.product development.
E.All of the above are equally risky.

32. Which of the following statements about positioning is NOT true? Positioning techniques
A.position products on a graph based on price level and quantity demanded.
B.require a firm to collect data about consumer perceptions of products.
C.are sometimes called "perceptual mapping" techniques.
D.typically rely on a "product space" diagram to show the relationship among various products.
E.may use information about consumers' "ideal" products, so that the preferences of different segments of consumers can be considered.

33. If a soft-drink company bought out a cranberry juice producer in an attempt to appeal to health-conscious consumers who do not drink soft drinks, it would be pursuing a ______________ opportunity. development.
B.diversification. penetration.
D.product development.
E.None of the above.

34. "Good" market segments are those which are:
A.heterogeneous between.
D.homogeneous within.
E.All of the above.

35. "Breakthrough opportunities" are opportunities that: innovators develop hard-to-copy marketing strategies.
B.may be turned into marketing strategies that will be profitable for a long time. the firm develop a "competitive advantage." a firm satisfy customers better than some competitor.
E.All of the above.

36. Fuller Brush, which in the past relied on door-to-door personal selling, is trying to reach new customers by distributing mail-order catalogs and adding toll-free telephone ordering. Fuller Brush is pursuing a ______________ opportunity. development penetration marketing
D.product development
E.mass marketing

37. Which of the following statements about "segmenting" and "combining" is TRUE?
A.Combiners usually have more sales potential than segmenters.B. A combiner tries to meet the demand in several segments.
B.Segmenters try to develop a marketing mix that will have general appeal for several market segments--to obtain economies of scale.
C.A segmenter assumes that a broad product-market consists of a fairly homogeneous group of customers.
D.Both segmenters and combiners try to satisfy some people very well rather than a lot of people fairly well.

38. ______________ means trying to increase sales of a firm's present products in its present markets.
A.Product development
B.Market penetration
C.Market development
D.Mass marketing

39. A product-market is one in which
A.products from different industries compete for customers by trying to satisfy the same basic need.
B.price is the determining factor in deciding which brand to buy.
C.all of the customers want the exact same product but will consider a substitute if their preferred brand is not available. seller has a monopoly and there is no competition.
E.None of the above is true.

40. Coca-Cola is taking advantage of the new willingness of Chinese leaders to engage in international trade by marketing its soft drinks in China. What type of opportunity is Coke pursuing? development
C.product development penetration
E.none of the above

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