MARKETING PRINCIPLES
Sample Exam 1 Questions

Overview, environment, public policy.

Choose the BEST answer. Caveat emptor (buyer beware) on these answers. Contact the professor if you believe that there is a mistake which should be corrected.

21. One or more specific groups of potential consumers toward which an organization directs its marketing program is the definition of:

• A. the marketing concept INCORRECT the marketing concept suggests that there are stakeholders other than consumers. These stakeholders include shareholders, employees, etc.
• B. the marketing mix INCORRECT The marketing mix is directed toward these specific groups.
• C. promotion INCORRECT Promotion is an element of the marketing mix.
• D. target market CORRECT Except in mass marketing, we shoud direct our marketing efforts toward some specific group that is likely to need and want what we have for sale.

22. Controllable marketing mix factors include:

• A. product, price, promotion, and distribution. CORRECT These are the basic factors over which a marketer has control. If you were to do some consulting, you might begin by asking questions which are associated with these factors.
• B. government regulation, technology, competition, and the economy. INCORRECT These are important factors, but they are uncontrollable external factors of the environment.
• C. both line and staff employees. INCORRECT You must be a management major!
• D. the utilities of form, time, place, and posession. INCORRECT The marketer has some control over the creation of these utilities, but this isn't what we mean by the marketing mix

23. "The 4Ps" is another way of saying:

• A. the marketing concept. INCORRECT The 4Ps is one step toward the marketing concept.
• B. the marketing mix. CORRECT "Product, price, promotion, and place" or "'4Ps" is an easy way to remember the elements of the marketing mix. Even real world managers use the term "4Ps"
• C. product, price, possession, and politics. INCORRECT You're guessing, right?
• D. Philadelphia, Pittsburgh, Phoenix, and Boise (potato) INCORRECT You were just curious to see this discussion, right?

24. The primary aim of the marketing concept is

• A. to develop a meaningful mission statement INCORRECT The marketing concept and a mssion statement are probably related in any given organization, however.
• B. to develop a meaningful marketing plan. INCORRECT Could be some relationship, but not a primairy goal.
• C. employee satisfaction. INCORRECT Employee satisfaction IS a factor in the marketing concept, but another answer is a bigger objective.
• D. customer satisfaction CORRECT The general idea is that profits follow from meeting the needs and wants of customers. Don't forget, however, that this does not ignore the needs of the organization.

25. A 'selling orientation'

• A. is no longer a viable philosophy of doing business. INCORRECT In many cases, a selling orientation is appropriate. Consider, for example, a food broker, where the value added services of the broker do not really add to the core product.
• B. makes people buy things they don't need or want. INCORRECT Why would people buy things they don't need or want?
• C. takes the perspective of finding people who need what you have. CORRECT If you developed a chemical additive which makes aluminum stronger, then your biggest problem of marketing will be to find organizations who are likely to need what you have for sale.
• D. both 'a' and 'b' above are correct. INCORRECT Which one of them is the right answer, then?

26. Mary bought a car from Fred's Automall for $18,000. She could have purchased the same car for $17,000 from Stanton Motor Carraige. Mary decided to buy from Fred's because they offered an Instant Financing Program whereby she was able to buy the car with no money down, easy monthly payments, and an on-the-spot credit approval. This is an illustration of:

• A. the marketing concept. INCORRECT Bad guess.
• B. the marketing mix. INCORRECT Bad guess.
• C. a Buying Power index of 18/17=1.059 INCORRECT Bad guess.
• D. possession utility CORRECT If Mary did not have the cash to pay for the $17,000 car, then she might have to save for years before she could save enough money to buy it. Fred's enabled her to take posssession of the car earlier.

27. Environmental scanning is:

• A. the process of collecting information about environmental forces CORRECT Scanning implies only collection, not analysis.
• B. the same as a marketing plan. INCORRECT A marketing plan would probably have an environmental scan somewhere in the front of the report. You must know something about the environment in order to make a marketing plan.
• C. an assessment of organizational strengths and weaknesses. INCORRECT The scan is of the external environment; strengths and weaknesses are factors internal to an organization.
• D. an assessment of environmental opportunities and threats. INCORRECT A scan implies the collection of information but does not necessarily imply an analysis.

28. The marketing environment is considered

• A. to be of increasing importance with concerns about recycling, etc. INCORRECT The marketing environment has to do with factors which affect an organization's ability to compete and survive. Issues of pollution, recycling, etc. do not necessarily affect an organization.
• B. to be a fad which will subside with time. INCORRECT See answer A.
• C. to be a controllable factor in marketing. INCORRECT An organization might have some influence on some environmental factors, but is unlikely to have any direct control on any of these factors.
• D. to be an uncontrollable factor of marketing CORRECT An organization might have some influence on some environmental factors, but is unlikely to have any direct control on any of these factors.

29. The marketing environment presents

• A. both strengths and weaknesses to an organization. INCORRECT Strengths and weaknesses are internal to an organization.
• B. both opportunities and threats to an organization. CORRECT You want to steer around the threats and to take advantage of windows of opportunity.
• C. dynamic social causes of interest to all organizations. INCORRECT What a silly answer!
• D. both 'A' and 'B' above are correct. INCORRECT Check anser 'A'.

30. competitive forces include

• A. anything that competes for consumers' dollars. INCORRECT Close, but another answer is better.
• B. other firms that market products that are similar or can be substituted. INCORRECT Close, but another answer is better.
• C. virtually anyone who sells anything of value. INCORRECT
• D. a range that includes the extremes of 'A' and 'B' above. CORRECT If your checking account is low and you need to pay the rent, you might decide not to go out for pizza this week. The pizza shop, therefore, competes with your landloard for your money.

31. George has about $250 left over at the end of every month after paying for such basic necessities as food, clothing, and shelter. This $250 represents:

• A. discretionary income CORRECT By definition. This is what George has to spend, at his discretion, on non-necessary products.
• B. disposable income INCORRECT By definition; disposable income is what is left after paying taxes.
• C. buying power. INCORRECT The more George has left over at the end of the month, the greater his buying power. However, this is not quite the meaning of the term buying power.
• D. an index of $250 divided by total income. INCORRECT What does this have to do with anything?

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