Click on the box next to each answer. Keep track of your own score.

1. A product:
   • A. consists of goods and services. INCORRECT Goods and services can be products, but answer B would   be better.
   • B. consists of goods, services, and ideas. INCORRECT   Goods, services, and ideas can all be products, making   this a better choice than answer A.    However, people, places, and anything else that could   be designed, promoted, priced, and distributed could   also be products. 
   • C. is anything exchanged to satisfy a need or want. CORRECT  
   • D. is anything that has monetary value to somebody. INCORRECT   See answer B.  A billboard that promotes the idea,   "friends don't let friends drive drunk" is   hoped by the sponsor to change peoples' behaviors.   The person who adopts new behaviors as a result of   the sign might have to give up something, but it isn't   monetary.
2. Internal assessment refers to an assessment that:
   • A. is conducted by employees (vs., e.g., consultants). INCORRECT  
   • B. is not revealed to anyone outside of the organization. INCORRECT  
   • C. uses information from non-public sources. INCORRECT  
   • D. reviews an organization's resources and strategy. CORRECT An internal analysis looks at an organization's   objectives, resources, and its strategy for matching   these with the dynamic external environment. That strategy is the 4Ps or marketing mix.
3. According to your textbook, assessment of the external environment is known as:
   • A. target marketing. INCORRECT Say what?  Target marketing has to do with the selection   of a particular audience for one's marketing actions.
   • B. SWOT analysis. INCORRECT "Strengths" and "weaknesses" are internal.
   • C. environmental scanning. CORRECT I actually disagree with the textbook, but from the   choices that I've given you on this question,   this answer would be the best. I think of environmental scanning as simply the process   of systematically or periodically collecting   information -- which is not the same as an analysis  of that information. See Answer D for more insights.
   • D. situation analysis. INCORRECT Situation analysis refers to the overall process of  collecting and interpreting both internal and environmental  information.
4. Competitive intelligence has to do with:
   • A. analysis of the competitive environment. CORRECT Sometimes when you're not sure of an answer, you get   psyched into assuming that the most intuitively obvious   answer is probably incorrect. I'm always amazed when some of the easiest questions   elicit a high rate of wrong answers. See Answer B also.
   • B. analysis of the external environment. INCORRECT Actually, CI *does* have to do with analysis of the   external environment, but given that a more specific   answer is included in the choice set, this one can't   be counted as best.
   • C. the human resource capabilities of competitors. INCORRECT See answer D if you thought that this might be correct.
   • D. the level of threat posed by competitors' strategies. INCORRECT Yikes!  You're way off!
5. Identification of a particular customer segment that an organization wants to reach with its marketing actions is known as:
   • A. segmentation. INCORRECT If a better answer wasn't included in the choice set,   this could be a term that is used in some contexts. Segmentation has to do with recognizing groups of   customers or prospective customers who, within each   group, respond similarly to our marketing efforts. A "segmentation strategy" presumes that the   organization has chosen one or more of those groups   to be its primary focus. Given that another answer is more clear about making this  choice of segments, however, that one is a better answer.
   • B. target market. CORRECT See Answer A for important insights that are associated   with this term.
   • C. RFID INCORRECT Huh?  Radio-frequency identification?  That has   to do with tracking inventory and isn't likely to be   on an exam until we get to the logistics chapters.
   • D. social networking. INCORRECT Social networking has to do with how it is that people in   a marketplace spontaneously communicate with each   other - not on the exam until we get to the marketing   communication chapters.
6. Product, pricing, promotion, and distribution decisions are collectively known as:
   • A. the 4Ps. CORRECT The first chapter doesn't refer to this, but it is so, so   important that I had to make sure that you don't   miss it. Note that another answer is ALSO correct.
   • B. the marketing mix. CORRECT The first chapter doesn't refer to this, but it is so, so   important that I had to make sure that you don't   miss it. Note that another answer is ALSO correct.
7. Establishing a mental image of a product offering relative to competing offerings in the minds of target buyers is called:
   • A. place utility. INCORRECT Nope. If you look at Answer B, you will find out why.  
   • B. psychological utility. INCORRECT Ahah!  You didn't read the book!  Utility has to do with   how well a product satisfies the needs and wants of   a buyer or prospective buyer.
   • C. segmentation. INCORRECT Segmentation has to do with dividing the market into groups   of buyers who respond in similar ways to our marketing   efforts.    Knowing something about the segment that we want to   target can give us insights into how to position a   product.
   • D. product positioning. CORRECT We tend to associate Kia automobiles with affordable   transportation, Cadillac with luxury, and Porsche   with sportiness. See also Answer C.  
8. Uncle John's Used Cars advertises "Ninety Days Same as Cash!!!" This seller is emphasizing what aspects of the product offering?
   • A. form utility INCORRECT Form utility has to do with the value of physical features   possessed by a product.
   • B. time utility INCORRECT Time utility has to do with enabling a buyer to take   possession of a product when s/he wants or needs it. E.g., a new automobile that is a good price but must be   ordered from the factory for delivery in two weeks   has no value if you are in desperate need of a   replacement vehicle right now.
   • C. place utility INCORRECT Place utility has to do with the value of a product being   where it is needed.  Uncle John might have your ideal car on another lot that he   owns, but it is 100 miles away.  Unless you are   are willing to drive that far to test drive the car,   a car that is local is worth more, or has higher   utility, than a car that is located elsewhere.
   • D. possession utility CORRECT Uncle John's is allowing folks to drive home in a car that   they might otherwise not be able to purchase.   Uncle John knows that some folks need a car in order   to get a job that would enable them to make car   payments.  Uncle John gives these folks a break,   and, of course, commands a higher price for doing so. Utility has to do with the difference that people are   people are willing to pay. See all other answers as well.
9. A focus on acquiring customers and on making a sale is associated with:
   • A. relationship marketing. INCORRECT The immediate goal is not a sale in relationship marketing. The greater focus throughout is on building trust and on   maintaining satisfying arrangements for both buyer   and seller.  an assumption is that sales will   follow. Be sure to look at answer B.
   • B. transactional marketing. CORRECT The term transactional marketing suggests a focus that is   more short term than relationship marketing. Unfortunately, many people (including textbook writers)   assume that this isn't a good orientation to have   or that this is an old-fashioned idea. Whether household consumers or organizational buyers, we   sometimes just want to make a purchase on the best   terms and move on.  Sellers who don't realize t   this need can get very annoying! Be sure to look at Answer A as well.