Download Marketing Principles Quiz #4: True/False Questions and more Exercises Marketing in PDF only on Docsity!
Marketing Principles
Quiz
Each question is worth 2 pts
(1) Distribution involves making products available to the consumer. T F Answer: True (2) No single pricing formula will work for all businesses, nor is there a formula that will assure maximum profits in all situations. T F Answer: True (3) Physical distribution starts with understanding consumer needs/wants and finding low-cost solutions to getting goods to consumers. T F Answer: True (4) The focal point of marketing decisions is the customer. T F Answer: True (5) With intensive distribution, manufacturers are usually very careful in their selection of responsible retailers who sell their products. T F Answer: False (6) A brand helps a company differentiate its offerings from those of competitors. T F Answer: True (7) Understanding the characteristics and motivations of the ultimate consumer is one of the most important responsibilities of a Marketing Manager. T F Answer: True (8) The aim of market segmentation is to identify groups of buyers based on similarities and then develop a marketing strategy based on those similarities. T F
Answer: True (9) Many consumers use price as an indicator of quality. T F Answer: True (10) Competitive analysis strives to discover a competitive advantage. T F Answer: True (11) Information gleaned from an assessment of competition helps companies plan their own marketing strategies. T F Answer: True (12) Firms must consider the product’s stage in the life cycle, its importance to the firm’s portfolio, the competitor’s intentions and resources, and the product’s price and quality sensitivity when responding to a competitor’s price change. T F Answer: True (13) The ideal price for any product or service is one that is acceptable to both the buyer and the seller (perceived value). T F Answer: True (14) Distribution includes both the physical movement of products and the establishment of intermediary relationships to guide and support the movement of products. T F Answer: True (15) The role of marketing is to achieve the company’s objectives by making profitable sales of products to identified markets. T F Answer: True (16) To establish and sustain customer loyalty, companies should emphasize the creation of value. T F Answer: True (17) The development of a marketing strategy usually does not involve identification of the target market because the seller is not particular as to who buys the product as long as there are profits. T F
T F
Answer: True (27) A benefit of doing a Situational Analysis (S.W.O.T) is that it fosters collaboration among managers of different functional areas. T F Answer: True (28) In order for a S.W.O.T analysis to be effective, one should examine issues from a competitor’s perspective. T F Answer: True (29) It is important to separate internal issues from external issues when doing a S.W.O.T. analysis. T F Answer: True (30) A patented process can be viewed as a potential strength for the company that owns that patent. T F Answer: True (31) Limited distribution can be perceived as a potential weakness of a company. T F Answer: True (32) If rivals are complacent, it can be a potential opportunity for you in developing a marketing strategy. T F Answer: True (33) It is the goal of every marketing manager to convert weaknesses into strengths and threats into opportunities for their company. T F Answer: True (34) The S.W.O.T. analysis provides little guidance on how the firm might structure its’ marketing strategy. T F Answer: False (35) When designing the marketing strategy, a marketing manager needs to take into account his/her marketing composition/mix (product, price, promotion, and place).
T F
Answer: True (36) Knowing your competitors is a key ingredient of your market strategy. T F Answer: True (37) Every product or service has a definite “life cycle” – few can be sold forever without changes. T F Answer: True (38) Promotion is a form of persuasive communication or getting others to do what you want them to do. Its function is that of informing consumers about a product or service and influencing them to buy that product or service. T F Answer: True (39) Competition provides the rationale for strategy. T F Answer: True (40) The three basic components of a distribution channel are (1) producers & manufacturers, (2) intermediaries, and (3) ultimate consumers. T F Answer: True (41) Promotional elements include which of the following? a. Personal selling. b. Advertising. c. Sales promotion. d. Publicity. e. ALL OF THE ABOVE. f. NONE OF THE ABOVE. Answer: ALL OF THE ABOVE. (42) In regards to the “Product” of the Marketing Mix, a marketer must take into account which of the following items? a. Quality. b. Styling. c. Design. d. Benefits.
F. NONE OF THE ABOVE.
Answer: ALL OF THE ABOVE. (47) The marketing plan: A. Reflects past experience. B. Assesses current trends. C. Provides direction for implementation. D. Includes an action plan. E. All of the above. Answer: All of the above. (48) The Marketing mix includes all of the following except: A. Product B. Price C. Placement D. Promotion E. Target Market Answer: E. Target Market (49) What is the greatest benefit of market research? A. The quantitative data provides a deep understanding of customers. B. It allows marketers to understand how customers use a product. C. By truly understanding customers’ wants, needs, and motivations marketers can create products that respond to those needs. D. If the questions are asked correctly, the data will be invaluable. E. ALL OF THE ABOVE. F. NONE OF THE ABOVE. Answer: C. By truly understanding customers’ wants, needs, and motivations marketers can create products that respond to those needs. (50) Matching your company’s strengths to opportunities creates: A. Competitive Advantage. B. Operational Excellence. C. Product Leadership. D. Customer Intimacy. E. All of the above. Answer: A. Competitive Advantage. BONUS QUESTION (5 pts):
What is meant by Supply Chain Management and why has it become so important in our discussion of marketing today? Supply Chain Management (SCM) is the management of all business processes and activities involving procurement of raw materials, manufacturing, and distribution management of finished goods from point of origin to point of consumption. Supply Chain Management has become so important in our discussion of marketing today because the supply chain of a product gives the proper insight into the demand and the supply in the market. Marketing people can get an insight into the demand and can redefine their promotional activity. Its strategies are the critical backbone of business organizations and companies. It also helps to determine the price for a product and service so that company can earn more profits. Moreover, it gives insight into product modifications and according to that promotions can be redefined. Additionally, effective market coverage and availability of products at locations hold the key to revenue recognition depending upon the effectiveness of the Supply Chain Strategy. When a product is introduced in the market and advertised, the entire market in the country and all the sales stores need to have the product where the customer can buy and take delivery. Transportation network design and management assume importance to support sales and marketing strategy. In a global scenario, the finished goods inventory is held at many locations and distribution centers and managed by third parties. A lot of inventory would also be in the pipeline in transportation, besides the inventory with distributors and retail stocking points. Since any loss of inventory anywhere in the supply chain would result in a loss of value, effective control of inventory and visibility of inventory gains importance as a key factor of the Supply Chain Management function.
