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Test Bank for Marketing Management A Strategic Decision Making Approach 7th Edition by Mullins Multiple Choice Questions Because manufacturers and their agents can perform exchange activities at a lower cost than individual consumers, we say that they have achieved: A price efficiency B functional efficiency C transaction efficiency D vertical integration E horizontal integration The utilization of marketing approaches by hospitals, theaters, universities and nonprofit organizations: A has not changed compared to practices in the past B has increased substantially in the recent past C is outside the domain of marketing per se D is only appropriate in for-profit situations E has decreased substantially in the past decade Haier, the rapidly growing Chinese manufacturer of washing machines discussed in the text, modifies its product designs and marketing programs to the needs of customers in Saudi Arabia The company is: A trying to provide a unique benefit to a segment of the washing machine market B trying to provide a unique benefit to the overall market for washing machines C production oriented D trying to position its product as a me-too type of washing machine E trying to build economies of scale Dell Computer’s reliance on the Internet to attract customers and process orders together with a flexible manufacturing system that produces computers to order and minimizes finished inventories, and Canon’s reliance on its own factories, salesforce, and distribution facilities to produce and market its copiers and printers are examples of a: A vertically integrated distribution system B horizontally integrated distribution system C wheel-and-spoke distribution system D cohesive distribution system E pyramid selling system For some brand loyal customers what does wearing Levi’s 501 jeans provide that other jeans cannot? A Need fulfillment B Need creation C Need recognition D Want satisfaction E Want recognition Factors not created by marketers or other social forces, but flowing from basic biological and psychological human makeup, are: A needs B wants C demands D urges E requirements “A social process involving the activities necessary to enable individuals and organizations to obtain what they need and want through exchanges with others” is a definition of: A distribution B marketing C barter 4 D countertrade E industrialization In addition to being provided with physical objects, people’s needs may be satisfied in a less tangible form through: A differential forms B products C goods D services E product modifications Which aspect of the marketing management process does environmental and competitor analysis represent? A Marketing program components B Implementing and controlling marketing programs C Formulating strategic marketing programs D Market opportunity analysis E Strategic market communication When the market is sufficiently homogeneous, a company can practice marketing approaches that are: A pre-emptive B differentiated C segmented D situational E undifferentiated What factor has changed in the past 10 years that has made the customer service function far more important to the firm’s financial success? A global population levels B global competition levels C database marketing D wireless communications E market fragmentation Groups of institutions, or middlemen, that distribute goods are known as: A pyramid distribution systems B cohesive distribution system C horizontal distribution systems D wheel-and-spoke distribution systems E marketing channels Those who buy goods and services for resale, as inputs to production of other goods or services, or for use in the day-to-day operations of the organization are: A intermediaries B ultimate consumers C organizational customers D utilitarian consumers E countertraders When a company is attempting to differentiate its products to distinguish them from competitors’ products, in which aspect of strategic management planning is the company engaged? A Market segmentation strategy B Distribution strategy C Targeting strategy D Pricing strategy E Positioning strategy Advertising, personal selling, point-of-purchase displays, and publicity are related to which element of the marketing mix? A Place B Product C Price D Promotion E Personnel Those who buy goods and services for their own personal use or the use of others in their immediate household are: A utilitarian consumers B organizational customers C intermediaries D industrial customers E ultimate consumers “The process of analyzing, planning, implementing, coordinating, and controlling programs involving the conception, pricing, promotion, and distribution of products, services, and ideas designed to create and maintain beneficial exchanges with target markets for the purpose of achieving organizational objectives” is a definition of: A marketing communications B marketing management C marketing strategy D strategic management E marketing tactics What is the focus of marketing management? A Analysis B Coordination C Beneficial exchange D Distribution E Execution When a buyer purchases a new Fiat Punto and the purchase price includes free parts and labor on repairs that occur within the first three years or 36,000 miles, whichever comes first, what aspect of the product does this component represent? A Return policy B Warranty C Sales promotion D Allowance E Spare parts availability The desire to drink a Coke instead of orange juice is an example of a(n): A necessity B need C demand D want E requirement What type of strategy states the company’s mission and its strengths and policies for growth? A Business-level strategy B Functional strategy C Marketing strategy D Corporate strategy E Segmentation strategy Those who sell goods and services directly to final consumers for their personal, nonbusiness use are: A retailers B agent middlemen C merchant wholesalers D facilitating agents E commissioned agents A society cannot reap the full benefits of specialization until it develops the means to facilitate: A importation of essentials from other societies B production of essentials by each member of society C the trade and exchange of surpluses among its members D countertrade with other societies E production of goods in addition to services When a consumer purchases a product at a convenient location and when she is ready to use the product, we say that the product has achieved _ utility and _ utility, respectively A time; place B place; time C possession; place D possession; functional E time; possession A gap between a person’s actual and desired state on some physical or psychological dimension is a(n): A unsatisfied need B want state C market inefficiency D demand function E intermediary The most important characteristic of marketing as a business function is its focus on: A interfunctional responsibilities B customer needs C barter exchange requirements D production efficiencies E technological trends When a non-profit organization, like a university, purchases copying paper for its photocopying machines, what is it purchasing? A A consumer good B A consumer service C An industrial good D An industrial service E An emotional good “Individuals and organizations who are interested and willing to buy a particular product to obtain benefits that will satisfy a specific need or want, and who have the resources to engage in such a transaction” is the definition of a(n): A industrial buyer B segment C opportunity D focus group E market When people buy products to satisfy their wants and needs, instead of buying the products per se, they are buying: A performance features B product attributes C benefits D physical attributes E goods The primary advantage to direct distribution for a firm like Dell computers is: A more control over channel activities B less hassle for the customer C broader market coverage D lower distribution costs E less hassle for the firm _ is the combination of controllable marketing variables that a manager uses to carry out a marketing strategy A Advertising B Pricing strategy C Market segmentation D Publicity E Marketing mix In developed countries, approximately what percentage of the retail price of consumer products consists of the costs of marketing and distribution of these products? A 10 percent B 30 percent C 50 percent D 70 percent E 90 percent A manufacturer’s representative for General Electric is an example of which type of “middleman?” A Retailers B Agent middlemen C Merchant wholesalers D Facilitating agents E Commissioned agents When the total market for a given product category is fragmented into several groups of people having relatively homogeneous needs, wants, and sought after benefits, these groups are termed: A market fragmentation B a differentiated market C a counter-market D a market segment E market homogenization When PepsiCo attempts to define which products, promotions, prices, and distribution arrangements to include in its snacks food line, what type of strategy is it pursuing? A Marketing strategy B Functional-level strategy C Corporate strategy D Operational strategy E Market segmentation strategy What type of decision is reflected in an organization’s businesslevel strategy? A Choosing suppliers B Picking an advertising slogan C Deciding how to compete in its business D Deciding which products to sell E Defining its overall purpose When a company is attempting to determine what markets to target their product towards as part of its strategic marketing planning activities, which of the following is it attempting to define? A Why its competitors have not already exploited this niche B What the best promotion vehicle would be for this market C Which segments have to be targeted D How to position the product E What its distribution strategy would be Studies have shown that, if their complaints were handled satisfactorily, percent of those who complain would business with the same company again A 30 B 10 C 50 D 70 E 90 Analyzing the 4Cs is necessary to provide the foundation for a good strategic marketing plan Which of the following is NOT one among them? A Company B Context C Customers D Cost E Competitors Quality, features, style, options, brand name, packaging, guarantees and warranties, and service are related to which element of the marketing mix? A Place B Price C Product D Promotion E Personnel ... communications B marketing management C marketing strategy D strategic management E marketing tactics What is the focus of marketing management? A Analysis B Coordination C Beneficial exchange D Distribution... environmental and competitor analysis represent? A Marketing program components B Implementing and controlling marketing programs C Formulating strategic marketing programs D Market opportunity analysis... is the combination of controllable marketing variables that a manager uses to carry out a marketing strategy A Advertising B Pricing strategy C Market segmentation D Publicity E Marketing mix