COMPETENCY EXAM – MARKETING EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+

Page 1 of 19 COMPETENCY EXAM – MARKETING EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+ Products can be goods, services, or ideas. Correct Answer: True Marketing mix variables are often viewed as "controlled" variables because the marketing manager can change them. Correct Answer: True Approximately what percentage of buyer's dollar is used for paying the cost of marketing activities? Correct Answer: 50% Approximately what percentage of U.S. civilian workers employed by business organizations perform marketing activities? Correct Answer: 25-33% Page 2 of 19 Marketing activities start and end with the Correct Answer: Consumer or client. A group of persons whom a firm attempts to create and maintain a marketing mix that fits the needs and preferences of that group is known as a Correct Answer: Marketplace. Many marketers view political forces as Correct Answer: Beyond their control. The Sherman Act was created primarily to Correct Answer: Prevent businesses from restraining trade and monopolizing markets. After-tax income is known as Correct Answer: Disposable income Income left over after an individual pas taxes and purchases the basic necessities of food, clothing, and shelter is called Correct Answer: Discretionary income. Page 3 of 19 Which of the following is not one of the four stages of the business cycle? Correct Answer: Prosperity American Airlines operated in a competitive environment in which it must consider the reaction of other airlines to its marketing activities and in which many customers see the services offered as homogenous. The cost of airplanes and maintenance facilities form sizable entry barriers. American's competitive environment is best characterized as Correct Answer: An oligopoly. A company sometimes defines the total market as its market. Correct Answer: True Psychographic segmentation variables are being used more often because they are relatively easy to measure. Correct Answer: False The marketing mix consists of Correct Answer: Price, promotion, distribution, and product. By offering Crest for Kids (attractive taste for children), Regular Crest for cavity control, and Tartar Control Crest toothpaste's, Procter & Gamble is segmenting the market based on Page 4 of 19 Correct Answer: benefits. Marketers of several Procter & Gamble products define markets on the basis of both volume usage of the product and annual family income. This is an example of which segmentation approach? Correct Answer: Multivariable The sales forecasting method that relies specifically on historical data is Correct Answer: Time series analysis. A group of brands that a buyer views as possible purchase alternatives is the buyer's evoked set. Correct Answer: True Cognitive dissonance is the satisfaction that occurs after a purchase because the buyer is confident of the purchase decision. Correct Answer: False Which of the following products would probably require extensive decision making before they are brought? Correct Answer: Expensive products Page 5 of 19 Marsha went to the store to buy toothpaste. She will most likely use a(n) ________ decision- making process in making her purchase. Correct Answer: routine In switching to a new brand after routinely purchasing a brand that once was but no longer is satisfying, the consumer probably will use Correct Answer: extensive decision making The feedback mechanism of the marketing information system is necessary to understand and the dynamics of the marketplace. Correct Answer: True The use of research in planning becomes more important as the alternative outcomes to a problem and the expected payoff increase. Correct Answer: True Marketing research, unlike a marketing information system, does not involve specific investigation into problems related to marketing decisions. Correct Answer: False Descriptive studies involve the collection of the data to clarify a research problem. Correct Answer: False Page 6 of 19 Examples of primary data are surveys and observations. Correct Answer: True Small organizations normally cannot afford to maintain the databank required for a marketing information system. Correct Answer: False A product is a complex of tangible and intangible attributes, including functional, social, and psychological utilities or benefits. Correct Answer: True Products brought for use in a firm's operations to produce other products are classified as consumer products. Correct Answer: False A consumer product can be classified as a convenience, shopping, speciality, or unsought good but cannot fit into more than one category. Correct Answer: False Product positioning refers to shelf space a reseller gives a product. Correct Answer: False Page 7 of 19 Venture teams are groups used to develop new products Correct Answer: True The four traditional categories of consumer products are Correct Answer: Marketable, unsought, convenience, and mature The total group of products that a seller makes available to consumers is the Correct Answer: product mix A product line refers to Correct Answer: a group of closely related products that an organization makes available to consumers. For product modification to be successful, existing customers must be able to perceive that a change has been made. Correct Answer: True Quality modifications are changes that affect a products versatility, effectiveness, convenience, or safety. Correct Answer: False Page 8 of 19 Aesthetic modifications change the sensory appeal of a product. Correct Answer: True Weak products should be deleted only after they have become severe financial burdens. Correct Answer: False Idea generation is the first stage in developing and introducing a new product. Correct Answer: True Test-marketing is the wide spread introduction of a product to determine if it will sell. Correct Answer: False Commercialization means the rapid introduction of a product to determine if it will sell Correct Answer: False The goal during the growth stage of a products life cycle is to establish the product's position and encourage brand loyalty. Correct Answer: True A brand is a name, term, symbol, design or combination of these that identifies a seller's products and differentiates them from competitors' products. Page 9 of 19 Correct Answer: True Manufacturer brands give retailers higher gross profit margins than do private brands. Correct Answer: False Branding primarily benefits the sellers of a product. Correct Answer: False In overall family branding, each product is branded differently. Correct Answer: False When labeling a product, a manufacturer must consider promotional, informational, and legal implications. Correct Answer: True Private brand labels are brought mostly by low-income shoppers. Correct Answer: False A brand helps to reduce a buyer's perceived risk of purchase. Correct Answer: True Page 10 of 19 Gillette produces a line of men's shaving products, including razors, shaving cream, and after-shave, all of which carry the Gillette brand. This is an example of a(n) __________ branding strategy. Correct Answer: Line family Channel functions cannot be passed on to buyers or performed by producers. Correct Answer: False A marketing channel is a system of unrelated functions that expedite the distribution of goods. Correct Answer: False A distribution network helps overcome discrepancies in quantity and quality. Correct Answer: False Manufacturers of consumer packaged goods rely on selective distribution. Correct Answer: False Selecting appropriate distribution channels is usually a simple process. Correct Answer: False Page 11 of 19 The wheel or retailing hypothesis holds that new types of retailers enter the market as low-status, low - margin, low price operators. Correct Answer: True Today, many specialty retailers appear to be following the wheel of retailing by offering more, service, better locations, quality inventory, and therefore higher prices. Correct Answer: False Atmospherics are important to the appearance of a store, but there is no evidence to support the belief that they can affect sales. Correct Answer: False Retailers are not middlemen because they sell to ultimate consumers. Correct Answer: False In some cases, retailers create form, place, time, and possession utilities. Correct Answer: True Discount stores can be described as self-service/general merchandise store that, like department stores, carry a wide assortment of products. Correct Answer: True Page 12 of 19 Franchising is currently experiencing declining growth. Correct Answer: False A major weakness of the wheel of retailing theory is that is predicts what and when new innovations will develop rather than describing new retail stores. Correct Answer: False The wheel of retailing hypothesis states that increasing the level of services, and thus costs, makes established retail institutions vulnerable to the entry of new low-margin, low-price retailers. Correct Answer: True Meaningful communication is achieved through the transmission of any symbols. Correct Answer: False Four possible ingredients of a promotion mix are advertising, personal selling, publicity, and sales promotion. Correct Answer: True Advertising is non-personal paid form of communication that is transmitted by a mass medium. Correct Answer: True Page 13 of 19 According to the text, communication is best defined as Correct Answer: A sharing of meaning. Immediate feedback and knowledge of customers' needs are advantages of Correct Answer: Personal selling. According to the text, advertising is Correct Answer: A paid form of non-personal communication transmitted through a mass medium. Which of the following is an activity or a material that serves as a direct inducement of resellers, salespersons, or consumers? Correct Answer: Sales promotion A push policy is characterized by Correct Answer: Concentration of promotional efforts on the next institution down the marketing channel. A pull policy is characterized by Correct Answer: Promotion aimed directly at consumers. Page 14 of 19 It is legal to mention the name of a competing brand in an advertisement. Correct Answer: False Building primary demand means creating demand for a specific brand of product. Correct Answer: False Advertising can be used to reduce fluctuations in sales. Correct Answer: True Publicity is paid form of advertising. Correct Answer: False The kind of advertising that promotes organizational images, ideas, or political issues is Correct Answer: Institutional advertising. An advertising platform consists of Correct Answer: The basic issues or selling points that an advertiser wants to include in a campaign. Which of the following is an example of an advertising objective stated in terms of sales. Correct Answer: Increase the firm's market share. Page 15 of 19 The major disadvantage of the percent-of-sales approach for determining an advertising budget is Correct Answer: That it is based on the incorrect assumption that sales create advertising rather than that advertising creates sales. Publicity Correct Answer: Is transmitted through the mass media at no charge. If an advertiser pays $25,000 for a one-page magazine advertisement and that magazine is read by ten million people, how much is the advertiser paying to reach a thousand people? Correct Answer: $2.50 Personal selling is usually the least expensive ingredient in the promotion mix. Correct Answer: False One of the best ways for a salesperson to overcome objections is to anticipate them. Correct Answer: True The personal selling process begins with approaching the customer. Correct Answer: False Page 16 of 19 Sales objectives usually are established for the entire sales force, not for each salesperson. Correct Answer: False The straight salary compensation method is useful when the firm moves into new sales territories that require developmental work. Correct Answer: True Personal selling is an important marketing function because it Correct Answer: Lets marketers zero in on the most promising sales prospects. Compared with other promotional tools, personal selling is Correct Answer: The most precise. The most widely use promotion-mix ingredient is Correct Answer: Personal selling. Price is a key element in the marketing mix because it relates directly to the generation of revenues. Correct Answer: True Page 17 of 19 Sellers who use non-price competition still must consider price in marketing their products Correct Answer: True A fundamental pricing objective is the firm's survival. Correct Answer: True Price usually is one of the most visible and flexible variables available to marketers. Correct Answer: True There are times when a marketer may sell a product below cost. Correct Answer: True Which of the following is the broadest and most fundamental pricing objective? Correct Answer: Survival Penetration pricing can help a marketer gain a large market share. Correct Answer: True An inverse relationship exists between the price of most products and the quantity demanded. Correct Answer: True Page 18 of 19 If Perrier notices that a change in the price of a six-pack of bottled water from $2.75 to $4.25 increases the quantity demanded of the product by 21%, this item is probably a(n) __________ product. Correct Answer: Prestige When demand is elastic, a change in price has little effect on total revenue. Correct Answer: True Elasticity of demand describes Correct Answer: changes in demand that result from changes in price. The breakeven point is the point at which Correct Answer: The costs of producing a product equal the revenues earned from selling the product. Which of the following policies is most effective at gaining maximum unit sales volume when introducing a new product? Correct Answer: Penetration pricing Benetton is a manufacturer of knitwear that operates several plants in Europe. Which one of the following would be an example of a fixed cost for Benetton? Page 19 of 19 Correct Answer: Rent for the plant The breakeven point for Dynamo Health Club is 10,000 members per year. The annual fixed cost is $100,000, and the variable cost per person is $80. What does Dynamo charge per membership? Correct Answer: $90