Question 1

The basic objective of a firm should be to:

Accepted Answer

A)  engage in some specific business activity that will perform a socially and economically useful function. 
B)  develop an organization to carry on the business and implement its strategies. 
C)  earn enough profit to survive. 
D)  All of the above. 
E)  Only B and C above. 
A)  engage in some specific business activity that will perform a socially and economically useful function. 
B)  develop an organization to carry on the business and implement its strategies. 
C)  earn enough profit to survive. 
D)  All of the above. 
E)  Only B and C above.

Question 2

A firm that discriminates in price on goods of "like grade and quality" may be in violation of the ___________ Act.

Accepted Answer

A)  Sherman 
B)  Robinson-Patman 
C)  Wheeler-Lea 
D)  Magnuson-Moss 
E)  Antimerger 
A)  Sherman 
B)  Robinson-Patman 
C)  Wheeler-Lea 
D)  Magnuson-Moss 
E)  Antimerger

Question 3

Portfolio management:

Accepted Answer

A)  does not consider quantitative screening criteria such as ROI. 
B)  makes sense only if a manager is interested in comparing very similar alternatives. 
C)  primarily focuses on the likely long-term potential of a product-market opportunity. 
D)  is too complex to be helpful except in small companies that have only one product. 
E)  None of the above is true. 
A)  does not consider quantitative screening criteria such as ROI. 
B)  makes sense only if a manager is interested in comparing very similar alternatives. 
C)  primarily focuses on the likely long-term potential of a product-market opportunity. 
D)  is too complex to be helpful except in small companies that have only one product. 
E)  None of the above is true.

Question 4

A mission statement sets out the organization's basic purpose for being.

Accepted Answer

A) True 
 B)False

Question 5

Company objectives should lead to a hierarchy of marketing objectives.

Accepted Answer

A) True 
 B)False

Question 6

A "Buy American" campaign is an example of:

Accepted Answer

A)  transnationalism. 
B)  nationalism. 
C)  environmentalism. 
D)  consumerism. 
E)  federalism. 
A)  transnationalism. 
B)  nationalism. 
C)  environmentalism. 
D)  consumerism. 
E)  federalism.

Question 7

A manager could be fined for violating the antimonopoly laws, but he or she could not be sent to jail.

Accepted Answer

A) True 
 B)False

Question 8

With General Electric's strategic planning grid:

Accepted Answer

A)  the industry attractiveness dimension focuses on the ability of the company to pursue a product-market plan effectively. 
B)  managers must follow an objective, single-factor approach. 
C)  the business strengths dimension focuses on whether this product-market plan looks like a good idea. 
D)  managers make three-part judgments about the business strengths and industry attractiveness of all proposed or existing product-market plans. 
E)  opportunities that fall into the red boxes are the firm's best growth opportunities. 
A)  the industry attractiveness dimension focuses on the ability of the company to pursue a product-market plan effectively. 
B)  managers must follow an objective, single-factor approach. 
C)  the business strengths dimension focuses on whether this product-market plan looks like a good idea. 
D)  managers make three-part judgments about the business strengths and industry attractiveness of all proposed or existing product-market plans. 
E)  opportunities that fall into the red boxes are the firm's best growth opportunities.

Question 9

The General Electric "strategic planning grid" relies on subjective judgments about business strengths and industry attractiveness.

Accepted Answer

A) True 
 B)False

Question 10

Because the cultural and social environment tends to change slowly, firms should try to identify and work with cultural attitudes rather than trying to encourage big changes in the short run.

Accepted Answer

A) True 
 B)False

Question 11

"Nationalism" is an issue in the ______________ environment.

Accepted Answer

A)  competitive 
B)  political 
C)  economic 
D)  cultural 
E)  technological 
A)  competitive 
B)  political 
C)  economic 
D)  cultural 
E)  technological

Question 12

The Clayton Act focuses on practices which may substantially lessen competition--such as tying contracts, exclusive dealing contracts and price discrimination by manufacturers.

Accepted Answer

A) True 
 B)False

Question 13

Using General Electric's "strategic planning grid," an opportunity rated "medium" in terms of industry attractiveness and "high" in terms of business strengths would be evaluated as:

Accepted Answer

A)  yellow--borderline. 
B)  red--for no growth. 
C)  green--for growth. 
D)  could be yellow, red, or green--because the grid suggests that opportunities with medium ratings need more analysis. 
A)  yellow--borderline. 
B)  red--for no growth. 
C)  green--for growth. 
D)  could be yellow, red, or green--because the grid suggests that opportunities with medium ratings need more analysis.

Question 14

A company would be charged with product warranty violations under:

Accepted Answer

A)  the Total Quality Management Act 
B)  the Robinson-Patman Act 
C)  the Federal Trade Commission Act 
D)  the Magnuson-Moss Act 
E)  There are no laws regulating product warranties. 
A)  the Total Quality Management Act 
B)  the Robinson-Patman Act 
C)  the Federal Trade Commission Act 
D)  the Magnuson-Moss Act 
E)  There are no laws regulating product warranties.

Question 15

Nike claims in its Annual Report that "the reasons every NIKE employee comes to work every day is to create great product, to lead the athletic industry in innovation, and to serve the athlete." This is Nike's:

Accepted Answer

A)  competitive barrier. 
B)  technology. 
C)  portfolio management. 
D)  mission statement. 
E)  competitor analysis. 
A)  competitive barrier. 
B)  technology. 
C)  portfolio management. 
D)  mission statement. 
E)  competitor analysis.

Question 16

GE's planning grid approach

Accepted Answer

A)  doesn't work because different managers usually come to different conclusions given the subjective evaluations involved. 
B)  is really the same thing as the total profit approach. 
C)  overemphasizes short term profitability. 
D)  is superficial because it considers only size and expected market share, and ignores other possibly important factors. 
E)  could be adapted easily by another firm with different objectives. 
A)  doesn't work because different managers usually come to different conclusions given the subjective evaluations involved. 
B)  is really the same thing as the total profit approach. 
C)  overemphasizes short term profitability. 
D)  is superficial because it considers only size and expected market share, and ignores other possibly important factors. 
E)  could be adapted easily by another firm with different objectives.

Question 17

Along with studying trends in the environment, a first step in looking for attractive opportunities is to:

Accepted Answer

A)  understand the resources and objectives of the firm. 
B)  decide which product-markets the firm will enter. 
C)  find new markets for present products. 
D)  estimate product-market potentials. 
E)  hire a marketing strategy planner. 
A)  understand the resources and objectives of the firm. 
B)  decide which product-markets the firm will enter. 
C)  find new markets for present products. 
D)  estimate product-market potentials. 
E)  hire a marketing strategy planner.

Question 18

Changes in the cultural and social environment tend to come about quickly.

Accepted Answer

A) True 
 B)False

Question 19

Interest rates usually decrease during periods of inflation.

Accepted Answer

A) True 
 B)False

Question 20

Technology affects marketing through new products and new processes.

Accepted Answer

A) True 
 B)False

Exam 3: Evaluating Opportunities in the Changing Marketing Environment

The basic objective of a firm should be to:

A firm that discriminates in price on goods of "like grade and quality" may be in violation of the ___________ Act.

Portfolio management:

A mission statement sets out the organization's basic purpose for being.

Company objectives should lead to a hierarchy of marketing objectives.

A "Buy American" campaign is an example of:

A manager could be fined for violating the antimonopoly laws, but he or she could not be sent to jail.

With General Electric's strategic planning grid:

The General Electric "strategic planning grid" relies on subjective judgments about business strengths and industry attractiveness.

Because the cultural and social environment tends to change slowly, firms should try to identify and work with cultural attitudes rather than trying to encourage big changes in the short run.

"Nationalism" is an issue in the ______________ environment.

The Clayton Act focuses on practices which may substantially lessen competition--such as tying contracts, exclusive dealing contracts and price discrimination by manufacturers.

Using General Electric's "strategic planning grid," an opportunity rated "medium" in terms of industry attractiveness and "high" in terms of business strengths would be evaluated as:

A company would be charged with product warranty violations under:

Nike claims in its Annual Report that "the reasons every NIKE employee comes to work every day is to create great product, to lead the athletic industry in innovation, and to serve the athlete." This is Nike's:

GE's planning grid approach

Along with studying trends in the environment, a first step in looking for attractive opportunities is to:

Changes in the cultural and social environment tend to come about quickly.

Interest rates usually decrease during periods of inflation.

Technology affects marketing through new products and new processes.

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Focusing Marketing Strategy With Segmentation and Positioning

Demographic Dimensions of Global Consumer Markets

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers,wholesalers,and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Implementing and Controlling Marketing Plans: Evolution and Revolution

Managing Marketings Link With Other Functional Areas

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Economics Fundamentals

Marketing Arithmetic

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