Question 1

Which of the following would a firm need to specify BEFORE deciding on its sales promotion objectives?

Accepted Answer

A)  Company objectives. 
B)  Production objectives. 
C)  Product objectives. 
D)  Marketing objectives. 
E)  All of these objectives would need to be specified beforehand.

Question 2

The Sherman Act and the Clayton Act:

Accepted Answer

A)  were intended to protect large producers. 
B)  were designed to limit competition. 
C)  were passed during the rash of corporate takeovers in the 1980s. 
D)  None of these is correct.

Question 3

Which of the following countries has the fastest projected population growth between 2010 and 2025?

Accepted Answer

A)  United Kingdom 
B)  Canada 
C)  Germany 
D)  United States 
E)  Ethiopia

Question 4

American legislative and economic thinking assumes that:

Accepted Answer

A)  competition among many small firms helps the economy. 
B)  firms must have their prices approved by the Federal Trade Commission. 
C)  the free enterprise system is dying. 
D)  laws are needed to prevent firms from competing with similar ("me-too") products. 
E)  government officials are needed to run the economy.

Question 5

All of the following are part of the direct market environment EXCEPT:

Accepted Answer

A)  customers. 
B)  competitors. 
C)  the company itself. 
D)  the technological environment.

Question 6

In the total profit approach, management forecasts potential sales and costs during the life of the plan to estimate likely profitability.

Accepted Answer

A) True 
 B)False

Question 7

The marketing manager for a financial services firm knows that customer preferences for mutual funds and bond accounts will differ depending on the current interest rate. She must plan her offerings with the _____ environment in mind.

Accepted Answer

A)  economic 
B)  social 
C)  technological 
D)  cultural 
E)  legal

Question 8

Which of the following U.S. antimonopoly laws deals with "tying contracts" where the sale of one product is contingent on the business customer purchasing other products from the same supplier?

Accepted Answer

A)  Sherman Act (1890) 
B)  Robinson-Patman Act (1936) 
C)  Antimerger Act (1950) 
D)  Wheeler-Lea Amendment (1938) 
E)  Clayton Act (1914)

Question 9

Evaluating opportunities in international markets is uniquely challenging for managers because:

Accepted Answer

A)  international variables are confusing and unfamiliar to outsiders. 
B)  there are so many opportunities from which to choose. 
C)  marketing in other countries is entirely different from marketing in a domestic setting. 
D)  international consumers rarely share the same needs. 
E)  other nations do not welcome foreign businesses.

Question 10

The Consumer Product Safety Commission is responsible for:

Accepted Answer

A)  developing and enforcing safety standards for bicycles. 
B)  developing and enforcing environmental protection standards. 
C)  preventing the distribution and sale of adulterated or misbranded foods, drugs, and cosmetics. 
D)  None of these is correct.

Question 11

Product-market screening criteria should:

Accepted Answer

A)  be qualitative. 
B)  summarize in one place what the firm wants to accomplish. 
C)  be achievable. 
D)  be stated in quantitative terms. 
E)  All of these are correct.

Question 12

According to the General Electric strategic planning grid, a business that is the strongest in its industry:

Accepted Answer

A)  should still be considered as a "no-growth" prospect unless the industry attractiveness is high. 
B)  is a good prospect, provided the industry has at least medium attractiveness. 
C)  should automatically receive a large investment. 
D)  All of these alternatives about GE's strategic planning grid are true.

Question 13

Regarding the competitive environment:

Accepted Answer

A)  It is easy to find environments that are "competitor-free." 
B)  Monopoly situations are more common than are situations characterized by monopolistic competition. 
C)  "Competitive rivals" are a firm's closest competitors. 
D)  Competitor analysis should begin with an identification of competitors from the viewpoint of the manager, not the consumer.

Question 14

A "Buy American" campaign is an example of:

Accepted Answer

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

Question 15

How might an organization ensure that marketing objectives are compatible and aligned with top-level company objectives?

Accepted Answer

A)  Involve marketing managers in setting company objectives 
B)  See how plans worked out at the end of the year 
C)  Maintain effective e-mail communication 
D)  Require every individual to set personal objectives 
E)  Require the marketing department to set objectives

Question 16

The Clayton Act specifically aims at:

Accepted Answer

A)  tying contracts. 
B)  price discrimination by manufacturers. 
C)  exclusive dealing contracts limiting a buyer's sources of supply. 
D)  All of these are correct.

Question 17

When a local bank in Kansas City makes loans to its small business customers, it charges them an interest rate for borrowing money. Interest rates are part of the ____________ environment.

Accepted Answer

A)  cultural and social 
B)  economic 
C)  legal 
D)  political 
E)  competitive

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

When evaluating the potential of possible opportunities (product-market strategies), a marketing manager should:

Accepted Answer

A)  evaluate each opportunity over the life of the project, since short-term losses may hide long-term profitability. 
B)  avoid using quantitative criteria because they tend to oversimplify the problem. 
C)  look at each opportunity on its own, since there is no good way to compare different plans. 
D)  look only at internal resources, since they are controllable.

Question 20

The move of the "Baby Boomers" into the 45-64 age group:

Accepted Answer

A)  increased the average age of the population. 
B)  created new opportunities in financial services. 
C)  contributed to increased interest in health and fitness products. 
D)  All of these are correct.

Exam 3: Evaluating Opportunities in the Changing Marketing Environment

Which of the following would a firm need to specify BEFORE deciding on its sales promotion objectives?

The Sherman Act and the Clayton Act:

Which of the following countries has the fastest projected population growth between 2010 and 2025?

American legislative and economic thinking assumes that:

All of the following are part of the direct market environment EXCEPT:

In the total profit approach, management forecasts potential sales and costs during the life of the plan to estimate likely profitability.

The marketing manager for a financial services firm knows that customer preferences for mutual funds and bond accounts will differ depending on the current interest rate. She must plan her offerings with the _____ environment in mind.

Which of the following U.S. antimonopoly laws deals with "tying contracts" where the sale of one product is contingent on the business customer purchasing other products from the same supplier?

Evaluating opportunities in international markets is uniquely challenging for managers because:

The Consumer Product Safety Commission is responsible for:

Product-market screening criteria should:

According to the General Electric strategic planning grid, a business that is the strongest in its industry:

Regarding the competitive environment:

A "Buy American" campaign is an example of:

How might an organization ensure that marketing objectives are compatible and aligned with top-level company objectives?

The Clayton Act specifically aims at:

When a local bank in Kansas City makes loans to its small business customers, it charges them an interest rate for borrowing money. Interest rates are part of the ____________ environment.

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

When evaluating the potential of possible opportunities (product-market strategies) , a marketing manager should:

The move of the "Baby Boomers" into the 45-64 age group: