Shortly after the start of the new century

Question 1

1. Shortly after the start of the new century, Wrigley, the largest chewing gum manufacturer in the world, bid $12 billion for Hershey, the chocolate company. Wrigley was unable to acquire Hershey, but its acquisition would have expanded Wrigley’s product lines to include many forms of baking and eating chocolate. Since Wrigley did not produce any chocolate at the time of the takeover bid, this acquisition would have been an example of:

   		divestment
   		segment development
   		target marketing
   		diversification
   		directed growth

4 points

Question 2

1. Compaq Computer’s decision to charge customers for phone technical support to defray the high cost of phone support and encourage customers to read documentation was a failure because consumers like the human touch. Customer rebellion forced Compaq to rethink this policy. As a result, Compaq decided to focus its resources on reaching the inexpensive home computer market segment through enhanced customer service. This company engaged in:

   		benchmarking
   		tactical resource realignment
   		alternative selection
   		portfolio evaluation
   		strategic planning

4 points

Question 3

1. Skoda is a carmaker in the Czech Republic. The auto manufacturer is launching a marketing drive designed to ultimately sell one million Skoda vehicles a year. It has identified the main growth markets for automobiles as China, Russia, and India and has plans to build production plants in each of those countries. Skoda’s _____ will be well into the implementation stage when the plant in Shanghai starts producing cars in 2007.

   		tactical objectifying
   		contingency plan
   		strategic planning
   		market integration
   		horizon planning

4 points

Question 4

1. FFRSPatricia Curtis has been running the Ferrets First Rescue and Shelter (FFRS) since 1996. FFRS is in the business of ferret pickup and rescue, as well as ferret boarding and training, and education for ferret owners. She would like to expand her operations, and has been asked to write a marketing plan in order to apply for a bank loan. Curtis knows she can better serve ferrets and ferret owners if she can expand her target audience to schools, animal control officers at city facilities, and pet stores. To do this, she must increase marketing communications.Refer to FFRS. Curtis will be exploring aspects of what her service offers, her central location and mobile pickup offering, the price of ferret adoptions, and promotions to increase awareness and expand donations. These elements in the marketing plan make up the service’s:

   		marketing mix
   		target marketing plan
   		strategic goals
   		situation analysis
   		environmental audit

4 points

Question 5

1. In its stockholders’ report, PepsiCo has a _____ that states “our business is to increase the value of our shareholder’s investment. We do this through sales growth, cost controls and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.”

   		marketing mix strategy
   		quantifiable goal
   		mission statement
   		statement of economic potential
   		market segmentation strategy

4 points

Question 6

1. A U.S. textile manufacturer concerned about its survival in the world marketplace has set as its goal, “To increase training and educational opportunities for its employees during the next twenty-four months.” Why is this corporate objective ineffective?

   		The objective is time-restrictive.
   		The objective is not quantifiable.
   		The objective restricts the corporate priorities.
   		The objective is not qualitative in nature.
   		Nothing is wrong with this objective.

4 points

Question 7

1. Research has shown that people below the age of fifteen do not use the familiar red ketchup. To capture this market, Heinz markets blue-, purple- and green-colored ketchup. The ketchups have an exotic look, which Heinz hopes will appeal to this market. It still tastes like the old red variety. Since this is not really a new product, just an attempt to reach a new target market, it exemplifies a _____ strategy.

   		market development
   		product development
   		market penetration
   		diversification
   		product expansion

4 points

Question 8

1. Arizona Tea is marketed by Vultaggio & Sons. Vultaggio & Sons took a basic drink and put it into unusual bottles with elaborate designs. The wide-mouthed, long-necked bottles are now considered to be trendsetters in the new age beverage industry, and customers often buy the tea just for the bottle. The success of Arizona Tea is based on:

   		supply-demand curves
   		reengineering
   		a product differentiation competitive advantage
   		a cost competitive advantage
   		a heterogeneous marketing strategy

4 points

Question 9

1. Why has the component lifestyle of many of today’s consumers proven to be such a challenge to marketers?

   		People with component lifestyles expect multi-tiered pricing.
   		The needs of people with component lifestyles are in constant flux.
   		Communication with people who have component lifestyles is very difficult.
   		There are no specialized magazines that reach small segments of markets.
   		A consumer is defined by his or her lifestyle, which is defined by level of education attained and occupation.

4 points

Question 10

1. Indian RestaurantThani Jambulingham wants to open a restaurant that features the finest in Indian and Middle Eastern delicacies. To determine the feasibility of his restaurant, he hired FoodFacts marketing research consultants. The experts at FoodFacts studied all the market information available and determined that consumers aged 30 to 45 who love spicy cuisine were most interested in the proposed restaurant. In examining the restaurant environment, FoodFacts researchers found the west side of the city offered the best options for opening the restaurant. Jambulingham was told the biggest obstacle in opening the restaurant related to obtaining the necessary permits from the city and state.Refer to Indian Restaurant. Describing the market for Jambulingham ‘s new restaurant in terms of ages of the members of its target market is referring to _____ characteristics.

   		psychographic
   		demographic
   		anthropological
   		geographic
   		sociological

4 points

Question 11

1. China’s new 5 percent tax on disposable wooden chopsticks, reflecting concerns about deforestation, has been praised by environmentalists. The move is hitting hard at the Japanese who consumer 25 billion sets of wooden chopsticks annually. Almost all of the chopsticks used in Japan come from China. The price of wooden chopsticks in Japan has increased by almost 50 percent. The price increase influences which factor of the external environment of restaurant owners in Japan?

   		economic
   		technological
   		demographic
   		social
   		ethnicity

4 points

Question 12

1. Marketing managers cannot control ____, but they can at times influence it.

   		where advertising is placed
   		the external environment
   		the sales force
   		the distribution strategy
   		how products are priced

4 points

Question 13

1. The pyramid of corporate social responsibilities contains all of the following components EXCEPT:

   		economic responsibilities
   		ethical responsibilities
   		cultural responsibilities
   		legal responsibilities
   		philanthropic responsibilities

4 points

Question 14

1. Quaker Oats and other cereal manufacturers have developed what they call”breakfast-with-one-hand”products, which are breakfast bars and drinks that can be consumed on the way to work without leaving any mess. This type of food that can be eaten on the go is largely the result of changes in _____ factors.

   		natural environmental
   		demographic
   		technological
   		social
   		political

4 points

Question 15

1. Zimmer Centralpulse is the world’s largest producer of replacement hips and knees for orthopedic surgery. It is particularly interested in controlling the market in the southwestern United States, where a large aging population lives. Which external environmental element most directly influences its continued growth?

   		economic conditions
   		political conditions
   		culture
   		demography
   		social forces

4 points

Question 16

1. Almost any product in India, from tap water to milk, has traces of toxins due to the overuse and misuse of insecticides by Indian farmers, but the government expects multinational corporations (MNCs) operating in India to produce food that is toxin-free. In this way both _____ factors influence the operating environments of MNCs.

   		social and technological
   		legal and technological
   		economic and legal
   		economic and social
   		technological and demographic

4 points

Question 17

1. Which of the following statements about corporate social responsibility is true?

   		Marketers universally agree on the importance of corporate social responsibility.
   		According to marketers, corporate social responsibility is successful because it focuses solely on economic performance.
   		Skeptics of the concept of corporate social responsibility believe in the importance of sustainability.
   		Corporate social responsibility can derive from a situational analysis.
   		All of the statements about corporate social responsibility are true.

4 points

Question 18

1. The manufacturer of Omega brand watches has a market orientation and adheres to the marketing concept. Which of the following describes the first action the company would most likely take if it learned its customers were dissatisfied with its watches?

   		hire more salespeople
   		decrease its organizational overhead
   		increase its advertising to underserved markets
   		increase the number of jewelry stores that carry Omega watches
   		conduct research to determine if its customers’ needs have changed

4 points

Question 19

1. _____ is the primary tool used by a sales-oriented organization to achieve its corporate goals.

   		Price
   		Promotion
   		Product design
   		Place (distribution)
   		Production

4 points

Question 20

1. Which of the following statements about a typical sales-oriented business is true?

   		The company develops its products to meet the needs of specific groups of people.
   		The primary goal of the company is profit through customer satisfaction.
   		The company invests the majority of its resources in promoting its products and services.
   		The company is in business to satisfy customers’ wants and needs and deliver superior value.
   		All of these statements about a typical sales-oriented business are true.

4 points

Question 21

1. A town of 50,000 has two maternity hospitals. A billboard for one of the hospitals reads, “We have the most modern delivery rooms,” and indicates a _____ orientation. A billboard for the other hospital reads, “We love babies,” and indicates a _____ orientation.

   		sales; production
   		product; customer
   		market; sales
   		customer; production
   		production; market

4 points

Question 22

1. Domino’s Pizza is offering racing fans a chance to earn points toward NASCAR-branded merchandise via the NASCAR RacePoints loyalty program. Consumers who buy $20 worth of Domino’s Pizza will receive 100 NASCAR RacePoints. Consumers save their box receipt and mail in their points slip. NASCAR RacePoints will be credited to members’ accounts. Racing fans can rack up points to earn NASCAR merchandise, including apparel and hats or one-of-a-kind experiences, such as driving a real racecar. Domino’s is engaging in:

   		transactional marketing
   		sports distribution
   		relationship marketing
   		one-to-one marketing
   		customer transformation

4 points

Question 23

1. In order for exchange to occur:

   		a complex societal system must be involved
   		organized marketing activities must also take place
   		a profit-oriented organization must be involved in the process
   		money or other legal tender is required
   		each party must have something the other party considers to be valuable

4 points

Question 24

1. CircusesAs recently as twenty years ago circuses came to town with tents, animals, clowns, and other performers. An advance man arrived about two weeks before the circus actually arrived, covered the community with posters, and gave out free tickets to schoolchildren. If the advance man had done a good job, when the circus arrived and opened its tent doors, three hundred to six hundred people would fill its seats. When the largest circus organizations merged, the newly formed Ringling Bros. and Barnum & Bailey’s Greatest Show on Earth began performing in 4,000-seat arenas. Attendance, however, has stagnated in recent years. People have stopped going to the circus because they miss the circus tent and the close intimate atmosphere it created. The newest thing in circuses is a return to the tent atmosphere with an emphasis on the types of entertainment that were popular years ago. Antique circus wagons, calliope music, and cotton candy are replacing the exotic animals and the prima donna performers. To satisfy the needs of this new audience, the tent circus now sells lattes and wine.Refer to Circuses. To exhibit a societal marketing orientation, circuses could:

   		rely on publicity and avoid any promotions
   		empower their employees to satisfy customer wants
   		donate a percentage of their profits to local educational institutions
   		use relationship marketing
   		emphasize customer value

4 points

Question 25

1. Domino’s Pizza is offering racing fans a chance to earn points toward NASCAR-branded merchandise via the NASCAR RacePoints loyalty program. Consumers who buy $20 worth of Domino’s Pizza will receive 100 NASCAR RacePoints. Consumers save their box receipt and mail in their points slip. NASCAR RacePoints will be credited to members’ accounts. Racing fans can rack up points to earn NASCAR merchandise, including apparel and hats or one-of-a-kind experiences, such as driving a real racecar. A(n) _____ will occur when a NASCAR fan trades in his or her points for a mug autographed by a favorite driver.

   		synergy
   		sublimation
   		exchange
   		entropy
   		reciprocity