MGT301- Principles of Marketing_MIDTERM EXAMINATION

MIDTERM EXAMINATION
Fall 2008
MGT301- Principles of Marketing (Session - 2)
Time: 60 min
Marks: 50


Question No: 1 ( Marks: 1 ) - Please choose one
A review of the sales, costs and profit projections for a new product to find out whether they satisfy the company’s objectives refers to which one of the following concepts?

► Business feasibility
► Feasibility study
► Business analysis
► Product acceptance

Question No: 2 ( Marks: 1 ) - Please choose one
Mr. ABC has just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs. The owners will begin the first idea-reducing stage called to arrive at a realistic number to adopt. What is another name of idea reducing stage?

► Idea generation
► Idea screening
► Product concept
► Concept development

Question No: 3 ( Marks: 1 ) - Please choose one
Which one of the following categories refers to a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges?

► Product line
► Line extension
► Private brand
► Product bandwidth

Question No: 4 ( Marks: 1 ) - Please choose one
Which one of the following is a marketer’s major positioning tool that has a direct impact on product or service performance; thus, it is closely linked to customer value and satisfaction?

► Product quality
► Product style
► Product design
► Product features

Question No: 5 ( Marks: 1 ) - Please choose one
The degree to which a market segment is sufficiently large or profitable refers to which of the following concepts?

► Sustainable
► Accessible
► Actionable
► Measurable

Question No: 6 ( Marks: 1 ) - Please choose one
Following are the variables for the segmentation of international markets EXCEPT:
► Geographic factors
► Economic factors
► Cultural factors
► Psychological factors

Question No: 7 ( Marks: 1 ) - Please choose one
Demographic segmentation divides the market into groups based on which of the following variables?
► Size, location, industry, customer
► Size, company, industry, technology
► Location, size, occupation, race
► Customer, technology, company, industry

Question No: 8 ( Marks: 1 ) - Please choose one
When Burger King targets different groups from children and teens to adults and seniors with different ads and media, it is practicing which one of the following segmentation?
► Demographic
► Age and life cycle
► Psychographic
► Behavioral

Question No: 9 ( Marks: 1 ) - Please choose one
The mental act, condition or habit of placing trust or confidence in another shows which of the following options?

► Motive
► Belief
► Behavior
► Attitude

Question No: 10 ( Marks: 1 ) - Please choose one
Identify the process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment?

► Personality
► Perception
► Selective group
► Habitual behavior

Question No: 11 ( Marks: 1 ) - Please choose one
Marketers are interested in the roles and influence of the husband, wife and children on the purchase of different products and services. Which one of the following segment is being studied by the marketer?

► Social class
► Opinion leader
► Reference group
► Family

Question No: 12 ( Marks: 1 ) - Please choose one
Which of the following phase of marketing research process is considered MOST expensive and subject to error?

► Exploratory research
► Hypothesis
► Data collection
► Data validation

Question No: 13 ( Marks: 1 ) - Please choose one
Currently, you find yourself involved in marketing research. The research you are using is flexible, allows explanation of difficult questions and lends itself to showing products and advertisements. What is this form of research?
► Personal interviewing
► Online interviewing
► Vision phone interviewing
► Mall intercepts

Question No: 14 ( Marks: 1 ) - Please choose one
General Motors need to assess the company's image relative to a new competitor. The time schedule is flexible, the research budget is very limited and a low response rate will not be a major problem. Which one of the following survey would be used by General Motors?

► Mail
► Telephone
► Personal interview
► Population

Question No: 15 ( Marks: 1 ) - Please choose one
Survey research, called the backbone of primary research, is the most widely used method for primary data collection and is best suited for gathering which of the following information?

► Personal
► Attitude
► Descriptive
► Exploratory

Question No: 16 ( Marks: 1 ) - Please choose one
Which method of research can be used to obtain information if people are unwilling or unable to provide?

► Observations
► Focus groups
► Personal interviews
► Questionnaires

Question No: 17 ( Marks: 1 ) - Please choose one
Which one of the following step in the marketing research process deals in "defining the problems and research objectives, implementing the research plan, and interpreting and reporting the findings"?

► Developing the research budget
► Choosing the research agency
► Choosing the research method
► Developing the research plan

Question No: 18 ( Marks: 1 ) - Please choose one
Your firm has just developed its first successful MIS. It interacts with information users to assess information needs, develop needed information, _____ the marketing information and help managers use it in their decision making.

► Distribute
► Collect
► Retrieve
► Store

Question No: 19 ( Marks: 1 ) - Please choose one
"Consumers are spending more on products and services that will improve their lives rather than their image” reflects which aspect of the cultural environment?

► People's view of others
► People's view of themselves
► People's view of organizations
► People's view of nature

Question No: 20 ( Marks: 1 ) - Please choose one
What would happen if marketers failed to keep up with technological changes?

► They would miss new product opportunity
► Their competitors would corner the market
► Their products would lose their market value
► They would find their products outdated

Question No: 21 ( Marks: 1 ) - Please choose one
Which of the following is a part of micro environment regarding customers?


► Government markets
► Perfect markets
► Fixed price markets
► Stock markets

Question No: 22 ( Marks: 1 ) - Please choose one
Finance, research and development, purchasing and manufacturing are all activities of which element of the microenvironment?

► The suppliers
► The competitors
► The companies
► The publics

Question No: 23 ( Marks: 1 ) - Please choose one
Importance of the role of marketing process is increasing day by day in the ever-changing domestic and global business environment. Which one of the following is closely associated with marketing process?

► Expansion of market
► Segmentation of market
► Analyzing market opportunities
► Total quality management

Question No: 24 ( Marks: 1 ) - Please choose one
The publishers of “The Economist” developed a campaign to market the magazine to university and college students studying business and management courses. The publishers are focusing on which of the following strategies?

► Product development
► Horizontal diversification
► Market development
► Conglomerate diversification

Question No: 25 ( Marks: 1 ) - Please choose one
Identify the first step in the strategic marketing planning process?

► The writing of the mission statement
► The establishment of organizational objectives
► The formulation of a marketing plan
► Hiring a senior planner

Question No: 26 ( Marks: 1 ) - Please choose one
In case of an intense competition there are a number of manufacturers and buyers who have more options for product switching. Which one of the following forces represents it?

► Threat of new entrants
► Bargaining power of buyers
► Bargaining power of suppliers
► Rivalry among competing firms

Question No: 27 ( Marks: 1 ) - Please choose one
All marketing functions are based on information acquired from which one of the following sources?

► External environment
► Internal environment
► Top management
► Middle management

Question No: 28 ( Marks: 1 ) - Please choose one
When Olympia Carpets develops new carpets that are highly stain resistant and durable, it must educate consumers about the product's benefits. This activity calls for which one of the following marketing mix variables?

► Price
► Promotion
► Distribution
► Product

Question No: 29 ( Marks: 1 ) - Please choose one
Which one of the followings best represent the involvement of management and employees in the continuous improvement of the production of goods and services?
► Marketing management
► Customer relationship management
► Knowledge management
► Total quality management

Question No: 30 ( Marks: 1 ) - Please choose one
First National Bank launches an innovative in-home banking system tied to personal computers. The product is not widely accepted because bank customers don't see the need for such a service. Which one of the following is the best discretion of product failure?
► Establishment of a customer information system
► Organization structure
► Technological advance
► Scanning corporate capabilities

Question No: 31 ( Marks: 1 ) - Please choose one
A threat is a major unfavorable situation in a firm’s environment. Threats are key impediments to the firm’s current or desired position. Which one of the following represents threat to a firm’s success?
► Changes in competitive or regulatory circumstances
► The entrance of new competitors in the market
► Undifferentiated products or services
► Cost advantages present because of advanced technology

Question No: 32 ( Marks: 1 ) - Please choose one
The networks that connect people within a company to each other and to the company network reflect which one of the following options?

► WAN
► Intranet
► Extranet
► Internet

Question No: 33 ( Marks: 1 ) - Please choose one
Fast-food restaurants offer tasty and convenient food at affordable prices; they contribute to a national obesity epidemic that harms consumer health and causes environmental problems in the long run. This statement reflects which one of the following concepts?
► Marketing concept

► Product concept

► Production concept

► Societal marketing concept



Question No: 34 ( Marks: 1 ) - Please choose one
Which of the following option relates with coupons, rebate offers, two-for-one deals, free samples and contests?

► Sales promotion
► Direct marketing
► Public relations
► Advertising

Question No: 35 ( Marks: 1 ) - Please choose one
Which one of the following options represents this statement “What place do you want your product to hold in the consumer’s mind”?
► Product
► Positioning
► Promotion
► Place

Question No: 36 ( Marks: 1 ) - Please choose one
The group of people who get the product exposure but are not often perceived by the majority of potential buyers as typical consumers refers to which one of the following?
► Early adopter
► Early majority
► Late majority
► Innovators

Question No: 37 ( Marks: 1 ) - Please choose one
When a company caters to clothing, cosmetics and toiletries markets, it is probably using which of the following segmentation?
► Age and life cycle

► Gender

► Behavior

► Geographic


Question No: 38 ( Marks: 1 ) - Please choose one
General Motors need to assess the company's image relative to a new competitor. The time schedule is flexible, the research budget is very limited and a low response rate will not be a major problem. Which one of the following surveys would be used by General Motors?
► Mail
► Telephone
► Personal interview
► Population

Question No: 39 ( Marks: 1 ) - Please choose one
Your firm has decided to localize its products and services to meet local market demands. Which one of the following segmentation will be BEST for this purpose?
► Geographic segmentation


► Gender segmentation

► Behavioral segmentation

► Psychographics segmentation


Question No: 40 ( Marks: 1 ) - Please choose one
Which one of the following sets represents 4 C’s of the marketing mix?
► Customer solution, customer cost, convenience, communication
► Customer, cost, convenience, comfort
► Convenience, communication, coverage, cost
► Cost, coverage, communication, consultancy

Question No: 41 ( Marks: 10 )
You are presenting a workshop on the Requirements for Effective Segmentation. Briefly describe the five items that will help your audience understand your topic.