Question 1: A company that follows the marketing concept philosophy should:

serve all customer needs at all costs.

understand that the customer is always right.

understand that there is no such thing as a bad customer.

serve only profitable customers.

Question 2. Which of the following statements supports technology driven approach to the marketplace?

Products should be tested and proven before releasing them.

Providing technology to salespeople can help increase volumes.

Quality improvement in products can result in customer value.

Customer information systems can be used to increase sales.

Question 3. Which of the following is a disadvantage of an over-engineered product?

The quality of the product will be low.

It is less robust for its application.

It is associated with operational problems.

The product will have unwanted features.

Question 4. Which of the following is the key difference between traditional value chain and the new versions of the value chain?

The value chain starts with the customer in the new perspective.

Customer needs are ignored in traditional value chain.

Traditional versions are not focused on core competencies and assets.

Outbound marketing chain is used in the new perspective.

Question 5. A few customers cost more to serve than the revenues they generate. Identify the most appropriate way to handle these customers.

Attempt to turn away the unprofitable customers.

Provide services at a discounted rate to these customers.

Avail preferential treatment to these customers.

Design specific marketing messages for these customers.

Question 6. Marketing plans should be written because:

it provides a concrete history of the product's strategies.

it is mandatory for a registered firm to have a written marketing plan.

it considers the external environment alone to make decisions.

written marketing plans can be distributed to all stakeholders.

Question 7. Which of the following organizational structures will be suited for a company that sells business to business products?

Market-based structure

Product-focused structure

Classic brand structure

Internationally focused structure

Question 8. A company takes a product or service that is widely marketed and develops a system for customizing it to each customer's specifications. This is referred to as:

mass customization.

selective marketing.

user modeling.

behavioral targeting.

Question 9. Which of the following refers to multi-channel distribution of products?

Clicks and mortar

Buzz marketing

Organized retailing

Viral distribution

Question 10. Product-focused organizational structure is not suited for:

business-to-business products.

retail products.

consumer durables.

internationally focused products.

Question 11. Marketing managers use a market penetration strategy to target:

individuals who have never used the product or service.

offshore customers who have a need for the product or service.

individuals who are buying your product or service or a direct competitor's.

individuals who buy closely-related products or services.

Question 12. Which of the following is a characteristic of a competitive advantage?

It makes the product more accessible for the customers.

It generates customer value.

It makes the product more user-friendly.

It increases cost of the product.

Question 13. Customers who have purchased your product or service are familiar with its benefits. Assuming that your customers enjoyed the consumption experience, there is often potential left in the market from the current customers who could be persuaded to buy more. You, as a marketing manager, should therefore prioritize:

market development strategy.

diversification strategy.

product development strategy.

market penetration strategy.

Question 14. Firms can compete on price if they:

focus on market development strategy.

focus on global raw material sourcing.

focus on controlling costs.

focus on merging or acquiring a competitor.

Question 15. Identify the correct statement about market development strategy.

It is less risky than market penetration strategy.

It is usually implemented in markets where growth rate is slowing.

It persuades current customers to buy more products.

It is cheaper than implementation of market penetration strategy.

Question 16. Most likely, marketing managers would like to be first in the market because:

it keeps out competition.

the first mover establishes awareness of its product as the prototype.

it leads to cost reduction over the product life cycle.

it leads to quality improvements over the product life cycle.

Question 17. Which of the following statements is true regarding the maturity stage of the product life cycle?

During this stage, the market grows rapidly.

Usually, competition is most intense in this phase.

Many new competitors enter the market.

This stage comes after the introduction stage.

Question 18. In the growth stage of the product life cycle, the riskiest move by a follower is to:

imitate the leader by developing "me-too" products.

leapfrog the competition.

exit quickly and invest in some other product with long-term potential.

fortify its position as number two or three.

Question 19. Which of the following statements is true about the decline stage of the product life cycle?

During this stage, the market grows rapidly.

Many new competitors enter the market.

Usually, competition is most intense in this phase.

Product category sales decrease at this stage.

Question 20. When marketing mangers see that the sales curve has flattened out and few new buyers are in the market, they know that they are in this stage of the product life cycle. Identify the stage.

Introduction stage

Growth stage

Maturity stage

Decline stage