MIDTERM  EXAMINATION

Fall 2009

MGT301- Principles of Marketing (Session - 3)

Time: 60 min

M - 50


Question No: 1    ( M - 1 )    .

An automobile manufacturing company places steel beams in the doors of its cars for which of the following purposes?

Reduce the possibility of accidents

Increase short run customer satisfaction

Increase long run customer satisfaction

Add style to its cars

Question No: 2    ( M - 1 )    .

Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor reflects which one of the following concepts?

Sales promotion

Direct marketing

Advertising

Personal selling

Question No: 3    ( M - 1 )    .

Which one of the following options refers to “The art and science of choosing target markets and building profitable relationships”?

Customer relationship management

Knowledge management

Total quality management

Marketing management

Question No: 4    ( M - 1 )    .

Which one of the following statements by a company chairman BEST reflects the marketing concept?

We have organized our business to satisfy the customer needs

We believe that marketing department must organize to sell what we produce

We try to produce only high quality, technically efficient products

We try to encourage company growth in the market

Question No: 5    ( M - 1 )    .

The marketing concept is a philosophy that states that an organization determines the needs and wants of target markets and delivers the desired satisfactions more effectively and efficiently than competitors do. What is the impact of this philosophy on the organization?

Increase market share

Increase sales of the products

Achieve the organization’s goals

Provide quality products

Question No: 6    ( M - 1 )    .

The digital age will fundamentally change customers’ thinking of convenience, speed, price, product information and service. This new consumer thinking will affect which one of the following businesses?

A few businesses

Every business

Established businesses

Starting up businesses

Question No: 7    ( M - 1 )    .

XYZ Company purchased Hear Music and began making compilation music CDs to play and sell in its stores. It has also tested new restaurant concepts; XYZ Company is considering which of the following strategies?

Product development

Market development

Diversification

Market penetration

Question No: 8    ( M - 1 )    .

Which of the following is an intensive growth strategy of increasing sales in current markets with current products?

Market development

Market penetration

Product development

Market saturation

Question No: 9    ( M - 1 )    .

The strategic marketing process is how an organization allocates its marketing mix resources to reach its:

Stated business idea

Target market

Competition

Area of expertise

Question No: 10    ( M - 1 )    .

Which of the following sets refers to the order or sequence of marketing management functions?

Control – implementation – market planning

Market planning – control – implementation

Implementation – control – market planning

Marketing planning – implementation - control

Question No: 11    ( M - 1 )    .

Advertising agencies are an example of which of the following marketing intermediaries?

Insurance company

Financial intermediary

Marketing services agency

Physical distribution firm

Question No: 12    ( M - 1 )    .

Which type of management is responsible for setting the company’s mission, objectives, broad strategies and policies?

Top management

Middle level management

Low level management

Functional management

Question No: 13    ( M - 1 )    .

Which one of the following environment is made up of institutions and other forces affecting society’s basic values, perceptions, preferences and behaviors?

Cultural environment

Fictitious environment

Natural environment

Political environment

Question No: 14    ( M - 1 )    .

Gathering secondary information is one of the steps of developing the research plan. What does the meaning of secondary information in marketing research?

That does not currently exist in an organized form

That already exists somewhere, having been collected for another purpose

That the researcher can obtain through surveys and observation

That already exists somewhere in an organized form

Question No: 15    ( M - 1 )    .

How would you describe the primary data being used by your firm?

Collected for the specific purpose

Original information

First-time information

Fresh and reliable than secondary data

Question No: 16    ( M - 1 )    .

In the previous three years, four studies have been conducted on the characteristics of ABC Company’s clients. As the firm seeks to put together a report showing trends in this area, it has a hard time locating the information contained in these study reports. What does this firm seem to need?

A marketing research manager

A marketing databank

Survey research

Primary data

Question No: 17    ( M - 1 )    .

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: 18    ( M - 1 )    .

Which one of the following stage is NOT a part of buyer’s black box?

Brand choice

Product choice

Need recognition

Dealer choice

Question No: 19    ( M - 1 )    .

Groups of people with shared value systems based on common life experiences and situations in a culture represent which one of the following option?

Motives

Attitudes

Cognitive dissonances

Subcultures

Question No: 20    ( M - 1 )    .

Which one of the following three-step process represents “Perception”?

Motivation, personality and attitudes

Collecting, eliminating and organizing information inputs

Receiving, organizing and interpreting information inputs

Anticipating, classifying and discarding information inputs

Question No: 21    ( M - 1 )    .

Maslow has a list of human needs from the most pressing to the least pressing. They include all of the following EXCEPT:

Physiological needs

Safety needs

Need recognition

Self-actualization

Question No: 22    ( M - 1 )    .

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: 23    ( M - 1 )    .

Mr. Salman works for an organization in which his purchases must be accountable to the public. His buying procedures are extremely complex. Based on this description, he works for an organization in which market type?

Reseller

Producer

Supplier

Government

Question No: 24    ( M - 1 )    .

The fact that organizational customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs. This situation shows which of the following demands?

Joint

Derived

Inelastic

Fluctuating

Question No: 25    ( M - 1 )    .

The receptionist at a doctor's office throws away certain product circulars mailed by pharmaceutical companies and keeps the ones on products she believes are useful. The receptionist is performing which role in the buying centre?

Influencer

Buyer

Decider

Gatekeeper

Question No: 26    ( M - 1 )    .

In its purchase of a small business computer, Mr. Ateeq asked that potential suppliers provide information only on units with 1Mb of memory. As management evaluates the purchase, it finds that 1Mb is inadequate for many of the software programs they use. In this instance, the firm would need to modify which aspect of the purchase process?

Searching

Specification development

Alternative evaluation

Performance evaluation

Question No: 27    ( M - 1 )    .

Income segmentation is used to target which of the following groups?

Affluent

Middle class

Lower income class

All of the given options

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Question No: 28    ( M - 1 )    .

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: 29    ( M - 1 )    .

When the size, purchasing power and profiles of business market segments can be determined, they are said to possess the requirement of being what?

Measurable

Accessible

Substantial

Actionable

Question No: 30    ( M - 1 )    .

The three groups of industrial products and services include all of the following EXCEPT:

Materials and parts

Capital items

Maintenance and operations

Supplies and services

Question No: 31    ( M - 1 )    .

Less frequently purchased consumer products and services which are compared by the customer on different product attributes, refers to which one of the following product?

Specialty products

Shopping products

Unsought products

Industrial products

Question No: 32    ( M - 1 )    .

You have an upset stomach. Your spouse rushes to the corner convenience store for a medicine. This product falls under which of the following categories?

Unsought

Convenience

Shopping

Specialty

Question No: 33    ( M - 1 )    .

Customer service is another element of product strategy. The first step is to survey customers periodically to assess the value of current services and to obtain ideas for new ones. From this careful monitoring, marketer has learned that buyers are very upset by repairs that are not done correctly the first time. What is the name of these types of services?

Brand equity services

Product support services

Social marketing services

Unsought product services

Question No: 34    ( M - 1 )    .

The consumer decides to make use of the product on a regular basis. Which one of the following concepts BEST describe it?

Awareness

Interest

Trial

Adoption

Question No: 35    ( M - 1 )    .

In which one of the following stages of the product life cycle sales fall off and profits stop?

Growth

Introduction

Decline

Maturity

Question No: 36    ( M - 1 )    .

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 advancement

Scanning corporate capabilities

Question No: 37    ( M - 1 )    .

Honda Atlas Cars Pakistan Limited is introducing a faster model of car in the market regardless of whether the customers are interested or not in more speed, Honda Atlas Cars Pakistan Limited is practicing which of the following concepts?

Social

Production

Sales

Marketing

Question No: 38    ( M - 1 )    .

The marketing concept holds that delivering the desired satisfaction to customers more effectively and efficiently creates customer loyalty. What might be another reason that creates customer loyalty?

The customers' needs are met at a price that represents value for money

The company produces a product with enough features to satisfy everybody

A company offers numerous 'specials' to customers in the market

The company's marketing activities are persuasive enough

Question No: 39    ( M - 1 )    .

Buying goods and services for further processing or for use in the production process refers to which of the following markets?

Consumer markets

Government markets

Business markets

International markets

Question No: 40    ( M - 1 )    .

Markets can be segmented into group of non-users, ex-users, potential users, first-time users and regular users of a product. It refers to which type of segmentation?

User status

Usage rate

Loyalty status

Seller status

Question No: 41    ( M - 10 )

One of the major developments in marketing can be summed up in one buzzword: relationships. Define customer relationship management and how organizations build long-term relationships with their customers. Briefly explain it with an example.