92 Test Bank for Marketing Management
Knowledge and Skills 10th Edition by Peter
Multiple Choice Questions - Page 1
The Steakhouse is a restaurant selling steaks. Its mission
statement was to provide its customers with the world’s best
steaks. Changes in consumer tastes resulted in fewer customers
for the steakhouse. The company had to venture into new and
different markets to maintain profitability. These new conditions
and a redundant mission statement would make the steakhouse
a(n)
1.

a. process related organization.

2.

b. dynamic organization.

3.

c. drifting organization.

4.

d. functional organization.

Marketing managers can satisfy customers more efficiently in the
present than anticipate changes in customer needs in the future.
Which of the following best explains this statement?
1.


c. Commitment to continuous improvement and innovation.

4.

d. Devising methods to attract customers to current products.

All of the following are key elements that the management must
take into account while developing a statement of mission,
EXCEPT
1.

a. the organization’s history.

2.

b. the organization’s distinctive competencies.

3.

c. the organization’s culture.

4.

d. the organization’s environment.

The organization’s mission, objectives, strategies, and its portfolio
plan are the four major components of its
1.

a. strategic plan.


Zest sports, manufactures sports goods. They introduce a new
product targeted at children between ages 7 and 10. The
marketing team envisions an entirely new marketing strategy for
its sport goods. This is an example of which type of marketing?


1.

a. Product

2.

b. Service

3.

c. Cause

4.

d. Place

Ecolon is a major manufacturer of wind turbines and related
equipment, and is also a leader in turbine installations and
maintenance. In large organizations such as this, the marketing
plans of individual departments are usually guided by
1.

a. plans rolled out by the production unit.

d. competencies

The mission statement of a company should have a(n)
1.

a. product focus.

2.

b. external focus.

3.

c. internal focus.

4.

d. service focus.

Identify the type of marketing which is designed to attract donors,
members, participants or volunteers.


1.

a. Product

2.

B. Organization


a. advertising strategies

2.

b. selling orientation

3.

c. production orientation

4.

d. consumer needs

An organization seeking to make a profit by serving the needs of
customer groups is focusing on
1.

a. customer orientation.

2.

b. production orientation.

3.

c. selling orientation.

4.

1.

a. drifting organization.

2.

b. customer oriented organization.

3.

c. competitive organization.

4.

d. changing organization.

Midas Corporation is a sporting goods manufacturer. Most of its
energies and resources are devoted to one line of sporting shoes
that has been a reasonable hit in the past. The company is
exhibiting
1.

a. production orientation.

2.

b. relationship management.

3.



2.

b. Service

3.

c. Person

4.

d. Place

The customer will be more satisfied and the firm will be more
profitable when
1.

a. organizations and customers have a long-term relationship.

2.

b. the sales process is product oriented.

3.

c. products are advertised frequently.

4.

d. products are sold at discounts at regular intervals.


3.

c. Develop an effective marketing mix


4.

d. Evaluate its marketing plan

Focusing on building long-term _____ where the initial sale is
viewed as the beginning step and not as the end goal, is the crux
of the marketing concept.
1.

a. gross margins

2.

b. advertising campaigns

3.

c. investor relations

4.

d. customer relationships

_____, if performed successfully, plays a key role in achieving an


3.

c. needs to change its focus to services.

4.

d. is focusing on the narrow class of needs.

Which of the following statements about a mission statement is
true?


1.

2.

a. Even though no one denies the importance of the mission statement, it is
the least used of all of the management tools.
b. An effective mission statement takes an internal organizational focus.

3.

c. It should focus on the physical product or service that the organization is
offering at present.

4.

d. It should focus on the broad class of needs that the organization is
seeking to satisfy.


c. managers, employees, and customers

4.

d. employees, customers, and families

Organizations expand into new products, new markets and even
new industries. In this process, the organization’s original purpose
may become irrelevant. In these circumstances the organization
can be best described as a
1.

a. drifting organization.

2.

b. functional organization.

3.

c. horizontal organization.

4.

d. cooperative organization.


Over three-quarters of the 100 largest U.S. corporations of 70
years ago have fallen from the list because


c. Financial planning

4.

d. Media planning

Which of the following observations is true?
1.

a. Companies should be managed principally for current cash flows.

2.

b. Firms that bet solely on the future are immune to takeover and other
threatening actions.

3.

c. An intense focus on the near term can produce risk aversion that may
cause stagnation.

4.

d. Companies should focus solely on long run gains.

91 Free Test Bank for Marketing Management
Knowledge and Skills 10th Edition by Peter Multiple
Choice Questions - Page 2
The marketing slogan, “It’s not just for breakfast anymore” has


a. They can be converted into mission and vision statements
b. They will provide direction and serve as a starting point for more specific
and detailed objectives at lower levels in the organization
c. They can establish long-run priorities for the organization
d. They can facilitate management control because they serve as
standards against which overall organizational performance can be
evaluated

Huggies first started out in the disposable diaper industry. It then
developed ‘Pull-Ups’ that were disposable training pants for kids
who were in the transition stage between diapers and cloth
underwear. What kind of a growth strategy did Huggies use when
it developed this new product?
1.

a. Diversification

2.

b. Porter’s model

3.

c. Market penetration

4.

d. Product development


2.

b. Market development

3.

c. Market diversification

4.

d. Market penetration

One of the potential sources of cross functional conflict for a
marketer includes the conflict of rigid budgets vs. flexible budgets.
This is a conflict associated with which organizational function?
1.

a. Finance

2.

b. Production Operation

3.

c. Accounting

4.

d. Research and development


b. offers product-line extensions of existing products to present customers.

3.

c. involves merely getting a product to a new market.

4.

d. deals with developing a production plan for a product.

Which of the following is true of organizational objectives?
1.

a. An organizational objective should reflect on the organization’s finances
rather than its commitment to the customers.

2.

b. Objectives are not considered dominant necessities to carry out the
organizational mission.

3.

c. Objectives are specific, measurable, action commitments on the part of
the organization.

4.

d. An organizational objective is distilled to arrive at a specific and


2.

b. Diversification

3.

c. Product diversification

4.

d. Differentiation

Maintaining consistent levels of employee satisfaction with our
own and similar industries could be a possible objective of which
of the following areas of performance?
1.

a. Market standing

2.

b. Worker performance and attitude

3.

c. Manager performance and responsibility

4.


2.

b. Product differentiation

3.

c. Market penetration

4.

d. Product development


All of the following are some common shortcomings in mission
statements, EXCEPT:
1.

2.
3.

4.

a. They do not provide direction to decision makers when faced with
product/market choices.
b. They are not motivational.
c. They are too broad and do not rule out any opportunity management
might wish to pursue.
d. They are externally focused instead of having an internal focus.

The Grand Ole Opry shows are played in an auditorium that is at

b. They serve as a starting point for specific objectives at lower levels in the
organization.
c. They establish short-run priorities for the organization.
d. They serve as standards against which overall organizational
performance can be evaluated.

What is most likely wrong with the following mission statement for
a store that sells lighting fixtures: “Our mission is to make sure


every customer who buys a lighting fixture at our store is 100
percent satisfied with his or her purchase?”
1.

a. The mission statement is not specific.

2.

b. The mission statement is not well framed.

3.

c. The mission statement cannot fulfill the organizational productivity.

4.

d. The mission is not achievable or realistic.

5.



b. Strategy based on differentiation

3.

c. Strategy based on cost-leadership

4.

d. Strategy based on diversification

The ability to outperform competitors in providing something that
the market values, is called
1.

a. diversification.


2.

b. market promotion.

3.

c. competitive advantage.

4.

d. market analysis.



c. Diversification strategy

4.

d. Market penetration strategy

Betty’s, a fashion accessories company is continuously on the
look-out to expand its market overseas. This instance describes
1.

a. market development.

2.

b. market segmentation.

3.

c. market consolidation.

4.

d. market differentiation.

Freddy’s Ice Cream developed a line of whole fruit sorbets
targeted at people who are loyal Freddy’s consumers, but dislike
all the fat and calories in ice cream. What organizational growth
strategy was used here?


2.

b. Competitive

3.

c. Cooperative

4.

d. Economic

All of the following are elements of the marketing plan EXCEPT
1.

a. portfolio planning.

2.

b. target market selection.

3.

c. pricing strategy.

4.

d. situation analysis.

Designing additional features into a product that will induce new


3.

c. There is no direct relationship between strategic planning and the
planning done by managers at all levels.

4.

d. Marketing executives are involved in the strategic planning process as
they influence the process by providing important inputs.

Which of the following were developed to express the idea that
the number of labor hours it takes to produce one unit of a
particular product declines in a predictable manner as the number
of units produced increases?
1.

a. Learning curves

2.

b. Economies of scope

3.

c. Perceptual maps

4.

d. Vector analysis


b. primarily other firms in the industry that rival the organization for both
resources and sales

3.

c. the attitudes and reactions of the general public, social and business
critics

4.

d. protection against business competition and consumer rights

5.

In target market selection, present target markets and potential
target markets are ranked according to certain criteria. Which of
the following is NOT one of them?
1.

a. Profitability of the target markets

2.

b. Present and future sales volume of the target markets

3.

4.


b. technological environment


3.

c. cooperative environment

4.

d. economic environment

Recently, antitrust concerns almost forced Microsoft to ship
Windows 7 without its Web browsing application, Internet
Explorer (IE), in European Union member states. This is an
example of how the _____ environment can affect businesses.
1.

a. cooperative

2.

b. legal

3.

c. social

4.

d. economic


3.

c. They provide a framework for the marketing plan.

4.

d. They are a set of controllable variables used for the target market.

Which of the following can be defined as “the process of planning
and executing the conception, pricing, promotion, and distribution


of goods, services, and ideas to create exchanges with target
groups that satisfy customer and organizational objectives?”
1.

a. Diversification

2.

b. Perceptual mapping

3.

c. Vendor management

4.

d. Marketing management


c. stars

4.

d. dogs

Which of the following objectives seek to increase the products
short-term cash flow without concern for the long run impact?
1.

a. Hold share

2.

b. Harvest

3.

c. Divest

4.

d. Build share

Portfolio models


1.



4.

d. Build share and harvest

The National Basketball Association (NBA) charges a family of
four about $200 for tickets to see a basketball game at Madison
Square Garden. Concerns that many people do not have the sort
of discretionary income that makes such a family outing possible
has led the NBA to come up with creative discounts. This has
shown that NBA is responsive to the _____ environment.
1.

a. social

2.

b. competitive

3.

c. cooperative

4.

d. economic

Recently there has been a shift from the traditional role of
marketing, which was based on dividing work according to
function, to bringing managers and employees together to

c. Physical environment

4.

d. Social environment

This is an example of a marketing department objective:
“Increase market share by 5 percent by attracting new market
segments or improving position among current market segments
for existing products by year-end.” This objective would best suit
which of the following organizational strategies?
1.

a. Market penetration or market development

2.

b. Market development or product development

3.

c. Diversification or market penetration

4.

d. Product development or diversification

If done properly, _____ helps in clearly defining a blueprint for
management action in all functional areas of the organization.
1.

3.

c. question mark.

4.

d. star.

Identify the error that many companies make when developing
strategies aimed at increasing the number of first-time users.
1.

a. Developing the marketing mix before identifying the target market

2.

b. Not developing marketing objectives that are aligned with organizational
objectives

3.

c. Not ranking target markets according to the present and future sales
volume

4.

d. Neglecting the present customers while developing market share and
sales strategies

Performing marketing tasks according to a predefined schedule is


3.

c. social

4.

d. legal

Which of the following is NOT an interrelated task in the
marketing planning process?
1.

a. Developing the product

2.

b. Developing the marketing mix

3.

c. Establishing marketing objectives

4.

d. Selecting the target market

Monsanto is an enterprise that is composed of three parts. Its
biotech section, which is working to develop crops that are pest
and disease-resistant so farmers can eventually eliminate

b. Harvest

3.

c. Divest