Question 1 A marketing plan: is a combination of several marketing strategies. must cover a one-year period. consists of a target market and an appropriate marketing mix. includes the time-related details for implementing a marketing strategy. All of the above. .1 points Question 2 A marketing plan should be developed for a: five-year period. year. quarter. month Any of the above–depending on the situation. .1 points Question 3 The main difference between a “strategy” and a “marketing plan” is: that a plan does not consider the firm’s target market. that a plan includes several strategies. that time-related details are included in a plan. that resource commitments are made more clear in a strategy. There is no difference. .1 points Question 4 “Marketing program” means: a “big” plan for implementing several marketing plans at the same time. a one-year marketing plan. a promotion plan. a detailed explanation of how to implement a marketing strategy. all the details of a marketing mix. .1 points Question 5 A S.W.O.T. analysis can help a marketing manager: develop a competitive advantage. define what business and markets the firm wants to compete in. narrow down to a specific target market and marketing mix from the many alternatives available. see the pros and cons of different possible strategies. all of the above. .1 points Question 6 Ideally, the ingredients of a good marketing mix should: flow logically from all the relevant dimensions of a target market. match the ingredients typically used by key competitors. be determined by which ingredients cost the least. not include much advertising because it’s expensive. All of the above are true. .1 points Question 7 Regarding marketing strategy planning: marketing managers seldom know everything they would like to know about the needs and attitudes of their target markets. marketing managers implement marketing STRATEGIES–NOT marketing plans. the marketing environment may force marketing managers to change target markets–but their marketing mixes usually are not affected. it is easier in large firms because marketing managers can count on specialists to plan each of the “four Ps.” All of the above are true. .1 points Question 8 As a product moves through its product life cycle stages: price cutting tends to decrease. competition tends to move toward monopoly. distribution moves from intensive to selective. promotion tends to become less informative and more persuasive. All of the above. .1 points Question 9 When developing a marketing plan for a new product that is about to enter the market introduction stage of its product life cycle, a marketing manager should: plan to change the marketing strategy every six months. choose the best possible marketing strategy and stay with it throughout its product life cycle. plan to sell the product until its whole life cycle is over. plan to change the marketing strategy as the product moves through its life cycle. change the marketing strategy only when the marketing environment changes. .1 points Question 10 “Market potential” is: what a whole market segment might buy. how much a firm hopes to sell to a market segment. how much an industry hopes to sell to a market segment. an estimate of the national income for the coming year. All of the above. .1 points Question 11 The basic objective of the U.S. market-directed economic system is to: ensure the survival of business firms. find a reasonable balance between consumer satisfaction and business profits. reduce the cost of marketing activities. satisfy consumer needs as the consumers themselves see them. satisfy consumer needs as seen by marketing managers. .1 points Question 12 Consumer satisfaction: is a highly reliable standard for evaluating macro-marketing effectiveness. is easy to measure because it is a highly personal concept. is the objective of all macro-marketing systems. depends on consumers’ level of expectation. None of the above is true. .1 points Question 13 Satisfaction with a firm’s marketing efforts can be roughly measured by its profit. the firm’s impact on the macro-marketing system. the size of its target markets. All of the above are true. None of the above is true. .1 points Question 14 A good marketing manager knows that: market potential is an estimate of how much a firm can hope to sell to a particular market segment. sales forecasts should be developed BEFORE marketing strategies are planned. a firm’s sales forecast probably will be less than the estimated market potential. sales forecasts are estimates of what a whole market segment might buy. All of the above are true. .1 points Question 15 A marketing researcher estimates that during the next year a market’s total purchases of a new product will be $250,000. One firm expects to sell $110,000 worth. It knows that its profits will be about 10 percent of its sales. This firm’s sales forecast is: $90,000 $250,000 $110,000 $11,000 There is not enough information to tell. .1 points Question 16 Developing a sales forecast for a broad industry: is easier when a firm segments its product-markets very carefully. is often very similar to developing a national income forecast. is usually done by a marketing manager. is relatively easy because computers can eliminate the “guess” work. All of the above are true. .1 points Question 17 The sales forecasting approach which extends past sales into the future is called: future analysis. trend extension. input-output analysis. market potential analysis. market extension. .1 points Question 18 The factor method of sales forecasting tries to find a relation between the company’s sales and: industry sales. how much working capital it needs. national income. some other factor (or factors). the company’s marketing mix. .1 points Question 19 Tammy Patterson is the sales rep for an area with a “Buying Power Index” (BPI) of 0.45. If her firm’s national sales forecast is $30,000,000, calculate a “reasonable” sales forecast for Tammy’s area. $900,000 $90,000 $666,666 $135,000 $1,350,000 .1 points Question 20 Sales forecasters often try to find business indicators which change before sales and thus will help predict future sales. These indicators are called: correlation coefficients. time series. leading series. trend extenders. input-output measures.