1.

Marketers have an advantage over other departments in identifying

significant marketplace changes because they ________.
a. typically analyze the long-term impact of changes in government regulations and
policies
b. focus on primary data for analyzing the market, rather than secondary data or the
Internet
c. are in the best position to judge how changes in monetary policies will affect
consumers
d. are best equipped in the organization to understand how the free-market system
functions
e. spend time interacting with consumers and watching competitors

User Responses: E
Feedback: The major responsibility for identifying significant marketplace
changes falls to the companys marketers. Marketers have two
advantages for the task: disciplined methods for collecting
information, and time spent interacting with customers and
observing competitors and other outside groups.

2. A marketing information system consists of people, equipment, and

procedures to gather, sort, analyze, evaluate, and distribute needed, timely,
and accurate information to marketing decision makers.
a.True b.False

User Responses: A
Feedback: Correct. A marketing information system (MIS) consists of
people, equipment, and procedures to gather, sort, analyze,
evaluate, and distribute needed, timely, and accurate
information to marketing decision makers. It relies on internal
company records, marketing intelligence activities, and
marketing research.

3. Which of the following factors is used by companies to rank customers in their

databases according the RFM criteria?
a. credit rating
b. purchase recency
c. life expectancy
d. age
e. education

User Responses: B
Feedback: Instead of sending a mass carpet bombing mailing of a new
offer to every customer in its database, a company will rank its
customers according to factors such as purchase recency,
frequency, and monetary value (RFM) and send the offer to only
the highest-scoring customers.
4. ________ are records of Web site usage stored on a users personal browser and
used by marketers for targeted marketing.
a. Plug-ins
b. Kernels
c. Cookies
d. Patches
e. Hash tags

User Responses: C
Feedback: Companies that make good use of cookies, records of Web
site usage stored on personal browsers, are smart users of
targeted marketing.

5. Marketing intermediaries are often closer to the customer and competition

and can offer helpful insights. This implies that the marketers can ________ to
improve the quantity and quality of their marketing intelligence.
a. hire external experts to collect information
b. take advantage of government-related data resources
c. motivate distributors and retailers to pass along important information
d. purchase information from outside research firms and vendors
e. train and motivate their sales force to report new developments

User Responses: C
Feedback: Marketing intermediaries are often closer to the customer and
competition and can offer helpful insights. This implies that they
can motivate distributors and retailers to pass along important
information. ConAgra has initiated a study with some of its
retailers such as Safeway, Kroger, and Walmart to study how
and why people buy its foods.

6. Which of the following statements is true of collecting marketing intelligence

on the internet?
a. While feedback sites provide both positive and negative reviews, they are not
interactive.
b. Bizrate.com is a combination Web site.
c. PlanetFeedback.com is a sales agent feedback site.
d. Combination sites are concentrated in financial services and high-tech products that
require professional knowledge.
e. Contrary to popular belief, blogs hardly yield any useful information for marketers.

User Responses: .D
Feedback: Combination sites are concentrated in financial services and
high-tech products that require professional knowledge.
ZDNet.com, an online advisor on technology products, offers
customer comments and evaluations based on ease of use,
features, and stability, along with expert reviews.
7. A ________ is an unpredictable, short-lived event, without social, economic, and
political significance.
a. fad
b. norm
c. megatrend
d. pattern
e. trend

User Responses: A
Feedback: A fad is unpredictable, short-lived, and without social,
economic, and political significance. A company can cash in on
a fad such as Crocs clogs, Elmo TMX dolls, and Pokmon gifts
and toys, but getting it right requires luck and good timing.

8. ________ are groups with shared values, beliefs, preferences, and behaviors
emerging from their special life experiences or circumstances.
a. Occults
b. Subcultures
c. Diaspora
d. Tribes
e. Sects

User Responses: B
Feedback: Each society contains subcultures, groups with shared values,
beliefs, preferences, and behaviors emerging from their special
life experiences or circumstances. Marketers have always loved
teenagers because they are trendsetters in fashion, music,
entertainment, ideas, and attitudes.

9. The ________ is the set of consumers who are buying a companys product.
a. available market
b. potential market
c. open market
d. penetrated market
e. targeted market

User Responses: D
Feedback: There are many ways to break down the market. The potential
market is the set of consumers with a sufficient level of interest
in a market offer. The available market is the set of consumers
who have interest, income, and access to a particular offer. The
target market is the part of the qualified available market the
company decides to pursue. The penetrated market is the set of
consumers who are buying the companys product.
10. A ________ is the sales goal set for a product line, company division, or sales
representative.
a. company sales forecast
b. sales budget
c. company sales potential
d. sales quota
e. company sales demand

User Responses: D
Feedback: A sales quota is the sales goal set for a product line, company
division, or sales representative. It is primarily a managerial
device for defining and stimulating sales effort, often set slightly
higher than estimated sales to stretch the sales forces effort.