Final exam date & time: Tuesday 17 Jan 9:00 AM

Course Code: MKT211E

Principles of Marketing Academic

Final Revision

The Final exam in Week 16th is comprehensive. All Chapters taken in

this semester will be included in the exam.

Chapters 1 ( creating customer value and engagement )

Chapter 2 ( company and marketing strategy )
Chapter 3 ( analyzing the micro environment )
Chapter 4 ( Managing Marketing Information to Gain Customer
Insights )
Chapter 7 ( segmentation, targeting, differentiation and positioning )
Chapter 8 ( product, services, and brands )
Chapter 9 ( product life cycle )
Chapter 10 ( pricing )
Chapter 14 ( integrated marketing communication )
Chapter 17 ( Digital, Online, Social Media, and Mobile Marketing )

Format exam : Multiple choice, True/False and essay questions.

Best Regards,
Question Number One:
1.1 Multiple Choice Questions

1) ________ consists of evaluating each market segment's attractiveness and selecting one or
more segments to enter.
A) Positioning
B) Mass customization
C) Market targeting
D) Market segmentation
E) Differentiation

Answer : C

2) Acquisition refers to ________.

A) the buying of a whole company, a patent, or a license to produce someone else's
product
B) an agreement between two or more commercial companies to produce a common
product
C) a partnership between two companies to produce a product in different countries by
sharing risks
D) investments made in a country's businesses by foreign citizens, often in the form of
stocks
E) the development of original products, product improvements, product modifications,
and new brands through the firm's own product development strategies

Answer: A

3) A company's total marketing communications mix consists of a specific blend of advertising,

sales promotion, public relations, personal selling, and direct-marketing tools that the company
uses to communicate customer value and build customer relationships. Which of the following
terms best describes this set of communications tools?
A) the product mix
B) product line filling
C) the promotion mix
D) the price mix
E) horizontal diversification

Answer : C

4) Brad works with a reputable retailer and leads a team that collects market information from a
wide variety of sources ranging from marketing research studies to monitoring online
conversations where consumers discuss Brad's firm or its products. Brad's team uses this
information to arrive at a better understanding of consumers' behavior and their buying
motives. This, in turn, allows Brad's firm to successfully generate more value for consumers.
Brad leads the ________ team.
 A) product development
B) strategy implementation
C) human resource
D) customer relationship management
E) customer insights

Answer: E

5) Marketing is defined as a social and managerial process by which individuals and

organizations obtain what they need and want through ________.
A) research and development
B) innovation and creativity
C) manufacturing efficiencies
D) value creation and exchange
E) sales and revenue creation

Answer : D

6) ________ is the only element in the marketing mix that produces revenue.
A) Price
B) Product
C) Place
D) Fixed costs
E) Variable costs

Answer : A

7) Which of the following is the practice of inviting broad communities of customers,

employees, independent researchers, and members of the public into the new product
innovation process?
A) brainstorming
B) idea screening
C) crowdsourcing
D) outsourcing
E) concept testing

Answer : C

8) Which of the following is true with regard to products?

A) The quality of products is far more difficult to measure than that of services.
B) Products do not include experiences, organizations, persons, places, and ideas.
C) Products are not meant for sale in the market.
D) Products include services, events, persons, places, organizations, ideas, or a mixture
of these.
E) Products refer to only those activities that are essentially intangible.
 Answer : D

9) Mohamed now has the buying power to purchase the car that he has wanted for his entire
life. Mohamed's want now has become a(n) ________.
A) need
B) necessity
C) demand
D) exchange
E) transaction

Answer : C

10) A company's broad mission leads to ________.

A) increasing profits and more customers
B) increasing sales and decreasing costs
C) a higher share price
D) a hierarchy of objectives, including business objective and marketing objectives
E) increased market share and increasing profitability

11) Which of the following is true with regard to marketing research?

A) The marketing research process depends primarily on sophisticated internal
databases.
B) The marketing research process requires assessing macroeconomic forces.
C) Marketing research gives marketers insights into customer motivations.
D) Marketing research eliminates the need for a SWOT analysis.
E) Marketing research is a simple two-step process.

Answer : C

12) Information that already exists somewhere, having been collected another purpose is
called________.

A. Primary data
B. Casual research
C. Secondary data
D. Observational research
E. Descriptive research

Answer : C

13) Primary data consist of ________.

A) data that does not age
B) data obtained from the public domain
C) information collected for the specific purpose at hand
D) information that already exists somewhere, having been collected for another
purpose
 E) information that is the least expensive and the easiest to obtain

Answer : C

14) Effective ________ pricing involves understanding how much value consumers place on
the benefits they receive from the product and setting a price that captures that value.
A) competition-oriented
B) cost-based
C) time-based
D) customer-oriented
E) marketer-oriented

Answer: D

15) ________ are less frequently purchased consumer products and services that customers
compare carefully on suitability, quality, price, and style.
A) Shopping products
B) Convenience products
C) Unsought products
D) Capital items
E) Supplies and repair services

Answer : A

16) Which of the following is the fastest growing form of direct marketing?

A) ambush marketing
B) digital marketing
C) direct-mail marketing
D) kiosk marketing
E) telemarketing

Answer : B

17) A detailed version of a new idea stated in meaningful customer terms is called a product
________.
A) Idea
B) concept
C) image
D) proposal
E) lining

Answer : B

18) ________ products are those products purchased for further processing or for use in
conducting a business.
A) Unsought
B) Specialty
C) Shopping
D) Industrial
E) Convenience

Answer is D

19) The key is to ________ traditional mass media with online, mobile and social media to best
engage customers, communicate the brand message, and enhance the customer's brand
experiences.
A) prioritize
B) integrate
C) utilize
D) design
E) spend on

Answer : B

20) Spartan Sportsgear is a company that sells sports equipment for adventure sports. It recently
launched ExtremeSpartan.com to showcase products and provide testimonials of famous
adventure sports athletes who use Spartan's products. It also includes videos and blogs. Which
of the following best describes ExtremeSpartan.com?
A) branded community Web site
B) digital catalog
C) social network
D) podcast
E) blog

Answer: A

21) ________ refers to the characteristics of a product or service that bear on its ability to
satisfy stated or implied customer needs.
A) Brand equity
B) Product quality
C) Product labeling
D) Brand image
E) Brand personality
Answer : B

22) Uptown-Clean Crew is a company that provides house-cleaning services in major urban
and suburban areas. Marketers at Uptown-Clean Crew developed a short, humorous video
promoting the company's services and posted it online. Soon the video was a rage as customers
who saw the video found it hilarious and they passed it on to their friends and colleagues
calling it the "Uptown comedy." Which form of marketing is illustrated from this scenario?
 A) telemarketing
B) viral marketing
C) integrated marketing
D) omni-channel marketing
E) kiosk marketing

Answer : B

23) ________ is the product life cycle period when sales fall off and profits drop.
A) Introduction B) Growth C) Maturity D) Decline
E) Product development
Answer: D

24) When a product is in the maturity stage, the company should most likely consider
________.
A) harvesting the product or market
B) modifying the product, market, or marketing mix
C) divesting the product line D) liquidating the firm's assets E) dropping the
product from its market offerings

Answer: B

25) A company must pay each month's bills for rent, heat, interest, and executive salaries
regardless of the company's level of output. This exemplifies its ________ costs.
A) fixed B) variable C) target
D) total E) unit

Answer: A

26) What sets the floor for product prices?

A) consumer perceptions of the product's value B) product costs
C) competitors' strategies D) advertising budgets
E) market competition

Answer: B

3) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an
identified sponsor is called ________ and includes broadcast, mobile, print, and online forms.
A) sales promotion
B) advertising
C) direct and digital marketing
D) personal selling
E) public relations
27) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by
an identified sponsor is called ________ and includes broadcast, mobile, print, and online
forms.
 A) sales promotion
B) advertising
C) direct and digital marketing
D) personal selling
E) public relations

Answer : B

28) ________ companies use both offline and online marketing channels.
A) Start-up
B) Click-only
C) Omni-channel retailing
D) Brick-and-mortar
E) Brick-only

Answer : C

29) ________ is the systematic design, collection, analysis, and reporting of data relevant to a
specific marketing situation facing an organization.
A) Product marketing
B) Strategic planning
C) Marketing research
D) Market segmentation
E) Causal research

Answer: C

30) Randy keeps getting unwanted and annoying e-mails from several marketing firms
unknown to him. The number of these e-mails is alarmingly high in his inbox. Which of the
following best describes these e-mails?
A) malware
B) adware
C) Trojan
D) firewall
E) spam

Answer : E

31) Which term best describes sites such as the New York Times on the Web and ESPN.com?
A) search engine
B) content site
C) online social network
D) transaction site
E) e-tailer

Answer : B
32) ________ are designed to engage consumers in interactions that will move them closer to a
direct purchase or other marketing outcome.
A) Online magazines
B) Marketing Web sites
C) Search engines
D) Digital catalogs
E) Podcasts

Answer: B

33) A(n) ________ is designed to present brand content that engages consumers and creates
customer-brand community.
A) podcast
B) branded community Web site
C) search engine
D) digital catalog
E) online magazine

Answer : B

34) Which of the following is NOT a specific goal of branded community Web sites?
A) present brand content that engages consumers
B) build closer customer relationships
C) generate engagement with and between the brand and its customers
D) increase online sales
E) allows visitors to interact with likeminded people to explore and communicate experiences
with the brand

35) ________ involves creating a video, e-mail, mobile message, advertisement, or other

marketing event that is so infectious that customers will seek it out or pass it along to their
friends.
A) Telemarketing
B) Omni-channel marketing
C) Integrated marketing
D) Viral marketing
E) Kiosk marketing

Answer : D

36) ________ are online journals where people post their thoughts, usually on a narrowly

A) Social networks
B) Blogs
 C) Forums
D) Search engines
E) Web directories

Answer: B

37) An integrated social marketing campaign likely could include all of the following EXCEPT
________.
A) Facebook pages
B) Twitter postings
C) Instagram photos
D) television ads
E) YouTube videos

Answer: D

38) Mobile marketing is used to enrich the brand experience, stimulate immediate buying, or
________.
A) decrease advertising costs
B) help friends contact friends
C) make shopping easier
D) create new customer relationships
E) find new suppliers

Answer: C

39) When marketing is focused on communications within the channel of distribution.

Manufacturers focus communication towards wholesalers,Wholesalers focus on the retailer, the
retailer on the consumer, This is called_________.
A. Focus strategy
B. Push strategy
C. Market penetration
D. Pull strategy
E. Channel of distribution

Answer: B

40) McDonald's resisted creating a value menu for many years. Finally, in response to
Wendy's, Burger King, and Taco Bell, McDonald's began to offer the dollar menu. Which
pricing strategy did it employ with the addition of the dollar menu?

A) Value-based prices
B) High-low prices
 D) Competition-based pricing
E) Good-value pricing

Answer: D

Hint* There are two types of value-based pricing: Good-value pricing, which is offering the
right combination of quality and service at a  reasonable price and. Value-added pricing which
is attaching value-added features and functions to differentiate an offer, thus supporting higher
rates.

41) New, premium movie theaters offer features such as online reserved seating, high-backed
leather executive chairs with armrests and footrests, the latest in digital sound and super-
wide screens, and other amenities for which they charge a higher price. This is an
example of which type of pricing?

a) Cost-plus pricing
b) EDLP pricing
c) High-low pricing
d) Value-added pricing

Answer is: D
42) Which of the following correctly identifies the three major pricing strategies used by
marketers?

a) Customer value-based pricing, cost-based pricing, and profit-based pricing

b) Customer value-based pricing, revenue-based pricing, and profit-based pricing
c) Customer value-based pricing, cost-based pricing, and competition-based pricing
d) Customer-value based pricing, cost-based pricing, and revenue-based pricing

Answer: C

43) Pepsi's Mountain Dew brand supplements its mass-media advertising by managing
several branded Web sites and using social media to engage its customer community.
This example illustrates how _______ has been transformed by the emergence of the
Internet and social technologies.

A.telemarketing
B.multichannel marketing
C.word-of-mouth advertising
D.direct marketing
E.paid advertising

Answer: D
 44) which of the following is essential for direct marketing to be effective?
A. An online presence
B. A good customer data base
C. A well trained sales force
D. Inbound telephone marketing
E. Digital direct marketing technologies

Answer: B

45) A customer data base is an organized collection of geographic, demographic,

psychographic and _________ data about individual customers or prospects.

A. Ethical
B. Cultural
C. Behavioral
D. Medical
E. Sociological

Answer: C

46) Which kind of marketing involves an offer, announcement, reminder, or other item to a
person at a particular address?
A. Kiosk marketing
B. Online marketing
C. Direct mail marketing
D. Catalog direct marketing
E. Direct response marketing

Answer: C

47) Marketers use__________ telephone marketing that receive orders from television and
print ads, direct mail, and catalogs.
A. Inbound
B. Outbound
C. Interactive
D. Direct- response
E. Business to business

48) When marketing is focused on the end consumer, who in turn demands it from the retailer,
who ads it from the wholesaler and then the manufacturer is called_______.

A. Push strategy
B. Concentration strategy
 C. Pull strategy
D. Mass production

Answer: C

49) Suppose Amazon.com has offered you free shipping on your next purchase of more than
$35. This offer is an example of ________.
A) sales promotion
B) personal selling C) a public relations strategy
D) horizontal diversification E) a pull strategy

Answer: A

50) Business-to-consumer companies are more likely to emphasize a ________ promotion

strategy, while business-to-business companies are more likely to emphasize a ________
promotion strategy.
A) pull; push
B) push; pull C) pulse; pull D) blitz; pull
E) push; blitz

Answer: A

Question Number Two:

Answer the following questions: True or False:

TRU FALS
#
Statement E E
1. The purpose of idea generation is to create a few ideas, and   F
the purpose of succeeding stages is to increase that number.

2. New product development begins with a systematic search for T  

new product ideas through idea generation.

3. Harvesting the product involves reducing various costs such as T  

maintenance, R&D, and advertising to increase profits.

4. Acquisition involves the purchase of a whole company, a T  

patent, or a license to produce someone else's product.
Value-based pricing uses the sellers' perception of value as the
5.   F
key to pricing
Cost-based pricing involves setting prices based on consumer
6.   F
perception of value.
 If demand is elastic rather than inelastic, sellers will consider
7. T  
lowering their prices.
8. Product costs set the ceiling for prices.   F

9. Direct and digital marketing includes catalogs, e-mail, direct T  

mail, social media, and mobile marketing.
Companies often succeed to integrate their various messages
10.   F
to consumers
Large-scale advertising conveys a positive message about the
11. T  
seller's size, popularity, and success.
If the pull strategy is effective, then consumers will demand the
12. product from channel members, who will in turn demand it from T  
producers.
Most companies use direct marketing as a supplementary
13. T  
channel or medium.
E-mail can be the ultimate direct marketing tool, as it lets
14. marketers send highly targeted, tightly personalized, T  
relationship-building messages.
Direct marketing is an expensive way of reaching target
15.   F
markets.

Question 3:

Essay questions:

1) Difference between push and pull strategy.

Pull strategy is when marketing is focused on the end consumer, who in turn demands
it from the retailer, who den ads it from the wholesaler and then the manufacturer.
Essentially "pulling" products through the channel.

While, push strategy is when marketing is focused on communications within the

channel of distribution. Manufacturers focus communication towards wholesalers,
Wholesalers focus on the retailer, the retailer on the consumer.
Essentially "pushing" the product to the next level.

2) Compare and contrast the purpose and content of a branded community Web site to
that of a marketing Web site.
Answer:
Branded community Web sites are designed to present brand content that engages
consumers and builds closer customer relationships, rather than to sell the company's
products directly. Such sites typically offer a rich variety of brand information, videos,
blogs, activities, and other features that build closer customer relationships and generate
engagement with and between the brand and its customers.
 Marketing Web sites are designed to engage consumers in an interaction that will
move them closer to a direct purchase. A marketing Web site allows customers to view,
research, and purchase specific items.

3) A company's marketing communications mix—also called its promotion mix—blends

five different components. List and define these components.
Answer:
Advertising is any paid-for or nonpersonal presentation and promotion of ideas, goods,
or services by an identified sponsor.
Sales promotion includes short-term incentives to encourage the purchase or sale of a
product or service.
Public relations includes building good relations with the company's various publics by
obtaining favorable publicity, building up a good corporate image, and handling or
heading off unfavorable rumors, stories, or events.
Personal selling includes a personal presentation by the firm's sales force for the
purpose of making sales and building customer relationships.
Direct marketing includes direct connections with carefully targeted individual
consumers to obtain an immediate response and cultivate lasting customer relationships.

4) define the steps in developing effective marketing communications.

Answer:
In preparing marketing communications, the marketer's first task is to
1. identify the target audience and its characteristics. Next,
2. the marketer has to determine the communication objectives and define the response
sought, whether it is awareness, knowledge, liking, preference, conviction, or purchase.
3. A message should be constructed with an effective content and structure.
4. Media must be selected, both for personal and nonpersonal communication.
5. The marketer should find highly credible sources to deliver messages.
6. Finally, the communicator must collect feedback by watching how much of the market
becomes aware, tries the product, and is satisfied in the process.

5) Briefly explain the functions of a customer insights team.

Answer:
Customer insights groups collect customer and market information from a wide variety
of sources, ranging from traditional marketing research studies to mingling with and
observing consumers to monitoring consumer online conversations about the company
and its products.

7) What's the difference between primary and secondary market research?

Answer:
Primary market research is done by collecting data yourself, often through surveys or interviews with your
target market. Secondary research uses existing data that you can find online or in research reports and
books.

8) Define the four different types of promotion budget method.

Answer:

A. The affordable method: some companies set the promotion budget at the level they
think the company can afford. Small businesses often use this method, reasoning that
the company cannot spend more on advertising than it has. They start with total
revenues, deduct operating expenses and capital outlays, and then devote some portion
of the remaining funds to advertising.
B. The percentage-of-sales method : involves setting the promotion budget at a certain
percentage of current or forecasted sales. The percentage-of-sales method is simple to
use and helps management think about the relationships between promotion spending,
selling price, and profit per unit. It wrongly views sales as the cause of promotion rather
than as the result. Thus, the percentage-of-sales budget is based on the availability of
funds rather than on opportunities. It may prevent the increased spending sometimes
needed to turn around falling sales. Finally, the method does not provide any basis for
choosing a specific percentage, except what has been done in the past or what
competitors are doing.
C. The competitive-parity method : sets the promotion budget to match competitors’
outlays. Companies that uses the competitive-parity method monitor competitors’
advertising or get industry promotion spending estimates from publications or trade
associations and then set their budgets based on the industry average.
D. The objective-and-task method : develops the promotion budget by specific promotion
objectives and the costs of tasks needed to achieve these objectives.

9) Explain the difference between concept of the price floor and price ceiling.
Answer:
Price floor represents the price below which there is no profit. While, Price ceiling
represents the price above which there is no demand.

10) Distinguish between value-based pricing and cost-based pricing.

Answer:
Customer value-based pricing uses buyers' perceptions of value as the key to pricing.
Value-based pricing means that the marketer cannot design a product and marketing
program and then set the price. Price is considered along with all other marketing mix
variables before the marketing program is set.
Although costs are an important consideration in setting prices, cost-based pricing is
often product driven. The company designs what it considers to be a good product, adds
up the costs of making the product, and sets a price that covers costs plus a target profit.
Marketing must then convince buyers that the product's value at that price justifies its
purchase.
11) Briefly describe how economic conditions impact a firm's pricing strategies.
Answer:
Economic conditions can have a strong impact on a firm's pricing strategies. Economic
factors such as a boom or recession, inflation, and interest rates affect pricing decisions
because they affect consumer spending, consumer perceptions of the product's price and
value, and the company's costs of producing and selling a product.

12) Explain price elasticity?

Answer:
Price elasticity refers to a measure of the sensitivity of demand to changes in price. If
demand hardly changes with a small change in price, the demand is inelastic. If demand
changes greatly, it is elastic.

If demand is elastic rather than inelastic, sellers will consider lowering their prices.

13) What is a demand curve? Explain its importance in the context of pricing decisions.
Answer:
A demand curve shows the number of units the market will buy in a given time period,
at different prices that might be charged. Each price the company might charge will lead
to a different level of demand. The relationship between the price charged and the
resulting demand level is shown in the demand curve. In the normal case, demand and
price are inversely related—that is, the higher the price, the lower the demand. Thus, the
company would sell less if it raised its price from P1 to P2. In short, consumers with
limited budgets probably will buy less of something if its price is too high.
Understanding a brand's price-demand curve is crucial to good pricing decisions. Most
companies try to measure their demand curves by estimating demand at different prices.
The type of market makes a difference. In a monopoly, the demand curve shows the
total market demand resulting from different prices. If the company faces competition,
its demand at different prices will depend on whether competitors' prices stay constant
or change with the company's own prices.
 14) what are the four types of market? Mention examples.

Pure competition:
the market consists of many buyers and sellers trading in a uniform commodity,
such as wheat, copper, or financial securities. No single buyer or seller has much
effect on the going market price. In a purely competitive market, marketing
research, product development, pricing, advertising, and sales promotion play
little or no role. Thus, sellers in these markets do not spend much time on
marketing strategy.

Oligopolistic competition:
the market consists of only a few large sellers. Because there are few sellers,
each seller is alert and responsive to competitors' pricing strategies and
marketing moves. For example, coca cola and pepsi, etc.

Monopolistic competition:
the market consists of many buyers and sellers who trade over a range of prices
rather than a single market price. A range of prices occurs because sellers can
differentiate their offers to buyers. For example, restaurants, hair salon, etc.

Pure monopoly, the market is dominated by one seller. The seller may be a government
monopoly, a private regulated monopoly, or a private unregulated monopoly. Pricing is
handled differently in each case. For instance, the government facilities in water, gas,
 electric and etc.

15) Briefly describe the steps in the new product development process.
Answer:
New product development starts with idea generation from internal and/or external
sources. Next, the ideas must be reduced through idea screening. Once the new ideas
are decided upon, the product concept must be developed and tested. A marketing
strategy must be developed to introduce the product to the market. Once the product
concept and marketing strategy are chosen, a business analysis is conducted to review
the sales, costs, and profit projections to see if they will satisfy the company's
objectives. Next, a prototype will be created in the product development stage. Test
marketing will follow, introducing the new product and its marketing program into
more realistic market settings. The last step is to launch or not launch the new product.
If the company decides to launch the product, it will go ahead with the
commercialization stage and later test its sales and profit results.

16) Briefly explain each phase of the product life cycle.

Answer:

-Product development begins when the company finds and develops a new product
idea. Sales are zero and the company's investment costs mount.

-Introduction is a period of slow sales growth as the product is introduced in the

market. Profits are nonexistent in this stage because of the heavy expenses of product
introduction.

-Growth is a period of rapid market acceptance and increasing profits.

-Maturity is a period of slowdown in sales growth because the product has achieved
acceptance by most potential buyers. Profits level off or decline because of increased
marketing outlays to defend the product against competition.

-Decline is the period when sales fall off and profits drop. A company may seek to
reinvigorate a product in decline or maintain it hoping competition will diminish or
harvest it or drop it.

17) What are the four major communication functions?

Answer: The four major communication functions are encoding, decoding, response,
and feedback. Encoding is the process of putting thought into symbolic form. Decoding is
the process by which the receiver assigns meaning to the symbols encoded by the sender.
In addition, response refers to the reactions of the receiver after being exposed to the
message. Feedback is the part of the receiver's response communicated back to the
sender.