Mktg Exam 1

Topics: Marketing, Target market, Social responsibility Pages: 9 (2318 words) Published: February 15, 2012
PSU MKTG 301 Test #1 Spring 2012

Indicate whether the statement is true or false.

1. Sara Lee Industries spent considerable money and time developing crustless bread. Prior to the introduction, the company had not conducted market research among its customers, but it was confident that its science and technology department had produced a successful new product. Based on this example, Sara Lee is a good example of a production oriented company. TRUE

2. While most marketing organizations rely on various forms of promotion to succeed, sales oriented organizations make the most effective use of their entire marketing mix. FALSE

3. The company’s objective is to spend ten percent of this fiscal year’s sales revenue on research and development in an effort to introduce at least five new products in the next fiscal year. This is an example of a well stated objective. TRUE

4. A competitive advantage is some unique aspect of a firm’s offering, or of the firm itself, that causes target customers to patronize the firm rather than its competition. TRUE

5. Berkshire Hathaway Inc., a large property insurance company, owns a large chain of jewelry stores and has recently purchased Russell, a manufacturer of sporting goods. Berkshire Hathaway Inc. uses a market penetration strategy. FALSE

6. Simon needed to rent a trailer for the weekend. Then he learned the rental company offered lower daily rates for seven day rentals. The rental company is clearly using a market development strategy. FALSE

7. Marketing strategies involve the activity of selecting or describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets. TRUE

8. Whenever faced with a difficult customer, the owner of a shoe store remembered what the original store founder, his grandfather, had done in similar situations and did the same. In other words, the grandson based his decisions on the casuist ethical theory.

9. When writing codes of ethics, businesses must ensure their codes deal with every possible situation. FALSE 10. Sustainability refers to the idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profits and help the world at the same time. TRUE

11. Exxon Mobil was fulfilling its philanthropic responsibility when it partnered with the National Fish and Wildlife Foundation to save the world’s remaining tigers by donating more than eleven million dollars to establish the Save the Tiger Fund. TRUE

12. The foundation of the pyramid of corporate social responsibility is economic responsibility. TRUE

13. Because social responsibility has proven to have a limited return on investment, the number of businesses opting to act socially responsible is declining. FALSE

14. In May 2008, three Atlanta Braves team members unveiled three Chilean wines that were to be sold with their photos on the labels. The bottles of wine sell for around $14 at retail outlets and the proceeds from the sales benefit The Miracle League, the Rally Foundation for Childhood Cancer Research, and CURE Childhood Cancer. This is an example of cause-related marketing.

15. Everyone agrees that cause-related marketing is beneficial.

16. Marketers can control the external environment in which their organizations operate. FALSE

17. Social factors in the marketing environment influence the products people buy, the prices paid for products, the effectiveness of specific promotions, and how, where, and when people expect to purchase products. TRUE

18. The phenomenon of working women has had a greater effect on marketing than has any other social change. TRUE

19. The clothing style worn by tweens reflects that of their parents.

20. Multiculturalism occurs when all major ethnic groups in...
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