1 MK323 Marketing Management Exams MIDTERM PRACTICE QUESTIONS Part I Multiple Choice Questions Choose the best answer for each of the following questions 1 Assume that Cranberry Farms the GSU turkey stand wanted to engage in a market development strategy for organizational growth Which of the following best illustrates a market development strategy a Opening a new cafe at Harvard using the menu from BU b Running a scratch card promotion whereby customers can win prizes and food with each purchase c Adding a line of pizzas to the existing menu of turkey sandwiches d Selling a line of Cranberry Farms cranberry dolls in Campus Convenience e All of the above represent a Market Development strategy 2 The environment includes other firms that compete in the industry and rival the organization for resources while the environment includes all factors that operate in the external environment a cooperative competitive b political competitive c macro immediate d competitive economic e immediate macro 3 Barnes and Noble at Boston University is working to set marketing goals and objectives which of the following is the best stated goal a Increase textbook sales by 8 in the next academic year b Sell more books than Star Market c Expand the home furnishings department to include furniture by next year d Become profitable at some point soon e Quit overcharging students for the textbooks that they buy 4 LG a well recognized major appliance brand also produces Neumann Special branded appliances for sale only by Target The Neumann Special branded appliances is an example of a 2 a Premium Brands b Multi product brands c Private label or store brand d Copycat brands e Family Brand 5 In the town of Faircity cola is sold at the Super Harvest Grocery at the two Mike s Market stores at the Grocery Heaven store and at the two Buttery s stores BU cola is sold only at Super Harvest and Buttery s In Faircity Super Harvest sells 25 of all cola sold Mike s sells 35 of all cola sold and Grocery Heaven sells 15 of all cola sold It can be determined that in Faircity BU cola has a An ACV of 25 b An ACV of 50 c An ACV of 60 d An ACV of 40 e Can t determine ACV without sales data for Grocery Heaven 6 What is the most valid criticism of the following question that appears on a questionnaire Don t you agree that quitting smoking is important for pregnant mothers a Question with non exhaustive answers b Leading Question c Unanswerable Question d Two Questions in one e There is nothing wrong with this question 7 Skippy makes several types of peanut butter including chunky creamy and reduced fat Skippy plans to introduce a new peanut butter with raisins in it Skippy wants to break down the market for its new product into more manageable groups for the purpose of effectively and efficiently reaching potential new customers According to the process for your 323 project what is the logical order without skipping a step for the following tools that Skippy should follow in breaking down the large market a Evaluate segment attractiveness identify and develop positioning strategy select target market b Identify and develop positioning strategy select target market evaluate segment attractiveness c Identify and develop positioning strategy evaluate segment attractiveness select target market d Evaluate segment attractiveness select target market identify and develop positioning strategy e The order does not matter as long as Skippy considers each 8 Wal Mart is relying on secondary data to forecast store sales next year because of the high cost of gathering primary data Which of the following are sources of secondary data a Cash register scanner data b Government statistics from the Commerce Department c Articles in trade journals d All of the above e None of the above 3 9 Have you had a Wendy s Frosty in the past 12 months yes no is an example of what type of question a Likert scale b Dichotomous scale c Semantic scale d Demographic scale e Semantic differential scale 10 When the cellular phone was first invented a few young adventurous and educated consumers began buying them These consumers were labeled as innovators by marketers Soon the next group of consumers who were leaders in social settings and who were educated above the average began to adopt the use of cellular phones This second group of consumers to adopt cellular phones were labeled by marketers a early adopters b early majority c late innovators d diffusion leaders e product leaders 11 Which of the following is a valid questionnaire design guideline a Organize from specific to general b Use as many branching questions as possible c Ask demographics first d Avoid excessive open ended questions e All of the above f None of the above 12 The marketing strategy most commonly associated with the maturity phase of the product life cycle is to a Develop new products b Increase corporate awareness c Harvest the product d Target product innovators e Decrease market share 13 In the personal computing industry the year 2011 saw a rise in popularity of tablet computers devices as well as the introduction of tablets by many leading computer companies They are being purchased at an increasing rate by technology users of all ages and backgrounds At the same time sales of netbooks have leveled out but remain strong Based on this information you can conclude that in the year 2011 sales of tablet computers devices are in the stage and sales of netbooks were in the stage of the product development cycle a growth decline b growth maturity c d e maturity decline introduction decline introduction growth 4 14 In 2000 Apple Computer announced the introduction of its I book into the laptop computer market Other computer manufacturers including Dell Compaq and Toshiba already had a strong presence in this growing market so it was a tough market to enter At the same time Apple had experienced a tremendous success with its new I Mac computers in the slow growth desktop market In 2000 where would the I Mac and the I book have fallen in the BCG product portfolio matrix a The I Mac is a cash cow the I Book is a star b The I Mac is a star the I book is a dog c The I Mac is a star the I book is a question mark d The I Mac is a question mark the I book is a dog e The I Mac is a cash cow the I book is a question mark 15 What are the options for a firm to grow its business as discussed in the text and the slides a Market penetration cost leadership market development diversification b Market