Test Prep - Marketing 1

Marketers use data to determine that they want to create messages that appeal to a younger target market. This is part of an overall

• pricing strategy
• place strategy
• product strategy
• promotional strategy

Answer explanation

Promotional strategy. Determining what target market to appeal to and what messages to send are part of a company's promotional strategy. Place strategy refers to distributing the product. Product strategy includes determining what products to offer or develop. Pricing strategy refers to determining what to charge for the product.

All existing goods and services began with a(n)

• target market
• solution
• financial investment
• idea

Answer explanation

Idea. The development of a product involves a process. The first step in product development is coming up with an idea. An idea is the result of mental thought processes. Once the idea for a product exists, it is possible to determine the needed financial investment and the target market for the product. A solution is an answer to a problem. Solutions to problems result from the generation of ideas

One of the purposes of the situational analysis component of a marketing plan is to determine a business's

• expansion options
• distribution channels
• operating objectives
• current weaknesses

Answer explanation

Current weaknesses. A situational analysis is a determination of a firm's current business situation and the direction in which the business is headed. Both internal and external environmental conditions are evaluated to determine the business's current strengths, weaknesses, opportunities, and threats. It is important for a business to identify and understand its weaknesses to make adjustments in the marketing plan. If businesses fail to address their weaknesses, they may lose customers to competitors. Determining distribution channels, operating objectives, and expansion options are not the purposes of the situational analysis component of a marketing plan.

When developing promotional activities, a business should consider how to accomplish its goal of attracting consumer attention in an effective and __________ way.

• intangible
• vague
• tasteful
• inflexible

Answer explanation

Tasteful. When developing promotional activities (e.g., advertisements), it is important for a business to create interest and recognition for the product or company, but not offend the target market with distasteful material. An intangible item is something that cannot be detected through the senses. Promotional activities are tangible because people can see, hear, touch, and/or taste them. A vague message is unclear. Advertisers usually want to make sure that the audience understands the advertising message. Inflexible is a term that means that something is rigid or unable to adapt to a situation. The flexibility of promotional activities depends on the product and the company's goals.

Which of the following is a reason why someone might have trouble adapting to new circumstances:

• missed opportunity
• objectivity
• empathy
• contentment

Answer explanation

Contentment. Being adaptable requires you to stretch, try new things, and get out of your comfort zone, which can be hard to do if you're content. Objectivity and empathy are characteristics of adaptable people; these traits make it easier for a person to adapt. Missed opportunities are a negative consequence of refusing to adapt.

What question does establishing a sampling plan for a research project answer?

• when to conduct an interview
• why investigate the issue
• what marketing research technique to use
• how many people to survey

Answer explanation

How many people to survey. Sampling plans are intended to identify the number of people who will be surveyed for a research project. The goal is to survey enough people to obtain an accurate representation, but not more than necessary. In many cases, the population affected by the research is very large and researchers are unable to survey all of them. Therefore, they establish a sampling plan that determines the number of people to survey. A sampling plan does not answer the question of what marketing technique to use, when to conduct an interview, or why it is necessary to investigate the issue.

Which of the following is a true statement about safety hazards in the workplace:

• trial and error is a good way to learn use of tools and equipment
• good housekeeping increases safety hazards
• employees decide which protective clothing they should wear
• personal habits can create safety hazards

Answer explanation

Personal habits can create safety hazards. Personal or family problems, stress, anger, fatigue, and alcohol and drug abuse can cause behavior problems that can lead to unsafe situations. Keeping work areas clean and putting things away reduces the risk of injuries. Tools and equipment should not be used without prior training. They can be hazardous to workers who don't know how to use them properly. For their own safety, employees should wear the appropriate clothing their employers designate.

It's important to __________ all of the corrections you make during a project.

• accept blame for
• cover up
• duplicate
• document

Answer explanation

Document. It's important to track all of the corrections you make during your project. Having a record of all of the changes will make it easy to remember the decisions you've made, and it will provide the documentation to explain what has been done and why. You should not cover up, duplicate, or accept blame for all of the corrections you make during a project.

A business's selling policies are beneficial to customers when they

• ensure that all customers are treated fairly
• restrict the salespeople's selling activities
• maximize profitability and achieve sales goals
• provide customers with limited credit options

Answer explanation

Ensure that all customers are treated fairly. Selling policies are the general rules established by management to guide the personal selling effort and outline how things must be done. Selling policies are beneficial to customers because they ensure that all customers receive fair and equitable treatment. Although some businesses offer credit options, not all businesses do. If credit requirements are too rigid, then they are not beneficial to many customers. A disadvantage to salespeople of selling policies occurs when the policies are rigid and inflexible, which can restrict the salesperson's authority, which in turn can negatively affect a customer's experience with the business. Selling policies that maximize profitability and help achieve sales goals are advantages to the business rather than to the customers.

When an individual invests in a mutual fund, they are

• taking on a high level of investing risk.
• selecting their own investment options.
• pooling their money with other investors
• purchasing corporate and government bonds.

Answer explanation

Pooling their money with other investors. A mutual fund is a collection of stocks and bonds. When you buy a mutual fund, you are pooling your money with other investors, allowing you to pay for a professional manager to select investments for the group. Therefore, when an individual invests in a mutual fund, they are not selecting their own investment options, nor are they solely purchasing corporate and government bonds. Investing in a mutual fund is a relatively low-risk way to invest because a professional financial manager selects appropriate securities for you.