MKT100 Midterm Practice Quiz

Which of the following best describes the primary focus of marketing?

• Selling products by any means necessary, even if customers don’t need them.

• Creating value for customers and satisfying their needs in order to build strong customer relationships.

• Producing goods at the lowest cost without considering customer desires.

• Advertising and promotion rather than product development or customer service.

An organization that focuses on understanding and fulfilling consumer needs and wants as a path to achieving its goals is practicing the ____.

• production orientation (emphasizing efficient production above all)

• product orientation (believing a superior product will sell itself)

• sales orientation (focusing on aggressive selling techniques)

• marketing orientation (marketing concept: satisfying customer needs while meeting organizational goals)

Which of the following is NOT one of the “4 Ps” of the marketing mix?

• Product – decisions about the goods or services a company offers.

• Price – decisions about how much to charge for the product.

• Promotion – decisions about how to communicate and advertise the product.

• Procurement – decisions about purchasing and sourcing raw materials.

In marketing terms, a “want” is best described as:

• A basic human requirement, like food or shelter, that is essential for survival.

• A specific product or solution that a person desires to satisfy an underlying need.

• A demand that is backed by the ability to pay for a desired product.

• An unnecessary luxury that has no relation to any basic need.

A company that decides to introduce its existing products into new markets (for example, expanding sales to a foreign country for the first time) is pursuing which Ansoff growth strategy?

• Market Penetration – selling more of existing products to current markets.

• Product Development – creating new products for current markets.

• Market Development – entering new markets with existing products.

• Diversification – launching new products in new markets.

According to the Ansoff matrix, which growth strategy is generally considered the highest risk approach for a company’s expansion?

• Market Penetration (existing products in existing markets)

• Market Development (existing products in new markets)

• Product Development (new products in existing markets)

• Diversification (new products in new markets)

In the BCG matrix, a business unit that has a low relative market share in a high-growth market is referred to as a:

• Star

• Cash Cow

• Question Mark (Problem Child)

• Dog

Which of the following statements about the BCG matrix categories is TRUE?

• Stars have high market share in high-growth markets and often require heavy investment; they can become Cash Cows once market growth slows.

• Cash Cows operate in high-growth markets and need a lot of external funding to maintain their market share.

• Question Marks have low growth and low market share, and they typically generate stable cash flows with little investment needed.

• Dogs are high-growth, high-share businesses that are the primary drivers of future market expansion.

What is the main purpose of conducting a SWOT analysis for a business?

• To evaluate the company’s internal strengths and weaknesses and external opportunities and threats in order to inform strategic planning.

• To identify the segmentation, targeting, and positioning strategy for the company’s products.

• To determine the appropriate pricing strategy by examining costs and competitors.

• To organize the company’s budget into four categories: Staff, Work, Operations, and Tools (SWOT).

Which of the following would be considered an Opportunity in a company’s SWOT analysis (as opposed to a Strength, Weakness, or Threat)?

• The company’s strong brand reputation in the market.

• A growing trend in consumer demand for exactly the type of product the company makes.

• The company’s lack of experience with new technologies.

• The entrance of a new competitor with a lower-priced alternative product.