Principles Of Marketing CLEP Exam Questions and Answers | Graded A+ | 2026

Principles Of Marketing CLEP Exam Questions and Answers | Graded A+ | 2026 Marketing concept - answer-The marketing management philosophy that holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering desired satisfactions more effectively and efficiently than competitors. Six Primary Marketing functions - answer-Environmental Analysis Consumer Analysis Product Planning Price Planning Promotion Planning Physical Distribution (Place) Planning Marketing mix - answer-The 4 P's of Marketing: Product, Price, Place, Promotion Market segmentation - answer-process of dividing a market into categories of customer types, or "segments" Market segments - answer-small groups of buyers within a larger market with similar needs and interests. Target market - answer-a specific consumer group a business wants to reachProduct positioning - answer-a process by which marketers create an image of their products, brand or organization in the consumer's mind relative to the sum of the attributes of competitors Marketing plan - answer-a road map for the marketing activities of an organization for a specified future time period Product differentiation - answer-real or imagined differences between competing products in the same industry situation analysis - answer-Second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats. marketing environment - answer-composed of two factors,those the organization CAN control and the ones it cannot. macroenvironmental factors - answer-uncontrollable forces of marketing environment. demographics, economic conditions, competition, social and cultural factors, political and legal factors (goverment) technological factors. microenvironmental - answer-impact specific company suppliers, marketing intermediaries, target market product market or opportunity matrix - answer-specifies four fundamental alternative marketing strategies. present markets and present products = MARKETING PENETRATIONS future markets and present products = MARKET DEVELOPMENT new products and present markets = PRODUCT DEVELOPMENTnew products and new markets = DIVERSIFICATIOn SWOT MATRIX - answer-used to asses potential value and fit of new opportunities. Boston consulting grou matrix - answer-classfies each product within a firms product portfolio with relative market share and industry growth rates high market share high growth rate STAR (generate large profits but require large resources) high market share but low growth rate PROBLEM CHILD (does not proivde great profits but requires high investment) low market share high growth rate CASH COW (requires little investment and gives high profits) low market share low growth rate DOG (little profitability and little opportunity for growth) differential advantage - answer-unique qualities of a product that enocourage consumers to purchase and be loyal. reasons to prefer one product over another. marketing myopia - answer-short sighted marketing strategy, focus on products they want to sell not on customers, can lose sight of customer preference as the needs and wants change over time sustained competitive advantage - answer-enduring differential advantage held over competitors by offering buyers superior alue either through lower prices or other elements of marketing mix. LOCATION is often regarded as the most sustainable competitve advantage since it cannot be copied. Wheeler Lea Amendment - answer-Bans unfair or deceptive acts in commerceUnfair Trade Act - answer-Puts a lower limit on prices, : laws that prohibit wholesalers and retailers from selling below cost o Intended to protect small local firms from giants like wal-mart which operate very efficiently on razor-thing profit margins Magnuson Moss - answer-Requires producers to provide clearly written warranties Federal Trade Comission - answer-deals with unfair methods of competition Lanham Act - answer-Prohibits a company from misrepresnting another company´s products Magnuson act of 1975 - answer-Ensures warranties are clear and definite Us Common Law - answer-Producers must warrant their products as merchantable Federal fair packaging and labeling act of 1966 - answer-goods must be clearly mareted and understandable Clayton act - answer-focus to increase competition, deals with policies businesses have that intend to lessen competition, Corrected the problems of the Sherman Antitrust Act; outlawed certain practices that restricted competition; unions on strike could no longer be considered violating the antitrust acts Antimerger act - answer-seeks to reduce lessening of competition, Amends the Clayton Act. Broadens the power of the federal government to prevent intercorporate acquisitions that would substantially reduce competition.Sherman act 1890 - answer-prevents businesses from restraining trade and interstate commerce. pricing plicies that are predatory or contribute to monopolization and conspiracies contraty to competitive pricing are illegal robinson patman act 1936 - answer-prohibits price discrimination, cannot offer a different price to competing buyers (resellers) without being able to justify it. also prohibits providing a higher level of service to large customers. amended sherman anti trust total revenue - answer-price x quantity elastic demand - answer-when the value of the price elasticity of demand formula is less than - 1.