COB 300D EXAM QUESTIONS AND
ANSWERS
Environmental scanning - Answer-The process of collecting information about forces in
the marketing environment
Environmental Analysis - Answer-The process of assessing and interpreting the
information gathered through environmental scanning
competition - Answer-Other organizations that market products that are similar to or can
be substituted for a marketer's products in the same geographic area
Brand Competitors - Answer-Firms that market products with similar features and
benefits to the same customers at similar prices
product competitors - Answer-Firms that compete in the same product class but market
products with different features, benefits, and prices
Generic competitors - Answer-Firms that provide very different products that solve the
same problem or satisfy the same basic customer need
Total budget competitors - Answer-Firms that compete for the limited financial
resources of the same customers
Competition Structures - Answer-monopoly, oligopoly, monopolistic competition, pure
competition
Monopoly - Answer-A competitive structure in which an organization offers a product
that has no close substitutes, making that organization the sole source of supply
oligopoly - Answer-A competitive structure in which a few sellers control the supply of a
large proportion of a product
Monopolistic competition - Answer-A competitive structure in which a firm has many
potential competitors and tries to develop a marketing strategy to differentiate its
product
Pure competition - Answer-A market structure characterized by an extremely large
number of sellers, none strong enough to significantly influence price or supply
discretionary income - Answer-Disposable income available for spending and saving
after an individual has purchased the basic necessities of food, clothing, and shelter
, Marketing Segmentation - Answer-The process of dividing a total market into groups
consisting of people or organizations with relatively similar product needs in order to
design a marketing mix that matches those needs
market segment - Answer-Individuals, groups, or organizations sharing one or more
similar characteristics that cause them to have similar product needs
undifferentiated targeting strategy - Answer-A strategy in which an organization designs
a single marketing mix and directs it at the entire market for a particular product
concentrated targeting strategy - Answer-A market segmentation strategy in which an
organization targets a single market segment using one marketing mix
differentiated targeting strategy - Answer-A strategy in which an organization targets
two or more segments by developing a marketing mix for each segment
segmentation variables - Answer-Characteristics of individuals, groups, or organizations
used to divide a market into segments
variables for segmenting consumer markets - Answer-demographic, geographic,
psychographic, behavioristic
5 Steps for Target market selection - Answer-identify appropriate targeting strategy
determine which segmentation variables to use
develop market segment profiles
evaluate relevant market segments
select specific target markets
price - Answer-The value paid for a product in a marketing exchange
price competition - Answer-Emphasizing price as an issue and matching or beating
competitors' prices
nonprice competition - Answer-emphasizing factors other than price to distinguish a
product from competing brands
demand curve - Answer-A graph of the quantity of products a firm expects to sell at
various prices if other factors remain constant
Price elasticity of demand - Answer-A measure of the sensitivity of demand to changes
in price
=% change in quantity demanded/ % change in price
breakeven point - Answer-The point at which the costs of producing a product equal the
revenue made from selling the product
ANSWERS
Environmental scanning - Answer-The process of collecting information about forces in
the marketing environment
Environmental Analysis - Answer-The process of assessing and interpreting the
information gathered through environmental scanning
competition - Answer-Other organizations that market products that are similar to or can
be substituted for a marketer's products in the same geographic area
Brand Competitors - Answer-Firms that market products with similar features and
benefits to the same customers at similar prices
product competitors - Answer-Firms that compete in the same product class but market
products with different features, benefits, and prices
Generic competitors - Answer-Firms that provide very different products that solve the
same problem or satisfy the same basic customer need
Total budget competitors - Answer-Firms that compete for the limited financial
resources of the same customers
Competition Structures - Answer-monopoly, oligopoly, monopolistic competition, pure
competition
Monopoly - Answer-A competitive structure in which an organization offers a product
that has no close substitutes, making that organization the sole source of supply
oligopoly - Answer-A competitive structure in which a few sellers control the supply of a
large proportion of a product
Monopolistic competition - Answer-A competitive structure in which a firm has many
potential competitors and tries to develop a marketing strategy to differentiate its
product
Pure competition - Answer-A market structure characterized by an extremely large
number of sellers, none strong enough to significantly influence price or supply
discretionary income - Answer-Disposable income available for spending and saving
after an individual has purchased the basic necessities of food, clothing, and shelter
, Marketing Segmentation - Answer-The process of dividing a total market into groups
consisting of people or organizations with relatively similar product needs in order to
design a marketing mix that matches those needs
market segment - Answer-Individuals, groups, or organizations sharing one or more
similar characteristics that cause them to have similar product needs
undifferentiated targeting strategy - Answer-A strategy in which an organization designs
a single marketing mix and directs it at the entire market for a particular product
concentrated targeting strategy - Answer-A market segmentation strategy in which an
organization targets a single market segment using one marketing mix
differentiated targeting strategy - Answer-A strategy in which an organization targets
two or more segments by developing a marketing mix for each segment
segmentation variables - Answer-Characteristics of individuals, groups, or organizations
used to divide a market into segments
variables for segmenting consumer markets - Answer-demographic, geographic,
psychographic, behavioristic
5 Steps for Target market selection - Answer-identify appropriate targeting strategy
determine which segmentation variables to use
develop market segment profiles
evaluate relevant market segments
select specific target markets
price - Answer-The value paid for a product in a marketing exchange
price competition - Answer-Emphasizing price as an issue and matching or beating
competitors' prices
nonprice competition - Answer-emphasizing factors other than price to distinguish a
product from competing brands
demand curve - Answer-A graph of the quantity of products a firm expects to sell at
various prices if other factors remain constant
Price elasticity of demand - Answer-A measure of the sensitivity of demand to changes
in price
=% change in quantity demanded/ % change in price
breakeven point - Answer-The point at which the costs of producing a product equal the
revenue made from selling the product
