Principles of Marketing CLEP Exam Questions and Correct Answers

Principles of Marketing CLEP Exam Questions and Correct Answers 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 reach Product 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 DEVELOPMENT new 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)