MKTG 351 Midterm 1 Exam
Questions and Complete
Solutions Graded A+
If a car company releases an affordable model, but the vehicle is only available in white, would it be
successful in today's market? - Answer: No, because consumers have specific wants
What is the primary focus of marketing philosophy? - Answer: Satisfying customers' needs and wants
What is the American Market Association's definition of marketing? - Answer: The activity, set of
institutions, and processes for creating, communicating, delivering and exchanging offerings that have
value for customers, clients, partners and society at large
Which philosophy is focused on reducing cost? - Answer: Production philosophy
A retail company aims at understanding its customers, and provides customer service at all times. What
philosophy is the company following? - Answer: Marketing philosophy
What is product philosophy? - Answer: Focusing on producing the highest quality goods
What is sales philosophy? - Answer: Emphasizes push and hard selling, less focused on customer needs
and wants
What is societal philosophy? - Answer: Product should be good for society, what is appealing to
customers may not be good for society
An electric vehicle that offers a new, longer lasting battery at the existing prices is an example of a
company focusing on: - Answer: Customer value
What is Relationship Marketing? - Answer: Developing and enhancing long-term relationships between a
seller and its customers
, Which of the following is key to Bank of America's success at relationship marketing? - Answer: It tries to
ensure that its customers have a satisfactory experience during each interaction
What is customer satisfaction? - Answer: Customers will always come back if the value is consistent
A food chain restaurant that has operated in the United States for the past 15 years, has decided to
expand its services to Canada. What strategy is it following? - Answer: Market development
Why is diversification a risky proposition? - Answer: The company is not familiar with the market or the
product
What is typically a good opportunity to pursue for a company deciding to diversify? - Answer: Enter
large, high growth markets which allows expansion
What is Market Penetration? - Answer: Existing product in existing markets; includes price adjustment,
distribution change, modify promotion, adjusting offerings
What is Product Development? - Answer: New product in existing markets
What is the focus of the BCG matrix? - Answer: A company should have a well-balanced portfolio
What does SBU stand for? - Answer: Strategic Business Units
A software is the market leader in a stable market. What quadrant does the software belong to? -
Answer: Cash cow, most profitable
What is a star in the BCG matrix? - Answer: High market share and high market growth rate, require a lot
of investment and not always profitable
What is a dog in the BCG matrix? - Answer: Low market share and low market growth rate
Questions and Complete
Solutions Graded A+
If a car company releases an affordable model, but the vehicle is only available in white, would it be
successful in today's market? - Answer: No, because consumers have specific wants
What is the primary focus of marketing philosophy? - Answer: Satisfying customers' needs and wants
What is the American Market Association's definition of marketing? - Answer: The activity, set of
institutions, and processes for creating, communicating, delivering and exchanging offerings that have
value for customers, clients, partners and society at large
Which philosophy is focused on reducing cost? - Answer: Production philosophy
A retail company aims at understanding its customers, and provides customer service at all times. What
philosophy is the company following? - Answer: Marketing philosophy
What is product philosophy? - Answer: Focusing on producing the highest quality goods
What is sales philosophy? - Answer: Emphasizes push and hard selling, less focused on customer needs
and wants
What is societal philosophy? - Answer: Product should be good for society, what is appealing to
customers may not be good for society
An electric vehicle that offers a new, longer lasting battery at the existing prices is an example of a
company focusing on: - Answer: Customer value
What is Relationship Marketing? - Answer: Developing and enhancing long-term relationships between a
seller and its customers
, Which of the following is key to Bank of America's success at relationship marketing? - Answer: It tries to
ensure that its customers have a satisfactory experience during each interaction
What is customer satisfaction? - Answer: Customers will always come back if the value is consistent
A food chain restaurant that has operated in the United States for the past 15 years, has decided to
expand its services to Canada. What strategy is it following? - Answer: Market development
Why is diversification a risky proposition? - Answer: The company is not familiar with the market or the
product
What is typically a good opportunity to pursue for a company deciding to diversify? - Answer: Enter
large, high growth markets which allows expansion
What is Market Penetration? - Answer: Existing product in existing markets; includes price adjustment,
distribution change, modify promotion, adjusting offerings
What is Product Development? - Answer: New product in existing markets
What is the focus of the BCG matrix? - Answer: A company should have a well-balanced portfolio
What does SBU stand for? - Answer: Strategic Business Units
A software is the market leader in a stable market. What quadrant does the software belong to? -
Answer: Cash cow, most profitable
What is a star in the BCG matrix? - Answer: High market share and high market growth rate, require a lot
of investment and not always profitable
What is a dog in the BCG matrix? - Answer: Low market share and low market growth rate
