MIDDLE EAST TECHNICAL UNIVERSITY

Department of Business Administration

BA2701: Principles of Marketing
MID-TERM EXAM: October 17, 2005
Dr. Çağlı NAME: ___________________________

IMPORTANT NOTICE!
ATTENDANCE TO ALL SESSIONS IS A NON-NEGOTIABLE REQUIREMENT!
WHEN YOU MISS A CLASS OR A PRESENTATION, IT MAY BE REFLECTED IN
YOUR COURSE GRADE!

MULTIPLE CHOICE QUESTIONS (2 Points Each)

1. Marketing is more than _____ and advertising.

a. distribution
b. promotion
c. selling
d. pricing
e. customer service

2. What does a market-oriented mission statement such as “Connecting People” of Nokia define about the
business?
a. satisfying basic customer needs
b. satisfying basic supplier needs
c. satisfying basic stockholder needs
d. satisfying basic owner needs
e. satisfying basic partnership needs

3. A problem with using the BCG matrix centers around the fact that it is _____ oriented instead of _____
oriented.
a. future; now
b. now; future
c. financially; customer
d. customer; supplier
e. now; market

4. The fantastic level of CRM is exemplified in

a. the movie Mission Impossible
b. the movie Star Wars
c. the movie Minority Report
d. the movie Vanilla Sky
e. the movie Bond 007

5. Wants become demands when _____.

a. marketers understand consumer needs
b. a consumer’s buying power is sufficient
c. they become less desired than needs
d. the benefits from buying them equal the cost
e. needs cannot be fulfilled

6. You are preparing a combination of products, services, information, and experiences to a market to satisfy
needs and wants. What are you preparing?
a. value proposition
b. demand satisfaction
c. tactical plan
d. marketing offer
e. strategy
7. Companies normally learn about their competitors’ strengths and weaknesses from all of the following
except _____.
a. secondary data
b. benchmarking
c. spying
d. by transferring competitor’s employees
e. all of the above

8. _____ is the means by which consumers can buy or exchange goods or information directly with one
another.
a. C2C
b. B2B
c. C2B
d. B2C
e. none of the above

9. Some firms define their purpose in narrow product terms. Others that define their company’s purpose in
broad social terms follow _____.
a. societal marketing
b. sense-of-mission marketing
c. consumer-oriented marketing
d. value marketing
e. strategic marketing

10. The selling concept takes a(n) _____ perspective; the marketing concept takes a(n) _____ perspective.
a. inside-out; outside-in
b. outside-in; inside-out
c. customer-driven; inside-out
d. customer-driven; inside-out
e. outside-in; inside-out

11. As a new assistant marketing manager, you learn in an orientation meeting that _____ are the form human
needs take as they are shaped by culture and individual personality.
a. wants
b. demands
c. self-concepts
d. desires
e. marketing offerings

12. As suggested in the “competitor map” methodology, when Kodak saw Fuji as its major competitor and did
not notice Sony, maker of digital cameras, Kodak was experiencing _____.
a. market-centered company
b. competitor myopia
c. market niche
d. strategic group
e. marketing intelligence

13. Today the four Ps are compared to the four Cs. Product and place are called _____ and _____ respectively.
a. convenience; customer solution
b. customer cost; convenience
c. communication; customer solution
d. customer solution; convenience
e. communication; convenience

14. The BCG market growth rate provides a measure of _____ in the GE approach.
a. business strength
b. competitor strength
c. industry attractiveness
d. market development
e. product development
15. Beyond simply retaining good customers, Mr. Sewell aimed at selling all or most cars that his customers
will ever buy in their lives. This is an example of
a. customer relationship marketing concept.
b. share of the customer concept.
c. lifetime value concept.
d. market share concept.
e. TQM concept.

16. Customer value is the difference between the benefits the customer gains from owning and using a product
and the _____.
a. cost of delivery of the product
b. cost of obtaining the product
c. cost of competing products
d. cost of the lost experience
e. price of the product

17. Companies can identify competitors from a _____ point of view. Here they define competitors as companies
that are trying to satisfy the same customer need or build relationships with the same customer group.
a. product
b. market nicher’s
c. market
d. database
e. strategic

18. ABC Company is now using the product/market grid. The owners have found it to be quite useful for
identifying _____.
a. target markets
b. growth opportunities
c. key customers
d. new products
e. suppliers

19. When your firm practices developing and maintaining a strategic fit between your organization’s goals and
capabilities, it is forming a(n) _____.
a. mission statement
b. values statement
c. strategic plan
d. short-term purpose
e. operating plan

20. According to the production concept, consumers will favor products that are _____ and _____.
a. satisfying; quality focused
b. high-performing; affordable
c. in high demand; hard to find
d. segmented; convenient
e. available; affordable

21. Marketing consists of actions taken to build and maintain desirable _____ with target audiences involving a
product, service, idea, or other object.
a. exchange transactions
b. exchange relationships
c. exchange processes
d. exchange privileges
e. exchange communication
22. A company starts the strategic planning process by defining its overall purpose and _____.
a. mission
b. values
c. vision
d. opinions
e. strengths

23. Michael Porter suggests certain basic competitive positioning strategies that companies can follow. Which
of the following is the losing one?
a. middle-of-the-roader
b. focus
c. overall cost leadership
d. differentiation
e. market follower

24. A negative side of a _____ is that a company becomes too reactive. Rather than carry out its own customer
relationship strategy, it bases its own moves on competitors’ moves.
a. competitor-centered company
b. customer-centered company
c. market-centered company
d. competitive marketing strategy
e. image-centered company

25. Most firms practice the selling concept when they face _____.
a. a crisis
b. a recession
c. fierce competition
d. overcapacity
e. marketing planning

26. Engin believes that consumers will not buy enough of the firm’s products unless the firm undertakes pushy
efforts. Engin’s firm is practicing the _____.
a. production concept
b. marketing concept
c. selling concept
d. relationship concept
e. social advertising campaign

27. This form of enlightened marketing requires that a company seek real product and marketing improvements.
a. consumer oriented
b. innovative
c. value
d. sense-of-mission
e. market oriented

28. A common practice among marketers is to increase sales to current customers without changing their
products. What is this practice called?
a. market skimming
b. market penetration
c. market development
d. product extension
e. production extension

29. Rolex watches is a clear cut example of _____.

a. market follower
b. direct marketer
c. sales promoter
d. market nicher
e. market analyzer
30. Some firms find themselves in markets with many low-margin customers. As assistant marketing director,
what type of CRM would you develop with these customers?
a. full partnerships
b. basic relationships
c. relationship marketing
d. key customer marketing
e. lifetime value

31. A concern with the four Ps is that it takes the _____ view and not the _____ view.
a. buyer’s; seller’s
b. broad; narrow
c. seller’s; buyer’s
d. traditional; modern
e. domestic; global

32. Which SBU produces a lot of cash that the company may use to support other SBUs that need investment?
a. stars
b. cash cows
c. question marks
d. dogs
e. profitable ones

33. Seza attempts to deliver customer satisfaction every day in her home electronics business. She is a smart
operator who knows that the key to this goal is to match _____ with _____.
a. customer expectations; competitive prices
b. company performance; competitive
c. customer expectations; company performance
d. company performance; unique products
e. relationship building; promotional tools

34. What do we call the collection of businesses and products that make up the company?
a. diversification
b. industry
c. business portfolio
d. departments
e. business markets

35. To gain _____ requires delivering more value and satisfaction to target consumers than competitors do.
a. competitive advantage
b. competitor analysis
c. benchmarking
d. market-centered company
e. positioning

36. Successful organizations base their missions on their _____.

a. distinctive competencies
b. strategic plans
c. long-term goals
d. values statements
e. value propositions

37. We can safely say that when a customer’s purchase lives up to his or her expectations, the customer is
experiencing this state of being.
a. customer value
b. self-esteem
c. self-actualization
d. customer satisfaction
e. delight
38. Which word is missing from the following statement? Marketers need to _____, create, communicate, and
deliver real value to customers.
a. find
b. define
c. explore
d. seek
e. construct

39. Approaches to marketing strategy and practice often pass through certain stages. Which is NOT one of these
stages?
a. entrepreneurial marketing
b. extrapreneurial marketing
c. formulated marketing
d. intrapreneurial marketing
e. all of the above are stages

40. In today’s marketplace, competition has shifted away from individual competition between companies to
competition among the entire _____.
a. value-delivery network
b. industry
c. market
d. global market
e. segment

41. You will learn that marketing ultimately involves attracting, keeping, and _____ profitable customers.
a. tracking
b. placing in a database
c. growing
d. satisfying
e. maintaining

42. Marketing organizations find it necessary at times to limit demand by reducing the number of customers or
to shift their demand temporarily or permanently. Name the term for this type of action.
a. debugging
b. deregulation
c. demarketing
d. gray marketing
e. integration

43. ABC Corporation realizes that they need partners to go beyond supply chain management. What do we call
this association?
a. strategic alliances
b. strategic planning
c. partnering
d. mutual reciprocity
e. reengineering

44. Zeynep works hard with her customers to surprise them beyond their expectations. She and her staff have
created _____ by going beyond the expected.
a. customer delight
b. customer satisfaction
c. customer equity
d. customer value
e. customer loyalty
45. Treacy-Wiersema strategies and Porter strategies match as pairs of “basic strategies” and “ways to achieve
them”. Which of the following is one of these pairs?
a. operational excellence – market follower
b. customer intimacy – differentiation
c. operational excellence – focus
d. product leadership – differentiation
e. consumer intimacy – market follower

46. Mr. Burton has learned by sad experience that his skateboard business approach was an example of _____.
a. market development
b. marketing myopia
c. positioning
d. segmentation
e. product development

47. The BCG relative market share serves as a measure of company _____ in the GE approach.
a. business strength
b. competitor strength
c. industry attractiveness
d. market development
e. product development

48. Which of these is not one of the common strategies of the BCG approach?
a. build
b. hold
c. harvest
d. diversity
e. invest

49. Surveys show that in markets with few customers and high margins, sellers want to create _____ type of
CRM with key customers.
a. basic relationships
b. relationship marketing
c. extreme partnerships
d. full partnerships
e. marketing myopia

50. When we practice _____, we arrange for a product to occupy a clear, distinctive, and desirable place relative
to competing products in the minds of target consumers.
a. positioning
b. target marketing
c. target segmenting
d. repositioning
e. product distribution

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