Study Guide

Marketing
Sample Questions

Expand All | Collapse All

Competency 0001
Understand marketing communication.

1. A customer service representative works for a company that designs and produces cardboard packaging for customers' products. A project manager has just called the representative with some news saying that the work for a major customer is falling behind schedule due to difficulties encountered in printing the artwork on the packaging. The representative decides to contact the client. Which of the following strategies should the representative use when dealing with the client?

  1. displaying displeasure with his or her coworkers and informing the client that some problems have surfaced but that he or she is in contact with those who are responsible
  2. minimizing the nature of the problem while sending subtle messages to the client that the printed materials might be delayed for a short period of time
  3. letting the client know that problems have occurred and preparing a contingency plan along with a revised timeline for completing the project
  4. informing the client that a problem has arisen but that he or she cannot talk for long due to being actively engaged in the problem-solving process
Enter to expand or collapse answer.Answer expanded
Correct Response: C. In dealing with problems that arise between a business and its customers or clients, the clients should be informed of the problem, know what course of action should be taken to solve the problem, and how it is likely to affect scheduling. Informing the client of the problem, proposing steps to take to solve the problem, and providing a timeline is the best strategy for addressing this situation.

Competency 0002
Understand marketing concepts.

2. A small Web development company is gathering information about potential clients. The company is collecting information about local businesses and organizing the information in terms of whether the business is service based, a retail operation, or a manufacturing facility. The Web development company will use this information to determine the services that will best match each business's needs. Which of the following marketing concepts best describes this activity?

  1. market segmentation
  2. target marketing
  3. online marketing
  4. market positioning
Enter to expand or collapse answer.Answer expanded
Correct Response: A. The Web development company is engaged in business-to-business marketing; therefore, potential clients are other businesses. The company is looking at potential buyers of its product and is breaking that market down into smaller sections to determine the needs of each type of business. This is an example of the process of market segmentation.

Competency 0003
Understand economic principles.

Use the graph below to answer the question that follows.

Graph

3. The graph shows the supply and demand curves for a product just before a marketing company engages in a major advertising campaign for the product. If the campaign is successful, and assuming all other factors remain the same, which of the following should occur?

  1. curve 1 will shift to the right
  2. curve 1 will shift to the left
  3. curve 2 will shift to the right
  4. curve 2 will shift to the left
Enter to expand or collapse answer.Answer expanded
Correct Response: A. In the graph, curve 1 describes the demand for the product, showing that as the price for the product increases, the quantity demanded decreases. The primary purpose of advertising is to increase demand for a product or service. An increase in demand would cause curve 1 to shift to the right, which leads to an increase in the equilibrium price of the product as the intersection of the demand curve and the supply curve shifts.

Competency 0004
Understand core concepts of business and entrepreneurship.

4. Which of the following actions by a manager best illustrates the management function of controlling?

  1. delivering an inspirational speech to new employees during a company meeting
  2. assessing whether short-term goals for developing a new product line have been met
  3. analyzing data to help determine consumer buying trends for the next quarter
  4. assigning employees to a team that will develop marketing strategies for new products.
Enter to expand or collapse answer.Answer expanded
Correct Response: B. The management function of controlling is often defined as the process of monitoring performance and taking action to ensure desired results. Conducting an assessment to determine whether short-term goals for developing a new product line have been met is a good example of the monitoring performance aspect of this definition.

Competency 0005
Understand techniques of computation and quantitative analysis in marketing.

5. A salesclerk who sells farm machinery receives a wage of $7.50 per hour plus a commission of 1.5 percent of the retail value of each item that he sells. During one week, he works 36 hours and sells three pieces of machinery for $28,000, $15,000, and $33,000. What salary will the salesclerk earn for that week?

  1. $870
  2. $1,140
  3. $1,410
  4. $2,700
Enter to expand or collapse answer.Answer expanded
Correct Response: C. In this question, a salesclerk is paid both by the hour and on commission. The salesclerk works 36 hours during a week at a wage of $7.50 per hour. Therefore, the salesclerk's income for the week from this hourly wage is $7.50 × 36, or $270. During the week, the salesclerk sells three pieces of machinery for $28,000, $15,000, and $33,000 for a total of $76,000 in sales. The salesclerk earns a commission of 1.5 percent on his retail sales, so the commission earned for the week is 0.015 × $76,000, or $1,140. When added to the $270 in wages earned for the week, the salesclerk has earned a total of $1,410.

Competency 0006
Understand product/service management.

6. At which of the following stages in the product life cycle would a marketing strategy of differentiating the product by producing related product lines be most advantageous?

  1. Introduction
  2. Growth
  3. Maturity
  4. Decline
Enter to expand or collapse answer.Answer expanded
Correct Response: C. Differentiating a product by producing related product lines is most advantageous during the Maturity phase of a product's life cycle. During the Maturity phase, the product is well established, but sales are no longer increasing and will likely begin to decline as competing products capture a larger share of the market. Differentiating the product breaks up the target market for the product into a number of smaller niche markets, each with its own, more narrowly targeted, product. Although sales of each element of the product line will likely be less than those of the original product, the line of related products as a group may create a new period of sales growth.

Competency 0007
Understand the role of pricing in marketing.

Use the graph below to answer the question that follows.

The graph shows a break-even analysis for a product.
Graph

7. The graph shows a break-even analysis for cost-pricing a product. According to the graph, what profit can be expected on sales of 3000 units?

  1. $5,000
  2. $15,000
  3. $22,500
  4. $25,000
Enter to expand or collapse answer.Answer expanded
Correct Response: B. The graph shows how the fixed costs, the total costs, and the total revenue for a product depend on the number of units sold. Profit is calculated by subtracting the total revenue from the total costs. When 3000 units are sold, the total revenue is $40,000 and the total costs are $25,000. Subtracting $25,000 from $40,000 results in a profit of $15,000.

Competency 0008
Understand the role of channel management in marketing.

8. Which of the following is the best example of a vertical marketing channel?

  1. An online retailer sends goods directly from its warehouses to customers using a mail delivery service.
  2. A food-service company has an agreement with a chain of automobile service stations to place drive-through restaurants in its gas stations.
  3. An electronics company sends its products to warehouses that deliver the products to a variety of retailers.
  4. A furniture retailer owns and operates several factories where they manufacture and ship the furniture directly to its stores for sale.
Enter to expand or collapse answer.Answer expanded
Correct Response: D. A vertical marketing channel is one in which the main members of a channel distribution system work together as a unified team instead of competing against each other. Since the furniture retailer produces the products sold in its own stores, the retailer controls all the distribution channels and acts as a unified system.

Competency 0009
Understand the role of promotion in marketing.

9. In which of the following situations is a company most likely to use a strategy of informational product advertising?

  1. A consumer outlet shop wants to attract customers by offering a storewide sale over a holiday weekend.
  2. A clothing company wants to reduce its inventory by significantly lowering prices on a specific line of clothing.
  3. A lawn and gardening company wants to remind people that it offers a variety of spring products at competitive prices.
  4. An electronics company wants to introduce a new category of mobile devices to consumers.
Enter to expand or collapse answer.Answer expanded
Correct Response: D. A company that engages in informational product advertising does so to inform or educate customers about a product. This is done most often when a new type of product that is unfamiliar to customers is brought to market. If a company is releasing a new category of product, such as a new type of mobile device, it would use informational advertising to introduce the product and its features to the public.

Competency 0010
Understand techniques of selling.

10. A salesperson at a retail appliance store shows a potential customer the features of an oven and demonstrates how it can be programmed to perform a variety of functions. According to the steps in the personal selling process, which of the following steps should the salesperson take next?

  1. engaging the customer in pleasant conversation in an effort to generate goodwill
  2. responding to any objections the customer may have about purchasing the product
  3. describing the product's warranties including the features of any extended warranties
  4. asking the customer for his or her contact information to follow up with any questions he or she may have
Enter to expand or collapse answer.Answer expanded
Correct Response: B. After the customer has been approached, the salesperson presents the product to the customer, explains its value, and demonstrates how it will meet the customer's needs. Following the presentation step, the salesperson needs to be prepared to handle any customer objections, such as price concerns and product value. In the situation described, the salesperson has just completed the presentation step and needs to be prepared for the next step, which is handling objections.

Competency 0011
Understand principles of integrated marketing communications.

11. An independent restaurant that has traditionally advertised on local radio and in newspapers has decided to advertise on popular social media sites. The restaurant believes that the social media tools are likely to reach a younger audience than the more traditional advertising avenues. According to the principles of integrated marketing communication the restaurant should:

  1. develop different messages that are specifically designed for each demographic group.
  2. use the radio and newspaper ads to lead potential customers to the social media sites.
  3. focus most resources on the social media sites and slowly phase out radio and newspaper ads.
  4. create a marketing plan that presents a consistent message across all media.
Enter to expand or collapse answer.Answer expanded
Correct Response: D. Integrated marketing communication is an approach to present a well-coordinated and consistent marketing message. This is especially important given the complex nature of marketing and innovative technologies such as social media and mobile devices used in marketing communications. Companies may change the type of promotions they use to reach target markets on social media and mobile devices; however, companies use integrated marketing communication to deliver one consistent message to all of their customers.

Competency 0012
Understand the role of global marketing in the business environment.

12. A U.S. company is considering making a significant investment in exporting its goods overseas. Which of the following changes in the U.S. economy would pose the greatest risks to this plan?

  1. a rise in the value of the U.S. dollar relative to other currencies
  2. an increase in the productivity of U.S. workers
  3. a decrease in the unemployment rate of U.S. workers
  4. a reduction in short-term interest rates charged by U.S. banks
Enter to expand or collapse answer.Answer expanded
Correct Response: A. One important factor that helps determine the success of a company in exporting goods is the price of the goods in other countries. One risk facing U.S. companies that export goods is the value of the nation's currency relative to the currencies of other nations. A rise in the value of the U.S. dollar relative to the European euro, for example, would lead to higher prices for U.S. goods and services in European markets. Demand for U.S. goods and services in Europe would fall and the amount of U.S. exports to Europe would decrease.

Competency 0013
Understand marketing information management.

13. A marketing researcher would like to collect customers' impressions about a product that they have recently purchased. The researcher is developing a survey to be mailed to 10 percent of the customers. Which of the following topics is most relevant for the process of selecting customers for participation in the survey?

  1. database management
  2. search engine optimization
  3. random sampling theory
  4. structured query language
Enter to expand or collapse answer.Answer expanded
Correct Response: C. Every marketing research plan should have a section that addresses how the participants in a survey will be chosen. This is the realm of sampling theory, and random samples provide the most reliable and valid information. A random sample uses probability theory and allows researchers to estimate how confident they can be in using the results of the survey to make future marketing decisions.

Competency 0014
Understand career development and marketing careers in the business environment.

14. A marketing education teacher is planning a unit on careers and career development. In planning the scope and sequence of the unit, the teacher should have the students engage in which of the following activities first?

  1. completing an online assessment in which students answer questions about their strengths, interests, and preferences
  2. using a Web-based résumé builder to explore the characteristics of chronological, functional, and combination résumés
  3. performing a Web-based search in which students explore the skills and educational requirements of various positions in marketing
  4. learning the multimedia tools needed to create a digital portfolio that can be used to highlight and showcase products developed in class
Enter to expand or collapse answer.Answer expanded
Correct Response: A. The lesson should follow the same process that is used in developing a career plan. The first step in developing a career plan is to conduct a self-assessment. The goal of a self-assessment is for an individual to determine what kind of work he or she is interested in doing, what type of skills, strengths, or traits he or she has, and how these traits are manifested in various careers. There are many online assessment tools that can be used for this purpose.