Mktg Exam 1
PSU MKTG 301 Test #1 Spring 2012
True/False
Indicate whether the statement is true or false.
1. Sara Lee Industries spent considerable money and time developing crustless bread. Prior to the introduction, the company had not conducted market research among its customers, but it was confident that its science and technology department had produced a successful new product. Based on this example, Sara Lee is a good example of a production oriented company.
TRUE
2. While most marketing organizations rely on various forms of promotion to succeed, sales oriented organizations make the most effective use of their entire marketing mix. FALSE
3. The company’s objective is to spend ten percent of this fiscal year’s sales revenue on research and development in an effort to introduce at least five new products in the next fiscal year. This is an example of a well stated objective. TRUE
4. A competitive advantage is some unique aspect of a firm’s offering, or of the firm itself, that causes target customers to patronize the firm rather than its competition. TRUE
5. Berkshire Hathaway Inc., a large property insurance company, owns a large chain of jewelry stores and has recently purchased Russell, a manufacturer of sporting goods. Berkshire Hathaway Inc. uses a market penetration strategy. FALSE
6. Simon needed to rent a trailer for the weekend. Then he learned the rental company offered lower daily rates for seven day rentals. The rental company is clearly using a market development strategy. FALSE
7. Marketing strategies involve the activity of selecting or describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets. TRUE
8. Whenever faced with a difficult customer, the owner of a shoe store remembered what the original store founder, his grandfather, had done in similar situations and did the same. In other words, the grandson based his decisions on
True/False
Indicate whether the statement is true or false.
1. Sara Lee Industries spent considerable money and time developing crustless bread. Prior to the introduction, the company had not conducted market research among its customers, but it was confident that its science and technology department had produced a successful new product. Based on this example, Sara Lee is a good example of a production oriented company.
TRUE
2. While most marketing organizations rely on various forms of promotion to succeed, sales oriented organizations make the most effective use of their entire marketing mix. FALSE
3. The company’s objective is to spend ten percent of this fiscal year’s sales revenue on research and development in an effort to introduce at least five new products in the next fiscal year. This is an example of a well stated objective. TRUE
4. A competitive advantage is some unique aspect of a firm’s offering, or of the firm itself, that causes target customers to patronize the firm rather than its competition. TRUE
5. Berkshire Hathaway Inc., a large property insurance company, owns a large chain of jewelry stores and has recently purchased Russell, a manufacturer of sporting goods. Berkshire Hathaway Inc. uses a market penetration strategy. FALSE
6. Simon needed to rent a trailer for the weekend. Then he learned the rental company offered lower daily rates for seven day rentals. The rental company is clearly using a market development strategy. FALSE
7. Marketing strategies involve the activity of selecting or describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets. TRUE
8. Whenever faced with a difficult customer, the owner of a shoe store remembered what the original store founder, his grandfather, had done in similar situations and did the same. In other words, the grandson based his decisions on