Question 1

Mars Corp., a New York-based soft drink manufacturer, decides to expand its operations to London and Delhi. However, the company decides to sell its existing soft drinks with the same packaging and flavors in these markets. In this scenario, the company is using a _____ strategy.

Accepted Answer

The company is using a market development strategy by entering new geographical markets (London and Delhi) with its existing products (soft drinks).

Question 2

What should a firm do to create a sustainable advantage based on product excellence?

Accepted Answer

Undertaking advertising and brand-building campaigns helps to reinforce the superiority of the product and creates a strong brand image in the minds of customers. This leads to increased brand loyalty and recognition, which ultimately results in a sustainable advantage for the firm.

Question 3

A group of firms that make and deliver a given set of goods and services is known as a _____.

Accepted Answer

A supply chain consists of various firms involved in the production and delivery of goods and services, from raw material suppliers to manufacturers and distributors. The supply chain works together to ensure that the customer receives the product or service they need in a timely and efficient manner.

Question 4

Which of the following activities is part of the place aspect of the marketing mix?

Accepted Answer

The place aspect of the marketing mix involves distribution and logistics, which includes coordinating between suppliers to ensure the product is available where and when customers need it.

Question 5

Which of the following statements is most characteristic of a firm that has a relational orientation?

Accepted Answer

A firm with a relational orientation focuses on building long-term relationships and lifetime profitability from customers. This approach values each customer transaction and prioritizes customer satisfaction over short-term sales tactics.

Question 6

CL Inc., an L.A.-based shoe manufacturer, develops a ready-to-wear clothing line and markets it in Britain. The company creates a completely new brand image for its clothing line as well. In this scenario, CL Inc. is using a _____ strategy.

Accepted Answer

CL Inc. is entering a new market (clothing in Britain) with a new product line (ready-to-wear clothing), which is an example of a diversification strategy.

Question 7

United Beverages opens a number of new outlets to market its beverage products across the country. This reflects the _____ aspect of the marketing mix.

Accepted Answer

The placement or distribution of a product is a crucial aspect of the marketing mix. United Beverages opening new outlets across the country shows that they are focused on expanding their reach, and ensuring their products are available to customers in different regions. This is an example of the "place" aspect of the marketing mix.

Question 8

A sustainable competitive advantage for a firm refers to:

Accepted Answer

A sustainable competitive advantage is an advantage that a firm possesses that is not easily copied and can be maintained over a long period of time, giving the firm a long-term edge over its competitors. Examples of sustainable competitive advantages include unique technology, brand recognition, economies of scale, and patents. Options A, B, D, and E do not fully describe a sustainable competitive advantage.

Question 9

The three major phases of the marketing plan are _____.

Accepted Answer

The three major phases of the marketing plan are planning (development of marketing goals and strategies), implementation (execution of the plan), and control (monitoring and modifying the plan if necessary). Option B refers to the product life cycle stages, option C refers to management functions, and option D refers to economic cycles. Option E refers to the three steps in market segmentation.

Question 10

Patisserrita is a family-owned chain of bakeries in the Northtown region. The chain sells luxury desserts and pastries that are priced at a permium. Bianca, one of the owners of the business, is considering expanding the business using a market penetration strategy. Which of the following will she do?

Accepted Answer

A market penetration strategy aims to increase market share by targeting existing customers or competitors' customers. Therefore, option B is the best choice as it involves targeting competitors' customers. Opening a franchise (option A) or opening a fast-food outlet (option E) would be examples of a market development strategy, creating new products (option C) would be a product development strategy, and developing a line of kitchenware (option D) would be a diversification strategy.

Question 11

Which of the following is a key difference between B2B and B2C buying processes?

Accepted Answer

B2C buying processes are generally less formal and involve simpler evaluation steps compared to B2B, which often requires detailed analysis and formal evaluation.

Question 12

Churches, educational organizations, and hospitals are considered _____ buyers.

Accepted Answer

Institutional buyers refer to organizations that purchase goods and services for their own use or for the benefit of their members, such as churches, educational organizations, and hospitals. While they are not corporations or government agencies, they are still considered organizational buyers with unique needs and purchasing criteria.

Question 13

Jim wants to sell his couch and posts an advertisement on an online portal with the details. He includes a photo of the couch and the price he is willing to sell for. Steve notices the ad and contacts Jim to buy the couch. This type of business process is known as _____.

Accepted Answer

This scenario describes a consumer-to-consumer (C2C) transaction, where one consumer (Jim) sells directly to another consumer (Steve) through an online platform.

Question 14

Customer relationship management refers to

Accepted Answer

Customer relationship management (CRM) refers to the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace. CRM involves building relationships and loyalty with customers through various strategies and tactics.

Question 15

The process of dividing the market into groups of customers with different needs, wants, or characteristics-who therefore might appreciate products or services geared especially for them-is called _____.

Accepted Answer

Market segmentation is the process of dividing the market into groups of customers with different needs, wants, or characteristics. This is done so that companies can create products or services that are tailored to the specific needs of each segment, resulting in higher customer satisfaction and sales. Positioning is the process of creating a specific image or identity for a brand in the minds of customers. Targeting is the process of selecting which segments to focus on with marketing efforts. Market penetration is the process of increasing sales in existing markets, while market development is the process of entering new markets with existing products.

Question 16

Which of the following firms is using a product development strategy?

Accepted Answer

Helios International is using a product development strategy by expanding its offerings within its current markets, adding fitness centers to its existing hotel business.

Question 17

Diversification refers to the marketing strategy of

Accepted Answer

Diversification involves selling new products to new markets. This strategy allows a company to expand its customer base and revenue streams by entering into new markets with new products. The other options listed involve selling either current products or current brands, which do not constitute diversification.

Question 18

The planning phase of the marketing plan involves

Accepted Answer

The planning phase of the marketing plan involves defining the mission and vision for the business, which sets the foundation for all subsequent marketing activities.

Question 19

Mars Inc., a retailer, maintains strong relationships with its suppliers. It has a strong supply chain and the company motto is ""We never miss our delivery dates."" In this scenario, Mars Inc. is achieving sustainable competitive advantage through a strategy of _____ excellence.

Accepted Answer

Mars Inc.'s focus on maintaining strong relationships with its suppliers and ensuring timely deliveries indicates a strong operational strategy, which is a type of excellence in achieving sustainable competitive advantage.

Question 20

Unibix Inc. is developing its marketing plan. The company has identified the segments in the market that it can pursue. Which of the following should the company do next if it follows a typical planning process?

Accepted Answer

After identifying the segments in the market, the next step in a typical planning process is to evaluate the attractiveness of each segment and select on which to focus marketing efforts. This allows the company to prioritize its resources and allocate them effectively. Options A, B, C, and E are important steps in the planning process but are not the immediate next step after identifying market segments.

Exam 1: Professional Certified Marketer