False True/ questions
Strategic planning is most effective when managers view it as an annual exercise False
Customer value is the ratio of benefits to the pleasure necessary to obtain those
benefits False
Having a global vision means management recognizes and reacts to international
marketing opportunities, is aware of threats from foreign competitors in all markets, and
effectively utilizes international distribution networks. True
For a retail operation requiring a storefront, the component of the marketing mix called
place is most important. True
All employees need to be customer-oriented because in the customer's eyes, the
employee is the firm and may be the only firm representative the customer ever sees.
True
Retailers who have give their sales clerks the authority to handle customer complaints
without having to get approval from a supervisor are using empowerment True
The ultimate goal of most marketing-oriented firms is profitability that results from
satisfying the wants and needs of its consumers. True
Although marketers cannot control the marketing mix, they can control the external
environment in which their organization operates. False
The phenomenon of working women has probably had a greater effect on marketing
than has any other social change. True
South-Western Publishing sells its business textbooks to college bookstores, which in
turn sell the books to students. South-Wester is engaged in business marketing. True
The emergence of the Internet has made buying and selling in business market is a
process that is only efficient for the largest producer to pursue. False
Consumable items that do not become part of the final product are called raw materials.
False
If consumer behavior is not well understood, a marketer will have difficulty creating an
appropriate marketing mix.
True
Selective distortion occurs when consumers change information that conflicts with their
feelings or beliefs. True
AkPharm, Inc. has developed Cat-Sip, a lactose-free milk designed to be digestible by
cats. The market for this product is cats. False
Geography, psychographics, and benefit sought are examples of possible segmentation
variables used by marketers. True
Use of the Internet can cut marketing research costs by 25 to 40 percent and provide
results in half the time it takes to do traditional telephone surveys. True
Competitive intelligence allows managers to predict changes in business relationships,
identify marketplace opportunities, and discover new or potential competitors. True
Disintermediation is the elimination of wholesalers and distributors from the marketing
channel. True
Multiculturalism occurs when all major ethnic groups in an area are roughly equally
represented. True
Recession is a general rise in prices with a corresponding increase in wages, which
results in decreased purchasing power. False
The concept of marketing is the idea that people give up something to receive
something. True
This is the Era of Generation "C", where "C" stands for CONTENT. True
Marketing is the process of planning and executing the conception, pricing, promotion,
and distribution of ideas, goods, and services to create exchanges that satisfy individual
and organizational goals. True
A marketing exchange cannot take place unless each party in the exchange has
something that the other party values. True
The marketing concept states that the social and economic justification for an
organization's existence is the satisfaction of customer's wants and needs while
meeting organizational objectives.
True
The marketing plan is a written document that acts as a guidebook of marketing
activities for a marketing manager. True
A common way to conduct a situation analysis is to perform a SWOT analysis, which
means examining the company's environments for strengths, weaknesses,
opportunities, and threats. True
A competitive advantage is some unique aspect of a firm's offering, or the firm itself, that
causes target customers to patronize the firm rather than its competition. True
If the Pillsbury Company started a major promotional campaign for its Green Giant
frozen vegetables with aggressive advertising and cents-off coupons to existing
customers, it would be following a market development strategy. False
Marketing strategy involves the activities of selecting and describing one or more target
markets and developing and maintaining a marketing mix that will produce mutually
satisfying exchanges with target markets. True
Having a cost advantage is a product or service differentiator that is hard to beat. True
Multiple choice questions
1. A _____ is a group of people or organizations that has wants and needs that can
be satisfied by particular product categories, has the ability to purchase these
products, and is willing to exchange resources for the products. b. market
2. The processes individuals use when making a purchase decision is called
___________. This is also the reason why individuals recognize and respond to
the lettering used on cans of Campbell's soups, the shape of the golden arches,
and the color of a can of Sprite. Perceptual mapping
3. Mike loves cola and is always on a diet. He will ONLY drink Diet Coke. When
offered a Diet Pepsi one afternoon as an alternative, he refused to even consider
it as part of his evoked set even though he generally drinks a soft drink about the
time of day the offer was made. This illustrates that Mike: has a need motivator
4. People tend to be more satisfied with a purchase if: an information search was
involved
5. The set of values, norms, attitudes, and other meaningful symbols that shape
human behavior and is transmitted from one generation to the next. Culture
6. Some marketers favor the shift away from the tangible hardware of the tradition 4
Ps toward the new 4 Cs, which are abstract and conceptual. Which of the
following is not consistent with the new age 4 "Cs"? a. co-creation b. community
c. choice d. co-mingling e. customization d. co-mingling
7. Businesses typically enter into strategic alliances to: a. gain access to markets or
technology b. facilitate faster entry of new products to market c. share financial
risks d. achieve economies of scale e. do all of these e. do all of these
8. Which of the following is NOT a source of sustainable competitive advantage: a.
patent b. copyright c. promotion d. customer service e. fashion fad e. fashion fad
9. Culture is the chief shaper and transmitter of: values
10. Which of the following statements about global marketing is true? a. Marketing to
target markets throughout the world has become an imperative for business b.
Often a U.S. firm's toughest domestic competition comes from foreign companies
c. Marketing managers must develop a global vision not only to recognize and
react to international marketing opportunities but also to remain competitive at
home d. Adopting a global vision can be lucrative for a company, and global
marketing can offset weak domestic performance e. All of these statements about
global marketing are true e. All of these statement about global marketing
are true
11. When Donnelly threatened to move its printing operation to China, where wages
are much lower, its union objected because its members' jobs were at risk.
Eventually, the union agreed to change work styles and to improve productivity to
keep the jobs at home. How did the fact Donnelly is a multinational corporation
create an advantage for the company? Its factory in Chine gave it the ability
to reduce its labor costs
12. The goal of the Free Trade Area of the Americas (FTAA) would be to: create
free-trade agreements between the United States and other industrialized
nations
13. Which of these is NOT a ranked characteristic of product quality based on
influence of value set? a. reliability b. durability c. high price d. brand e. ease of
use c. high price
14. Which method of entering the global marketplace would be LEAST risky? a.
exporting b. licensing c. contract manufacturing d. joint ventures e. direct
investment b. licensing
15. The manufacturer of Marlboro cigarette has given Japan Tobacco the legal right
to use tits trademarks and patents to manufacture Marlboro cigarettes in Japan.
For this right, Japan Tobacco pays a fee. This is an example of the use of ______
to enter an international market licensing
16. Franchising is a form of
licensing
17. Wal-mart has become the leading discount retailer in the United States and the
world by focusing on the customer's needs and wants. This philosophy is at the
heart of a _________ orientation Market
18. A defined group that managers feel is most likely to buy a firm's product Target
market
19. The environmental factors concerned with the changes in people's values,
lifestyles, and family roles Social Factors
20. Effective strategic planning requires a designated single time frame during the
year
21. Which of the following is NOT a demographic characteristic of a population? a.
income level b. age c. education d. lifestyle e. birth rate
d. lifestyle
22. Which of the following statements about ethnic and cultural diversity is true? a.
The Four Ps of marketing are not as useful as they used to be because there are
no longer mass markets to be targeted b. Marketers can no longer realize any
economies of scale because target markets are so fragmented and difficult to
define c. The increasing cultural diversity won't affect how most manufacturers
market their products d. Most immigrants readily embrace U.S. branded
products, and so mass marketing is still the best approach for most products e.
Now more than ever marketers can use each of the Four Ps to customize
marketing mixes for unique of segments the population
d. Most
immigrants readily embrace U.S. branded products, and so mass marketing
is still the best approach for most products
23. _______ is primarily responsible for the rise in disposable income in the United
States. a. Multiculturalism b. The personalized economy c. The increasing
number of dual-income families d. The aging of the baby boomers e. Global
competition c. The increasing number of dual-income families
24. The use of ethical decision making: a. can be influenced by top managers b. is
influenced by the probability of harmful outcomes c. depends on the number of
people to be affected d. depends on the magnitude of possible consequences e.
is accurately described by all of the above e. is accurately described by all of
the above
25. Corporate social responsibility is defined as the: development of inclusive
codes of ethics
26. The ratio of benefits to the sacrifice necessary to obtain those benefits. a.
Opportunity Cost b. Marketing utility c. Market quality d. Satisfaction percentage
e. None of the above answers e. None of the above answers
27. A strategy that entails forgoing long-term partnerships with customers
Relationship Marketing
28. Some marketing-oriented firms give employees expanded authority to solve
customer problems on the spot. This is known as: a. training b. deregulation c.
empowerment d. commissioning e. mediating c. empowerment
29. The primary tool used by a sales-oriented organization to achieve its corporate
goals Price
30. The U.S. Postal Service (USPS) argues that its express service is comparable to
what is offered by FedEx and that its prices are much lower. Yet, FedEx
dominates with more than a 45 percent share of the express-delivery market.
Which of the following statement describes this situation a. The USPS is
perceived as offering greater customer value b. The USPS should lower its prices
even further to increase market share c. FedEx and the USPS offer the same
customer valued. Customer value is not an issue in deciding which expressdelivery service to use e. FedEx is perceived as offering greater customer value
e. FedEx is perceived as offering greater customer value
31. The marketing mix strategy includes all of the following activities EXCEPT: a.
planning b. promotion c. price d. PLACE e. product
a. planning
32. Strategic plans require: a. the addition of new personnel b. a change in
organizational structure c. long-term resource commitments d. new product
development e. changes in prices
c. long-term resource commitments
33. Which of the following is one of the elements of the marketing plan? a. a
business mission statement b. situation analysis c. a target marketing strategy d.
the marketing mix e. all of the choices are correct
e. all of the choices are
correct
34. A popular technique for managing large organization with different technologies
and markets is to divide it into:
strategic business units
35. After management agrees on a mission statement, it must set objectives. Which
of the following is NOT a characteristic of a good objective? a. realistic b.
profitable c. measurable d. time-specific e. consistent b. profitable
36. For marketing objective to be realized, they must meet all of the following criteria
EXCEPT: a. be consistent with organization objectives b. be measurable c. be
attainable d. be challenging e. be set within a one-year time frame e. be set
within a one-year time frame
37. The SWOT acronym refers to a firm analysis of it's: strengths, weaknesses,
opportunities, threats
38. Aldi is a no-frills grocery chain. It sells grocery staples right out of crates and
boxes with emphasis on low-priced, private-label brands. Aldi stores are typically
about one-third the size of the traditional supermarket. By controlling expenses,
Aldi customers can expect to save 30 to 50 percent compared to Kroger
customers. The chain target bargain hunters who are willing to rent a cart and
bag their own groceries. Aldi has a(n): cost competitive advantage
39. A strategy of increasing market share for present products in existing markets
Market penetration
40. Due to several recent late spring freezes, orange growers in Florida have lost
millions of dollars. As a result, some growers have decided to bulldoze their
orange groves and put in freshwater lakes for raising shrimp, a product that has a
strong popularity and is more weather-resistant. Former orange growers who are
now raising shrimp are pursuing a _______ strategy. Diversification
41. The promotion element of the marketing mix deals exclusively with personal
selling, advertising, sales promotion, and public relations
42. Which of the marketing mix elements is most flexible? a. product b. promotion c.
publicity d. place e. price e. price
43. There is an overabundance of apartments in Atlanta. Post Properties, the owner
of the metropolitan area's largest apartment complexes, has reduced its rent so it
can fill vacant apartments. Which of the following types of strategies did Post
Properties use to create more demand for its apartments? Price strategies
44. Which of the following is a characteristic of Generation Y? a. Like to rent their
homes 3 or 4 years before buying a home b. Savvy and cynical, skeptical
consumers c. Born after World War II and before the Vietnam War d. Family
oriented e. They have a short attention span and need instant gratification b.
Savvy and cynical, skeptical consumers
45. Which of the following characteristic is NOT descriptive of Generation Y: a. Born
between 1979 and 1994 b. Children of "boomers" c. Distrust electronic and
technology d. Called the "young and the restless generation" e. Stress "time
management" c. Distrust electronic and technology
46. Marketing is a philosophy that stresses customer satisfaction
47. A set of activities used to implement a management orientation that stresses
customer satisfaction Customer management
48. The key term in the American Marketing Association's definition of marketing is:
exchange
49. Four competing philosophies strongly influence the role of marketing and
marketing activities within an organization. Which of the following is NOT a
marketing management philosophy? a. sales orientation b. societal marketing
orientation c. marketing orientation d. profitability orientation e. production
orientation d. profitability orientation
50. Data previously collected for purposes other than the one at hand are an
important source of information as the researcher defines the problem. These
data are called _____ data. Secondary
51. A true marketing decision support systems (DSS) should be: a. flexible b.
discovery-oriented c. interactive d. accessibility e. a DDS should be all of these
e. a DDS should be all of these
52. Which one of the following is not a characteristic of a Marketing Objective: a.
realistic b. related to competitor strategies c. measurable d. time specific e.
consistent with organization priorities b. related to competitor strategies
53. Marketing managers would typically use marketing research to : determine why
a new product failed
54. The first step in the marketing research process is to: a. define the marketing
problem to be studied b. collect the data c. analyze the marketplace d. plan the
research design e. specify the sampling plan a. define the marketing
problem to be studied
55. Firms with a ____ orientation focus on the internal capabilities of the firm rather
than on the desires and needs of the marketplace
production
56. Personal selling is pervasive in organizational markets because: e. many
organizational products are complex and require expertise on the
salesperson's part
57. A market is people or organizations that have: c. needs and wants and an
ability and willingness to buy
58. Market segmentation: a. is a scientific technique for selecting ways to attract
specific population samples
59. Which of the following is NOT one of the four criteria identified in the text for
successful market segmentation? c. targetability
60. Marketers use _____ to segment markets because this information is widely
available, and factors such as age or gender are often related to consumer
purchasing and consumption behavior. c. demographics
61. _____ is the development of a specific marketing mix to influence potential
customers' overall perception of a brand, product line, or organization in general,
and is related to the place a product occupies in consumers' minds relative to
competing offerings. d. Positioning
62. Income, ethnic background, gender, and age are all examples of _____
segmentation bases. c. demographic
63. Information that is collected for the first time for the purpose of solving a
particular problem under investigation is called _____ data. a. Primary
64. Competitive intelligence allows managers to: a. predict changes in business
relationships b. forecast a competitor's strategy c. learn about new technologies
that can affect their company d. learn about the impact of proposed government
legislation on their industry e. do all of these things
65. The U.S. government is: b. the world's largest single customer
66. One segment of the business market has primary goals that differ from the
ordinary business goals such as profit, market share, or return on investment.
This segment includes many schools, churches, and civic clubs and is often
called the _____ market. a. institution
67. If an increase or decrease in the price of a product does not significantly affect
demand for the product, the demand is called price: c. inelastic
68. Business marketers increasingly recognize the importance of _____ as a major
component of marketing strategies. a. customer service