Marketing Management Chapter 1 MC

1) Which of the following statements about marketing is true?
A) It is of little importance when products are standardized.
B) It can help create jobs in the economy by increasing demand for goods and services.
C) It helps to build a loyal customer base but has no impact on a firm’s intangible assets.
D) It is more important for bigger organizations than smaller ones.
E) It is seldom used by nonprofit organizations.
B
Page Ref: 4
Objective: 1
Difficulty: Easy
2) ________ is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
A) Marketing management
B) Knowledge management
C) Operations management
D) Strategic management
E) Distribution management
A
Page Ref: 5
Objective: 2
Difficulty: Easy
3) Identify the correct statement about marketing management.
A) It is primarily concerned with the systematic gathering, recording, and analysis of data about issues related to marketing products and services.
B) It focuses mostly on monitoring the profitability of a company’s products and services.
C) It focuses solely on attaining an organization’s sales goals in an efficient manner.
D) It is defined as the field that deals with planning and managing a business at the highest level of corporate hierarchy.
E) It occurs when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties.
E
Page Ref: 5
Objective: 2
Difficulty: Moderate
4) A social definition of marketing says ________.
A) effective marketing requires companies to remove intermediaries to achieve a closer connection with direct consumers
B) a company should focus exclusively on achieving high production efficiency, low costs, and mass distribution to facilitate the broadest possible access to the company’s products
C) marketing is the process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others
D) marketing is the process of extracting the maximum value from consumers to facilitate corporate growth
E) marketing is the process of aggressive selling and promotion to encourage the purchase of products that might otherwise be unsought by the consumer
C
Page Ref: 5
Objective: 2
Difficulty: Easy
11) Janet is very upset that she can’t get tickets to the Rolling Stones concert because they are sold out. Which of the following demand states applies to Janet’s situation?
A) nonexistent demand
B) latent demand
C) full demand
D) unwholesome demand
E) overfull demand
E
Page Ref: 8
Objective: 2
AACSB: Analytic skills
Difficulty: Moderate
12) Sales of woollen clothing usually increase during the winter season and decline thereafter. This is an example of ________ demand.
A) irregular
B) declining
C) impulse
D) latent
E) negative
A
Page Ref: 8
Objective: 2
AACSB: Analytic skills
Difficulty: Moderate
13) Julia is worried about the rising pollution levels in her city. She doesn’t mind paying extra for goods and services that use sustainable processes to help control pollution. This is an example of ________ for pollution.
A) declining demand
B) nonexistent demand
C) latent demand
D) negative demand
E) unwholesome demand
D
Page Ref: 8
Objective: 2
AACSB: Analytic skills
Difficulty: Moderate
14) People in emerging countries today are becoming increasingly health conscious and are seeking healthy food choices. As a result, demand for health foods is rising steadily, creating an opportunity for marketers to exploit this ________ market.
A) demographic
B) business
C) need
D) geographic
E) service
C
Page Ref: 8
Objective: 2
AACSB: Analytic skills
Difficulty: Moderate
15) When consumers share a strong need that cannot be satisfied by an existing product, it is called ________.
A) negative demand
B) latent demand
C) declining demand
D) irregular demand
E) nonexistent demand
B
Page Ref: 8
Objective: 2
Difficulty: Moderate
16) When demand is ________, it implies that more customers would like to buy the product than can be satisfied.
A) latent
B) irregular
C) overfull
D) full
E) negative
C
Page Ref: 8
Objective: 2
Difficulty: Easy
17) In the case of ________, consumers dislike the product and may even pay a price to avoid it.
A) nonexistent demand
B) overfull demand
C) irregular demand
D) negative demand
E) declining demand
D
Page Ref: 8
Objective: 2
Difficulty: Easy
18) Organizations catering to the ________ need to price their offerings carefully because these markets usually have limited purchasing power.
A) business market
B) global market
C) nonprofit market
D) consumer market
E) exclusive market
C
Page Ref: 9
Objective: 2
Difficulty: Easy
19) Which of the following is true of business markets?
A) Buyers are usually not skilled at comparing competitive product offerings.
B) Buyers have limited purchasing power.
C) Property rights, language, culture, and local laws are the most important concerns.
D) Products sold in such markets are usually highly standardized.
E) Business buyers buy goods to make or resell a product to others at a profit.
E
Page Ref: 9
Objective: 2
Difficulty: Moderate
28) The identification and profiling of distinct groups of buyers who might prefer or require varying product and service mixes is known as ________.
A) segmentation
B) integration
C) disintermediation
D) cross-selling
E) customization
A
Page Ref: 10
Objective: 3
Difficulty: Moderate
29) Companies address needs by putting forth a ________, a set of benefits that they offer to customers to satisfy their needs.
A) brand
B) value proposition
C) deal
D) marketing plan
E) demand
B
Page Ref: 10
Objective: 3
Difficulty: Moderate
30) During market segmentation analysis, the marketer identifies which segments present the greatest opportunity. These segments are called ________.
A) target markets
B) capital markets
C) tertiary markets
D) demographic markets
E) developing markets
A
Page Ref: 10
Objective: 3
Difficulty: Moderate
31) ________ reflects a customer’s judgment of a product’s performance in relation to his or her expectations.
A) Brand equity
B) Satisfaction
C) Value
D) Perception
E) Brand image
B
Page Ref: 10
Objective: 3
Difficulty: Easy
32) The value of an offering is described as ________.
A) the price consumers are charged for a product
B) the cost of manufacturing a product
C) the degree to which consumer demand for a product is positive
D) the sum of the tangible and intangible benefits and costs to customers
E) the intangible benefits gained from a product
D
Page Ref: 10
Objective: 3
Difficulty: Moderate
33) When Volvo runs ads suggesting that its cars are the safest that money can buy, it is trying to ________.
A) segment the market
B) provide a service
C) enter new a new market
D) develop brand loyalty
E) position its product
E
Page Ref: 10
Objective: 3
AACSB: Analytic skills
Difficulty: Moderate
34) If a marketer uses warehouses, transportation companies, banks, and insurance companies to facilitate transactions with potential buyers, the marketer is using a ________.
A) service channel
B) distribution channel
C) communication channel
D) relationship channel
E) standardized channel
A
Page Ref: 11
Objective: 3
Difficulty: Moderate
35) The ________ is the channel stretching from raw materials to components to final products that are carried to final buyers.
A) communication channel
B) distribution channel
C) supply chain
D) service chain
E) marketing chain
C
Page Ref: 11
Objective: 3
Difficulty: Easy
37) The ________ includes the actors involved in producing, distributing, and promoting an offering. The main actors are the company, suppliers, distributors, dealers, and the target customers.
A) economic environment
B) management environment
C) strategic environment
D) task environment
E) tactical environment
D
Page Ref: 11
Objective: 3
AACSB: Analytic skills
Difficulty: Moderate
39) Rising promotion costs and shrinking profit margins are the result of ________.
A) new and improved technology
B) disintermediation
C) industry convergence
D) privatization
E) heightened competition
E
Page Ref: 12
Objective: 4
AACSB: Reflective thinking
Difficulty: Moderate
40) Industry boundaries are blurring rapidly as companies identify new opportunities at the intersection of two or more industries. This is called ________.
A) globalization
B) customization
C) industry convergence
D) disintermediation
E) privatization
C
Page Ref: 12
Objective: 4
Difficulty: Easy
41) The success of online purchasing resulted in ________ in the delivery of products and services by intervening in the traditional flow of goods through distribution channels.
A) disintermediation
B) diversification
C) reduced competition
D) deregulation
E) privatization
A
Page Ref: 13
Objective: 4
AACSB: Reflective thinking
Difficulty: Moderate
42) In response to threats from such companies as AOL, Amazon.com, Yahoo!, eBay, E*TRADE, and dozens of others, established manufacturers and retailers became “brick-and-click” oriented by adding online services to their existing offerings. This process is known as ________.
A) reintermediation
B) disintermediation
C) retail transformation
D) e-collaboration
E) new-market synchronization
A
Page Ref: 13
Objective: 4
Difficulty: Moderate
43) When eBay and Amazon.com cut out the majority of middlemen that normally would participate in the exchange process, it is an example of ________.
A) deregulation
B) reverse auctioning
C) reintermediation
D) disintermediation
E) diversification
D
Page Ref: 13
Objective: 4
AACSB: Use of IT
Difficulty: Moderate
44) Disintermediation via the Internet has resulted in ________.
A) higher prices
B) stronger brand loyalty
C) greater emphasis on personal selling
D) well-established brand names
E) greater consumer buying power
E
Page Ref: 13
Objective: 4
AACSB: Use of IT
Difficulty: Moderate
46) The ________ process consists of analyzing marketing opportunities, selecting target markets, designing marketing strategies, developing marketing programs, and managing the marketing effort.
A) marketing planning
B) strategic planning
C) market research
D) opportunity analysis
E) operational management
A
Page Ref: 15
Objective: 4
Difficulty: Moderate
48) What are customer touch points?
A) all aspects of the offering that directly affect consumer preferences
B) all needs and wants of customers
C) all direct or indirect interactions between the customer and the company
D) all interactions between customers and competitors
E) all factors that affect buying behavior
C
Page Ref: 17
Objective: 4
Difficulty: Moderate
49) Which of the following holds that consumers prefer products that are widely available and inexpensive?
A) the product concept
B) the production concept
C) the selling concept
D) the performance concept
E) the marketing concept
B
Page Ref: 18
Objective: 4
Difficulty: Moderate
50) Managers of ________ businesses concentrate on achieving high manufacturing efficiency, low costs, and mass distribution.
A) selling-oriented
B) product-oriented
C) production-oriented
D) marketing-oriented
E) consumer-oriented
C
Page Ref: 18
Objective: 4
AACSB: Reflective thinking
Difficulty: Moderate
51) The ________ concept holds that consumers will favor offerings with the best quality, performance, or innovative features.
A) product
B) marketing
C) production
D) selling
E) holistic marketing
A
Page Ref: 18
Objective: 4
Difficulty: Easy
52) Which of the following categories of goods and services is most likely to require an aggressive use of the selling concept?
A) shopping goods
B) unsought goods
C) necessary goods
D) luxury goods
E) complementary goods
B
Page Ref: 18
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
53) As a major steel manufacturer, SteelMakers Inc. focuses on having the most efficient manufacturing processes in place. The company believes that its competitive edge lies in its ability to offer the best prices. They also maintain an excellent distribution network that ensures wide availability of their products. SteelMakers has a ________.
A) selling orientation
B) production orientation
C) product orientation
D) marketing orientation
E) social orientation
B
Page Ref: 18
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
56) Marketers at Johnny Inc. believe in putting their customers ahead of everything else. Their products are carefully designed to meet customer requirements and the entire focus is on achieving customer satisfaction. Johnny Inc., follows the ________ concept in doing business.
A) production
B) product
C) selling
D) marketing
E) social responsibility
D
Page Ref: 18
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
57) The ________ concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization’s products.
A) production
B) selling
C) marketing
D) product
E) holistic marketing
B
Page Ref: 18
Objective: 4
Difficulty: Easy
58) Identify the concept that emerged in the mid-1950s as a customer-centered, sense-and-respond philosophy.
A) the product concept
B) the production concept
C) the selling concept
D) the marketing concept
E) the holistic marketing concept
D
Page Ref: 18
Objective: 4
Difficulty: Moderate
59) The marketing concept holds that ________.
A) a firm should find the right products for its customers, and not the right customers for its products
B) customers who are coaxed into buying a product will most likely buy it again
C) a new product will not be successful unless it is priced, distributed, and sold properly
D) consumers and businesses, if left alone, won’t buy enough of the organization’s products
E) a better product will by itself lead people to buy it without much effort from the sellers
A
Page Ref: 18
Objective: 4
Difficulty: Moderate
60) ________ is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies.
A) Niche marketing
B) Holistic marketing
C) Relationship marketing
D) Supply chain marketing
E) Demand-centered marketing
B
Page Ref: 18
Objective: 4
AACSB: Reflective thinking
Difficulty: Moderate
62) What are the four broad components of holistic marketing?
A) relationship, internal, position, and performance marketing
B) integrated, internal, position, and performance marketing
C) relationship, integrated, internal, and performance marketing
D) integrated, relationship, social responsibility, and position marketing
E) relationship, social responsibility, internal, and performance marketing
C
Page Ref: 19
Objective: 4
Difficulty: Moderate
63) ________ marketing aims to build mutually satisfying long-term collaboration with key constituents, such as customers, employees, suppliers, distributors, and other marketing partners, in order to earn and retain their business.
A) Integrated
B) Demand-based
C) Direct
D) Relationship
E) Internal
D
Page Ref: 20
Objective: 4
Difficulty: Easy
65) The ultimate outcome of relationship marketing is a unique company asset called the ________, consisting of the company and its supporting stakeholders.
A) brand
B) supply chain
C) marketing network
D) value proposition
E) service channel
C
Page Ref: 20
Objective: 4
Difficulty: Moderate
66) Which of the following is most consistent with the integrated marketing approach?
A) A good product will sell itself.
B) If left alone, consumers are inclined to purchase only inexpensive products.
C) All communication to consumers must deliver a consistent message irrespective of the medium.
D) In order to succeed, the main focus should be on having an efficient production process in place.
E) Online marketing is less important than traditional marketing efforts.
C
Page Ref: 20-21
Objective: 4
Difficulty: Moderate
67) Which aspect of holistic marketing motivates employees and ensures that everyone in the organization embraces appropriate marketing principles, especially senior management?
A) relationship marketing
B) integrated marketing
C) internal marketing
D) network marketing
E) performance marketing
C
Page Ref: 21
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
68) Financial accountability and social responsibility marketing are elements of ________.
A) performance marketing
B) relationship marketing
C) internal marketing
D) social marketing
E) mass marketing
A
Page Ref: 22
Objective: 4
Difficulty: Moderate
70) Holistic marketing incorporates ________, an understanding of broader concerns in the ethical, environmental, legal, and social context of marketing activities.
A) internal marketing
B) cultural marketing
C) social responsibility marketing
D) relationship marketing
E) integrated marketing
C
Page Ref: 22
Objective: 4
Difficulty: Easy
71) The ________ holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being.
A) selling concept
B) integrated marketing concept
C) social responsibility marketing concept
D) production concept
E) relationship marketing concept
C
Page Ref: 22
Objective: 4
AACSB: Analytic skills
Difficulty: Easy
72) Joanna owns a chain of fast-food joints. As the chain became more and more successful, she decided to contribute a share of her profits each year to support cancer research. This is an example of ________.
A) corporate community involvement
B) environmental marketing
C) cause-related marketing
D) benefit marketing
E) responsible marketing
C
Page Ref: 24
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
73) McCarthy classified marketing activities into the four Ps of the marketing mix. These four Ps stand for ________.
A) product, positioning, place, and price
B) product, production, price, and place
C) promotion, place, positioning, and price
D) place, promotion, production, and positioning
E) product, price, promotion, and place
E
Page Ref: 25
Objective: 4
Difficulty: Easy
74) Incorporating the holistic view of marketing, the four Ps of the marketing mix can be updated to ________.
A) product, positioning, people, and price
B) people, processes, place, and promotion
C) product, processes, price, and people
D) people, processes, programs, and performance
E) product, price, promotion, and people
D
Page Ref: 25
Objective: 4
AACSB: Multicultural diversity
Difficulty: Moderate
75) Which of the following reflects the “people” component of the marketing mix?
A) the creativity, discipline, and structure brought to marketing management
B) the development of new products by the marketers
C) the firm’s consumer-directed activities
D) the right set of processes to guide activities and programs within the firm
E) the internal marketing of the firm
E
Page Ref: 25
Objective: 4
AACSB: Reflective thinking
Difficulty: Moderate
76) Which of the four new Ps encompasses the old four Ps as well as a range of other marketing activities that might not fit well into the old view of marketing?
A) programs
B) processes
C) promotion
D) people
E) performance
A
Page Ref: 25
Objective: 4
Difficulty: Moderate
77) At the heart of any marketing program is the firm’s ________, its tangible offering to the market.
A) strategy
B) product
C) brand
D) value
E) people
B
Page Ref: 27
Objective: 5
Difficulty: Easy