MKTG Chapter 1

Marketing is the process of:

A) promoting products through personal selling and advertising to develop and maintain favorable relationships with customers and stakeholders.
B) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.
C) delivering a standard of living to a society.
D) creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm’s objectives.
E) focusing on customers’ needs.

b) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.
The focal point of all marketing activities is

A) Products
B) The marketing mix
C) profits
D) sales
E) customers

E) customers
Which of the following best describes Nintendo’s initial strategy when introducing the Wii?

A) Increase its sales of software to current gamers
B) Increase its sales of game consoles to the under-25 market
C) Increase its sales of game consoles by broadening the appeal of gaming to all ages

C) Increase its sales of game consoles by broadening the appeal of gaming to all ages
The definition of marketing implies that ______ should receive benefits from exchange relationships.

A) only customers
B) only businesses
C) company management
D) both customers and businesses
E) only the most important customers

D
The primary value that a marketer expects to receive from a customer in an exchange relationship is

A) the price charged for the product.
B) customer satisfaction.
C) references to other potential customers.
D) quality merchandise that meets expectations. E) few returns of the merchandise purchased.

A
A target market

A) involves a large number of customers
B) is a specific group of customers on whom a company focuses its marketing efforts.
C) already has several competitors vying for customers’ business.
D) is the same as a salesperson’s prospective client list.
E) is a customer group classified as people with similar demographic characteristics.

B
Coca-Cola is aiming its Diet Coke Plus (with vitamins and minerals) at health-conscious customers. These health-conscious customers represent Coke’s

A) audience.
B) sales alternative.
C) business group.
D) target market.
E) focus group.

D
SunnyD is aimed at mothers with children under age twelve. These mothers represent SunnyD’s

A) target market.
B) consumer advocates.
C) marketing strategy.
D) marketing mix.
E) marketing tactic.

A
Distribution, price, promotion, and product are all elements of

A) marketing strategy.
B) the marketing mix.
C) a target market.
D) a consumer good.
E) a business strategy.

B
A marketing manager decides what combination of variables is needed to satisfy customers’ needs for a general type of product. What are the essential variables that the marketing manager combines?

A) Product, price, distribution, and promotion variables
B) Marketing environment variables
C) Product and promotion variables
D) Product, price, and customer variables

A
The marketing Mix is built around the

A) product.
B) company.
C) customer.
D) employee.
E) retail outlet.

C
Marketing managers strive to develop a marketing mix that

A) minimizes marketing costs.
b) matches what competitors are offering.
c) best matches the abilities of the firm.
d) matches the needs of the target market.
e) generates the highest level sales.

d
The product variable of the marketing mix can include all of the following except

a) creation of brand names.
b) consumer perception of the product price.
c) development of product packaging.
d) warranty issues.
e) repair services.

b
The three basic forms that a product can take are

a) markets, products, and images.
b) goods, ideas, and intangibles.
c) brands, services, and tangibles.
d)services, ideas, and goods.
e)ideas, services, and things.

d
A physical product you can touch is a(n)

a) service.
b) good.
c) idea.

b
The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n)

a)issue.
b) experience.
c)idea.
d) good.
e) service.

e
Which of the following companies is the best example of a service marketer?

a)fedex
b) sony
c)abercrombie

a
Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets

a)goods.
b)ideas.
c)services.
d)political figures.

b
The Church of the Latter Day Saints has used advertising for many years to market its

a)goods.
b)services.
c)experiences.
d)production.
e)ideas.

e
Which of the following is most likely to be an idea marketer?

a) Car salesperson
b) Airline pilot
c) Attorney
d) Abuse counselor

d
Deciding to add gel insoles to its running shoes would be a change in the _____ element of the marketing mix for Nike.

a)price
b) good
c) product
d) promotion
e) distribution

c
Issues of inventory levels and storage costs are both concerns relating to the _____ variable of the marketing mix.

a)price
b) good
c) product
d) promotion
e) distribution

e
Making modifications to packaging or brand names involves the _____ component of the marketing mix.

a)price
b) good
c) product
d) promotion
e) distribution

c
Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the Midwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This most closely represents a decision about

a) which market he should target.
b) the best way to distribute his products.
c) how to effectively promote his business.

b
Consumers buying products online have dramatically affected the ___________ variable of the marketing mix.

a)price
b) good
c) product
d) promotion
e) distribution

e
Changing the hours of operation for a service business involves the _____ component of the marketing mix.

a)price
b) good
c) product
d) promotion
e) distribution

e
Which of the following scenarios involves the distribution element of the marketing mix?

a) Deciding whether or not a certain product should continue to be sold
b) Determining whether an advertising message would be more effective on television or in magazines
c) Choosing between a company jet or the airlines for executive travel
d) Deciding whether or not to have retail outlets in addition to a website
e) Developing a new warranty policy for an existing product

d
The element of the marketing mix used to increase awareness of a product or company is

a)communication.
b)product.
c) price.
d) distribution.
e) promotion.

e
When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product’s benefits. This calls for activity in which of the following marketing mix variables?

a)communication.
b)product.
c) price.
d) distribution.
e) promotion.

e
Boca Burger’s website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ______ marketing tool.

a) promotional
b) distributional
c) pricing
d) targeting
e) production

a
When Burger King offers 99-cent Whoppers to increase store traffic, it is altering which aspect of the marketing mix?

a) Price
b) Promotion
c) Distribution
d) Product
e) Target market

a
When DataComp Corp., a producer of computer software, delayed the introduction of its new spreadsheet program to modify the package, its scheduled magazine advertisements announcing the new product needed to be revised. In this case, a change in the ___________ variable caused changes in the ___________ variable of the marketing mix.

a) distribution; promotion
b) distribution; product
c) product; price
d) product; promotion
e) promotion; price

d
Marketers often speak of the “controllable” variables in the practice of marketing. Which of the following is not considered one of the controlled variables?

a) Product
b) Price
c) Distribution
d) Competition
e) Promotion

d
The concept of “exchange” is fundamental to the definition of marketing. What is the best description of exchange?

a) Activities that are performed primarily by producers and manufacturers
b) Development of products, distribution channels, promotional strategies, and pricing objectives to satisfy customer requirements
c) Transfer of products in return for monetary considerations
d) Provision or transfer of goods, services, or ideas in return for something of value

d
Mark goes to a vending machine, deposits $1.00, and receives a Sprite. Which one of the following aspects of the definition of marketing is illustrated here?

a) Production conception
b) Satisfaction of organizational goals
c) Distribution of ideas
d) Product planning
e) Exchange

e
Marketing facilitates exchange relationships between buyers and sellers. What is marketing’s intended outcome for this relationship?

a) Profits for the seller
b) A good bargain on the product for the buyer c) Reducing the seller’s inventory
d) One party having to compromise in the exchange
e) Satisfaction for both the buyer and seller

e
Which of the following statements about marketing environment forces is not correct?

A) They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products.
b) They may influence customers’ reactions to a firm’s marketing mix.
c) They fluctuate slowly and thereby create threats to a firm’s marketing mix.
d) They can fluctuate quickly and dramatically.

c
The forces of the marketing environment include

a) political, legal and regulatory, sociocultural, technological, economic, and competitive.
b) sociocultural, legal, regulatory, economic, and competitive.
c) legal, regulatory, political, and sociocultural.
d) competitive and noncompetitive forces that affect most lifestyles.
e) fairly static components.

a
A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal, sociocultural, and economic forces on the firm’s operations. The marketing manager is examining the ___________ that influence(s) the firm’s strategy.

a)operating situation b)marketing environment c)surroundings
d)economic conditions e)trends

b
Which of the following best characterizes the forces of the marketing environment?

a)The forces are relatively stable over time and are interrelated with one another.
b)There are few overlapping aspects of these forces; therefore, a change in one is unlikely to result in a change in another.
c)The various forces ensure that the marketing environment will remain fairly certain in the future.
d)These forces change dramatically over time, but a change in one force is unlikely to impact another force.
e)The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.

e
A change in the minimum drinking age in any given state illustrates a change in the ___________ for Miller Brewing.

a) marketing mix
b) marketing environment
c) marketing concept
d) marketing task
e) product concept

b
Which of the following is essentially an uncontrollable factor in developing a marketing mix?

a) Product adaptations
b) Pricing strategies
c) Government regulations
d) Advertising campaigns
e) Retail locations

c
The forces of the marketing environment primarily affect marketers in three ways: They influence customers by affecting their lifestyles and preferences for products; they determine whether or how a marketing manager can perform certain marketing activities; and they

a) affect a marketing manager’s decisions and actions by influencing buyers’ reactions to the firm’s marketing mix.
b) dictate that changes be made to the existing marketing mix despite any negative reactions from customers.
c) make most new products obsolete very quickly so that research and development must continually develop new products.

a
The marketing environment is best described as being

a) composed of controllable variables.
b) composed of variables independent of one another.
c) an indirect influence on the performance of marketing activities.
d) dynamic and changing.
e) slow, with infrequent fluctuations.

d
The marketing concept is best defined as

a) a second definition of marketing.
b) a philosophy stating that an organization should try to satisfy customers’ needs through a coordinated set of activities that allows the organization to achieve its goals.
c) the performance of business activities that direct the flow of goods and services from producer to customer or user.
d) a philosophy stating that an organization should attempt to accomplish its goals with no regard for the needs of customers.

b
According to the marketing concept, an organization should try to

a) consider short-run objectives and cash flow needs before developing new products.
b) define its business as “making a product.”
c) provide products that satisfy customers’ needs and allow the organization to achieve its goals.

c
The marketing concept is a management philosophy that affects

a) only marketing activities.
b) all efforts of the organization.
c) mainly the efforts of sales personnel.
d) mainly customer relations.
e) only business organizations.

b
The marketing concept focuses on

a) achieving the goals of top executives.
b) creating maximum visibility for the firm.
c) maximizing sales.
d) maximizing market share.
e) satisfying customers’ needs in a way that helps to achieve organizational objectives.

e
The marketing concept is a philosophy that states that an organization should try to satisfy customers’ needs and also

a) increase market share.
b) increase sales.
c) achieve the organization’s goals.
d) produce high-quality products.
e) coordinate its activities to increase production.

c
Which one of the following statements by a company president best reflects the marketing concept?

a) We have organized our business to make certain that customers get what they want.
b) We believe that the marketing department must organize to sell what we produce.
c) We have organized an aggressive sales force in our company to promote our products.

a
The marketing concept affects

a) just the marketing department.
b) all organizational activities.
c) only marketing and finance.

b
The marketing concept is
a management philosphy
As the Industrial Revolution came to the United States, most firms operated in a(n) ___________ orientation.

a) marketing
b) societal
c) sales
d) evolutionary
e) production

e
During the Industrial Revolution demand for manufactured goods was

a)weak.
b) nonexistent.
c) declining.
d) strong.

d
From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ______ orientation.

a)production
b) marketing
c) revolutionary
d) sales
e)reduction

d
A marketing orientation is an organization-wide effort that includes all of the following activities except

a) researching customers’ needs.
b) focusing on the marketing department only.
c) generating marketing intelligence for use in the organization.
d) being responsive to customers’ ever-changing wants and needs.
e) disseminating marketing intelligence across departments within the organization.

b
Which of the following best describes the acceptance of the marketing concept by American organizations?

a) The marketing concept has yet to be fully accepted by all organizations.
b) All organizations fully utilize the marketing concept to run their businesses.
c) Nearly half of all organizations are still in the sales orientation and have not implemented the marketing concept.

a
Which of the following is not an example of the implementation of the marketing concept?

a) jimmy deans
b) mars candy
c) burger king
d) microsoft
e) saab

c
Marketers use the term “___________” to describe establishing long-term, mutually satisfying buyer-seller relationships.

a) relationship marketing
b) customer service
c) marketing management
d) exchange
e) utility

a
Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as

a) marketing synthesis.
b) relationship marketing.
c) a marketing orientation.
d) the marketing concept.
e)strategic marketing.

b
In managing customer relationships, the three primary ways profits can be obtained are by

a) acquiring new customers, enhancing the profitability of new customers, and shortening the duration of relationships with existing customers.
b) enhancing the profitability of existing customers, eliminating customers who provide smaller profits, and finding new customers.
c) extending the length of relationships with customers, cutting organizational costs, and enhancing the profitability of new customers.
d) eliminating long-term customers who have decreased purchases, finding new customers, and increasing sales to existing customers.
e) enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.

e
Customer relationship management (CRM) begins its focus on customers with

a) communication.
b) product.
c) distribution.
d) information.
e) promotion.

d
Long-term relationships with profitable customers is the key objective of

a) personal selling.
b) customer relationship management.
c) production oriented firms.
d) e-marketing.
e) distribution channels.

b
Customer relationship management focuses on using ___________ about customers to create marketing strategies.

a)internal communication b)information
c)purchasing power insights d)marketing mix knowledge e)implementation knowledge

b
________ is a customer’s subjective assessment of benefits relative to costs in determining the worth of a product.

a) Marketing orientation
b) Monetary price
c) Product assessment
d) Price assessment
e) Value

e
The equation a buyer applies to assess a product’s value is

a) value = monetary price – customer benefits.
b) value = customer costs – customer benefits.
c) value = customer benefits – customer costs.

c
Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is

a) risk
b) time
c) monetary price
d) effort

c
Which of the following would not be a customer cost considered in determination of product value?

a) Product’s purchase price
b) Time spent purchasing the product
c) Effort spent purchasing the product
d) Benefits received in the exchange for the products

d
Marketing management is defined as a process of

a) providing products that satisfy customers’ needs through a coordinated set of activities.
b) facilitating satisfying exchanges between an organization and its customers.
c) planning, organizing, implementing, and controlling marketing activities.

c
______ is the degree to which an exchange helps achieve an organization’s objectives.

a) Controlling
b) Effectiveness
c) Success rate

b
______ refers to minimizing the resources an organization must spend to achieve a specific level of desired exchanges.

a) Effectiveness
b) Productivity
c) Efficiency
d) Objectivity
e)Cost cutting

c
A systematic process of assessing opportunities and resources, determining marketing objectives, and developing a marketing strategy and plans for implementation and control describes which of the following marketing management activities?

a)Strategic planning
b) Marketing control
c) Implementation
d) Organizing
e) Planning

e
Developing the internal structure of a firm’s marketing unit relates to which of the following marketing management activities?

a) Marketing control
b) Implementation
c) Organizing
d) Planning
e) Managing

c
_________ of marketing plans hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the marketing unit.

a) Marketing control
b) Implementation
c) Organizing
d) Planning
e) Strategic planning

b
_________ is the process of establishing performance standards, comparing actual performance with established standards, and reducing the difference between desired and actual performance.

a) Internal control analysis
b) Marketing control
c) Market flow regulation
d) Environmental market analysis

b
The Internet has been used as a search engine to find information about a marketer’s product or service by about ____ percent of adults in the U.S.

a) 65
b) 78
c) 82
d) 91
e) 99

d
Initiatives intended to improve an organization’s positive impact on society and the natural environment are called

a) environmental marketing
b) green marketing
c) socially-responsible marketing
d) energy-conscious marketing

b
Online sales account for about ____ percent of all retail sales in the U.S.
5
For most firms, the costs of marketing activities consume approximately what portion of the consumer’s dollar?

a) one-half
b)one-fifth
c) one-third

a
In today’s market environment, you might pay $15 for a CD by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)?

a)$1.70
b) $3.40
c) $5.10
d) $7.50
e)$12.75

d
Marketing activities are

a) used by all sizes of organizations including for-profit, nonprofit, and government agencies.
b) limited to use by larger for-profit and nonprofit organizations.
c) implemented only to increase profits for the organization and to expand the scope of its customer base.
d) used by all types and sizes of businesses but are not used by nonprofit organizations.

a
Marketing activities

a) are aimed at persuading customers through advertising.
b) involve mainly distribution and promotion decisions.
c) and selling activities are basically the same.
d) are important only when a firm is developing new products or entering new markets.
e) help sell an organization’s products and generate financial resources for the firm.

e
Marketing knowledge and skills

a) are not necessary for a nonprofit organization.
b) enhance consumer awareness and help provide people with satisfying goods and services.

b
Approximately what percentage of civilian workers in the United States performs marketing activities?

a) 25 to 33 percent
b) 81 to 92 percent
c) 42 to 50 percent

a