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.
Page: 4
B
________ 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
Page: 5
A
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.
Page: 5
E
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
Page: 5
C
________ goods constitute the bulk of most countries' production and marketing efforts.
A) Durable
B) Impulse
C) Physical
D) Luxury
E) Intangible
Page: 5
C
As economies advance, a growing proportion of their activities focuses on the production of ________.
A) products
B) events
C) experiences
D) luxury goods
E) services
Page: 5
E
Car rental firms, hair dressers, and management consultants provide ________.
A) goods
B) experiences
C) events
D) services
E) information
Page: 5
D
The Soccer World Cup is promoted aggressively to both companies and fans. This is an example of marketing a(n) ________.
A) idea
B) place
C) luxury item
D) event
E) service
Page: 5
D
The "Malaysia, Truly Asia" ad campaign that showcased Malaysia's beautiful landscape and its multicultural society in order to attract tourists is an example of ________ marketing.
A) event
B) property
C) service
D) place
E) idea
Page: 6
D
In Walt Disney's Magic Kingdom, customers can visit a fairy kingdom, a pirate ship, or even a haunted house. Disney is marketing a(n) ________.
A) experience
B) service
C) event
D) organization
E) good
Page: 6
A
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
Page: 8
E
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
Page: 8
A
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
Page: 8
D
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
Page: 8
C
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
Page: 8
B
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
Page: 8
C
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
Page: 8
D
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
Page: 9
C
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.
Page: 9
E
A ________ is a cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries.
A) metamarket
B) vertically integrated market
C) horizontally integrated market
D) marketspace
E) synchronized market
Page: 9
A
Consider the real estate industry. The ________ for this industry includes construction companies, financing institutions, paint manufacturers, interior decorators, furniture manufacturers, and plumbing industries.
A) marketspace
B) latent market
C) need market
D) metamarket
E) geographic market
Page: 9
D
Automobile manufacturers, new car and used car dealers, financing companies, and insurance companies are all part of the automobile ________.
A) marketplace
B) marketspace
C) metamediary
D) marketportal
E) metamarket
Page: 9
E
________ are basic human requirements, while ________ are the ways in which those requirements are satisfied.
A) Wants; needs
B) Demands; wants
C) Needs; wants
D) Needs; demands
E) Demands; needs
Page: 9-10
C
When Frank buys his own house, he would like to have a home theater system and a jacuzzi. He plans to save enough money in the next three years so that he can fulfill his wish. Frank's desire for the home theater and the jacuzzi is an example of a(n) ________.
A) need
B) want
C) demand
D) unstated need
E) latent demand
Page: 9-10
B
When companies measure the number of people who are willing and able to buy their products, they are measuring ________.
A) demand
B) price elasticity
C) real needs
D) standard of living
E) disposable income
Page: 10
A
A(n) ________ need is one that the consumer is reluctant or unwilling to explicitly verbalize.
A) secondary
B) unstated
C) delight
D) secret
E) stated
Page: 10
D
A(n) ________ need is a need that the consumer explicitly verbalizes.
A) stated
B) affirmative
C) unsought
D) delight
E) secret
Page: 10
A
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
Page: 10
A
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
Page: 10
B
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
Page: 10
A
________ 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
Page: 10
B
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
Page: 10
D
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
Page: 10
E
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
Page: 11
A
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
Page: 11
C
The actual and potential rival offerings and substitutes that a buyer might consider are referred to as the ________.
A) supply chain
B) global market
C) value proposition
D) competition
E) marketing environment
Page: 11
D
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
Page: 11
D
In an attempt to create greater competition and growth opportunities, countries often ________.
A) increase trade barriers
B) protect industries
C) deregulate industries
D) encourage intermediation
E) reduce privatization
Page: 12
C
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
Page: 12
E
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
Page: 12
C
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
Page: 13
A
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
Page: 13
A
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
Page: 13
D
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
Page: 13
E
Each of the following is true about the Internet's impact on the way business is conducted today, EXCEPT one. Identify the exception.
A) It has facilitated high-speed communication among employees.
B) It has empowered consumers with easy access to information.
C) It can be used as a powerful sales channel.
D) It has facilitated mass marketing but not the sale of customized products.
E) It enables marketers to use social media to advertise their products.
Page: 14-15
D
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
Page: 15
A
Kotler and Casoline suggested eight factors that marketers must keep in mind in order to deal with risk and uncertainty. Which of the following statements are they most likely to agree with when the environment is uncertain?
A) Companies should be prepared to implement ad hoc strategies whenever required.
B) Companies should push aggressively for the market share of their competitors.
C) Companies should focus less on their core segments, and more on new target markets.
D) Companies should not increase marketing budgets in times of uncertainty.
E) Companies should focus and improve their marginal brands.
Page: 16
B
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
Page: 17
C
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
Page: 18
B
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
Page: 18
C
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
Page: 18
A
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
Page: 18
B
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
Page: 18
B
Webmax Inc. produced and marketed cameras. After considerable research and development, they developed a new digital camera that had an array of new features. Webmax was so sure about the new offering that they even reduced their marketing budget. What sort of orientation does Webmax have toward the marketplace?
A) production orientation
B) product orientation
C) selling orientation
D) marketing orientation
E) holistic marketing orientation
Page: 18
B
Rick Johnson trains his company's sales force to go after the consumer. He repeatedly asks his team to bear in mind the essential fact that it is the sales team's responsibility to rouse the consumer's interest and make him feel that he needs the product. A true salesman is one who can convert an indifferent consumer walking into the store into a new customer. Johnson believes in the ________ concept.
A) product
B) production
C) selling
D) marketing
E) social responsibility
Page: 18
C
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
Page: 18
D
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
Page: 18
B
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
Page: 18
D
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
Page: 18
A
________ 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
Page: 18
B
Which of the following is considered as a "sin" in the marketing discipline?
A) focusing too much on new opportunities
B) targeting a competitor's market share
C) prioritizing customer relationships over everything else
D) using technology in an inefficient manner
E) increasing the marketing budget in times of uncertainty and risk
Page: 19
D
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
Page: 19
C
________ 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
Page: 20
D
Tracy's is a chain of hair dressing salons for women. They use the television, magazines, radio, and newspapers to advertise their services. The owners ensure that all communication channels deliver a common message to prospective customers. Tracy's believes in ________.
A) internal marketing
B) integrated marketing
C) socially responsible marketing
D) global marketing
E) relationship marketing
Page: 20
B
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
Page: 20
C
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.
Page: 20-21
C
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
Page: 21
C
Financial accountability and social responsibility marketing are elements of ________.
A) performance marketing
B) relationship marketing
C) internal marketing
D) social marketing
E) mass marketing
Page: 22
A
Companies are recognizing that much of their market value comes from ________, particularly their brands, customer base, employees, distributor and supplier relations, and intellectual capital.
A) variable assets
B) value propositions
C) intangible assets
D) market offerings
E) industry convergence
Page: 22
C
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
Page: 22
C
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
Page: 22
C
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
Page: 24
C
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
Page: 25
E
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
Page: 25
D
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
Page: 25
E
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
Page: 25
A
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
Page: 27
B
________ activities include those the company undertakes to make the product accessible and available to target customers.
A) Line extension
B) Segmentation
C) Marketing research
D) Channel
E) New-product development
Page: 27
D
A marketer's only concern is how best to create demand for a new product produced by his company. Improving product design is not his responsibility.
Page: 4
false
A short definition of marketing is "meeting needs profitably."
Page: 5
true
Services constitute the bulk of most countries' production and marketing efforts.
Page: 5
false
The U.S. economy today consists of a 70-30 services-to-goods mix.
Page: 5
true
Place marketers include economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relations agencies.
Page: 6
true
Properties are tangible rights of ownership to either real property (real estate) or financial property (stocks and bonds).
Page: 6
false
"Friends Don't Let Friends Drive Drunk," is an example of marketing information to an interested audience.
Page: 7
false
Unwholesome demand occurs when consumers' purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.
Page: 8
false
When consumers share a strong need that cannot be satisfied by an existing product, they are exhibiting latent demand.
Page: 8
true
Advertising is the most important element in business marketing.
Page: 9
false
Companies selling their goods to nonprofit organizations often charge a premium over their normal prices because these organizations are largely indifferent to price.
Page: 9
false
Shops and stores have a physical existence and as such are examples of marketspace.
Page: 9
false
Wants are basic human requirements, such as food and shelter.
Page: 9-10
false
Demands are wants for specific products backed by an ability to pay.
Page: 10
true
Contrary to popular belief, marketers do not create needs.
Page: 10
true
The customer value triad consists of a combination of quality, durability, and price.
Page: 10
false
A distribution channel includes distributors, wholesalers, retailers, and agents that display, sell, or deliver the physical product or service(s) to the buyer or user.
Page: 11
true
The task environment of a firm consists of demographic, economic, natural, and technological environments, as well as the political-legal system and the social-cultural arena.
Page: 11
false
Regulation of industries has created greater competition and growth opportunities because the playing field has been leveled.
Page: 12
false
Industry boundaries are blurring at an incredible rate as companies are recognizing that new opportunities lie at the intersection of two or more industries.
Page: 12
true
The overabundance of information available on the Internet has made it more difficult for consumers to compare product features and prices.
Page: 13
false
Companies can facilitate and speed external communication among customers by creating online and off-line "buzz" through brand advocates and user communities.
Page: 14
true
The proliferation of targeted media and communication channels has allowed marketers to become much more aware of their target consumers' preferences and to customize both products and messages for individual consumers.
Page: 15
true
The production concept is one of the newest concepts in business.
Page: 18
false
The selling concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.
Page: 18
false
The selling concept holds that consumers will prefer products that are ethical, environmentally responsible, legal, and social in the context of marketing activities and programs.
Page: 18
false
The marketing concept stresses on finding the right customers for the company's products.
Page: 18
false
The selling concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies.
Page: 18
false
Relationship marketing aims to build mutually satisfying long-term relationships with key parties.
Page: 20
true
Attracting a new customer costs far more than retaining an existing one.
Page: 20
true
One of the key themes of integrated marketing is that there are very few marketing activities that can effectively communicate and deliver value.
Page: 20
false
Proponents of holistic marketing consider internal marketing to be as important as marketing to consumers.
Page: 21
true
Integrated marketing is the task of hiring, training, and motivating able employees who want to serve customers well.
Page: 21
false
Performance marketing requires understanding the financial and non-financial returns to business and society from marketing activities and programs.
Page: 22
true
Performance marketing involves reviewing metrics assessing market share, customer loss rate, customer satisfaction, and product quality in the evaluation of the effectiveness of marketing activities.
Page: 22
true
The social responsibility marketing concept 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.
Page: 22
true
Adapting and conducting business practices that protect the environment and human and animal rights is specifically a part of corporate social marketing.
Page: 24
false
Cause-related marketing involves donating a percentage of revenues to a specific cause based on the revenue occurring during the announced period of support.
Page: 24
true
Making gifts of money, goods, or time to help nonprofit organizations, groups, or individuals is known as corporate philanthropy.
Page: 24
true
The marketing-mix component called "people" reflects all the creativity, discipline, and structure brought to marketing management.
Page: 25
false
A firm's tangible offering to the market includes product quality, design, features, and packaging.
Page: 27
true