Marketing chapter 1
8. The most basic concept underlying marketing is that of: a. products and services. b. human needs. c. barter. d. transactions.
b
61. Selling is the delivery of customer satisfaction at a profit.
FALSE
63. Marketing is really only selling and advertising.
FALSE
64. Selling is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others.
FALSE
66. A want is a state of felt deprivation.
FALSE
69. A demand is anything that can be offered to a market to satisfy a need or want.
FALSE
70. The concept of a product is limited to physical objects.
FALSE
72. The difference between the values the customer gains from owning and using a product and the costs of obtaining the product is called customer satisfaction.
FALSE
74. The concepts of exchange and relationships lead to the concept of demarketing.
FALSE
76. If a company used $10 million on television advertising, a sales force of 200 people, and had a marketing department to coordinate and further marketing efforts, the company would be employing the marketing practice of interpreneurial marketing.
FALSE
77. The primary concept used in selling unsought goods such as encyclopedias or insurance is the product concept.
FALSE
79. The production concept questions whether the pure marketing concept is adequate in an age of environmental problems, resource shortages, rapid population growth, worldwide economic problems, and neglected social services.
FALSE
81. Keeping old customers would be a part of the old marketing thinking as applied to connections with customers.
FALSE
82. Marketing locally and globally would be part of the new marketing thinking as applied to connections with the world around us.
TRUE
48. The major force behind the new connectedness in marketing is: a. technology. b. globalization. c. social consciousness. d. privatization.
a
62. The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.
TRUE
65. The first of the core marketing concepts that should be explored by the marketer wishing to do business is needs, wants, and demands.
TRUE
67. Human wants that are backed by buying power are called demands.
TRUE
68. In outstanding companies, people at all levels—including top management—stay close to customers.
TRUE
71. Marketing myopia occurs when sellers are so taken with their products that they focus only on existing wants and lose sight of underlying customer needs.
TRUE
73. One party gives X to another party and gets Y in return. This would be an example of a transaction.
TRUE
75. Marketing to reduce demand temporarily or permanently is called demarketing.
TRUE
78. The selling concept takes an "inside-out" perspective toward the exchange process.
TRUE
80. Connecting more selectively, connecting for life, and connecting directly are all characteristics connections with customers.
TRUE
10. Basic needs, such as those for food, clothing, and safety, refer to: a. physical needs. b. social needs. c. individual needs. d. physical wants.
a
19. .......... depend(s) on a product's perceived performance in delivering value relative to a buyer's expectations. a. Customer satisfaction b. Customer quality c. Customer value d. Customer needs
a
27. As CEOs and other managers have reviewed business functions, they have found that, ultimately, is the art of attracting, keeping, and growing profitable customers. a. marketing b. finance c. electronic commerce d. demand management
a
36. John Botros feels the heat of competition on his new Internet-based home delivery pizza business. Rather than just advertising, John is encouraging his managers to get out of their offices and meet the public on their own ground. In fact, Botros makes it a practice to give at least one public speech per week. This would be an illustration of which of the following marketing practice stages? a. intrepreneurial marketing b. entrepreneurial marketing c. formulated marketing d. demand-based marketing
a
37. Over time, marketing management has offered five distinct concepts under which organizations conduct their marketing activities. Which of the following DOES NOT belong on the correct list of these concepts? a. econometric concept b. production concept c. product concept d. marketing concept
a
40. If a manufacturer was following the product concept, their operating philosophy would rely on which of the following phrases? a. "Build a better mousetrap, and the world will beat a path to your door." b. "Location, location, location." c. "Watch your costs at all cost." d. "The consumer is king."
a
43.........holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. a. The marketing concept b. The product concept c. The selling concept d. The societal marketing concept
a
5. Wal-Mart has become the world's largest retailer by delivering on its promise, "Always low prices—always." This would be an example of the marketing philosophy that says: a. "Take care of your customers, and market share and profits will follow." b. "Buy cheap, sell cheap." c. "Always take discounts and pass some of them on to consumers." d. "Distribution is the secret to all conquests in marketing."
a
54. The best illustration of direct marketing listed below would be: a. shoppers at Land's End can build a "virtual model" with their own hair color and use the model to aid in reviewing products for potential purchase. b. Ford Motor Company now designs all models of their popular pickups in at least 12 colors. c. most banks now sell automobile insurance. d. Wal-Mart has a policy of EDLP (everyday low pricing) as a strategic weapon.
a
58. If a university or college posts antismoking and antidrinking materials at strategic locations, takes out ads in the university or college newspaper, and enlists the aid of campus groups to aid with these social problems, this would be an example of which of the following? a. a social marketing campaign b. an ethical marketing campaign c. a relationship marketing campaign d. a sales promotional marketing campaign
a
60. Marketing locally and globally, conducting e-commerce in marketspaces, and assuming social and environmental responsibility would be examples of which form of thinking? a. the new marketing thinking b. the old marketing thinking c. global marketing d. relationship marketing thinking
a
55. A .....for personal computers consists of suppliers of computer chips and other components, the computer manufacturer, and the distributors, retailers, and others who sell the computers to businesses and final customers. a. mix network b. supply chain c. relationship channel d. strategic alliance
b
59. With respect to connections with customers, be sales and product centered, serve any customer, and make standardized products would be examples of which form of thinking? a. the new marketing thinking b. the old marketing thinking c. global marketing d. relationship marketing thinking
b
7. ...........is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. a. Management b. Marketing c. Econometrics d. Demand
b
1. Today's successful companies at all levels have one thing in common. The common theme can best be described as one where the companies are: a. oriented around public service. b. strongly customer focused and heavily committed to marketing. c. moving toward globalization and socialization. d. more interested in governmental regulation and control than ever before.
b
11. ........ are shaped by one's society and are described in terms of objects. a. Needs b. Wants c. Demands d. Transactions
b
16. If a company is guilty of "marketing myopia," then it is: a. in danger of having dangerous cost overruns because it is trying to please too many diverse customer groups. b. so taken with its products that it focuses only on existing wants and loses sight of underlying consumer needs. c. guilty of prejudice toward certain customer groups. d. falling into the trap of "copying" rather than "inventing" products.
b
21. An approach in which all the company's people are involved in constantly improving the quality of products, services, and business processes is called: a. Cigna 1000. b. total quality management. c. total relationship opportunity. d. exchange management.
b
22. Marketing occurs when people decide to satisfy needs and wants through a. selling b. exchange c. transaction d. relationships
b
24. Trading your old calculator for tickets to a Garth Brooks concert would be what kind of transaction? a. monetary transaction b. barter transaction c. market transaction d. customer transaction
b
26. A ........ consists of the company and all its supporting stakeholders. a. demand channel b. marketing network c. communication triad d. product flow process
b
35. Jim Koch, founder of Samuel Adams beer, was often seen talking to bartenders and bar customers to encourage consumption of his brewery's products. This would be an illustration of which of the following marketing practice stages? a. intrepreneurial marketing b. entrepreneurial marketing c. formulated marketing d. demand-based marketing
b
38. The holds that consumers will favor products that are available and highly affordable (therefore, management should work on improving production and distribution efficiency). a. product concept b. production concept c. production cost expansion concept d. marketing concept
b
4. The twofold goal of marketing is to attract new customers by promising superior value and: a. win advertising and industry awards for excellence. b. to keep and grow current customers by delivering satisfaction. c. enhance shareholder value. d. pay as few taxes as possible.
b
45. The questions whether the pure marketing concept is adequate in an age of environmental problems, resource shortages, rapid population growth, worldwide economic problems, and neglected social services. a. service concept b. societal marketing concept c. product concept d. not-for-profit concept
b
49. ........... is the vast and burgeoning global web of computer networks which links computer users of all types around the world. a. Micronet b. The Internet c. The Defense Department security d. The telecommunication system
b
50. The connecting technologies of the computer, information, communication, and transportation connect three primary areas. Which of the following WOULD NOT be among those areas? (Select the one that DOES NOT fit.) a. Connections with Customers b. Connections with Government c. Connections with Marketing Partners d. Connections with the World Around Us
b
14. Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need is called a: a. demand. b. basic staple. c. product. d. service.
c
17. The difference between the values the customer gains from owning and using a product and the costs of obtaining the product is called a. customer quality b. customer satisfaction c. customer value d. perceptual relationships
c
2. According to Bernie Marcus, cofounder of Home Depot, the Holy Grail of business is: a. the bottom line. b. promotion, promotion, and more promotion. c. an almost blind, passionate commitment to taking care of customers. d. meet every competitive threat with strength, commitment, and the courage to win.
c
20. With respect to customer satisfaction, smart companies aim to: a. give the customer anything and everything they want. b. make customers addicted to their products and services. c. delight customers by promising only what they can deliver, then delivering more than they promise. d. always save the customers money, time, and other resources.
c
23. A(n) ....... consists of a trade of values between parties. a. sale b. exchange c. transaction d. market
c
25. Transaction marketing is part of the larger idea of a. customer returns and allowances b. trade discounts c. relationship marketing d. promotional stimulation marketing
c
28. In a contemporary sense, a market is thought to be: a. wherever a marketer sells products. b. the people who may buy the product. c. the set of actual and potential buyers of a product. d. the square in the middle of the city where trade occurs.
c
31. If the Golden Gate Bridge becomes consistently overcrowded with an unsafe level of traffic, the California Transit Authority in San Francisco might have to undertake a campaign to reduce traffic levels during high demand periods of the day or week. a. public relations b. regulation program c. demarketing d. sales
c
34. Taco Bell has found that the lifetime value of a Taco Bell customer is about $12,000. Study has shown that the key to customer retention is: a. offer the lowest prices. b. constantly advertise. c. offer superior customer value and satisfaction. d. offer a variety of products.
c
44. All of the following organizational philosophy phrases are associated with the marketing concept EXCEPT: (Pick the phrase that DOES NOT fit.) a. "We make it happen for you." b. "To fly, to serve." c. "If it ain't broke, don't fix it." d. "Let us exceed your expectations."
c
51. Under which of the following marketing connections would "connecting through strategic alliances" most likely fall? a. Connections with Customers b. Connections with Government c. Connections with Marketing Partners d. Connections with the World Around Us
c
53. With respect to connecting with customers, which of the following is most likely the current trend? a. A focus on finding new customers. b. A focus on removing customers. c. A focus on current customer retention. d. A focus on "share of market."
c
57. Which of the following phrases would best describe the current attitude about connections with the world around us? a. "Let the buyer beware." b. "America First." c. "Think Locally, Act Globally." d. "Outsource Everything."
c
9. ...... are states of felt deprivation. a. Demands b. Wants c. Needs d. Core transactions
c
12. When backed by buying power, wants become: a. needs. b. relationships. c. object relationships. d. demands.
d
13. In outstanding companies, people at all levels, including top management,: a. work more than eight hours a day. b. are constantly inventing new products. c. are addicted to time management. d. stay close to customers.
d
15. A ....... is any activity or benefit offered for sale that is essentially intangible and does not result in the ownership of anything. a. demand b. basic staple c. product d. service
d
18. Customers often do not judge product values and costs accurately or objectively. Instead, they act on a. customer satisfaction b. customer quality c. needs d. perceived value
d
29. The main actors in a modern marketing system would include all of the following EXCEPT: (Select the LEAST LIKELY.) a. suppliers. b. marketing intermediaries. c. the end user. d. advertising agencies.
d
3. Creating ......... is at the very heart of modern marketing thinking and practice. a. profit maximization b. increased stock value c. award winning products d. customer value and satisfaction
d
30. The analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives is called . a. relationship marketing b. demand management c. marketing d. marketing management
d
32. The aim of demarketing is to: a. destroy demand. b. increase demand. c. initiate demand. d. reduce or shift demand.
d
33. In the past, marketers followed a approach to gaining customers. This meant that growing markets supplied endless new consumer candidates and the company did not have to worry about older customers who might become dissatisfied and leave the company's marketing offerings. a. "first in, first out" b. "treadmill" c. "funnel" d. "leaky bucket"
d
39. The holds that consumers will favor products that offer the most quality, performance, and innovative features. Thus, an organization should devote energy to making continuous product improvements. a. marketing concept b. production concept c. selling concept d. product concept
d
41. Which philosophy of business is typically practiced when marketing unsought goods? a. the marketing concept b. the product concept c. the production concept d. the selling concept
d
42. When faced with overcapacity, most firms practice a. the marketing concept b. the product concept. c. the production concept d. the selling concept
d
46. In an example discussed in your text, Johnson & Johnson's recall of their Tylenol product following the discovery that several bottles of Tylenol had been laced with cyanide is consistent with which business philosophy? a. the marketing concept b. the product concept c. the selling concept d. the societal marketing concept
d
47. The major marketing developments as we enter the new millennium can be summed up in a single theme: a. innovation. b. the Internet. c. virtuality. d. connectedness.
d
52. If the United States—and the world—has become a "salad bowl" of diverse ethnic, cultural, social, and locational groups, then one could say that: a. consumer groups have blended to the extent that a marketer can not tell one consumer from another. b. one-to-one marketing no longer works. c. profitable customers are rapidly becoming a thing of the past. d. because consumers are maintaining their diversity, they are forming themselves into consumer communities.
d
56. Dell Computer recently ran advertisements telling how it partners with Microsoft and Intel to provide customized e-business solutions. This would be an example of which of the following? a. mix network b. supply management c. relationship channel d. strategic alliance
d
6. Today, marketing must be understood in a new sense that can be characterized as: a. "telling and selling." b. "management of youth demand." c. "get there first with the most." d. "satisfying customer needs."
d
