Marketing
11) Which of the following is the principle objective of a market-oriented mission statement? A) to satisfy basic customer needs B) to satisfy basic supplier needs C) to satisfy basic stockholder needs D) to satisfy basic owner needs E) to satisfy basic partnership needs
A
116) Railroads were once operated based on the thinking that users wanted trains rather than transportation, overlooking the challenge of other modes of transportation. This reflects the ________ concept. A) product B) production C) selling D) marketing E) societal marketing
A
119) Members of the sales team at Dekko International visit only prospective customers who purchase a minimum of $50,000 of insulated wire per year. Dekko is using ________. A) selective relationship management B) a frequency marketing program C) a club marketing program D) demarketing E) a value proposition
A
124) Shania works hard to foster an emotional relationship between her Internet customers and the beauty products and services that she and her staff sell. By promoting a company culture that values exceptional value and service, Shania aims to create ________ by going beyond the expected. A) customer delight B) customer satisfaction C) customer value D) customer equity E) customer involvement
A
126) Elisandra, a marketing manager at a regional chain restaurant, has decided to sponsor a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________. A) consumer-generated marketing B) partner relationship management C) customer lifetime value D) community development around a brand E) selective relationship management
A
13) A(n) ________ is the set of actual and potential buyers of a product. A) market B) audience C) group D) segment E) exchange
A
16) The best known product portfolio planning method was developed by ________. A) the Boston Consulting Group B) Philip Kotler C) Harvard University D) the SRI Consulting Firm E) James P. Hess
A
17) The art and science of choosing target markets and building profitable relationships with them is called ________. A) marketing management B) positioning C) segmentation D) selling E) differentiation
A
19) In the Boston Consulting Group approach, ________ serves as a measure of company strength in the market. A) relative market share B) market development C) market diversification D) market growth rate E) market segmentation
A
20) Which customer question is answered by a company's value proposition? A) "Why should I buy your brand rather than a competitor's?" B) "How does your brand benefit me and society?" C) "What are the costs and benefits of your brand?" D) "What kind of experience will I have with products and services associated with this brand?" E) "What are the benefits of being a loyal consumer of your brand?"
A
21) Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain? A) production concept B) product concept C) selling concept D) marketing concept E) social marketing concept
A
23) The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features. A) product B) production C) customer D) marketing E) promotion
A
24) The four possible strategies that can be pursued for each SBU are building, holding, ________, and ________. A) harvesting; divesting B) promoting; selling C) downsizing; expanding D) diversifying; penetrating E) developing; growing
A
25) Which of the following does NOT accurately reflect a problem with the BCG matrix approach? A) It focuses on planning for the future. B) It can be costly to conduct. C) It can be time consuming to implement. D) It is difficult to define SBUs and measure market share and growth. E) It focuses on classifying current businesses.
A
30) Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization. Having a customer department rather than a marketing department, as suggested by Kelleher, is an example of a(n) ________ perspective. A) outside-in B) external C) inside-out D) modern E) traditional
A
32) Which of the following reflects the marketing concept philosophy? A) "We don't have a marketing department; we have a customer department." B) "We're in the business of making and selling superior products." C) "We build them so you can buy them." D) "When it's profits versus customers' needs, profits will always win out." E) "You won't find a better deal anywhere."
A
33) A common practice among marketers is to identify and develop new markets for their existing products. This practice is called ________. A) market development B) product development C) market penetration D) market skimming E) dual adaptation
A
40) Of the following, which is the most important concept of modern marketing? A) customer relationship management B) societal marketing C) consumer-generated marketing D) properly trained salespeople E) low prices
A
42) A sound marketing strategy begins with which of the following? A) customer analysis B) positioning C) differentiation D) promotion E) SWOT analysis
A
42) Customer-perceived value is determined by a customer's ________ of the benefits and costs of a market offering relative to those of competing offers. A) personal assessment B) rational expectations C) accurate assessment D) objective evaluation E) emotional understanding
A
43) Your firm is attempting to divide up the total market to determine the best segments it can serve. Which is the correct order of doing so? A) market segmentation, target marketing, market positioning B) target marketing, market positioning, market segmentation C) market positioning, market segmentation, target marketing D) market segmentation, market positioning, target marketing E) mass marketing, demographic segmentation, psychographic segmentation
A
47) A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of a ________. A) frequency marketing program B) basic customer relationship C) club marketing program D) partner relationship management technique E) structural benefit
A
48) Which of the following is the place a product occupies in the consumer's mind relative to competition? A) position B) placement C) market segmentation D) market targeting E) product promotion
A
51) In the four Ps of the marketing mix, design, packaging, services, and variety all fall under the category of ________. A) product B) price C) promotion D) place E) position
A
53) In the marketing management functions, an SWOT analysis should ________ a marketing plan. A) precede B) coincide with C) follow D) evaluate E) take priority ove
A
56) To create customer value and build strong customer relationships, marketers know they cannot go it alone; therefore, they practice ________. A) partner relationship management B) database marketing C) attractive Web site design D) customer equity E) consumer-generated marketing
A
58) Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to components to final products that are delivered to final buyers. A) supply chain management B) direct marketing C) partnership relationship marketing D) customized marketing E) equity marketing
A
60) The final step in the marketing process is ________. A) capturing value from customers B) creating customer loyalty C) creating customer lifetime value D) understanding the marketplace E) designing a customer-driven marketing strategy
A
61) IBM has its sales and marketing people assigned to markets in specific countries, regions, and districts. This is an example of which type of marketing organization? A) geographic B) product C) functional D) divisional E) psychographic
A
62) Advertising Age, a magazine for advertising professionals, recently gave its Ad Agency of the Year award to ________. A) the consumer B) on-line marketers C) Frito-Lay D) Coca-Cola E) YouTube
A
66) The ________ organizational system's main advantage is that the company is organized around the needs of specific market segments. A) market management B) geographic C) product management D) vertical E) functional
A
68) Evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained is called ________. A) marketing control B) strategic control C) operating control D) developmental control E) efficiency
A
69) The ultimate aim of customer relationship management is to produce ________. A) customer equity B) market share C) sales volume D) a reliable database E) higher profit margins
A
9) What do companies call a set of benefits that they promise to consumers to satisfy their needs? A) market offering B) value proposition C) demand satisfaction D) need proposition E) evoked set
A
115) Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________ concept. A) product B) production C) selling D) marketing E) societal marketing
B
12) ________ is the act of obtaining a desired object from someone by offering something in return. A) A value proposition B) Exchange C) Bribery D) Value creation E) Donation
B
121) Sally purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations for Brand X lotion, Sally was measuring her level of ________. A) customer-perceived value B) customer satisfaction C) customer equity D) demand E) customer lifetime value
B
125) You are an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship would it be most profitable for you to develop with these customers? A) full partnerships B) basic relationships C) basic partnerships D) club programs E) selective relationships
B
129) A church targeting different demographic groups to increase attendance is an example of ________. A) for-profit marketing B) not-for-profit marketing C) societal marketing D) customer evangelism E) caring capitalism
B
130) Ben & Jerry's challenges all stakeholders, including employees, top management, and even ice cream scoopers in their stores, to consider individual and community welfare in their day-to-day decisions. Actions such as this by companies seizing the opportunity to do well by doing good reflects ________. A) environmentalism B) social responsibility C) profit marketing D) partnership management E) myopia
B
131) Your state's department of education has budgeted a significant amount of money for a radio, print, television, and online advertising campaign emphasizing the long-term benefits, both educationally and professionally, of reading every day. This is an example of a(n) ________ campaign. A) ethical B) social marketing C) for-profit D) consumer-generated E) differentiated
B
14) Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities. A) exchange B) marketing C) management D) production E) customer relationship management
B
15) After management has identified the key businesses making up its company, what is the next step in portfolio analysis? A) identifying businesses in which to invest B) assessing the attractiveness of its SBUs C) deciding whether to harvest any businesses D) completing short-range planning E) identifying SBUs
B
16) In the case of excess demand, ________ may be required to reduce the number of customers or to shift demand temporarily or permanently. A) marketing B) demarketing C) value marketing D) surplusing E) negotiating
B
2) According to the opening scenario, the Tide marketing team is MOST concerned about which of the following? A) maintaining its brand share B) fostering customers' emotional connections with their product C) advertising their product's benefits D) comparing the effectiveness of their product to other brands E) incorporating consumer-generated marketing in the marketing mix
B
22) ________ are low-growth, high share businesses or products. They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment. A) Stars B) Cash cows C) Question marks D) Dogs E) Cats
B
23) In the BCG matrix, income from ________ can be used to help finance the company's question marks and stars. A) dogs B) cash cows C) SBU revenues D) overseas operations E) low-share businesses
B
26) Unlike strategic-planning efforts of the past, which were conducted primarily by senior managers, today's strategic planning is ________. A) short-term oriented B) decentralized C) limitation-free D) product oriented E) centralized
B
27) To increase its U.S. market share, Starbucks has stepped up efforts in the areas of product availability and promotion. These are examples of broad ________. A) brand experiences B) strategies for growth C) diversification D) product development E) value chains
B
30) Making more sales to current customers without changing a firm's products is ________. A) market attractiveness B) market penetration C) market development D) product development E) diversification
B
32) While a valuable planning tool, a problem with using the BCG matrix centers is that it focuses on ________ A) the future instead of the present B) the present instead of the future C) financial issues instead of the customer D) the customer instead of suppliers E) the past instead of the present
B
34) Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands. Marie's firm practices ________ marketing. A) customer-driven B) customer-driving C) relationship D) donor E) social
B
35) When customers don't know what they want or don't even know what's possible, the most effective strategy is ________ marketing. A) customer-driven B) customer-driving C) societal D) production E) product
B
41) Lucy Ortiz is preparing a PowerPoint presentation of the marketing process to show at a sales meeting. ________ should appear in the center of her diagram depicting marketing strategies and the marketing mix. A) Sales goals B) Customer value and relationships C) Company objectives D) Customer retention rates E) Competitors
B
43) It is most accurate to say that customers buy from stores and firms that offer which of the following? A) the highest value for the dollar B) the highest customer-perceived value C) the highest level of customer satisfaction D) the most attractive company image E) the most concern for society's interests
B
44) The process of customer-driven marketing involves which of the following? A) product; price; promotion; adaptation B) market segmentation; target marketing; differentiation; positioning C) marketing analysis; planning; implementation; feedback D) analysis; targeting; implementation; control E) problem identification; information search; decision; implementation
B
45) Which of the following is the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors? A) market targeting B) market segmentation C) positioning D) marketing strategy E) differentiation
B
45) Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service? A) satisfied customers B) customer evangelists C) butterflies D) full partners E) social customers
B
46) Your new employer has asked you, as a new marketing graduate, to develop a group of potential customers who might respond in a similar way to a given set of marketing efforts. You have been asked to develop a(n) ________. A) target market B) market segment C) market D) market strategy E) undefined niche
B
48) iRobot, the makers of Roomba, have involved their customers in product development, marketing, and technical support in an effort to foster which of the following? A) basic relationships B) customer delight C) selective relationship management D) customer-perceived value E) frequency marketing programs
B
5) Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers value? What should our business be? A) objectives and goals B) a mission statement C) a business portfolio D) marketing and functional strategies E) operational strategies
B
55) Greater consumer control means that companies must rely more on marketing by ________ than by ________. A) interruption; involvement B) interaction; intrusion C) socialization; information D) producing; selling E) inspiration; competition
B
64) When an airline goes after a "share of travel" from its customers, it is attempting to increase ________. A) customer lifetime value B) share of customer C) total customer spending D) customer satisfaction E) customer ownership
B
65) Beyond simply retaining good customers, marketers want to constantly increase their "share of customer." What does this mean in marketing terms? A) Marketers want to increase their market share. B) Marketers want to increase the share they get of the customer's purchasing in their product categories. C) Marketers want to increase the profit margin with this target market. D) Marketers want to continuously increase their customers' levels of satisfaction. E) Marketers want to turn satisfied customers into delighted customers.
B
67) Amazon.com leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other items. Based on previous purchase history, the company recommends related CDs, books, videos, or other products that might interest a customer. This most directly helps Amazon.com capture a greater ________. A) customer lifetime value B) share of customer C) profit margin D) share of market E) customer equity
B
7) All of the following are accurate guidelines for a company's mission statement EXCEPT which one? A) A mission statement should be realistic. B) A mission statement should be narrow. C) A mission statement should emphasize the company's strengths in the marketplace. D) A mission statement should be specific. E) A mission statement should motivate employees.
B
7) ________ are human needs as shaped by individual personality and culture. A) Needs B) Wants C) Demands D) Values E) Exchanges
B
70) A potentially highly profitable, short-term customer is a ________. A) true friend B) butterfly C) stranger D) barnacle E) true believer
B
71) Ensuring that the company achieves the sales, profits, and other goals set out in its annual marketing plan is the purpose of ________. A) marketing control B) operating control C) strategic control D) ROMI E) a marketing audit
B
73) Which of the following is a comprehensive and systematic analysis of a company's environment, objectives, strategies, and activities that is conducted by an outside and objective party? A) a marketing plan B) a marketing audit C) a marketing mix analysis D) a portfolio analysis E) SWOT analysis
B
73) Which of the following is currently the fastest-growing form of marketing? A) consumer-generated marketing B) online marketing C) mass media marketing D) social marketing E) word-of-mouth marketing
B
75) Governmental agencies are becoming more involved in marketing as the years pass. When a local government advertises keeping the area's streams and water supply cleaner, it is involved in ________. A) green marketing B) social marketing campaigns C) demarketing D) environmental marketing E) partnership marketing
B
8) When backed by buying power, wants become ________. A) social needs B) demands C) physical needs D) self-esteem needs E) exchanges
B
9) Which of the following is NOT a market-oriented business definition? A) "to make the Internet buying experience fast, easy, and enjoyable" B) "to sell tools and home repair and improvement items" C) "to deliver low prices every day" D) "to be the guardian of our customers' financial dreams" E) "to bring aspiration and innovation to every athlete in the world"
B
1) All of the following are accurate descriptions of modern marketing, EXCEPT which one? A) Marketing is the creation of value for customers. B) Marketing is managing profitable customer relationships. C) Selling and advertising are synonymous with marketing. D) Marketing involves satisfying customers' needs. E) Marketing is used by for-profit and not-for-profit organizations.
C
11) When marketers set low expectations for a market offering, the biggest risk they run is ________. A) disappointing loyal customers B) decreasing customer satisfaction C) failing to attract enough customers D) failing to understand their customers' needs E) incorrectly identifying a target market
C
111) Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg's want now has become a(n) __ A) need B) necessity C) demand D) exchange E) transaction
C
112) To avoid traffic gridlock in large metro areas, a community might use ________ to discourage travelers from driving during peak commuting hours. A) target marketing B) market segmentation C) demarketing D) marketing E) the production concept
C
114) Jolene's firm markets preplanning services for a mortician. She finds that most of her target market wants to avoid discussing their future funeral needs, and she must somehow first get their attention. Jolene's firm is most likely practicing the ________. A) production concept B) marketing concept C) selling concept D) relationship concept E) societal marketing concept
C
122) FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with any other costs of using the service, they are acting upon ________. A) loyalty B) relationship marketing C) customer-perceived value D) social relationships E) a societal marketing campaign
C
14) Which of the following can be a company division, a product line within a division, or sometimes a single product or brand? A) a market B) the BCG C) an SBU D) a PLC E) a value delivery network
C
17) Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and ________. A) market share; strength of the SBU's position B) market diversification; relative market share C) market or industry attractiveness; strength of the SBU's position D) market growth rates; profits E) market penetration; market development
C
2) When a firm develops and maintains a strategic fit between its goals and capabilities, it is performing ________. A) mission planning B) values planning C) strategic planning D) business-portfolio planning E) operations planning
C
20) The BCG growth-share matrix classifies four types off SBUs. They are ________ , ________ , ________ , and ________. A) product; price; promotion; placement B) sales; market share; price; promotion C) stars; cash cows; question marks; dogs D) planning; implementing; leading; controlling E) market penetration; market development; product development; diversification
C
28) A firm that uses the selling concept takes a(n) ________ approach. A) outside-in B) myopic C) inside-out D) societal E) customer service
C
29) Which of the following is a useful tool for identifying growth opportunities? A) the BCG matrix B) the business portfolio C) the product/market expansion grid D) the value chain E) the value delivery network
C
3) According to management guru Peter Drucker, "The aim of marketing is to ________." A) create customer value B) identify customer demands C) make selling unnecessary D) set realistic customer expectations E) sell products
C
3) Which of the following is the first step in strategic planning? A) set objectives and goals B) develop the business portfolio C) define the company mission D) plan marketing strategies E) identify threats and weaknesses
C
36) The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer ________. A) short-run costs and profits B) short-run ethics C) long-run welfare D) immediate health E) value propositions
C
36) Which of the following is NOT a reason that a firm might want to abandon products or markets? A) The market has changed, making some of the products less profitable. B) The firm has entered areas in which it does not have expertise. C) The economic environment is showing signs of recovery. D) The firm has grown too rapidly. E) The firm has not properly researched foreign markets which it has entered.
C
38) The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________. A) human welfare B) want satisfaction C) company profits D) short-run wants E) long-term needs
C
39) The set of marketing tools a firm uses to implement its marketing strategy is called the ________. A) promotion mix B) product mix C) marketing mix D) TQM E) marketing effort
C
41) Building, keeping, and growing profitable relationships by delivering customer value and satisfaction is called ________. A) customer lifetime value B) customer perceived value C) customer relationship management D) database marketing E) societal marketing
C
46) Which of the following strategies would a company most likely use to increase customer satisfaction? A) decreasing the variety of offered services B) demarketing C) lowering prices D) "firing" unprofitable customers E) limiting customer experiences with a brand
C
47) Which of the following involves evaluating each market segment's attractiveness and selecting one or more segments to enter? A) market segmentation B) differentiation C) market targeting D) the market mix E) positioning
C
49) Effective positioning begins with ________ the company's marketing offer in order to give consumers more perceived value. A) pricing B) aligning C) differentiating D) promoting E) placing
C
49) In which of the following situations has a company most actively turned its consumers into marketing partners? A) American Airlines awards frequent flyer points to returning customers. B) Paige Premium Denim jeans provide a superior quality and a perfect fit. C) iRobot invites enthusiastic Roomba owners to develop and share their own programs and uses for the company's robotic vacuum. D) Best Buy distinguishes between its best customers, called angels, and its less profitable customers, called demons, stocking merchandise to appeal to separate groups of its angels. E) Toyota develops a marketing presence on social networks and other online communities.
C
5) Which steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships? A) the first two only B) the first three only C) the first four only D) the last three only E) the last four only
C
50) Which of the four Ps describes the goods-and-services combination the company offers to the target market? A) price B) promotion C) product D) place E) package
C
51) Pete Sanchez, a recent graduate of business school, has a different approach than his marketing manager, who believes in keeping customers at arm's length and using mass media advertising. Pete knows that today few successful firms still practice true ________ and are instead turning to selective relationship management. A) club marketing B) frequency marketing C) mass marketing D) customer satisfaction E) market segmentation
C
52) The Niketown running club that organizes twice weekly evening runs and follow-up meetings in the Nike Store is an example of which of the following? A) a frequency marketing program B) a basic customer relationship C) a club marketing program D) a partner relationship E) a structural benefit provided for top customers
C
54) In a basic SWOT analysis the "T" stands for ________. A) timing B) trust C) threats D) trade E) tangible
C
58) The main section of the marketing plan presents a detailed ________ analysis of the current marketing situation. A) who, when, where B) when, where, how C) SWOT D) competitor E) economic
C
62) Which of the following is the most common approach to marketing organization? A) geographic B) product management C) functional D) divisional E) combination
C
63) Which of the following is an example of consumer-generated marketing? A) Toyota's presence in online communities B) Nike's Nike Plus running Web site C) MasterCard's use of "Priceless" commercials shot by customers D) Neiman Marcus's InCircle Rewards program for its best customers E) The Lexus Covenant aimed at creating customer delight
C
65) The ________ organizational format was first used by Procter and Gamble in 1929. A) geographic management B) functional C) product management D) customer management E) market management
C
66) ________ is one of the best ways to increase share of customer. A) Targeting new customers B) Using bait and switch C) Cross-selling D) Relationship selling E) Partnership marketing
C
67) An increasingly large number of firms are changing their organizational focus from ________ to ________. A) product management; functional management B) product management; geographic management C) brand management; customer management D) geographic management; functional management E) global management; regional management
C
68) Which of the following is the total combined customer lifetime values of all a company's current and potential customers? A) share of customer B) customer lifetime value C) customer equity D) profitability E) share of market
C
72) Which of the following involves looking at whether a company's basic strategies are well matched to its opportunities? A) operating control B) marketing control C) strategic control D) ROMI E) portfolio analysis
C
72) Which of the following statements about the Internet is most accurate? A) Companies are cautiously using the Internet to build closer relationships with customers and marketing partners alike. B) After the dot-com meltdown of 2000, fewer consumers are buying products and/or services online. C) The Internet makes it easy for consumers to view, interact with, and create marketing content. D) Consumer e-commerce looks promising, but business-to-business e-commerce is declining. E) Web 2.0 involves a less balanced approach to online marketing than the original dot-com boom did.
C
74) Today almost every company, small and large, is affected in some way by which of the following? A) the societal marketing concept B) not-for-profit marketing C) global competition D) customer-generated marketing E) caring capitalism
C
8) A company's mission statement serves as a statement of ________. A) fact B) values C) purpose D) financial goals E) employee commitment
C
1) Which of the following involves adapting a firm to take advantage of opportunities in its constantly changing environment? A) long-range planning B) short-range planning C) media planning D) strategic planning E) annual planning
D
10) All of the following are examples of product-oriented mission statements, EXCEPT which one? A) "We provide online services." B) "We run theme parks." C) "We sell shoes." D) "We sell lifestyle and self-expression; success and status; memories, hopes, and dreams." E) "We rent hotel rooms."
D
10) Which of the following refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs? A) selling myopia B) marketing management C) value proposition D) marketing myopia E) the product concept
D
113) Cathy's Clothes is a small retail chain successfully selling women's clothing and accessories with a profitable focus on buyers who have relatively modest means. This is an example of A) convenience B) social marketing C) market segmentation D) target marketing E) value packing
D
117) Which of the following reflects the marketing concept? A) "The supplier is king." B) "Marketing should be viewed as hunting and not gardening." C) "This is what I make; won't you please buy it?" D) "This is what I want; won't you please make it?" E) "Customers need to be told where they want to go."
D
118) Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy. A) marketing concept B) product concept C) production concept D) societal marketing concept E) selling concept
D
12) Revlon has clearly defined its "mission" of selling lifestyle and self-expression. In order for the firm to launch its strategic plan, the mission needs to next be turned into detailed ________ that guide each level of the company. A) sets of strategies B) sets of tactics C) product mixes D) supporting objectives E) sets of promotional tools
D
128) Afia, a team leader in charge of customer relationship management, is planning strategies for improving the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong? A) butterflies B) true friends C) strangers D) barnacles E) short-term customers
D
13) The collection of businesses and products that make up a company is called its ________. A) strategic business unit B) mission statement C) strategic plan D) business portfolio E) operational factor
D
15) Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers? A) All customers will be delighted. B) Customer-perceived value will increase. C) Customer evangelists will become unpaid salespersons for the service or product. D) Not all customers will be satisfied. E) The company will need to follow up with a demarketing campaign.
D
18) In the Boston Consulting Group approach, ________ provides a measure of market attractiveness. A) relative market share B) market development C) market penetration D) market growth rate E) market segmentation
D
18) Selecting which segments of a population of customers to serve is called ________. A) market segmentation B) positioning C) customization D) target marketing E) managing the marketing effort
D
19) Which of the following is the set of benefits a company promises to deliver the customer to satisfy their needs? A) a money-back guarantee B) low pricing C) good customer service D) a value proposition E) an attribute
D
21) In the BCG approach, ________ are high-share, high-growth businesses or products. They need heavy investment to finance rapid growth. When their growth slows down, they turn into ________. A) cash cows; stars B) question marks; dogs C) stars; question marks D) stars; cash cows E) dogs; cash cows
D
24) The product concept says that a company should do which of the following? A) improve marketing of its best products B) market only those products with high customer appeal C) focus on the target market and make products that meet those customers' demands D) focus on making continuous product improvements E) make promoting products the top priority
D
25) "Build a better mousetrap and the world will beat a path to your door" reflects the ________ concept. A) production B) marketing C) selling D) product E) target marketing
D
26) Which concept calls for aggressive selling and focuses on generating transactions to obtain profitable sales? A) marketing B) production C) product D) selling E) societal marketing
D
27) Which concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do? A) product B) production C) selling D) marketing E) equity
D
31) Starbucks has introduced a debit card that lets customers prepay for coffee and snacks. This effort by Starbucks management is an example of ________. A) market development B) product development C) diversification D) market penetration E) product adaptation
D
31) Though often criticized, the selling concept is particularly appropriate and effective with which of the following types of products? A) convenience B) shopping C) specialty D) unsought E) demarketed
D
33) Customer-driven marketing usually works well when ________ and when customers ________. A) a clear need exists; are difficult to identify B) customers know what they want; are loyal to the brand C) a firm can deliver the goods desired; are thoroughly researched D) a clear need exists; know what they want E) a need exists; don't know what they want
D
34) Starbucks Coffee has recently begun selling and playing compilation CDs and is supporting its own XM satellite radio station. This represents which strategy for growth? A) product development B) market development C) market penetration D) diversification E) partner development
D
35) Which of the following entails reducing the business portfolio by eliminating products that no longer fit the company's overall strategy? A) market segmentation B) the BCG approach C) product line extension D) downsizing E) market redesign
D
37) Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________. A) market development B) product development C) business portfolio D) value chain E) value delivery network
D
37) Which concept holds that firms must strive to deliver value to customers in a way that maintains or improves the consumer's and society's well-being? A) marketing B) selling C) product D) societal marketing E) equity
D
38) Jack Welch, CEO at General Electric, said that "Companies can't give job security, only ________ can." A) development B) growth C) good strategy D) customers E) efficiency
D
39) Multinationals like Honda Motor Co. and Wal-Mart stores have designed programs to work closely with their suppliers to help them reduce their costs and improve quality. This illustrates the importance of an efficient ________. A) business portfolio B) low-cost operator C) product mix D) value delivery network E) value chain
D
40) Which of the following is the marketing logic by which a company hopes to achieve profitable customer relationships? A) price B) a consistent product mix C) the value delivery network D) marketing strategy E) differentiation
D
44) ________ is defined as the customer's evaluation of the differences between all the benefits and all the costs of a marketing offer relative to those of competing offers. A) Customer equity B) Customer satisfaction C) Customer evangelism D) Customer-perceived value E) Marketing myopia
D
50) Using customer profitability analysis to weed out unprofitable customers and target winning ones for pampering is referred to as ________. A) customer relationship management B) positioning C) database marketing D) selective relationship management E) marketing myopia
D
52) Today the four Ps are compared to the four Cs. Product and place are called ________ and ________, respectively. A) convenience; customer solution B) customer cost; convenience C) communication; customer solution D) customer solution; convenience E) communication; convenience
D
53) Which of the following has NOT contributed to the deeper, more interactive nature of today's customer relationships? A) e-mail B) Web sites C) online social networks D) traditional advertising E) video sharing
D
55) In a basic SWOT analysis, the "S" stands for ________. A) situation B) solutions C) satisfactions D) strengths E) strategy
D
57) In SWOT analysis, which of the following refers to factors in the external environment? A) strengths B) strategies C) weaknesses D) opportunities E) trends
D
59) A marketing plan begins with an executive summary, which quickly overviews goals and ________. A) budgets B) controls C) promotions D) recommendations E) obstacles
D
59) Suzie Chan strengthens her company's connections by treating suppliers of raw materials, vendors, and distributors as partners in delivering customer value. What type of management is she practicing? A) outside partnering B) inside partnering C) marketing D) supply chain E) customer development
D
6) According to the simple five-step model of the marketing process, a company needs to ________ before designing a customer-driven marketing strategy. A) determine how to deliver superior value B) build profitable relationships with customers C) use customer relationship management to create full partnerships with key customers D) understand the marketplace and customer needs and wants E) construct key components of a marketing program
D
6) ________ should be market oriented and defined in terms of ________. A) Annual plans; product needs B) Strategic plans; company needs C) Long-range plans; company needs D) Mission statements; customers' needs E) Objectives; competitors' threats
D
60) According to the textbook, your boss is most likely referring to ________ when she mentions "doing things right." A) strategy B) planning C) objectives D) implementation E) efficiency
D
61) Stew Leonard, the owner of a highly successful regional supermarket chain, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he or she remains in the area. Stew Leonard's concern is an illustration of which of the following? A) share of customer B) market share C) profitability D) customer lifetime value E) market share maintenance
D
63) Berman Electric, a chain of 18 appliance stores, has a marketing organization in which specialists head different marketing activities. What is this type of organization called? A) geographic B) product C) organic D) functional E) market
D
69) The marketing control process entails the following steps in order: setting goals, ________, evaluating performance, and ________. A) evaluating goals; measuring performance B) achieving goals; measuring performance C) taking corrective action; measuring performance D) measuring performance; taking corrective action E) taking corrective action; following up
D
70) Which of the following is NOT a step in the marketing control process? A) setting goals B) measuring performance C) taking corrective action D) defining the mission E) evaluating the causes of gaps between expected and actual performance
D
71) Customers can be classified into four relationship groups, according to their profitability and projected loyalty. Which type of customers have the highest profit potential and strong loyalty? A) barnacles B) strangers C) butterflies D) true friends E) big fish
D
74) Which of the following measures the profits generated by investments in marketing activities? A) SWOT analysis B) a marketing audit C) an executive summary D) marketing ROI E) a budget
D
75) Which of the following would NOT be useful in determining marketing ROI? A) a marketing dashboard B) brand awareness C) market share D) SWOT analysis E) customer equity
D
________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange. A) Selling B) Advertising C) Bartering D) Marketing E) Negotiating
D
120) You have just taken a new position in an organization and you're learning about the job functions of your new colleagues. You observe that your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships. Your marketing manager frequently speaks about the need to deliver superior customer value and satisfaction. Your manager is concerned with which one of the following? A) database management B) Web site hits C) the societal marketing concept D) partner relationship management E) customer relationship management
E
123) Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions installation business. He is a smart operator who knows that the key to this goal is to match ________ with ________. A) company performance; competition B) company performance; competitive prices C) relationship building; performance tools D) company performance; unique products E) customer expectations; company performance
E
127) At Gina's Nails, the posted policy is "Without our customers, we don't exist." Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Gina and her staff strive to make every customer a repeat customer. It is most accurate to say that instead of focusing on each individual transaction, Gina and her staff put a priority on ________. A) maintaining customer-perceived value B) enlisting customer evangelists C) attracting "butterflies" D) converting "strangers" E) capturing customer lifetime value
E
22) Which of the following marketing management concepts is most likely to lead to marketing myopia? A) customer-driven marketing B) customer-driving marketing C) social marketing D) selling E) production
E
28) Which department in a company carries the primary responsibility for achieving profitable growth? A) accounting B) product development C) operations D) human resources E) marketing
E
29) According to the production concept, consumers will favor products that are ________ and ________. A) satisfying; quality focused B) advertised; affordable C) in high demand; hard to find D) segmented; convenient E) available; affordable
E
4) Which of the following is NOT a step in the strategic planning process? A) defining the company mission B) setting company objectives and goals C) designing the business portfolio D) planning marketing and other functional strategies E) evaluating all members of the value chain
E
54) Which of the following best explains why consumers have greater power and control in today's marketplace? A) The production concept and competition have lowered prices. B) Implementation of the product concept has resulted in continually improving products. C) Customer-driven marketing creates products and services that meet customers' future needs. D) More companies are implementing social marketing and weighing long-term costs and benefits. E) Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers.
E
56) In SWOT analysis, which of the following would be considered a strength? A) internal limitations B) trends in the market C) favorable factors in the environment D) factors that challenge the company's performance E) internal resources
E
57) In today's world, marketing should be done by ________ employees in an organization. A) only marketing B) only marketing, sales, and customer-support C) only sales and technology D) only management and m
E
64) Modern marketing departments are arranged in the following ways, EXCEPT which one? A) functional organization B) geographic organization C) product management organization D) market management organization E) strategic management organization
E
100) Web 2.0 is distinguished by its poorly conceived e-tailers and Web start-ups.
False
76) Mission statements should be realistic and general in nature.
False
76) Selling is managing profitable customer relationships.
False
77) Human needs are shaped by culture and individual personality.
False
79) At America Online, "we create customer connectivity, anytime, anywhere," is a product-oriented business definition.
False
79) When backed by buying power, needs become demands.
False
80) "At Nike, we sell shoes" is a market-oriented business definition.
False
80) Market offerings are limited to physical products.
False
81) A firm's mission statement should be the basis for both its business and marketing objectives.
False
82) The major activity in strategic planning is strategic business unit planning, whereby management evaluates the products and businesses making up the company.
False
82) When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia.
False
83) Only sellers of products, services, and ideas practice marketing; buyers do not.
False
83) When designing business portfolios, most companies are well advised to add a broad range of products and businesses to their organization.
False
84) Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization only.
False
85) Demarketing is a marketing philosophy focused upon product differentiation and positioning.
False
89) Amy's law office has developed a new format and wording for wills. The staff believes they offer the most in quality, performance, and innovative features. Her law office is practicing the production concept.
False
90) Your department holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. Your department is practicing the selling concept.
False
91) Fast Food, Inc. views marketing as the science and art of finding, retaining, and growing profitable customers by providing them with the food they want. Fast Food, Inc. practices societal marketing.
False
93) For most marketers, customer relationship management (CRM) is exclusively a matter of customer data management.
False
94) The marketing mix includes production, price, promotion, and packaging; this is known as the four Ps of marketing
False
98) Consumer-generated marketing, a relatively new phenomenon, has so far had little impact as a marketing force
False
99) To increase their "share of customer," a firm concentrates on retaining as many customers as possible over their lifetimes.
False
77) ABC Fortunes has just developed a formal statement of its purpose. This firm has put together a mission statement
True
78) Mission statements should both emphasize the company's strengths in the marketplace and be motivating.
True
78) The difference between human needs and wants is that needs are not influenced by marketers.
True
81) An experience such as a vacation can be defined as a market offering.
True
84) The purpose of strategic planning is to find ways in which your company can best use its strengths to take advantage of attractive opportunities in the environment.
True
86) When it becomes necessary to reduce demand for a product or service, an organization may use demarketing to reduce or shift the number of customers
True
87) The production concept and product concept are orientations that can lead to marketing myopia.
True
88) The selling concept holds that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort.
True
92) The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interests.
True
95) Customer-perceived value is defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
True
96) With selective relationship management, companies use customer profitability analysis to eliminate losing customers and target winning ones.
True
97) Large-scale marketing approaches that foster two-way customer relationships are made possible by new communication technologies.
True
