Marketing Chapter 4 Test

True

True or False: The marketing mix combines product, distribution, price, and promotion

False

True or False: The marketing mix elements all act independently of one another

Study the needs of its customers

A business takes a big risk when it's unwilling to...

Decision

A choice among alternatives

Target market

A clearly defined segment of the market to which a business wants to appeal is called a...

Product

Follow-up services, guarantees, and warranties are considered to be which element of the marketing mix?

Market segments

Group of similar consumers within a larger market

Non-business organization

Has something other than providing products and services for a profit as its primary focus

Recognize a need

The consumer decision-making process begins when you...

False

True or False: A business that follows the marketing concept focuses its business planning on increasing sales

True

True or False: A consumer may be aware of a product but won't purchase it until a need exists

True

True or False: A government agency is an example of a non-business organization

True

True or False: A market segment is a group of similar consumers within a larger market

True

True or False: A want is a culturally defined way to fulfill a need

False

True or False: All businesses need to place the same amount of emphasis on each of the four marketing mix elements

True

True or False: Because effective marketing requires large amounts of information, most companies are now developing marketing information systems that collect and store information

False

True or False: Because nonprofit organizations don't have to be concerned about sales and expenses, they don't benefit a great deal from marketing

True

True or False: Marketing is more effective when it's integrated into other business activities

True

True or False: Marketing is responsible for identifying opportunities and helping a company plan for those opportunities

Strategy

A plan that identifies how a company expects to achieve its goals

True

True or False: Because of so many other variables, it's impossible to set a product or service price based strictly on the concepts of supply and demand

False

True or False: Because producers and manufacturers do not sell directly to final consumers, they don't need to understand and respond to consumer needs

False

True or False: Companies that use the marketing concept don't focus on specific groups of customers, but rather on all consumers in general

False

True or False: Consumers always spend a great deal of time and want a large amount of information when evaluating alternative choices

False

True or False: Consumers want to choose the alternative that requires the least amount of money

True

True or False: Customers using the products and services of a monopoly business often become dissatisfied with their lack of choice

False

True or False: Customers will blame the manufacturer rather than other channel members if a product doesn't meet their needs

True

True or False: Distribution planning is important to service businesses because the service must be available where and when the customer wants it

True

True or False: Following the marketing concept requires a total commitment to satisfying customers' needs

False

True or False: For businesses adopting the marketing concept, marketing is valued primarily as a problem-solving tool

True

True or False: Govt agencies don't need to be concerned w/ marketing because they seldom have competition for the services they provide

False

True or False: In a limited-competition situation, it isn't important for marketers to pay attention to the effectiveness of their mix elements

True

True or False: In the past marketing was used basically as a problem-solving tool, such as a way to reduce inventory

True

True or False: In the past, many businesses reduced marketing efforts when faced with financial problems

True

True or False: Market opportunities include new markets and ways to improve a company's offerings in current markets

False

True or False: Marketing consists of only a few basic activities such as promotion and distribution

False

True or False: Marketing has changed very little from the way businesses used it in the past

False

True or False: Marketing is increasingly becoming more of a creative art than a scientific process

False

True or False: Most decisions to purchase are made before the consumer evaluates choices

False

True or False: Most marketing strategies are developed as a result of problems that businesses encounter

True

True or False: Producers and manufacturers need to be concerned about the needs of other businesses in the channel of distribution

True

True or False: Spending money to improve marketing usually results in increased profits for the company

True

True or False: The marketing concept keeps the main focus on customer's needs during the planning, production, distribution, and promotion of a product or service

True

True or False: The marketing concept keeps the main focus on quality during the planning, production, distribution, and promotion of a product or service

True

True or False: The most difficult type of competition businesses face is a market in which they compete w/ others offering very similar products

True

True or False: The promotion element of the marketing mix is the communication link between the seller and the buyer

False

True or False: Understanding and meeting consumer needs is relatively easy to do because most people have the same needs

False

True or False: Using the marketing concept, all consumers are viewed as potential customers w/ similar needs

False

True or False: Using the marketing concept, marketing planning will be done by marketing specialists working apart from others in the company

True

True or False: Various groups of customers may have different needs

True

True or False: Without the marketing concept, a business will develop a product or service and then decide how to market it

Any of these choices, depending on the customer

Value means...

Involves marketing in all important business decisions

When a company integrates its marketing efforts, it...

Conducting research to identify potential customers and their needs

When a firm uses the marketing concept, planning begins with...

All of these choices are correct

When businesses regard marketing as a provider of opportunities, they look for which of the following?

Monopoly

When consumers are restricted in their choice of products, reducing the need for companies to worry about price or promotion, this is known as...

All of these choices would be a part of a distribution channel

Which of the following businesses wouldn't be a part of a channel of distribution?

Satisfied customers

Which of the following is NOT an element of the marketing mix?

Transportation

Which of the following is NOT part of the product mix element?

People

Which of the following is not an element of the marketing mix?

True

True or False: Most service businesses don't use a channel of distribution

False

True or False: Product planning must be done before any marketing decisions are made

False

True or False: Spending money on marketing reduces a company's profit in the long run

True

True or False: The earliest use of marketing was to move products from producer to consumer

Use a totally new approach to thinking and planning

Businesses that adopt the marketing concept...

Identify potential customers and their needs

If a company understands the marketing concept, its first step will be to...

Limited or none

In monopoly situations, businesses face which type of competition?

Achieve both "make the product different from that of competitors" and "make the product more satisfying to the target market"

In response to intense competition, the goal of any product change is to...

All of these choices are correct

Market research includes the study of...

More of an investment than an expense

Marketing costs today are considered to be...

Integrated

Marketing is considered an essential part of the business and is involved in all important business decisions

Information

Marketing is often considered a creative endeavor but even the creative process needs _______________________.

Market Opportunities

New markets and ways to improve a company's offerings in current markets

Price

Probably the most difficult marketing decision to understand and plan is...

Pricing

Retailers are responsible for most final ___________ decisions.

A result of the right marketing mix

Satisfied customers are...

Quality

Service businesses face unique marketing challenges because services are delivered by people, making it difficult to assure consistent ________________________________ each time.

All of these choices are correct

Businesses that do not follow the marketing concept believe...

All of these choices are correct

Challenges that most services businesses face include...

Monopolistic competition

Companies in _______________________ find the marketing concept to be of most value

Market Opportunity Analysis

Studying and prioritizing market segments to locate the best potential based on demand and competition

Assessing satisfaction

The final stage in the consumer decision-making process is...

Need

The first step in the consumer decision-making process is recognizing that a _____________________ exists.

Potential and current customers

The most important type of research for most businesses is the study of...

Different businesses may offer the service in a different way

The price of a service is difficult to compare because...

Market opportunities

Today's marketers are continuously looking for...