Ch 1 Test Bank

Which element of the marketing mix is most relevant to the activity "delivering value"? Select one: a. purchasing b. product c. place d. price e. promotion

C

Franco uses a database software system to remind him when his customers should be ready to reorder his industrial cleaning products. With this reminder system, Franco contacts his customers when they are most likely to be in the buying mode. Franco's system is part of Select one: a. C2C marketing. b. supply chain management. c. customer relationship management. d. a transactional marketing orientation. e. typical production era marketing practices.

C Franco's system is one element of a customer relationship management system, in that it tracks customers and seeks to meet their specific needs to build loyalty.

Yesenia, the new university course scheduling manager, is struggling with adjustments to the fall schedule. She is trying to determine how to offer the classes students need at the times when students need them. Yesenia is struggling with the marketing function of Select one: a. value co-creation. b. communicating the value proposition. c. supply chain management. d. capturing value. e. creating value.

C Getting a product (in this case, a class) to customers when and where they want it describes the place component of the marketing mix, which involves managing the supply chain.

Near the end of the model year, Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Move-Them-Out operates as if it were in the __________ era. Select one: a. value-based marketing b. market-oriented c. sales-oriented d. retailing-oriented e. production-oriented

C In the sales-oriented era, manufacturers had the capacity to produce more than customers really wanted or were able to buy. Firms found an answer to their overproduction in becoming sales oriented; they depended on heavy doses of personal selling and advertising.

Marketing channel management is related to which of the four Ps? Select one: a. price b. production c. place d. product e. promotion

C Marketing channel management, also known as supply chain management, is a process that manages the value chain to get products to the right customer when that customer wants it, which is related to the place component of the four Ps.

The importance of supply chain management is often overlooked in the study of marketing because Select one: a. supply chain management is already transparent. b. marketing has no responsibility for supply chain management. c. many of the activities take place behind the scenes. Correct d. supply chain management doesn't add much value for customers. e. companies do not want customers to know anything about the supply chain.

C Supply chain management is extremely important—without it, customers would not be able to obtain products—but most of the activities take place in the background.

Melanie works for a small computer software company. Her boss is constantly improving its products but neglecting customers, billing, and promoting the company. Her boss is probably stuck in the __________ era of marketing. Select one: a. retailing-oriented b. value-based marketing c. production-oriented d. sales-oriented e. market-oriented

C The production-oriented era of marketing dealt primarily with manufacturing processes and the design of a good product, but without concern for meeting specific customer needs.

__________ is communication by a marketer that informs, persuades, or reminds potential customers about a product. Select one: a. Placement b. Value co-creation c. Promotion d. A relational orientation e. Pricing

C This is the definition of promotion.

When a T-shirt manufacturer states, "We only sell it in black because that way we can buy plenty of black fabric and run our plant efficiently," its statement reflects the views that were popular in which era of the evolution of marketing? Select one: a. value-based marketing b. sales-oriented c. production-oriented d. economics-oriented e. market-oriented

C This question refers to the production-oriented era, when companies would just manufacture items without taking individuals' needs or wants into consideration.

Traditionally, marketing activities have been divided into product, price, place, and promotion. Select the term that best describes the four Ps. Select one: a. marketing mix b. marketing implementation c. marketing channel d. marketing era e. marketing plan

A

Jami sells construction equipment. Whenever she calls on her building contractor customers, she asks whether they are having any problems. In doing so, Jami is addressing which of the following core aspects of marketing? Select one: a. Satisfying customer needs and wants b. Creating value c. Decisions about the setting in which marketing takes place d. The exchange function of marketing e. Product, place, promotion, and price decisions

A By asking about problems, Jami is asking what unmet needs the contractor might have. She hopes that her company may have products that will help to meet these needs.

Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and Select one: a. the ability to buy them. b. are removed from traditional marketing alternatives. c. the ability to negotiate discounts. d. a thorough knowledge of his brand messages. e. knowledge of competing products.

A If Xavier selects customers with an interest in the kinds of products he offers and the ability to purchase, he can communicate the value his offerings provide and offer competitive comparisons as part of his marketing mix.

Marketing provides the critical function of __________ when companies expand globally. Select one: a. understanding customers b. forecasting economic growth c. managing production efficiency d. managing personnel e. evaluating government stability

A Marketing is the part of the organization in the best position to understand customers in all situations.

Marketers must determine the price of a product carefully, based on potential buyers' beliefs about Select one: a. its value. b. the environment. c. the product's new advertising campaign. d. the economic outlook. e. the cost to manufacture the product.

A Pricing based on buyers' perceptions of value ensures that buyers believe the product is worth its price. Some of the other answers include things that buyers might consider in arriving at a value perception, but they are incomplete answers.

Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. This is an example of Select one: a. customer relationship management. b. typical production-oriented era marketing practices. c. C2C marketing. d. supply chain management. e. a transactional marketing orientation.

A The catalog is customized based on what is known about the customer's needs and habits. This is a typical element of a customer relationship management program.

The activity, set of institutions, and process for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is called Select one: a. marketing. b. market segmentation. c. marketing research. d. market positioning. e. market share analysis.

A This is the formal definition of marketing from the AMA.

Whenever Valerie has a new massage therapy customer, she invites the person to be on her e-mail distribution list. In the process, in addition to exchanging her massage therapy service for payment, Valerie is gathering Select one: a. pricing data. b. information. c. feedback. d. value cocreation. e. promotional capital.

B In this case, Valerie's customer receives a massage, and she receives both payment and information (in the form of the customer's email address) as part of the exchange process.

Leah is the marketing manager for an electronics company. While on vacation in Ecuador, she visited electronics stores in the major malls in Quito, the capital city. Most of her company's products were available, except for smart phones. When she returned to work, she mentioned this observation to her international sales manager. Leah was providing the important marketing function of Select one: a. alerting the logistics department when to ship products. b. identifying opportunities to expand. c. engaging customers, developing long-term relationships. d. advising production on how much product to make. e. synthesizing and interpreting sales, accounting, and customer-profile data.

B Leah was identifying a potential opportunity—the absence of the firm's smartphones from stores in Ecuador.

If a radio station holds an online contest in which you must log in to its website and submit personal details such as name, phone number, and email to participate, the radio station is Select one: a. overstepping its role. b. offering an exchange. c. implementing a CRM program. d. behaving unethically. e. hoping to receive feedback.

B Marketing is about an exchange of things of value between buyer and seller so that each is better off. In this instance, the exchange is email/personal information for a chance to win a contest. CRM would imply closer tracking of customers than this simple exchange suggests.

Which of the following is a core aspect of marketing? Select one: a. satisfying as many needs as possible b. making product, place, promotion, and price decisions c. increasing the company's profit d. creating a product that everyone will want to buy e. setting prices lower than all competitors

B Most of these answers are too broad. Marketers don't generally try to sell to everyone, and they don't necessarily strive to have the lowest price. Instead, they select customers they can successfully serve and design a marketing mix (product, place, promotion, and price) to meet those needs.

Marketing involves all of the following EXCEPT Select one: a. conducting exchanges. b. production scheduling. c. creating value. d. efforts by individuals and organizations. e. satisfying customer needs and wants.

B Production scheduling is the responsibility of manufacturing; all other activities are part of marketing.

Many U.S. companies first discovered marketing during the __________ era. Select one: a. retailing-oriented b. market-oriented c. value-based marketing d. production-oriented e. sales-oriented

B The market-oriented era was when most companies first started thinking in terms of meeting customer wants and needs.

During the __________ era, manufacturers and retailers began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their products. Select one: a. sales-oriented b. production-oriented c. market-oriented d. value-based marketing e. retailing-oriented

C

Supply chain management is also referred to as Select one: a. retail management. b. value proposition management. c. production management. d. marketing channel management. e. delivery management.

D

Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes Select one: a. only the actual price they pay at the register. b. the value of their time and energy. c. the time the product was full price and didn't sell. d. the excitement they experience in finding an item they desire. e. the savings to the store of not having to display the products neatly on shelves.

B

The four Ps make up the marketing mix, which is the __________ set of activities that the firm uses to respond to the wants and needs of its target markets. Select one: a. external b. controllable c. unpredictable d. global e. internal

B

Which element of the marketing mix is most relevant to the activity "creating value"? Select one: a. place b. product c. purchasing d. price e. promotion

B

Georgia, the outside sales rep for a major building supply company, reads a report stating that building permits are down dramatically in her sales territory. She had noticed that things were slowing down, but now she has data confirming her impression. Based on this information, one important function Georgia should provide is Select one: a. estimating profit per sale to determine whether the firm can survive the slowdown. b. pushing her customers to buy products whether they need them or not. c. assisting customers in product recall confirmations. d. advising the production and purchasing departments to produce or order smaller quantities of products. e. avoiding contact with competing firms to maximize value-driven marketing.

D Georgia should share what she has learned with the production and purchasing departments so that they can plan accordingly. She should not push her customers to buy things they don't need—this will damage her firm's reputation and will come back to haunt her when the downturn ends. Estimating profit isn't Georgia's responsibility, but someone in the firm should look at the impact of the slowdown if enough sales territories are affected.

Auction sites like eBay have increased opportunities for __________ marketing. Select one: a. D2C b. C2D c. B2G d. B2B e. C2C

E

When referring to exchange, marketers are focusing on Select one: a. promotional offers designed to stimulate barter. b. location-based tactics for creating value. c. the location where products and services are traded. d. the price charged, adjusted for currency exchange rates. e. the trading of things of value.

E

Greenbelt Construction has been a successful small home-building firm for years. The owner pays subcontractors slightly more than the usual rate for different tasks, reducing the company's gross margin. Greenbelt rarely changes subcontractors, has relatively few complaints from home buyers, and is able to get quick responses from subcontractors when buyers do have problems. Greenbelt is engaged in Select one: a. a traditional transactional orientation. b. C2C value-driven marketing. c. value cocreation. d. a virtual monopoly. e. effective supply chain management.

E By maintaining good relationships with subcontractors, Greenbelt Construction gains the benefit of receiving good service from these subcontractors for itself and for its home buyers. This is a key benefit of effective supply chain management.

Even though they operate from out-of-the-way airports and offer few extra services, discount, no-frill airlines like Ryanair and EasyJet have been successful. Consumers obviously consider Select one: a. the major airlines to be worthless. b. the schedules these airlines offer to be the most convenient in the industry. c. the prices to be slightly lower, but not low enough to have much influence. d. the long-term relationships established by these airlines to be a critical benefit. e. the benefit of lower prices to be greater than the cost of reduced services and less convenience.

E People flying discount airlines have decided to bear some inconvenience in return for lower prices. The benefits are lower, but so is the cost, so the offering can have value despite the inconvenience.

Brian is struggling with the choice of publishing his new book, How to Cook Polish Barbeque, as an e-book or a paperback. Brian is addressing which core marketing aspect? Select one: a. pricing the product b. deciding where and how to sell the product c. developing a promotional plan d. managing the exchange function of marketing e. making product decisions

E Since Brian is making decisions about the form his book will take, he is making product decisions. If he were deciding whether to sell it online, in bookstores, or both, it would be a "where and how" (place) decision.

In delivering value, marketing firms attempt to find the most desirable balance between Select one: a. the desire to satisfy customers and the need to keep customers from running the company. b. the need for product improvement and the need for advertising. c. the need for value and the perception of value. d. explicit versus implicit value. e. providing benefits to customers and keeping costs down.

E The challenge for all firms is to provide the value customers expect while keeping costs low enough to allow the firm to be profitable.