Chapter 1

(Ch. 1) Marketing channel management is also known as a. product design. b. wholesaling. c. supply chain management. d. a transactional orientation. e. endless chain marketing.

c. supply chain management. Marketing channel management is also known as supply chain management.

(Ch. 1) Marketing channel management is related to which of the four Ps? a. promotion b. product c. price d. place e. production

d. place 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.

(Ch. 1) Value is a. represented by brand names. b. the highest priced alternative. c. everyday low prices. d. the lowest cost option. e. what you get for what you give.

e. what you get for what you give. Value is the benefits received minus the costs of acquiring a product, or what you get in return for what you give.

(Ch. 1) Many U.S. companies first discovered marketing during the __________ era. a. sales-oriented b. production-oriented c. market-oriented d. retailing-oriented e. value-based marketing

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

(Ch. 1) Supply chain management is also referred to as a. delivery management. b. retail management. c. marketing channel management. d. production management. e. value proposition management.

c. marketing channel management. Supply chain management is also known as marketing channel management.

(Ch. 1) The marketing goal of getting the right quantities to the right locations at the right time relates to a. price and performance management. b. service marketing. c. supply chain management. d. communicating the value proposition. e. capturing value.

c. supply chain management. The question describes the place component of the marketing mix, which involves managing the supply chain.

(Ch. 1) 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. retailing-oriented b. production-oriented c. value-based marketing d. market-oriented e. sales-oriented

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

(Ch. 1) The primary purpose of the __________ plan is to specify the marketing activities for a specific time. Select one: a. resource b. organizational c. business d. marketing e. strategic

d. marketing The marketing plan specifies the marketing activities for a specific period of time. A business plan is a formal statement of a set of business goals that are believed to be attainable.

(Ch. 1) When referring to exchange, marketers are focusing on a. location-based tactics for creating value. b. the location where products and services are traded. c. the price charged, adjusted for currency exchange rates. d. the trading of things of value. e. promotional offers designed to stimulate barter.

d. the trading of things of value. Exchange refers to each of the parties involved giving something and getting something in return.

(Ch .1) Janine was tired of her winter coat, so she sold it to her friend, Marissa. This is an example of ________ marketing. a. C2B b. B2C c. B2B d. BBC e. C2C

e. C2C Janine and Marissa are both consumers, so this is C2C marketing.

(Ch. 1) Marketing involves all of the following EXCEPT Select one: a. production scheduling. b. satisfying customer needs and wants. c. creating value. d. conducting exchanges. e. efforts by individuals and organizations.

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

(Ch. 1) 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. developing a promotional plan b. managing the exchange function of marketing c. deciding where and how to sell the product d. pricing the product e. making product decisions

e. making product decisions 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.

(Ch. 1) Marney bought a dress from a retail store. Which core aspect of marketing was Marney most directly participating in? a. Marketing involves an exchange. b. Marketing helps create value. c. Marketing can be performed by both individuals and organizations. d. Marketing occurs in many settings. e. Marketing is about satisfying customer wants and needs.

a. Marketing involves an exchange. All of these activities were taking place at some level, but Marney was most directly participating in making an exchange—her money for the dress.

(Ch. 1) To become a more value-driven organization, Pokrah University is holding regular coffee-hour discussions with its students and surveying its graduates regarding students' educational needs and desires. Pokrah University is becoming more value driven through Select one: a. building relationships with customers. b. evaluating strategic competitive partnerships. c. sharing information across the organization. d. balancing its customers' benefits and costs. e. keeping the faculty members happy.

a. building relationships with customers. By communicating regularly with students and alumni, Pokrah University is working to build closer relationships with these groups.

(Ch. 1) Many universities provide physical or electronic bulletin boards to facilitate ride-sharing and exchange of used books among students. These bulletin boards increase __________ marketing. Select one: a. underground b. C2C c. B2C d. C2B e. B2B

b. C2C These bulletin boards are designed to encourage consumer-to-consumer (C2C) marketing since they make it easier for consumers (students, in this case) to connect with each other.

(Ch. 1) 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. Creating value b. Satisfying customer needs and wants c. Product, place, promotion, and price decisions d. The exchange function of marketing e. Decisions about the setting in which marketing takes place

b. Satisfying customer needs and wants 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.

(Ch. 1) __________ is communication by a marketer that informs, persuades, or reminds potential customers about a product. a. A relational orientation b. Pricing c. Promotion d. Value co-creation e. Placement

c. Promotion This is the definition of promotion.

(Ch. 1) 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. unpredictable b. global c. controllable d. internal e. external

c. controllable The four Ps represent controllable activities—in other words, the things the firm controls and manages.

(Ch. 1) People who initiate, organize, operate, and assume the risk of a business venture are called a. professionals. b. managers. c. entrepreneurs. d. consultants. e. leaders.

c. entrepreneurs. Entrepreneurs are people who start new businesses and take major risks.

(Ch. 1) One of the benefits of value-driven marketing is that attention to customer needs and wants will likely result in Select one: a. increased competition. b. lower prices. c. higher prices than the market leader charges. d. long-term relationships. e. strong connections among competing firms in the marketplace.

d. long-term relationships. Value-driven marketing is likely to lead to loyal customers through the relationships that are formed.

(Ch. 1) The Got Milk advertising campaign, designed to increase consumption of milk, was intended to help market a Select one: a. individual. b. industry. c. firm. d. organization. e. specific product.

b. industry The Got Milk campaign advertised the dairy industry as a whole, not any particular brand of milk.

(Ch. 1) 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 long-term relationships established by these airlines to be a critical benefit. c. the benefit of lower prices to be greater than the cost of reduced services and less convenience. d. the schedules these airlines offer to be the most convenient in the industry. e. the prices to be slightly lower, but not low enough to have much influence.

c. the benefit of lower prices to be greater than the cost of reduced services and less convenience. 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.

(Ch. 1) After major hurricanes like Katrina, many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though due to the huge increase in demand they could charge much more. These firms probably recognize that Select one: a. they can make more money from government contracts than from sales to customers. b. none of their competitors would be raising prices. c. if they raised prices they would be in violation of Commerce Department regulations. d. lifetime profitability of relationships matters more than profits from a particular transaction. e. a transactional orientation is the key to long-term profitability.

d. lifetime profitability of relationships matters more than profits from a particular transaction. By not raising prices when they could, the firms were resisting the temptation to make a quick profit and were instead demonstrating the value they placed on long-term relationships with their customers.

(Ch. 1) Jeff is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he will sell monthly. He has researched his competition, talked to some customers, and decided on prices he will charge. Jeff has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does Jeff still need to work on? a. product b. planning c. promotion d. price e. place

e. place This question outlines each item of the marketing mix except for place, which represents all the activities necessary to get the product to the right customer when the customer wants it. Jeff needs to decide whether he will have a physical store (and if so, where), a website, and so on.

(Ch. 1) UPS, FedEx, DHL, and other shipping companies support other firms' __________ marketing goals. Select one: a. retail management b. promotion c. value communication d. value capture e. supply chain management

e. supply chain management Supply chain management includes the shipment/delivery of products, so these companies can be an important part of the supply chain.

(Ch. 1) A friend of yours comments, "I'm starting my own business. I have a perfect product that no one else can touch, but I have no use for marketing. That's just for the mega-corporations." Which of the following arguments would you NOT use in talking about marketing? Select one: a. Marketing isn't essential now, but it will be in a year or two when the product takes off. b. Marketers help address unmet customer needs, regardless of the size of the firm. c. Marketers are skilled at communicating the value of the product to potential customers. d. Marketing helps new ventures organize, operate, and assess risk. e. Marketing focuses on the product, but only as one element. Three other areas are Promotion, Price, and Place.

a. Marketing isn't essential now, but it will be in a year or two when the product takes off. Marketing is necessary at all stages of a firm's life.

(Ch. 1) Value-driven firms constantly measure the __________ that customers perceive, compared to the prices of their offerings. Select one: a. benefits b. merchandise c. rebates d. relationships e. information

a. benefits Value is the relationship between the benefits received and the cost (price) paid.

(Ch. 1) 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. C2C value-driven marketing. b. effective supply chain management. c. a virtual monopoly. d. value cocreation. e. a traditional transactional orientation.

b. effective supply chain management. 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.

(Ch. 1) Retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts. Retailers function as Select one: a. monopolists. b. market intermediaries. c. wholesale specialists. d. regulators of consumer demand. e. intermediate promoters.

b. market intermediaries. Retailers make up one category of market intermediary, which refers to firms that assist in getting products from the manufacturer to the consumer.

(Ch. 1) Which element of the marketing mix is most relevant to the activity "creating value"? a. place b. product c. purchasing d. promotion e. price

b. product The marketing mix activities are promotion (communicating value), product (creating value), price (capturing value), and place (delivering value).

(Ch. 1) The idea that a good product will sell itself is associated with the __________ era of marketing. a. sales-oriented b. production-oriented c. retailing-oriented d. value-based marketing e. market-oriented

b. production-oriented In the production-oriented era, the assumption was that if companies built good products, they would sell without any particular effort.

(Ch. 1) 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. advising the production and purchasing departments to produce or order smaller quantities of products. c. assisting customers in product recall confirmations. d. avoiding contact with competing firms to maximize value-driven marketing. e. pushing her customers to buy products whether they need them or not.

b. advising the production and purchasing departments to produce or order smaller quantities of products. 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.

(Ch. 1) Julia is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people who only care about making a sale. When reading about the core aspects of marketing, Julia is relieved to see that in marketing a. promotion is the most important consideration, followed by pricing decisions. b. all parties to an exchange should be satisfied. c. distribution is controlled by customers. d. decisions are made regarding how a product is designed. e. customers are not considered until the product is ready for sale.

b. all parties to an exchange should be satisfied. If all parties to the exchange are satisfied, that indicates that marketers are considering customers' needs as well as the company's welfare. None of the other alternatives ensure that customers' needs are being satisfied.

(Ch. 1) Marketing was once an afterthought to Select one: a. finance. b. production. c. accounting. d. economics. e. none of these—marketing was never an afterthought.

b. production. In the production-oriented era, marketing was considered unnecessary; all that mattered was producing good products.

(Ch. 1) In the broadest terms, the marketplace refers to a. the four Ps. b. the world of trade. c. channels that are accessible to a given customer. d. wholesale and retail environments. e. brick-and-mortar stores and the Internet.

b. the world of trade Using the broadest terms, the marketplace refers to the world of trade.

(Ch. 1) After hurricanes like Katrina, many small building contractors will flock to the damaged area, charging whatever customers will pay for temporary repairs to roofs and other parts of damaged homes. These contractors are engaged in a __________ marketing orientation. Select one: a. external b. transactional c. internal d. value driven e. relational

b. transactional This behavior demonstrates a transactional orientation, where the seller seeks to make a quick profit and is not concerned about long-term relationships.

(Ch. 1) During the __________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did. Select one: a. market-oriented b. value-based marketing c. sales-oriented d. retailing-oriented e. production-oriented

b. value-based marketing In the value-based marketing era, firms began to recognize that value creation was the key to success for most firms.

(Ch. 1) A __________ is the trade of things of value between the buyer and the seller so that each is better off as a result. Select one: a. exchange b. promotional plan c. market segment d. relational orientation e. transactional orientation

a. exchange

(Ch. 1) Which of the following is a core aspect of marketing? a. making product, place, promotion, and price decisions b. creating a product that everyone will want to buy c. satisfying as many needs as possible d. increasing the company's profit e. setting prices lower than all competitors

a. making product, place, promotion, and price decisions 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.

(Ch. 1) 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? a. production-oriented b. market-oriented c. value-based marketing d. sales-oriented e. economics-oriented

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

(Ch. 1) In delivering value, marketing firms attempt to find the most desirable balance between Select one: a. providing benefits to customers and keeping costs down. b. the need for value and the perception of value. c. explicit versus implicit value. d. the desire to satisfy customers and the need to keep customers from running the company. e. the need for product improvement and the need for advertising.

a. providing benefits to customers and keeping costs down. The challenge for all firms is to provide the value customers expect while keeping costs low enough to allow the firm to be profitable.

(Ch. 1) 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. supply chain management. b. capturing value. c. communicating the value proposition. d. creating value. e. value co-creation.

a. supply chain management 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.

(Ch. 1) Marketing provides the critical function of __________ when companies expand globally. Select one: a. understanding customers b. evaluating government stability c. managing personnel d. forecasting economic growth e. managing production efficiency

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

(Ch.1 )Serena studies her customer profiles, market research data, complaints, and other information, attempting to better understand what her customers want. Serena operates in the __________ era of marketing. a. retailing-oriented b. sales-oriented c. market-oriented d. value-based e. production-oriented

d. value-based Serena is attempting to understand her customers' perceptions of value.

(Ch. 1) 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. supply chain management. b. customer relationship management. c. a transactional marketing orientation. d. C2C marketing. e. typical production era marketing practices.

b. customer relationship management 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.

(Ch. 1) When an accounting firm provides an online training module showcasing real-life decision lapses and their negative effect on the company, it is trying to encourage what type of behavior from its employees? Select one: a. casual b. ethical c. strategic d. secretive e. formal

b. ethical The question leads us to understand that the company has created an online training to ensure that the employees act ethically.

(Ch. 1) Marketing enriches society by a. coordinating marketing functions with other functional areas in the company. b. focusing solely on maximizing profits. c. recognizing that the firm can do very little by itself, so it should stay focused on its own core competencies. d. sponsoring charitable events. e. facilitating the smooth flow of goods through the supply chain.

d. sponsoring charitable events. Marketing techniques can be applied to social causes as well as to profit-making enterprises, and the firm's employees can support these causes as well.

(Ch. 1) Which marketing activity is most directly served by the promotion element of the marketing mix? a. creating value b. capturing value c. delivering value d. producing value e. communicating value

e. communicating value The marketing mix activities are promotion (communicating value), product (creating value), price (capturing value), and place (delivering value).

(Ch. 1) Yolanda is the new restaurant manager in a major hotel. When considering changes in the restaurant that will increase value to customers, Yolanda will likely attempt to either provide the same quality at a lower cost or a. increase prices to increase revenue. b. offset higher hotel rates with lower restaurant prices. c. lower the quality and the price. d. reduce customer expectations through reduced service. e. improve products and services at the same cost.

e. improve products and services at the same cost. By improving products at the same cost, Yolanda would create additional value for her customers.

(Ch. 1) 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. value cocreation. b. pricing data. c. promotional capital. d. feedback. e. information.

e. information. 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.

(Ch. 1) The prevailing marketing strategy of the __________ era was to find customers for inventories that went unsold. a. market-oriented b. retailing-oriented c. value-based marketing d. production-oriented e. sales-oriented

e. sales-oriented 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.