Marketing 304 Quiz 1, Marketing Management Chapter 1

The expected earnings stream of a firm's current and prospective customers over some period of time is defined as customer A. profiling. B. equity. C. lifetime value. D. service. E. earning potential.

B. equity.

Wiz Bang Foods put together data to measure sales performance by region of the United States. The Southern region included 25% of the U.S. population and was expected to deliver a similar share of Wiz Bang Foods' sales. This region ended up delivering 30% of the company's overall sales. The performance index for the Southern region would be: A. 120. B. 83. C. 117. D. 1.17. E. 90.

A. 120.

Which of the following statements best explains the "marketing concept"? A. All of a firm's activities and resources should be focused on fulfilling the needs of its customers while making a profit. B. Firms should spend more money on marketing than they have in the past. C. A company's chief executive should previously have been a marketing manager. D. A firm's main emphasis should be on the efficient utilization of its resources. E. A firm should always attempt to give customers what they need, regardless of the cost involved.

A. All of a firm's activities and resources should be focused on fulfilling the needs of its customers while making a profit.

Which of the following statements is true regarding General Electric's (GE) strategic planning grid? A. GE may continue to support an existing yellow business but will probably reject a proposal for a new one, as yellow businesses are borderline cases. B. The opportunities that fall into the red boxes in the lower right-hand corner of the grid are its best growth opportunities. C. The businesses in the green boxes in the upper left-hand corner of the grid suggest a no-growth policy. D. Existing red businesses will continue to generate earnings, and so they deserve continued investment. E. Managers give the opportunities that fall into the green boxes in the upper left-hand corner of the grid low marks on both industry attractiveness and business strengths.

A. GE may continue to support an existing yellow business but will probably reject a proposal for a new one, as yellow businesses are borderline cases.

Which of the following statements is true of marketing-oriented firms? A. In a marketing-oriented firm, every department's activities are guided by what customers need and what the firm can deliver at a profit. B. Marketing-oriented firms focus on making and selling whatever products are easy to produce. C. In marketing-oriented firms, the total system's effort is guided by what individual departments would like to do instead of what customers want. D. In marketing-oriented firms, there is a lack of a central focus, as managers tend to build "fences" around their own departments. E. Marketing-oriented firms think of customers as primarily existing to buy the firm's output.

A. In a marketing-oriented firm, every department's activities are guided by what customers need and what the firm can deliver at a profit.

Which of the following best describes marketing? A. Marketing should guide production, accounting, and financial activities. B. Marketing is limited to the acts of selling and advertising. C. Marketing is most effective when it takes over other company activities, such as production. D. Marketing should follow the lead of production, which determines which goods are produced. E. Marketing's main focus is on completing individual transactions.

A. Marketing should guide production, accounting, and financial activities.

With which of the four Ps of the marketing mix are retailers, wholesalers, warehouses, and transportation firms associated? A. Place B. Promotion C. Price D. People E. Product

A. Place

Which of the following is true of the continuum of environmental sensitivity? A. Some products are more adaptable to foreign markets than others—and thus may be less risky. B. Industrial products usually need to be adapted to foreign markets more than consumer products. C. Consumer products that are linked to other social or cultural variables are easily adaptable to foreign markets and thus involve very little risk in international marketing. D. It is extremely risky to market basic commodities in international markets. E. None of these statements about the continuum of environmental sensitivity is true.

A. Some products are more adaptable to foreign markets than others—and thus may be less risky.

Which of the following statements is true of target marketing? A. Target marketing is limited to fairly homogeneous market segments. B. Target marketing considers everyone to be a potential customer. C. Target marketing applies only for small market segments. D. Target marketing vaguely aims at "everyone" with the same marketing mix. E. Target marketing is typical of a production-oriented approach.

A. Target marketing is limited to fairly homogeneous market segments.

Which of the following scenarios best describes differentiation? A. The firm's marketing mix is distinct from what is available from a competitor. B. The firm changes to a different set of operational decisions when its marketing strategy is not going well. C. The firm aims its efforts at a target market that is different from a target market that a competitor would find attractive. D. The firm screens out opportunities using criteria that are different from those used by other firms. E. The firm uses its resources in a way that is different from the way competitors use their resources.

A. The firm's marketing mix is distinct from what is available from a competitor.

How might firms increase production flexibility? A. by not having "in house" manufacturing B. by building large, special-purpose facilities C. by developing lower-cost marketing plans D. by having brand recognition E. by forming good relationships with retailers

A. by not having "in house" manufacturing

It is sometimes hard to understand and define generic markets because A. different product types may compete with each other. B. generic markets are characterized by broadly different types of needs. C. generic markets are characterized by very few competitors. D. products in generic markets have generically-styled package designs. E. similar product types typically compete with each other.

A. different product types may compete with each other.

Cutbacks in consumer spending and rising inflation are conditions that arise mostly due to factors in the A. economic environment. B. political environment. C. competitive environment. D. technological environment. E. cultural and social environment.

A. economic environment.

A complete product-market definition includes product type, customer needs, customer types, and A. geographic area. B. resource availability. C. advertising patterns. D. marketing intermediaries. E. segmenting dimensions.

A. geographic area.

The Consumer Product Safety Commission A. has broad power to set safety standards and can impose penalties for violation of these standards. B. cannot exercise any power—it can only advise the Federal Trade Commission (FTC). C. was created by the Pure Food and Drug Act. D. is concerned with protecting small businesses from large businesses, rather than protecting consumers. E. has no effect on marketing strategy planning until a product is on the market and proved to be dangerous by a government agency.

A. has broad power to set safety standards and can impose penalties for violation of these standards.

When some consumers see the marketing mixes being offered by various firms as being different, but other consumers consider these alternatives to be close substitutes for each other, the competitive situation is described as A. monopolistic competition. B. regulated competition. C. monopoly. D. pure competition. E. an oligopoly.

A. monopolistic competition.

The first step in the market segmentation process involves A. naming broad product-markets. B. creating a positioning map. C. combining two or more submarkets into one larger target market. D. segmenting markets in order to select target markets. E. developing marketing mixes to meet all customer needs.

A. naming broad product-markets.

Which of the following represents a broad product-market within the generic market of outdoor adventures? A. people who buy fly fishing equipment for fishing trips B. all possible customers C. people who enjoy outdoor adventures D. people who enjoy outdoor adventures in the United States E. loyal customers of Able brand fly fishing reels

A. people who buy fly fishing equipment for fishing trips

Natural Essences, a company that manufactures hair products, offers "dollar-off coupons" to adult women to get them to try its shampoos and conditioners. This is an example of: A. sales promotion. B. publicity. C. product development. D. personal selling. E. diversification.

A. sales promotion.

Which of the following represents the basic goal of the marketing concept? A. satisfying customers at a profit B. making a profit at whatever cost C. producing the largest assortment of goods D.getting customers to buy whatever a firm decides to produce E. aligning with government goals

A. satisfying customers at a profit

Which of the following terms best describes the idea that it is important to meet present needs without compromising the ability of future generations to meet their own needs? A. sustainability B. viability C. profitability D. decentralization E. compromise

A. sustainability

In order to identify potential competitors, it is important to take the viewpoint of _____ when conducting a competitor analysis. A. target customers B. futurists C. supply chain partners D. competitive rivals E. brand managers

A. target customers

A contribution-margin income statement shows: A. the contribution of each department to both fixed costs and profit. B. the effect of a marketing strategy on sales in different areas. C. the marginal costs for producing each new unit of a product. D. the effect of competitors' prices on the profits of a company. E. the contribution of external market factors to the profits or losses of the company.

A. the contribution of each department to both fixed costs and profit.

What is the purpose of a S.W.O.T. analysis? A. to develop screening criteria that will help a company identify what marketing strategy to pursue B. to spot threats to a company's marketing strategy and devise ways to strengthen that strategy to overcome them C. to generate a list of opportunities that are a good fit for a company's current marketing strategy D. to study the competition and determine their strengths and weaknesses E. to identify a company's weaknesses so it can develop a plan to correct them

A. to develop screening criteria that will help a company identify what marketing strategy to pursue

When ranked in importance from greatest to least, the four Ps line up in which of the following orders? A. Place, Product, Price, Promotion B. Product, Price, Promotion, Place C. The four Ps are of equal importance. D. Promotion, Place, Product, Price E. Price, Promotion, Place, Product

C. The four Ps are of equal importance.

Which of the following is the primary function of the North American Free Trade Agreement (NAFTA)? A. to reshape the rules of trade among the United States, Canada, and Mexico B. to eliminate the need to adjust strategies to reach submarkets of consumers C. to make it easier for North American countries to trade with European countries D. to explore the concept of creating a trade-restricted zone for 34 countries across North, South, and Central America E. to restrict trade between the United States and Canada

A. to reshape the rules of trade among the United States, Canada, and Mexico

A firm may find itself in—or moving toward—pure competition A. when customers see the firm's product as having close substitutes. B. when customers see a firm's product as being unique. C. when the number of competitors is small. D. because a firm with a unique product has no choice. E. when customers do not have much information about competing suppliers.

A. when customers see the firm's product as having close substitutes.

GNI is more useful than GDP when trying to determine the income level of the residents of a given country because GDP A. only includes the cost of goods produced and sold, and does not include income from services. B. includes the profits of foreign companies, most of which will leave the host country. C. fails to include the economic losses experienced by firms within a country's borders. D. is inflated to include government contracts that may or not be paid within the given year. E. is calculated by private firms, while GNI is calculated by a country's government.

B. includes the profits of foreign companies, most of which will leave the host country.

Which of the following statements illustrates the 80/20 rule? A. "80 percent of our target market doesn't respond to our marketing mix, and we only have a 20 percent market share." B. "Of the hundred retailers who carry our products, the top twenty account for nearly 80 percent of our total business." C. "20 percent of our marketing effort is wasted, but we don't know which 20 percent." D. "We don't know whether our profits are 20 percent higher than we deserve, or E. only 80 percent of what might be easily obtained." None of these is correct.

B. "Of the hundred retailers who carry our products, the top twenty account for nearly 80 percent of our total business."

Which of the following is not an example of how the economic environment may affect marketing strategy planning? A. Both bicycle manufacturers and bicycle retailers are adjusting marketing strategies as a result of the recession. B. The demand for bicycles is increasing because consumers are becoming more health conscious. C. Because of exchange rates, imported bicycles are cheaper than those made in the United States. D. With the national income on the rise, many people in the United States have the purchasing power to afford expensive bicycles. E. The price of bicycles is rising because of inflation.

B. The demand for bicycles is increasing because consumers are becoming more health conscious.

Which of the following statements is true of generic markets? A. In a generic market, sellers have to focus primarily on how one seller's product is better than that of another producer. B. The generic market includes only three of four aspects of the product-market definition—customer needs, customer types, and geographic area. It does not include product type. C. In a generic market, customers' needs differ from each other significantly. D. A generic market description looks at markets narrowly and from a supplier's viewpoint. E. In a generic market, similar product types compete with each other.

B. The generic market includes only three of four aspects of the product-market definition—customer needs, customer types, and geographic area. It does not include product type.

Which of the following is most likely to serve as a firm's mission statement? A. Create three new product lines during the next 12 months. B. We exist to provide customers with the best shopping experience anywhere in cyberspace. C. We aim to boost annual sales by 15 percent among women 18-35 years of age during the next six months. D. Green is good for the world. E. Promote all brands using viral videos created in-house.

B. We exist to provide customers with the best shopping experience anywhere in cyberspace.

How can expanding into international markets lead to lower prices for a company's products sold in domestic markets? A. through reduced tariffs B. by improving economies of scale C. through increased sales D. by reducing manufacturing costs E. via nationalization

B. by improving economies of scale

Which of the following types of opportunities tends to involve the greatest risk? A. market integration B. diversification C. market penetration D. product development E. market development

B. diversification

Target marketing differs from mass marketing in that target marketing A. is limited to fairly heterogeneous market segments while mass marketing is limited to fairly homogeneous market segments. B. is tailored to fit some specific target customers while mass marketing aims at everyone with roughly the same marketing mix. C. is limited to large market segments while mass marketing is limited to markets that are small and clearly defined. D. considers everyone to be a potential customer while mass marketing considers only a specific group or groups of people to be potential customers. E. is more effective than mass marketing, but is only practical for large firms with significant resources.

B. is tailored to fit some specific target customers while mass marketing aims at everyone with roughly the same marketing mix.

Segmenting A. is the process of positioning a product in the customer's mind. B. tries to aggregate individuals who have similar needs and characteristics. C. is essentially a disaggregating or "break it down" process. D. usually results in firms aiming at heterogeneous and less profitable markets. E. assumes that each individual should be treated as a separate target market.

B. tries to aggregate individuals who have similar needs and characteristics.

Which of the following federal laws passed by the U.S. Congress prohibits fake advertising allowances and limits quantity discounts? A. Consumer Product Safety Act B. Magnuson-Moss Act C. Robinson-Patman Act D. Clayton Act E. Sherman Act

C. Robinson-Patman Act

Capitol Enterprises uses the cost-sales ratio to measure the performance of its salespeople. If, in the past year, a salesperson made $800,000 in sales, had travel expenses of $23,000, and received a base salary of $40,000 plus $6,000 in commissions, what was this sales rep's cost-sales ratio (to the nearest whole number percent)? A. 3 percent B. 6 percent C. 9 percent D. 12 percent E. 15 percent

C. 9 percent

Which of the following statements about a "marketing audit" is true? A. A marketing audit should be conducted only when some crisis arises. B. It probably should be conducted by someone inside the marketing department who is familiar with the whole program. C. A marketing audit should evaluate the company's whole marketing program—not just some parts of it. D. A marketing audit should be handled by the specialist most familiar with each of the marketing plans in the program. E. All of these are true statements.

C. A marketing audit should evaluate the company's whole marketing program—not just some parts of it.

Which of the following is not an example of the micro-macro dilemma? A. Some people like to smoke cigarettes, but the smell annoys many others. B. Nuclear power may reduce your fuel bill, but many people find it to be worrisome. C. Having a dog or cat can teach a child responsibility, but a pet adds expenses to the family budget. D. Aluminum soft-drink cans are convenient, but they are expensive to pick up along the highway. E. Driving fast cars can be fun, but it is hazardous to other people.

C. Having a dog or cat can teach a child responsibility, but a pet adds expenses to the family budget.

Which of the following statements about nonprofit organizations is false? A. Marketing is being more widely accepted by nonprofit organizations. B. The marketing concept provides focus in both business firms and nonprofit organizations. C. In nonprofit organizations, support often comes directly from those who receive the benefits the organization produces. D. A nonprofit organization does not measure profit in the same way as a business firm does. E. The marketing concept is as important for nonprofit organizations as it is for business firms.

C. In nonprofit organizations, support often comes directly from those who receive the benefits the organization produces.

Which of the following is true of the economic environment? A. It is only of concern when changes are widespread. B. It is only important in wealthy countries. C. It can change rapidly. D. It refers to micro-economic factors. E. It has little effect on what customers buy.

C. It can change rapidly.

Which of the following statements about mass marketing is true? A. Mass marketing typically aims at very specific target customers with the same marketing mix. B. Only large firms like General Electric, Target, and Procter & Gamble can use mass marketing. C. Mass marketing assumes that everyone is basically the same. D. The terms "mass marketing" and "mass marketers" essentially mean the same thing. E. Mass marketing usually generates higher profits than target marketing.

C. Mass marketing assumes that everyone is basically the same.

When a large percentage of people are concentrated in urban areas, such as in the United States, A. marketing is unnecessary due to "captive audience" circumstances. B. GNI is negatively affected, but GDP is unaffected. C. Place and Promotion decisions are often simplified. D. competition in the marketplace is less vigorous than it might otherwise be. E. Price decisions are more complicated than when people live in rural areas.

C. Place and Promotion decisions are often simplified.

Which of the following statements about the marketing mix variables is false? A. Promotion includes personal selling, mass selling, and sales promotion. B. A channel of distribution does not have to include any intermediaries. C. The marketing mix variable "Price" is more important than "Place." D. The needs of a target market virtually determine the nature of an appropriate marketing mix. E. The term "Product" can refer to services as well as physical goods.

C. The marketing mix variable "Price" is more important than "Place."

Firms that facilitate or provide one or more of the marketing functions other than buying or selling are known as A. intermediaries. B. suppliers. C. collaborators. D. complementors. E. advisors.

C. collaborators.

Performance analysis differs from sales analysis in that performance analysis involves: A. detailed breakdowns of a company's sales records. B. analyzing only the performance of sales representatives. C. comparing performance against standards-looking for exceptions or variations. D. analyzing only people-not products or territories. E. budgeting for marketing expenditures on the basis of contribution margins.

C. comparing performance against standards-looking for exceptions or variations.

From the perspective of macro-marketing, the discrepancy between the small quantity of a product that individual consumers need and the large quantity that firms produce exists because A. businesses prefer to store products for long periods. B. society has evolved past a subsistence economy. C. firms seek to benefit from economies of scale. D. it is necessary to achieve customer satisfaction. E. businesses can satisfy customers better when they have large inventory surpluses.

C. firms seek to benefit from economies of scale.

To improve the effectiveness of the marketing control process, the marketing manager should: A. realize that most errors are made because managers react to detailed information too quickly-instead of waiting to see what patterns show up in summary reports. B. be the supervisor for the data-processing manager. C. have all necessary data captured as it comes in and in a form that can be quickly sorted and analyzed by computer. D. be certain that all cost records are kept in a central location controlled by the marketing department. E. All of these are true.

C. have all necessary data captured as it comes in and in a form that can be quickly sorted and analyzed by computer.

The text's discussion of "hit-or-miss" marketing suggests that A. firms that do not spend more on marketing than their competitors are likely to fail. B. managers who seek big breakthroughs, rather than going after easier to achieve marketing opportunities, face big risks and are likely to fail. C. it is fairly common for marketing efforts to turn out poorly, so to avoid that fate and get better than average results, a good manager needs to use a logical process for marketing strategy planning. D. getting good marketing results is really quite easy as long as the marketing manager focuses on the four Ps. E. all of these are correct answers.

C. it is fairly common for marketing efforts to turn out poorly, so to avoid that fate and get better than average results, a good manager needs to use a logical process for marketing strategy planning.

Trying to increase sales by selling present products in new markets is known as A. market penetration. B. diversification. C. market development. D. product development. E. market integration.

C. market development.

With regard to the universal functions of marketing, the transporting function involves A. promoting the product. B. bearing the uncertainties that are part of the marketing process. C. moving goods from one place to another. D. sorting products according to size and quality. E. holding goods until customers need them.

C. moving goods from one place to another.

International marketing is attractive for all of the following reasons except that A. going global can help marketers gain a competitive advantage through lower costs and economies of scale. B. the world is becoming smaller due to advancements in transportation and communications. C. regulations in foreign countries can be highly complex. D. international markets may offer fresh demand for products experiencing slow demand at home. E. it is becoming more affordable for a business to access large numbers of consumers around the world.

C. regulations in foreign countries can be highly complex.

Sales and marketing activity in international markets can be blocked by ______, which emphasize a country's interests above all else. A. unified markets B. environmental concerns C. strong feelings of nationalism D. free trade agreements E. technological advances

C. strong feelings of nationalism

Government planning in a command economy is least likely to work well when A. the variety of goods and services is limited. B. there is political instability. C. the economy is complex. D. the economy is simple. E. there is drought.

C. the economy is complex.

Which of the following functions of marketing involves sorting products according to their size and quality, helping to reduce their need for inspection, and sampling? A. the storing function B. the market information function C. the standardization and grading function D. the buying function E. the risk-taking function

C. the standardization and grading function

Which of the following activities is part of the production process? A. deciding whether to sell goods directly to consumers or through retailers B. determining how many people will want to purchase goods or services C.making goods or performing services D. identifying competing companies E. estimating the prices potential customers are willing to pay

C.making goods or performing services

A marketing audit should help determine if: A. current marketing strategies are good ones. B. the company's marketing objectives are reasonable. C. implementation of a marketing program was effective. D. All of these are correct.

D. All of these are correct.

Sales analysis: A. typically involves reorganizing existing information rather than gathering new information. B. may involve analyzing many different breakdowns of overall sales. C. is usually a good first step when setting up a control system. D. All of these are true.

D. All of these are true.

Which of the following is true of publicity? A. It involves the internal marketing of a product or service. B. It is a form of personal communication. C. It involves the use of coupons, samples, events, and contests. D. It is an unpaid form of communication. E. It is explicitly sponsored by an advertiser.

D. It is an unpaid form of communication.

Which of the following statements is true of marketing? A. A marketing exchange focuses on making a single transaction. B. Marketing should begin with the production process followed by potential customer needs. C. Marketing activities are limited to selling and advertising. D. Marketing only occurs when two or more parties are willing to exchange one thing for another thing. E. Marketing only applies to for-profit (not nonprofit) organizations.

D. Marketing only occurs when two or more parties are willing to exchange one thing for another thing.

Which of the following statements is true of the technological environment? A. Technology does not affect core marketing processes. B. It is usually clear how a technology just on the horizon might change a business. C. Technological change shuts out new opportunities. D. Most technological developments come out of nowhere. D. Technology foreshadows breakthrough opportunities.

D. Technology foreshadows breakthrough opportunities.

Which of the following statements is true of the marketing management process? A. The marketing management process is the process of planning marketing activities, but not directing or controlling the implementation of these plans. B. Marketing management involves implementing plans that have been made by, and remain controlled by, others. C. Marketing managers focus only on planning for the present market because consumers' needs, competitors, and the environment hardly ever change. D. The marketing management process is the process of planning marketing activities, directing the implementation of the plans, and controlling these plans. E. The marketing management process is a discontinuous process because the three jobs in the process are not interconnected.

D. The marketing management process is the process of planning marketing activities, directing the implementation of the plans, and controlling these plans.

Reyhan operates a food truck. When he started his business, he decided that he would try to locate his truck wherever the largest amount of pedestrians could be found. For months he has stationed his truck in the downtown core. Today, however, he decides to position it near a newly opened museum that is drawing big crowds. This is an example of A. customer service. B. selecting a target market. C. a change in strategy. D. an operational decision. E. diversification in action.

D. an operational decision.

The ____ approach shows operating managers and salespeople what they've actually contributed to covering general overhead and profit. A. net margin B. full-cost C. marketing overhead D. contribution margin E. net profit

D. contribution margin

Which of the following is not an element of the external market environment? A. cultural and social environment B. political and legal environment C. economic environment D. direct environment E. technological environment

D. direct environment

A firm lists its products on Amazon.com, enabling customers to make their purchases online. This is an example of A. storing. B. standardization and grading. C. production. D. e-commerce. E. risk-taking.

D. e-commerce.

According to the "80/20 rule": A. marketing accounts for 80 percent of the consumer's dollar. B. only 20 out of every 100 firms use formal marketing control programs. C. about 20 percent of a typical firm's customers are unprofitable to serve. D. even though a firm might be showing a profit, 80 percent of its business might be coming from only 20 percent of its products or customers. E. None of these is correct.

D. even though a firm might be showing a profit, 80 percent of its business might be coming from only 20 percent of its products or customers.

The variables that a company puts together in an attempt to satisfy a particular set of customers that it wants to appeal to is called a A. product. B. mass market. C. target market. D. marketing mix. E. sales promotion.

D. marketing mix.

Having segmented its broad product-market, Martinez Corp. has decided to treat its two chosen submarkets as separate target markets, with each requiring different marketing mixes. Which of the following approaches to developing market-oriented strategies is Martinez Corp. applying in this scenario? A. single target market approach B. separate target market approach C. general target market approach D. multiple target market approach E. combined target market approach

D. multiple target market approach

In a command economy, A. producers get to decide what and how much is to be produced and distributed. B. activities such as market research, branding, and advertising are performed frequently. C. the prices set by government planners tend to be very flexible and change according to supply and demand. D. producers have little choice about what goods and services to produce.

D. producers have little choice about what goods and services to produce.

When a firm manufactures a product and is uncertain about whether customers will want to buy its products, that firm is experiencing the ______ function of marketing. A. intermediary B.grading C. market information D. risk-taking E. selling

D. risk-taking

When segmenting a broad product-market, it is especially important that marketers create segments A. that are simple. B. where the members of a given segment are as similar as possible. C. that are very distinct from each other. D. that are operational. E. that are as large as possible.

D. that are operational.

The customer is A. a secondary component of a marketing mix. B. the entity that selects a marketing mix. C. not related to a marketing mix. D. the target of a marketing mix. E. the primary component of a marketing mix.

D. the target of a marketing mix.

Which of the following is the purpose of free trade agreements? A. to make it easier for workers to travel between countries B. to boost country GNI numbers C. to eliminate the need for taxation of goods D. to eliminate import and export barriers between countries E. to ensure two countries trade only with each other

D. to eliminate import and export barriers between countries

A generic market... A. has customers with broadly similar needs. B. often includes consumers who will satisfy the same need in quite different ways. C. often involves sellers who compete in different product-markets. D. often includes sellers who offer diverse ways of satisfying a need. E. has all of these characteristics.

E. has all of these characteristics.

Based on the following company statements, which company is most likely to be in the marketing company era? A. "Our sales force was able to sell to intermediaries more of our new product than they can resell in all of this year." B. "The whole company is in good shape—demand exceeds what we can produce." C. "Our new president previously led our marketing effort as vice president of sales." D. "Our marketing manager is coordinating pricing, product decisions, promotion, and distribution to help us show a profit at the end of this year." E. "Our long-range plan—developed by our marketing manager—is to expand across regions so that we can profitably meet the long-term needs of our customers."

E. "Our long-range plan—developed by our marketing manager—is to expand across regions so that we can profitably meet the long-term needs of our customers."

Which of the following is a characteristic of a product-market? A. It is a market with a broad set of customers who have a wide variety of needs. B. It is a market where only tangible goods are sold. C. It is a market with a single seller but multiple buyers. D. It is a market in which sellers offer very similar methods of satisfying customer needs. E. All of these choices are characteristic of a product-market.

E. All of these choices are characteristic of a product-market.

Which of the following is true of a market-directed economy? A. Producers are expected to fill quotas predetermined and assigned by the government. B. There is little to no government oversight, monopolies are common, and a "buyer beware" mentality rules the market. C. The cost of goods is set by the government with little regard for whether or not customers feel they are getting their money's worth. D.It only works well when the economy is simple and consumers are provided with a limited number of choices. E. Macro-level decisions for the whole economy are based on the individual decisions of the economy's many producers and consumers.

E. Macro-level decisions for the whole economy are based on the individual decisions of the economy's many producers and consumers.

Which of the following is a difference between business firms and nonprofit firms with regard to the marketing concept? A. Nonprofit organizations, unlike other business firms, do not need to take in as much money as they spend in order to survive. B. Nonprofit organizations should put less emphasis on their marketing concepts than for-profit business firms do. C. Nonprofit organizations, unlike other business firms, do not face competition for the resources and support they need. D. Nonprofit organizations receive support from their beneficiaries, as opposed to business firms. E. Nonprofit organizations' key measures of long-term success differ from those of other business firms.

E. Nonprofit organizations' key measures of long-term success differ from those of other business firms.

Which variable of the marketing mix may involve a physical good, a service, or a blend of both? A. Place B. Promotion C. Price D. Person E. Product

E. Product

_________ are the two basic approaches to handling marketing cost allocation problems. A. The average-cost approach and the break-even approach B. The performance-analysis approach and the sales-analysis approach C. The revenues approach and the expenses approach D. The gross margin approach and the net margin approach E. The full-cost approach and the contribution-margin approach

E. The full-cost approach and the contribution-margin approach

As part of its plans for long-term success, a company that manufactures frozen dinners focuses specifically on making a profit while using sustainably farmed ingredients and compostable packaging that both employees and customers can feel good about. Which of the following best describes the guidelines this company is using to measure its long-term success? A. government regulations B. a production quota C. production orientation D. customer utilization E. a triple bottom line

E. a triple bottom line

When looking for attractive opportunities, a marketing manager for a clothing manufacturer should consider A. the firm's capability to produce. B. the firm's financial strengths. C. whether the firm has good relations with established clothing retailers. D. the firm's brand awareness. E. all of these answers.

E. all of these answers.

According to the continuum of environmental sensitivity, which of the following products would be least risky to introduce in a foreign market? A. papaya juice B. local food delicacies C. lemon scented dishwashing soap D. clothing tied to unique cultural practices E. an industrial welding machine

E. an industrial welding machine

A marketing program A. is another name for a particular marketing mix. B. consists of a target market and the marketing mix. C. must be set before a target market can be selected. D. is primarily concerned with all of the details of implementing a marketing plan. E. blends all of the firm's marketing plans into one overall plan.

E. blends all of the firm's marketing plans into one overall plan.

Which of the following terms can be defined as the extent to which a firm fulfills a customer's needs, desires, and expectations? A. customer value B. customer equity C. organizational viability D. social responsibility E. customer satisfaction

E. customer satisfaction

Sales analysis is a: A. well-accepted trend analysis method. B. necessity for making all important marketing decisions. C. way of assuring that future sales will be profitable. D. detailed report of likely profitability. E. detailed breakdown of a company's sales records.

E. detailed breakdown of a company's sales records.

Which of the following best describes a breakthrough opportunity? A. creating a marketing strategy that offers a competitive advantage B. establishing a marketing strategy planning process C. making a concerted push to expand into new markets D. developing a marketing strategy that guarantees future success E. developing an innovative and hard-to-copy marketing strategy

E. developing an innovative and hard-to-copy marketing strategy

With reference to the measures of national income, gross domestic product (GDP) differs from gross national income (GNI) in that GDP A. only includes the market value of all the services provided in a country's economy in a year, by residents of that country. B. includes the cost of goods sold within a given year, but not services sold during the same time. C. excludes the income earned by nonresidents of a nation who own resources in that nation. D. does not consider the variables of small-scale industries and self-help groups. E. includes the income earned by foreigners who own resources in a nation, which GNI excludes.

E. includes the income earned by foreigners who own resources in a nation, which GNI excludes.

Macro-marketing A. applies to only nonprofit organizations—not profit organizations. B. places emphasis on the activities of individual organizations. C. seeks to match homogeneous supply capabilities with homogeneous demands for goods and services. D. is not concerned with how marketing affects society. E. is concerned with the flow of need-satisfying goods and services from producer to consumer.

E. is concerned with the flow of need-satisfying goods and services from producer to consumer.

A _____ specifies a target market and a related marketing mix. A. marketing survey B. market program C. market test D. marketing report E. marketing strategy

E. marketing strategy

Which form of promotion involves direct spoken communication between sellers and potential customers that may happen face-to-face, over the telephone, or via a videoconference over the Internet? A. publicity B. advertising C. sales promotion D. mass selling E. personal selling

E. personal selling

A marketing "performance analysis" is most likely to compare: A. an individual sales rep's performance to total company sales. B. a firm's sales with its competitors' sales. C. sales by product to sales by territory. D. advertising cost to sales. E. planned sales with actual sales.

E. planned sales with actual sales.

In the context of the universal functions of marketing, the _____ function of marketing involves holding goods until customers need them. A.buying B. transporting C. standardizing and grading D. selling E. storing

E. storing

Which of the following is not a variable associated with the cultural and social environment? A. education level B. the role of women in society C. religious belief D. language E. technological innovation

E. technological innovation

Which of the following is not a reason why a restaurant may have low customer value? A. the restaurant has an unfavorable location B. the restaurant's customers perceive the prices to be too high C. the dining experience is not worth the long wait for a table D. the food is not flavorful E. the cost of the dining experience is less than its perceived value

E. the cost of the dining experience is less than its perceived value

The concept of social responsibility is challenging for marketers except when A. environmentally-minded product adjustments result in inferior products. B. most consumers are unconcerned with a product's benefits to society or the environment. C. costs related to social responsibility initiatives have a negative impact on profits. D. the needs of society conflict with the needs of individual consumers. E. the needs of consumers and the society can be served at a profit.

E. the needs of consumers and the society can be served at a profit.

What is the purpose of a competitor matrix? A. to reduce the likelihood that competing firms will produce similar products B. to enable a firm to identify potential rivals offering similar products C. to increase a firm's chances of entering into a monopoly D. to implement changes to a firm's marketing mix E. to help a firm compare its strengths and weaknesses with those of its competitors

E. to help a firm compare its strengths and weaknesses with those of its competitors

The contribution-margin approach focuses attention on _____ rather than on ______. A. fixed costs; variable costs B. gross margins; net margins C. total costs; fixed costs D. overheads; fixed costs E. variable costs; total costs

E. variable costs; total costs